ProAssurance (PRA) 8-K Regulation FD Disclosure

This presentation contains Forward Looking Statements and other information designed to convey
our projections and expectations regarding future results. There are a number of factors which
could cause our actual results to vary materially from those projected in this presentation. The
principal risk factors that may cause these differences are described in various documents we file
with the Securities and Exchange Commission, such as our Current Reports on Form 8-K, and our
regular reports on Forms 10-Q and 10-K, particularly in “Item 1A, Risk Factors.” Please review
this presentation in conjunction with a thorough reading and understanding of these risk factors.

This presentation contains Non-GAAP measures, and we may reference Non-GAAP measures in
our remarks and discussions. A reconciliation of these measures to GAAP measures is available in
our latest quarterly news release, which is available in the Investor Relations section of our website,
www.ProAssurance.com, and in the related Current Reports on Form 8K disclosing that release.

FORWARD LOOKING STATEMENTS

1

NON-GAAP MEASURES

ProAssurance Overview

We are the only pure-play, publicly-traded
healthcare professional liability (HCPL)
insurance company in America.

ProAssurance Corporate Profile

Specialty writer of professional liability insurance

Primarily Healthcare Professional Liability (HCPL)

Only pure play public company writing predominately
HCPL

Market Cap: ~$2.7 billion

Shareholders’ Equity: $2.2 billion

Total Assets: $5 billion

Annualized dividend yield is 1.1% / $0.25/share

Rated “A” by Fitch and A. M. Best

3

ProAssurance Corporate Profile

Evolving strategy is successfully adding business across the
risk spectrum as the delivery of healthcare changes

Distribution is Independent Agent (62%) and Direct (38%)

Direct in Alabama, Florida and in all states for Podiatric business

Dual distribution in DC, Texas and parts of Missouri

Q1 2011 Policyholders: ~71,000

2011 Gross Written Premium: $566 million

ProAssurance Geographic Profile

Broad geographic diversification

Locally-based decision-making differentiates ProAssurance by
addressing each state’s unique medical/legal challenges

5

Corporate Headquarters

Corporate Headquarters

(Birmingham)

2010 Market Share: Six-Ten

2010 Market Share: Six-Ten

ProAssurance Footprint

March 31, 2012

This is What Differentiates our Company

Our commitment to Treated Fairly

Unwavering dedication to the defense of
non-meritorious lawsuits

Allows our insureds the right to an unfettered defense of
their claims where permitted by law

Steadfast dedication to in-depth underwriting and
adequate pricing

An unsurpassed level of customer service

Unquestioned financial strength consistently
delivering value for insureds and shareholders

6

Success Throughout the Insurance Cycle

7

Historical Book Value Per Share

Inception to 3/31/12
CAGR: 16%

Cumulative:1872%

10 Year Summary (2002 -2011)
CAGR: 16%

Cumulative: 342%

Inception to 5/15/12
CAGR: 15%

Cumulative:1606%

10 Year Summary (2002 -2011)
CAGR: 16%

Cumulative: 280%

Healthcare Professional Liability is Unique

Differs greatly from personal lines and
commercial lines insurance.

Understanding the tale of the “tail.”

HCPL Stands Apart in Insurance

HCPL claims may not be filed for years after an
incident and may take years to resolve: Long-tail

Personal lines are short tail

Introduces long periods of uncertainty

Loss trends may change expected severity from time of
initial pricing

Can provide a false sense of security for start-ups and
companies seeking to aggregate market share based on price

Float can be meaningful

HCPL claims are almost always lawsuits

High cost to defend, even if you win

9

The HCPL Industry Cycle

10

(Estimated)

(Actual)

Premium in
millions

Industry Data 1976 Through 2009

Source: A. M. Best Aggregates and Averages
Medical Malpractice Industry, Net Basis Occurrence and Claims-Made Combined

The HCPL Market Today

Prolonged period of “benign profitability”

Premiums levels remain well above levels of 2000

Significant policyholder retention by all companies
despite fierce competition

No large commercial carriers have entered the market
in a meaningful manned

Significant barriers to entry in underwriting and claims
handling

Psychological barriers exist—failures in the past

No Catastrophe exposure

11

The HCPL Market Today

Changes in healthcare delivery are changing the
underlying dynamics

Physicians are combining into larger groups

Physician practices are being brought into hospitals through
purchase or affiliation

