ProAssurance (PRA) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 396.50K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.30
• 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: 354,271
• 30 Day Avg. Volume: 396,500
• 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: 1.36
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 25.04
• 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: 64 Neutral
• Price Target: $26.00 ▲(8.02% Upside)

ProAssurance's overall stock score is driven by strong technical indicators and positive corporate events, including a strategic merger. However, financial performance challenges, particularly in cash flow and profitability, moderate the score.

Positive Factors

Strategic Merger

The merger with The Doctors Company is set to enhance ProAssurance's market position by combining resources and expertise, potentially leading to improved service offerings and market reach in the medical professional liability sector.

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, allowing ProAssurance to maintain profitability despite revenue challenges, supporting long-term financial health.

Low Leverage

Low leverage provides ProAssurance with financial stability and flexibility to invest in growth opportunities without the burden of heavy debt, enhancing long-term resilience.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests challenges in expanding sales and market share, potentially impacting ProAssurance's ability to scale and compete effectively in the long term.

Declining Net Profit Margin

A declining net profit margin indicates reduced profitability, which may affect ProAssurance's ability to reinvest in business growth and maintain competitive advantages over time.

Cash Flow Challenges

Negative operating cash flow and volatile free cash flow growth highlight liquidity issues, potentially limiting ProAssurance's capacity to fund operations and strategic initiatives sustainably.

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 profitability, with declining margins and negative cash flows. However, the company maintains a strong balance sheet with low leverage, providing some financial stability.

Income Statement

ProAssurance's income statement shows mixed results. The TTM gross profit margin is strong at 83.46%, indicating efficient cost management. However, the net profit margin has decreased to 4.37% from 13.40% in 2021, reflecting declining profitability. Revenue growth has been negative recently, with a -1.21% TTM rate, suggesting challenges in increasing sales. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low TTM debt-to-equity ratio of 0.0125, indicating low leverage. The return on equity is modest at 3.94%, showing limited profitability from equity. The equity ratio is not explicitly calculated, but the low debt levels suggest a strong equity base relative to assets.

Cash Flow

Cash flow analysis reveals significant challenges. The TTM operating cash flow is negative, and the free cash flow growth rate is volatile, though it improved by 68.77% recently. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is positive at 1.24, suggesting some ability to generate cash relative to net income.

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	192.49M	253.34M	195.11M	191.86M	212.58M	114.85M
EBITDA	67.03M	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	345.80M	3.89B	65.90M	275.27M	4.19B	3.01B
Total Debt	15.32M	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	-15.07M	-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	-6.58M	-10.97M	-55.31M	-21.80M	-60.62M	-43.45M

ProAssurance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 24.07 is above the 20-day moving average (MA) of 24.03, above the 50-day MA of 23.94, and above the 200-day MA of 21.98, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 47.40 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
UFCS	79 Outperform	$901.42M	8.33	13.21%	1.77%	12.22%	120.73%
SAFT	75 Outperform	$1.11B	12.68	9.97%	5.31%	13.35%	16.56%
UVE	74 Outperform	$942.72M	7.93	27.34%	2.29%	4.61%	73.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRA	64 Neutral	$1.24B	36.72	2.66%	―	-3.35%	-21.82%
ACIC	64 Neutral	$592.01M	7.01	29.35%	―	16.34%	-1.26%
DGICA	62 Neutral	$684.85M	7.93	15.10%	3.74%	0.93%	224.95%

ProAssurance Corporate Events

ProAssurance Reports Strong Q2 2025 Financial Results

On August 5, 2025, ProAssurance Corporation reported its financial results for the second quarter of 2025, highlighting a net income of $21.9 million and operating income of $26.8 million. The company demonstrated progress in achieving premium rate levels suitable for the challenging medical professional liability market, with a stable net premium written of $135.9 million. The quarter also saw a 10% increase in Specialty P&C renewal premiums and an improvement in the consolidated Non-GAAP combined ratio by 9.5 percentage points compared to the previous year. Additionally, the company announced a merger with The Doctors Company, which received stockholder approval and early termination of the waiting period under the Hart-Scott-Rodino Act, with the transaction expected to close in the first half of 2026.

ProAssurance Merger Advances with FTC Approval

On March 19, 2025, ProAssurance Corporation and The Doctors Company entered into a merger agreement, with ProAssurance becoming a wholly owned subsidiary of The Doctors Company. The U.S. Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period on July 2, 2025, satisfying a key condition for the merger’s completion, expected in the first half of 2026. Both companies will continue to operate independently until the merger is finalized, pending remaining regulatory approvals.

ProAssurance Stockholders Approve Acquisition by The Doctors Company

On June 24, 2025, ProAssurance Corporation announced that its stockholders approved the proposed acquisition by The Doctors Company, with over 99% of shares voting in favor. The transaction, expected to close in the first half of 2026, is subject to regulatory approvals and customary conditions. Upon completion, ProAssurance will become a wholly owned subsidiary of The Doctors Company, and its stock will be delisted from the New York Stock Exchange. The merger aims to combine the strengths of both companies to better serve healthcare providers, leveraging their shared history in the medical professional liability market.