ProAssurance 8K Regulation FD Disclosure | PRA 5 Dec 12

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.

We especially identify statements concerning our recently-announced transactions involving
Medmarc Insurance group and Independent Nevada Doctors Insurance Exchange as forward
looking statements and direct your attention to our news releases issued on June 27, 2012 and our
Current Report on Form 8K, issued on June 28, 2012 for a discussion of risk factors pertaining to
these transactions and subsequent integration into ProAssurance

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

NON-GAAP MEASURES

Capital Management Announcement

Two-for-one stock split effective
December 27, 2012

Record date is December 17, 2012

POST-SPLIT dividend payments

Special Dividend: $2.50/share

$154 million to shareholders

Regular Dividend: $0.25/share

Accelerated from Q1 2013

Annualized yield of 2.2%
based on 12/4/12 closing price

Transaction Update

Medmarc policyholders
approved the transaction
on December 4, 2012

Expected closing effective
January 1, 2013

Medmarc is a leader writer
of liability insurance for
medical technology and life
sciences

Transaction closed
November 30, 2012

IND is the leading
medical professional
liability writer in
Nevada

ProAssurance General Update

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

ProAssurance Corporate Profile

Specialty liability insurance writer

Primarily Healthcare Professional Liability (HCPL)

Only pure play public company writing predominately
HCPL

Market Cap: ~$2.8 billion

Shareholders’ Equity: $2.3 billion

Total Assets: $5.0 billion

Rated “A” by Fitch and A. M. Best

ProAssurance Corporate Profile

Successfully adding business across the risk spectrum as the
delivery of healthcare changes

Distribution is Independent Agent (61%) and Direct (39%)

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

Dual distribution in DC, Texas and parts of Missouri

Q3 2012 Policyholders: ~66,250

2012 YTD Gross Written Premium: $429 mln

Nine Months Ended

September 30, 2012

ProAssurance Geographic Profile

Broad geographic diversification

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

ProAssurance Footprint

Corporate Headquarters

Claims Offices

(Birmingham)

2011 Market Share: Top Five

2011 Market Share: Six-Ten

Nine Months Ended

September 30, 2012

Success Throughout the Insurance Cycle

Historical Book Value Per Share

Historical Stock Price
to 11/30/12

Inception to 9/30/12
CAGR: 16%

Cumulative:1985%

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

Cumulative: 342%

Charts do not reflect 2:1 stock split and dividends announced 12/5/12

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

Today’s Healthcare Professional Liability Market

ProAssurance delivers an unparalleled level of
service and financial stability that truly
differentiates our coverage and our Company in an
evolving, competitive market

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 be mitigated by the use of the claims-made policy form

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

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 manner

Significant barriers to entry in underwriting and claims
handling

Psychological barriers exist—failures in the past

No catastrophe exposure

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

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%

ProAssurance’s Standing in the Market

ProAssurance is the largest independent
publicly traded writer of HCPL insurance

Fourth largest overall writer

DPW: SNL Data 2011

The Evolution of Healthcare and the HCPL Market

Our successful experience and deep expertise
uniquely qualify ProAssurance to insure the
widest range of healthcare risks

Healthcare Reform

No meaningful change after the election

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

ProAssurance’s Evolving Strategy

Shaped by a healthcare landscape that will
change—with or without federal healthcare
reform

Enhancing our commitment to individual
providers and small groups

Expanding our hospital capabilities and
commitment

Building on two decades of hospital experience

ProAssurance’s Evolving Strategy

Leverage our reach, expertise and financial
strength with larger accounts

Largest non-profit healthcare
system in the US

Now in Michigan, Florida,
Illinois, Indiana and Texas

Insuring Ascension-affiliated
physicians through coordinated,
jointly insured programs

Financial involvement of both entities creates incentive to reduce risk

*www.ascensionhealth.org/index.php?option=com_locations&view=locations&Itemid=148

Ascension Health’s Ministry Locations*

ProAssurance’s Evolving Strategy

Joint physician/hospital insurance product:
ProControlsm

Addresses the unique risk tolerance and claims-
handling expectation of each insured