Hospitals are combining into large networks requiring
greater insurance expertise and greater financial security

Larger companies with geographical reach and
financial strength will have an advantage in attracting
new business and continuing to consolidate

12

The HCPL Market Today

Market remains fragmented even after two
decades of consolidation

More than 100 writers

Largest market share is <8%

100 companies have <1%

13

ProAssurance in the Marketplace

We ensure that we deliver an unparalleled level of
service and financial stability that truly
differentiates our coverage and our Company.

Local Knowledge and National Reach

Medical/Legal environment varies by state

Often varies within states

Regulatory environment differs greatly

May limit the ability to ensure that rates accurately
reflect loss trends

Can affect the ability to introduce policy or
procedural changes

Overall business climate differs and can change

Demographics of the medical population and
consumers

15

ProAssurance Operational Philosophy

Maintain our profitability and grow book value

Ensure outstanding performance in a challenging
financial market and a demanding line of insurance

Focus on long-term

Maintaining balance sheet strength and institutional
expertise to prepare for a changing market

Leverage financial strength

Protects the balance sheet

Maintains our leading market position

Build strength for the next cycle turn

16

Underwriting for Profitability Not Market Share

Underwriting process driven by individual risk
selection and assessment of loss history, areas
of practice, and location

Rates contemplate specific ROE expectations

Frequent rate/loss reviews ensure adequate prices

Rate filings consider the results of the past five to
seven years to ensure a single year does not unduly
influence results

Stringent underwriting standards maintain rate
structure and enhance profitability

17

ProAssurance and Today’s Market

Peak pricing was in 2006

Improved frequency trends are reflected in recent rate declines

Improvement in frequency has outweighed the steady, manageable rise in severity

Loss trends have improved in states with and without tort reforms

Rate changes (up or down) through 2012 will likely be low-to-mid single digits

MD/DO Rate Change History

PICA excluded to facilitate accurate comparisons over time

ProAssurance and Today’s Market

ProAssurance’s retention remains at historically high
levels

Continued underwriting vigilance is being used today
to ensure future success

19

New Claims Opened Each Year

Claims Trends Remain Favorable

Fewer cases to try following significant decline in frequency

Severity trends steady and manageable

No observed effect from the economic downturn

Trends are much the same in states with or without Tort Reform

20

ProAssurance Claims Tried to a Verdict

Understanding Recent Loss Trends

Frequency stable after
historic declines

Lawyers are the gatekeepers

Must weigh the cost of a trial vs.
chances of success

Likelihood of success is affected
by many factors

Societal perceptions of lawsuits
against physicians

Effects of the overall tort reform
debate and headlines across the
country

Reforms enacted in some states

Better quality of care reduces the
number of medical misadventures

21

Severity uptrend remains
steady at 3%-4%

Closely tied to inflation

Primarily medical cost inflation

Jury sentiment in reaction to
headlines has moderated, but
not eliminated, runaway
verdicts in recent years

Tort Reforms have limited
non-economic damages in a
number of states

ProAssurance Business Outlook

We ARE writing new business that we believe
will meet our profitability goals

$68 million in new physician business in 2011

Approximately $48 million due to AMPH

Includes approximately $6.5 million in first year claims-
made premium in the Certitudetm program

Major competitors continue to belargely
disciplined in pricing

No new market entrants

22

Calendar Year Combined Ratio: ProAssurance Consistently Outperforms

ProAssurance Outperforms the Industry

23

Five Years:ProAssurance Average:73.5%/Industry Average:83.3%

Ten Years:ProAssurance Average:94.2%/Industry Average:106.3%

All Years:ProAssurance Average:93.6%/Industry Average:109.7%

Source: A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business

Consistent Approach to Reserves

Consistent reserving practices provide protection
against a loss trend reversal and capital erosion

Net Favorable Reserve Development

Net Reserve per Open MPL Claim1

1Statutory basis; Loss & LAE
Acquired company data included at end of acquiring year

