ProAssurance Corporation (PRA): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

Headquartered in Birmingham, Ala., ProAssurance Corporation operates as a holding company for many property and casualty insurance companies. With a single business segment principally in the Mid-Atlantic, Midwest and Southern U.S., the company provides professional liability insurance products primarily to physicians, dentists, other health care providers and health care facilities through its subsidiaries. To some extent, the company also engages in legal professional liability business in the Midwest. The core operating subsidiaries of PRA include Medical Assurance Company Inc., ProNational Insurance Company, NCRIC Inc., Physicians Insurance Company of Wisconsin Inc. (PIC Wisconsin) and Red Mountain Casualty Insurance Company.

In Dec 2012, ProAssurance executed a 2:1 stock split, while its cash dividend policy was initiated in Sep 2011.

ProAssurance is the successor to many insurance organizations and much of its economic and geographic growth has come through mergers and acquisitions. To maintain active relationships with its customers and be more responsive to their needs, the company provides localized and timely attention through its multiple claims and underwriting offices, each primarily focused on a specific market. Its largest competitors are Medical Protective Company (Berkshire Hathaway) and Doctors Company.

ProAssurance continues to grow concomitantly through acquisitions and business combinations. In 2009, the company acquired Mid-Continent and Georgia Lawyers and purchased Podiatry Insurance Company of America and subsidiaries (PICA).

The company also writes medical professional liability insurance through its non-core operating subsidiary, Woodbrook Casualty Insurance Inc. Meanwhile, on Nov 30, 2010, ProAssurance added the second largest writer of medical professional liability, American Physicians Service Group Inc. (APS) in its basket for a fair value of $237 million.

On Nov 30, 2012, ProAssurance acquired Independent Nevada Doctors Insurance Exchange IND, following which IND became a subsidiary of ProAssurance.

On Jan 1, 2013, ProAssurance acquired Medmarc Mutual Insurance Company and subsidiaries (Medmarc) for a cash consideration of $153.7 million.

On Jan 1, 2014, ProAssurance acquired Eastern Insurance Holdings, Inc. (Eastern) through an all cash transaction of $205 million.