Physicians largely seek claims defense to protect their reputation

Hospitals/facilities seek to protect their reputation in different ways

Hospitals can set their risk tolerance with a full retention level,
a consultative level and a full risk transfer level

Pricing varies with risk and financial levels

Broad interest in the market with several policies in
force

ProAssurance’s Evolving Strategy

Ongoing interest in alternative risk and self-
insurance mechanisms

Captive insurance and sophisticated risk sharing
programs

Risk Retention Groups for specific specialties or
regions

ProAssurance’s Successful 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

Soft Market

Hard Market

M & A

de novo
Expansion

Internal
Growth

All avenues
open
because of
pricing
power

M & A is
preferable
because of
pricing
pressure

M & A and the Insurance Cycle

ProAssurance’s Successful M&A History

Original
Companies

Purchased Company

Demutualization

OHIC
HOSPITALS ONLY

Renewal Rights

Assumed Business

Proposed

†

SERTA

Expected Close 1/1/13

Expected Close 11/30/12

ProAssurance Operational Review

ProAssurance delivers an unparalleled level of
service and financial stability that truly
differentiates our coverage and our Company in an
evolving, competitive market

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

ProAssurance Business Outlook

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

Major competitors continue to be largely
disciplined in pricing

Key State Rate Comparison

Annual Premium for a $1M / $3M Policy

Filed or Approved at 1/01/12

Calendar Year Combined Ratio: ProAssurance Consistently Outperforms in MPL

ProAssurance Outperforms the Industry

Five Years: ProAssurance Average: 64.1% / Industry Average: 82.5%

Ten Years: ProAssurance Average: 84.4% / Industry Average: 99.5%

All Years: ProAssurance Average: 91.3% / Industry Average: 108.6%

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

ProAssurance’s 2011
Combined Ratio was

the lowest among all
U.S. P&C Insurers

ProAssurance Pricing History

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 Retention Remains High

Continued underwriting vigilance is being used today
to ensure future success

Market share is important, but NOT as important as
profitability

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

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

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

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

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

ProAssurance Claims Tried to a Verdict

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: 78% No Paid Losses

Industry: 72% No Paid Losses

Source: Preliminary PIAA 2011
Claim Trend Analysis,
ProAssurance Excluded

Five Year Average
2007-2011

Source: ProAssurance,
as reported to
PIAA

The Ohio Example: 2005 - 2010 Data

Comprehensive, reliable data provided by the Ohio Department of Insurance

Broad range of competitors and business approaches

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

More Claims Closed With No 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

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

ProAssurance vs. Industry

Average Loss Ratio (2007-2011)

Legal Payments as
a Percentage of
Total Loss Ratio

Loss Payments as
a Percentage of
Total Loss Ratio

64.3%

44.2%

58.9%

42.0%

41.6%

76.0%

36.8%

ProAssurance Stand Alone

Loss Ratio (2006-2011)
Calendar Year

24.7%

79%

68%

52%

58%

56%

81%

19%

21%

32%

48%

42%

44%

Malpractice Made Public

Malpractice judgments/settlements now
disclosed in 26 states

Next: Public access to
the National Practitioner
Data Bank (NPDB)?

Disciplinary actions
now disclosed in
all states

Board / Discipline

Board / Discipline / Med-Mal

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

ProAssurance Performs

Delivering meaningful value for our shareholders

Committed to Effective Capital Management

Balancing future needs with current market reality

Regular dividend to be $1.00/share/year post 2:1 split

~2.2% yield based on 12/4/12 closing price

Q1 2013 dividend accelerated to 2012

Payable December 27, 2012

Special Dividend of $2.50 per post-split share

Payable December 27, 2012

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

Share Repurchase History

Capital Growth: 2007-2012 YTD

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

* Includes economic cost of holding treasury shares

Q3 2012 Financial Highlights

	Quarter Ended,		Six Months Ended,
	9/30/2012	9./30/2011	9/30/2012	9/30/2011
Gross Premiums Written	$ 156,547	$ 174,680	$ 429,223	$ 450,795
Net Premiums Earned	$ 127,125	$ 134,627	$ 395,050	$ 403,766
Net Investment Income	$ 33,910	$ 34,116	$ 101,912	$ 106,573
Net Income (Includes Investment Losses)	$ 60,106	$ 43,705	$ 174,204	$ 146,494
Operating Income	$ 52,946	$ 48,366	$ 160,630	$ 147,007
Net Income per Diluted Share	$ 1.94	$ 1.42	$ 5.64	$ 4.75
Operating Income per Diluted Share	$ 1.71	$ 1.57	$ 5.20	$ 4.77