Differentiate Through Claims Defense

We leverage our financial strength to gives our insureds the opportunity for
an uncompromising defense of their claim

Differentiates our product

Provides long-term financial and marketing advantages

Retains business and deters future lawsuits

Increasingly important as claims data becomes public

Malpractice outcomes now public in 26 states

ProAssurance: 79% No Paid Losses

Industry: 72% No Paid Losses

Source:PIAA 2010 Claim Trend Analysis
ProAssurance Excluded

Five Year Average
2006-2010

The Ohio Example: 2005 - 2010 Data

Comprehensive, reliable data provided by the Ohio Department of Insurance

Broad range of competitors and business approaches

26

www.insurance.ohio.gov/Legal/Reports/Documents/2010ClosedClaimReport.pdf

Fewer Claims Closed With Indemnity

More Claims Defended in Court

2x Lower Average Indemnity Payment per Closed Claim

The Bottom Line Benefits of Strong Defense

Our ability and willingness to defend claims allows us
to achieve better results

27

Source:Statutory Basis, A.M. Best Aggregates & Averages
Some totals may not agree due to rounding

ProAssurance vs. Industry

Average Loss Ratio (2006-2010)

Legal
Payments

Loss
Payments

64.3%

44.2%

61.5%

53.6%

41.6%

76.0%

36.8%

ProAssurance Stand Alone

Loss Ratio (2006-2011)

24.7%

Malpractice Made Public

Malpractice judgments/settlements now
disclosed in 26 states

Disciplinary actions
now disclosed in
all states

Board / Discipline / Med-Mal

Med-Mal disclosure
legislation proposed

P

Source:Federation of State Medical Boards National Clearinghouse and
ProAssurance research

The Residual Cost of a Plaintiff Verdict

Financial Effects

Higher MPL premiums

May affect quality scoring under new payment regimes

Credentialing Implications

Disclosure required when applying for licensing, privileges
and treatment panels throughout their medical career

Reputational Damage

May affect referrals

Online disclosure can affect acquisition of new patients

Emotional Stress before, during and after

Influences future treatment behavior and patient relationships

29

Effective Risk Management

Allows us to touch even those insureds not currently
involved in a claim

Over 70% of insured physicians were touched by risk
management in 2011

Over 84,000 specialty-specific risk management
publications delivered each year

30

Involving Insureds

Claims & Underwriting Committees in key states

45 meetings in 15 states for 2012

Representation by specialty and geography

Regional Advisory Boards

Hundreds of meetings each year involve our insureds at the
county level in key states

Ensures that we stay close to our risk and know the
market

Spreads our message back to our target market

31

The Reform Discussions

We prepare for the worst case

legal or legislative outcome.

Healthcare Reform

Known: More customers for us

May accelerate the growth of hospital-owned practices and
consolidation into larger groups

Provides an opportunity for us due to our geographic reach,
long-term experience in hospitals and our financial strength

We have enhanced our ability to write new classes of
business through acquisitions

May hasten the need for consolidation of smaller insurers

Unknown: Effect on the medical/legal environment

Increased patient frustration with the system

Possibility of more unexpected outcomes

33

Tort Reform

No meaningful Tort Reform in healthcare reform laws

No prospect for Federal Tort Reform despite recent
positive action on H.R. 5

State Tort Reform battles now being fought in the
courts with mixed results

We do not depend on Tort Reform for success

Our results are solid in states with and without Tort
Reforms

Prices are set, and reserves established, as if there is no tort
reform, until results reflect otherwise

34

ProAssurance’s Growth Strategy

We are confident that our deep expertise and solid
financial strength have prepared us for the
challenges of the evolving healthcare market

Driving ProAssurance’s Growth

Growth opportunities will be shaped by a healthcare
landscape that will see enormous changes—with or
without federal healthcare reform

We are expanding our hospital capabilities and
commitment

Building on two decades of hospital experience

We continue to enhance our commitment to
individual providers and small groups

There will be M&A in our future but our growth may
be less dependent on M&A than in the past

