ProAssurance (PRA) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 358.37K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.32
• Revenue Growth: -3.35%
• EPS Growth: -21.82%
• Country: US
• Employees: 1,036
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.15
• Shares Outstanding: 51,413,643
• 10 Day Avg. Volume: 418,865
• 30 Day Avg. Volume: 358,371
• PEG Ratio: -0.06
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -41.20
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 6.81
• Enterprise Value/Ebitda: 21.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $24.50 ▲(1.96% Upside)

ProAssurance's overall score is primarily influenced by its financial performance, which shows significant challenges in revenue growth and cash flow management. The technical analysis suggests a neutral market sentiment, while the valuation indicates the stock is relatively expensive. The strong balance sheet provides some stability, but improvements in cash flow and operational efficiency are crucial for future growth.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, enabling the company to withstand market fluctuations and invest in growth opportunities.

Strategic Partnership

The partnership with The Doctors Company enhances scale and capabilities, strengthening market position and offering long-term growth potential in the healthcare insurance sector.

Investment Income

Investment income from premiums provides a significant earnings stream, supporting financial performance and offering resilience against underwriting losses.

Negative Factors

Revenue Decline

Significant revenue decline impacts profitability and operational efficiency, posing challenges to sustaining growth and maintaining competitive advantage.

Cash Flow Issues

Negative cash flows indicate inefficiencies in operations, limiting the company's ability to reinvest in growth and manage financial obligations effectively.

Declining Profit Margins

Declining profit margins suggest pressure on operational efficiency, which could hinder the company's ability to generate sustainable profits over time.

ProAssurance Business Overview & Revenue Model

Company Description

ProAssurance Corporation (PRA) is a leading provider of professional liability insurance, primarily focused on the healthcare sector. The company operates through several segments, including medical professional liability, workers' compensation, and general liability insurance. ProAssurance specializes in offering coverage to a wide range of healthcare professionals and institutions, ensuring that they are protected against potential legal claims and liabilities arising from their services.

How the Company Makes Money

ProAssurance generates revenue primarily through insurance premiums collected from policyholders in its various segments. The company underwrites policies for healthcare providers and organizations, charging premiums based on the assessed risk associated with each insured party. Additionally, ProAssurance earns investment income from its portfolio of invested premiums, which is a significant contributor to its overall earnings. The company also benefits from reinsurance agreements that help manage risk exposure and stabilize financial performance. Strategic partnerships with healthcare associations and professional organizations enhance its market reach and credibility, further supporting its revenue generation.

ProAssurance Financial Statement Overview

Summary

ProAssurance faces challenges in revenue growth and cash flow management, with declining profitability margins. However, the company maintains a strong balance sheet with low leverage, providing some financial stability. Focus on improving cash flow and operational efficiency is essential for future growth.

Income Statement

ProAssurance's income statement shows mixed results. The TTM data indicates a decline in revenue growth at -51.2%, which is concerning. Gross profit margin is relatively healthy at 22.45% for the latest annual report, but net profit margin has decreased to 3.03% in the TTM, down from 4.68% in the previous year. EBIT and EBITDA margins have also declined, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.0117 in the TTM, significantly reduced from 0.368 in the previous year. Return on equity has decreased to 2.69% in the TTM from 4.39% previously, suggesting reduced profitability. However, the company's high equity ratio indicates financial stability.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM. The free cash flow growth rate is negative at -53.19%, indicating cash flow issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.13B	1.13B	1.10B	1.08B	886.86M
Gross Profit	246.51M	253.34M	195.11M	191.86M	212.58M	114.85M
EBITDA	79.94M	103.17M	10.02M	52.22M	203.57M	-180.18M
Net Income	33.71M	52.74M	-38.60M	-402.00K	144.12M	-175.73M
Balance Sheet
Total Assets	5.55B	5.57B	5.63B	5.70B	6.19B	4.65B
Cash, Cash Equivalents and Short-Term Investments	4.02B	3.89B	65.90M	3.75B	4.19B	3.01B
Total Debt	436.84M	442.26M	444.31M	446.99M	445.83M	304.83M
Total Liabilities	4.25B	4.37B	4.52B	4.60B	4.76B	3.31B
Stockholders Equity	1.30B	1.20B	1.11B	1.10B	1.43B	1.35B
Cash Flow
Free Cash Flow	-18.23M	-19.73M	-54.67M	-34.19M	70.13M	84.86M
Operating Cash Flow	-12.71M	-10.71M	-49.88M	-29.84M	73.97M	92.34M
Investing Cash Flow	37.26M	10.67M	141.14M	-62.00M	-85.53M	-8.48M
Financing Cash Flow	-15.39M	-10.97M	-55.31M	-21.80M	-60.62M	-43.45M

ProAssurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRA, the sentiment is Positive. The current price of 24.03 is below the 20-day moving average (MA) of 24.06, below the 50-day MA of 24.04, and above the 200-day MA of 23.25, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 54.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRA.

ProAssurance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAFT	75 Outperform	$1.17B	13.31	9.97%	4.65%	13.35%	16.56%
ACIC	73 Outperform	$621.27M	7.43	29.35%	―	16.34%	-1.26%
UFCS	71 Outperform	$940.71M	8.69	13.21%	1.72%	12.22%	120.73%
UVE	69 Neutral	$950.58M	8.00	27.34%	2.20%	4.61%	73.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$733.35M	8.46	15.10%	3.51%	0.93%	224.95%
PRA	55 Neutral	$1.24B	36.72	2.66%	―	-3.35%	-21.82%

ProAssurance Corporate Events

ProAssurance Reports Q3 2025 Financial Results

On November 4, 2025, ProAssurance Corporation reported its financial results for the third quarter of 2025, with a net income of $1.4 million and operating income of $7.9 million. The company continues to make progress in adjusting premium rates to match challenging market conditions. The announcement also highlighted an 8% increase in Specialty P&C renewal premiums and a consolidated Non-GAAP combined ratio of 112.2% for the quarter. ProAssurance is in the process of merging with The Doctors Company, with regulatory approvals pending in several states, and anticipates closing the transaction by June 30, 2026.