Does not reflect 2:1 stock split and dividends announced 12/5/12

Inside ProAssurance’s Balance Sheet

Inside ProAssurance’s Income Statement

Steady Return in an Unfavorable Environment

Long-term ROE target: 12% -14%

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

Increased every year we have been public

Focused on Book Value

Inception to 9/30/12
CAGR: 16%

Cumulative:1985%

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

Cumulative: 342%

Historical Book Value Per Share

Does not reflect 2:1 stock split and dividends announced 12/5/12

Book Value per Share History

Does not reflect 2:1 stock split and dividends announced 12/5/12

Driving Share Prices Higher

Historical Share Price

Inception to 11/30/2012
CAGR: 15%

Cumulative: 1684%

10 Year Summary (2002 -2011)
CAGR: 14%

Cumulative: 280%

Does not reflect 2:1 stock split and dividends announced 12/5/12

Driven to Excel / Focused on Shareholder Value

Maintaining profitability

Sustaining book value growth

Producing sustainable shareholder value

Focusing on long-term—ready for the market turn

Current Prices Continue to Offer a Compelling Buying Opportunity

Current Price to Q3 2012 Book: 1.2x Average Since Inception: 1.4x

Does not reflect 2:1 stock split and dividends announced 12/5/12

ProAssurance Transaction Discussion

Medmarc will broaden our product offerings and capabilities
in protecting the delivery of healthcare

Independent Nevada Doctors Insurance Exchange (IND)
will make ProAssurance the leading
medical professional liability writer in Nevada

Transaction Update

A leading products
liability writer in
medical technology
and life sciences

Meaningful legal
professional liability
book

Merger into
ProAssurance
solidifies IND’s
position as the
leading medical
professional liability
writer in Nevada

ProForma Premiums / Policyholders

2011 Actual PRA GPW: $566 million

2011 ProForma GPW: $619 million

2011 Actual Policyholders: ~71,500

2011 ProForma Policyholders: ~75,500

ProForma: ProAssurance + Medmarc + IND

IND Details

Founded in 2006 by
Nevada physicians

Proven history

Gained market leadership without competing on price

Solid customer service philosophy mirrors
ProAssurance

ProAssurance and IND will combine offices in
Las Vegas

Transaction value not material to ProAssurance

IND Metrics

Pro Forma Nevada Market Share
ProAssurance + IND	$21.8 mil
NORCAL Mutual	$10.8 mil
Nevada Mutual	$10.5 mil
Premier Physicians	$7.2 mil
Fairfax Financial	$6.6 mil
Total Market	$85.6 mil
2011 Direct Written Premium

	12/31/2011	12/31/2010	12/31/2009
Total Assets	$ 51.8	$ 50.6	$ 47.2
Loss & LAE Reserves	$ 22.8	$ 25.6	$ 25.5
Surplus (Equity)	$ 19.7	$ 16.4	$ 13.7

Balance Sheet Highlights (STAT data in millions)

	2011	2010	2009
Combined Ratio	57.0%	81.9%	94.2%

Combined Ratio (STAT Data)

Source: IND

Full statutory financial information:
www.ind-insurance.com/documents-and-downloads

	12/31/2011	12/31/2010	12/31/2009
Gross Premiums Written	$ 12.1	$ 12.6	$ 11.5
Net Income	$ 3.9	$ 2.4	$ 1.3

2009-2011 Income Statement Highlights (STAT data in millions)