36

ProAssurance’s Growth Strategy

Leverage our reach, expertise and financial strength with larger
accounts

Example: The Certitudetmprogram
with Ascension Health

Largest non-profit healthcare
system in the US

Now in Michigan, Florida,
Indiana and Texas

Expanding into other states
throughout 2012

Insuring Ascension-affiliated
physicians through coordinated,
jointly insured programs

Financial involvement of both entities creates
incentive to reduce risk

37

*www.ascensionhealth.org/annualreport/health.php

Ascension Health’s Ministry Locations*

ProAssurance’s Growth Strategy

Joint physician/hospital insurance products to
addresses the unique risk tolerance and claims-
handling expectation of each insured

Already creating broad interest in the market with
several policies in force

Providing sophisticated alternative risk
programs for organizations as they increase in
size and sophistication

We have proven experience in facilitating self-
insurance and captive insurance programs

38

ProAssurance’s M&A Strategy

Consolidation will continue and will remain episodic

Fewer significant targets

Remaining companies of size are in important strategic areas

We prefer “health care centric” but will consider closely related
liability lines

Legal/regulatory environment must be favorable

Not all M&A opportunities should be pursued

We do not “bet the company” on any transaction

39

Soft Market

Hard Market

M & A

de novo
Expansion

Internal
Growth

All avenues
open
because of
pricing
power

M & A is
preferable
because of
pricingpressure

M&A and the Insurance Cycle

Successful M&A History

40

2009:Consolidation of:
Mid-Continent General Agency

2009:Consolidation of:
Mid-Continent General Agency

Georgia Lawyers Insurance Co.

Georgia Lawyers Insurance Co.

2004:Purchased Selected Renewal Rights from:
OHIC Insurance Company

2004:Purchased Selected Renewal Rights from:
OHIC Insurance Company

1994:Consolidation of:
West Virginia Hosp. Ins Co.

1994:Consolidation of:
West Virginia Hosp. Ins Co.

1995:Consolidation of;

1995:Consolidation of;

Physicians Ins Co of Indiana

Physicians Ins Co of Indiana

Assumed business of:
Physicians Ins Co of Ohio

Assumed business of:
Physicians Ins Co of Ohio

1996: Consolidation of:

1996: Consolidation of:

Missouri Medical Ins Co

Missouri Medical Ins Co

1995:Assumed business of:
Associated Physicians Ins Co. (IL)

1995:Assumed business of:
Associated Physicians Ins Co. (IL)

1998:Consolidation of:
Physicians Protective Trust Fund (FL)

1998:Consolidation of:
Physicians Protective Trust Fund (FL)

1996:Assumed business of:
American Medical Ins Exchange (IN)

1996:Assumed business of:
American Medical Ins Exchange (IN)

Founding inthe 1970s

Founding inthe 1970s

1999:Assumed business of:
Medical Defense Associates (MO)

1999:Assumed business of:
Medical Defense Associates (MO)

Mutual Assurance

Physicians Ins.Co.of Michigan

Professionals Group

Creation of:

Creation of:

2005:Consolidation of:
NCRIC Group

2005:Consolidation of:
NCRIC Group

2006:Consolidation of:
PIC Wisconsin Group

2006:Consolidation of:
PIC Wisconsin Group

2007:PRI renewal rights deal

2002:SERTA renewal rights deal

2001:OUM renewal rights deal

2000:DPM Merger

1999:PACO Acquisition

Completed
11/30/10

ProAssurance Performs

Delivering meaningful value for our shareholders

Committed to Effective Capital Management

Balancing future needs with current market reality

Dividend is current $1.00/share/year

Complements our prudent share repurchase program

$321 million spent to repurchase 6.1 million shares since 2005

Enhancing shareholder value by repurchasing shares
at prices that build Book Value

42

Share Repurchase History

Steady Returns

Long-term ROE target: 12% -14%

43

Focused on Book Value

Book Value per Share captures our focus on long-term
excellence

Increased every year we have been public

44

Inception to 3/31/12
CAGR: 16%

Cumulative:1872%

10 Year Summary (2002 -2011)CAGR: 16%

Cumulative: 342%

Historical Book Value Per Share

Driving Share Prices Higher

Share price reflects investor confidence in our
business decisions and long-term strategy

45

Historical Share Price

Inception to 5/15/12CAGR: 15%

Cumulative:1606%

10 Year Summary (2002 -2011)CAGR: 16%

Cumulative: 280%

Driven to Excel / Focused on Shareholder Value

Maintainingprofitability

Sustaining book value growth

Producing sustainable shareholder value

Focusing on long-term—ready for the market turn

46

Current Prices Continue to Offer a Compelling Buying Opportunity

Management is Experienced & Invested

Effective management remains in place—15 years average tenure at ProAssurance

Average ProAssurance tenure through the VP level is 15 years, with an average of 25 years
industry experience

Management and employees are invested, owning ~4% of ProAssurance stock

47

W. Stancil Starnes, JD Chairman & Chief Executive Officer Company Tenure: 5 Years Prior MPL Experience: 29 Years Total Industry & Related Experience: 34 Years Formerly in the private practice of law in MPL defense and complex corporate litigation.	Victor T. Adamo, JD, CPCU President Company Tenure: 27 Years Prior MPL Experience: 5 Years Total Industry & Related Experience: 32Years Formerly in the private practice of corporate law. President of Professionals Group, prior to formation of ProAssurance.	Ross E. Taubman, DPM President of PICA Company Tenure: 1 Year Prior MPL Experience: - Total Industry & Related Experience: 27 Years Formerly in the private practice of podiatry . Leader in organized podiatric medicine; former president and Trustee of the American Podiatric Medical Association.
Jeffrey L. Bowlby, ARM Sr. Vice-President & Chief Marketing Office Company Tenure: 14Years Prior MPL Experience: - Total Industry & Related Experience: 28 Years Career-long experience in insurance sales and marketing, most recently as SVP for Marketing with Meadowbrook.	Howard H. Friedman, ACAS Sr. Vice-President & Chief Underwriting Officer Company Tenure: 15Years Prior MPL Experience: 16 Years Total Industry & Related Experience: 31 Years Career-long experience in MPL company operations and management. Former ProAssurance CFO.	Jeffrey P. Lisenby, JD Sr. Vice-President, General Counsel & Secretary Company Tenure: 11 Years Prior MPL Experience: - Total Industry & Related Experience: 11 Years Formerly in the private practice of law.
Duncan Y. Manley Vice-President, Operations and Information Systems Company Tenure: 12 Years Prior MPL Experience: 7 Years Total Industry & Related Experience: 19 Years Career-long experience in MPL company operations as an executive and consultant.	Frank B. O’Neil Sr. Vice-President & Chief Communications Officer Company Tenure: 24 Years Prior MPL Experience: - Total Industry & Related Experience: 24 Years Formerly a television news executive and anchor.	Edward L. Rand, Jr., CPA Sr. Vice-President & Chief Financial Officer Company Tenure: 7 Years Prior MPL Experience: - Total Industry & Related Experience: 19Years Career-long experience in insurance finance and accounting. Most recently Chief Accounting Officer for Partner Re.
Darryl K. Thomas, JD Sr. Vice-President & Chief Claims Officer Company Tenure: 17 Years Prior MPL Experience: 10 Years Total Industry & Related Experience: 27 Years Career-long experience in MPL claims management.	Hayes V. Whiteside, MD, FACS Sr. Vice-President & Chief Medical Officer Company Tenure: 8 Years Prior MPL Experience: - Total Industry & Related Experience: 28 Years Formerly in the private practice of Urology.	Adam P. Wilczek Sr. Vice-President & Chief Operating Officer of PICA Company Tenure: 16 Years Prior MPL Experience: 21 Years Total Industry & Related Experience: 36 Years Former executive with Medical Inter-Insurance Exchange (MIIX) and Chubb.

Further Discussion Materials

1.Investment Portfolio Detail

2.Additional Financial Data

Investment Portfolio Detail

ProAssurance remains conservatively
invested, to ensure our ability to keep our
long-term promise of insurance protection

ProAssurance: Investment Profile

50

$4.1 Billion Overall Portfolio

$3.7 Billion Fixed Income Portfolio

Average duration: 4.1 years

Average tax-equivalent Income yield: 4.4%

Investment grade: 96%

Weighted average: AA-

3/31/12

Key portfolio actions in Q1 2012

Added dividend-paying equities

Added to high yield investments

CUSIP-level portfolio disclosure on our website:
www.proassurance.com/investorrelations/supplemental.aspx

ProAssurance Portfolio Detail: Asset Backed

51

03/31/12

Subject to Rounding

Asset Backed: $687 Million

Weighted Average Rating: “AA+”

Breakdown of Agency MBS Holdings

Key CMBS Details Provided on Following Page

Sub-Prime: $8.1 mil Market Value(AFS)
$0.9 mil net unrealized loss

ProAssurance Portfolio Detail: CMBS

$77.8 million Fair Value in non-agency CMBS

Book Value: $72.3 million (2% of fixed income portfolio)

We have experienced no losses on our CMBS positions

52

03/31/12

ProAssurance Portfolio Detail: Municipals

53

Municipals: $1.2 Billion/Average Rating is AA

Investment policy has always required
investment grade rating prior to applying the
effect of insurance

Weighted Average Rating: AA

03/31/12

ProAssurance Portfolio Detail: Equities & Other

54

Equities & Other: $276 Million

3/31/12

ProAssurance Portfolio Detail: Corporate

55

Corporates: $1.4 Billion

Weighted Average Rating: A-

12/31/11

ProAssurance Portfolio Detail: Various

Rated A1/P1 or better

Money Markets:

Moody’s: Aaa

S&P: AAA

Weighted average rating

Moody’s: AA3

S&P: AA-

A. M. Best: A+

Treasury / GSE: $319 Million

Short Term: $133 Million

BOLI: $53 Million

03/31/12

Additional Financial Data

ProAssurance remains conservatively
invested, to ensure our ability to keep our
long-term promise of insurance protection

2011 Financial Highlights

58

	Year Ended December 31,
	2011	2010
Gross Premiums Written	$565,895	$533,205
Net Premiums Earned	$565,415	$519,107
Net Investment Income	$140,956	$146,380
Net Income (Includes Investment Losses)	$287,096	$231,598
Operating Income	$278,514	$219,457
Net Income per Diluted Share	$9.31	$7.20
Operating Income per Diluted Share	$9.03	$6.82

Q1 2012 Financial Highlights

59

	Quarter Ended,
	3/31/2012	3/31/2011
Gross Premiums Written	$170,448	$160,813
Net Premiums Earned	$136,659	$132,077
Net Investment Income	$33,492	$36,161
Net Income (Includes Investment Losses)	$55,645	$47,693
Operating Income	$48,226	$44,984
Net Income per Diluted Share	$1.80	$1.55
Operating Income per Diluted Share	$1.56	$1.46

Conservative Use of Debt / Low Leverage

Low Debt to Cap Ratio

No strain on cash flow

60

Debt to Equity

No Debt Prior to 2001

Strong CapitalPosition

Prepared for an improving market

*

Annualized 2012 premium
for presentation purposes
only. Specifically disclaimed
as a projection of premiums

Pricing discipline becomes even more
critical in a low interest rate environment

Lack of investment yield may be a hard
market catalyst

Return on Equity and Investment Returns

61

Assumes a 1:1 premium to surplus ratio for physicians
professional liability claims-made coverages

Combined Ratio Required to
Generate a 13% Return on Equity

Long-Term ROE Target is 13%

The choice: chase yield or extend duration

We are maintaining duration, looking for
opportunities

The Yield Trap

Revised to reflect yields at 12/31/11

Long-Term Financial Strength Sets Us Apart

Ensuring the strength of our balance sheet is our top financial priority

Financial strength differentiates us in the market

The claims defense philosophy that differentiates us in the market leverages our
financial strength

62

Shareholders’ Equity

77% Increase Since 12/31/07

Total Assets

Net Investment Income

Net Premiums Written

($ in millions.Excludes discontinued operations)

Net Income

Operating Income1

63

1 Excludes the after-tax effects of net realized gains or losses, and, in 2012, the effect of
$714,000 in confidential settlements that do not reflect normal operating results

Capital Growth: 2007-2011

64

in $000’s except total equity (000,000’s)