2011 Actual Direct Written Premium
IND	$12.1 mil
NORCAL Mutual	$10.8 mil
Nevada Mutual	$10.5 mil
ProAssurance	$9.7 mil
Premier Physicians	$7.2 mil

	2011	2010	2009
Policyholders	603	565	520

Policyholders at each year-end

Source; SNL Financial, Total MPL Premium for Nevada

Recognized leader in Nevada

Conservative operating philosophy

Physician-founded

Corporate culture values high levels of customer
service

Strong brand recognition

Strong surplus position relative to business written

Proven, profitability

IND Strengths

Experienced management team has committed to
ProAssurance

Deepens market share in a state with proven
profitability

Increased recognition as a brand leader

Advantages ProAssurance Gains from IND

ProAssurance Answers Challenges for IND

Additional balance sheet strength

ProAssurance will extend its “A” (Excellent) rating to
IND

Ability to address emerging needs of new account
types:

Large groups

Multi-state groups

Hospitals, clinic, health systems

Seamless integration into ProAssurance reinsurance
program will address issues surrounding the cost of
reinsurance

Medmarc Update

Regulatory approval granted

Approved by policyholders
on December 4th

Expected closing effective January 1, 2013

Medmarc Details

Founded in 1979 by the
medical technology and
life science industry

Proven legal professional liability book

Management will remain in place at corporate
offices in Virginia

Transaction value: $154 million in cash

$146.2 direct payments to eligible members

$7.5 million in future premium credits

Medmarc Metrics

Top Five States by Direct Written Premium (2011)
California	$5.8 mil (14%)
Florida	$5.3 mil (13%)
Texas	$4.4 mil (10%)
Massachusetts	$3.8 mil (6%)
New Jersey	$2.0 mil (5%)

	3/31/2012	12/31/2011	12/31/2010	12/31/2009
Total Assets	$ 319.9	$ 325.2	$ 335.5	$ 339.1
Loss & LAE Reserves	$ 139.6	$ 146.8	$ 165.0	$ 179.6
Total Liabilities	$ 160.2	$ 171.5	$ 193.2	$ 211.7
Surplus (Equity)	$ 159.8	$ 153.7	$ 142.3	$ 127.4
Tangible Book Value	$ 159.8	$ 153.7	$ 142.1	$ 126.8

Balance Sheet Highlights (STAT Data in millions)

	12/31/2011	12/31/2010	12/31/2009
Gross Premiums Written	$ 40.6	$ 56.6	$ 74.4
Net Premiums Written	$ 30.0	$ 40.6	$ 42.1
Net Investment Income	$ 11.6	$ 12.0	$ 13.4
Pre-Tax Income	$ 15.2	$ 10.1	$ 12.2
Net Income	$ 11.5	$ 10.6	$ 9.5

2009-2011 Income Statement Highlights (STAT Data in millions)

	12/31/2011	12/31/2010	12/31/2009
Loss Ratio	42.1%	71.0%	71.0%
Expense Ratio	51.5%	36.2%	35.5%
Combined Ratio	93.6%	107.2%	106.5%
Operating Ratio	58.4%	79.4%	77.8%

2009-2011 Ratios (STAT Data)

Data Sources: Medmarc Insurance Group, SNL Financial, A. M. Best

Full statutory financial information:
www.medmarc.com/About-Us/Pages/Statutory-Statements.aspx

2011 Policyholder Breakdown
MedTech / LfSci	958
Legal Professional	2,535

Experienced board of directors and management team

Strong surplus position relative to business written

Profitable operations

Conservative business philosophy

Strategic relationship with AdvaMed

Leading medical technology trade association

Valuable life sciences brand developed over 32-year
history:

Relationships with over 1,000 leading medical
technology companies

Relationships with more than 380 brokers who control
the life sciences business

National defense attorney network comprising 340
attorneys/firms domestically and internationally

Recognized Web-based thought leadership

16-year strategic alliance with The Hartford to insure
other exposures for insureds

Established lawyers’ professional liability program

Medmarc Strengths

ProAssurance Answers Challenges for Medmarc

ProAssurance balance sheet strength will ensure
Medmarc’s financial credibility

Will allow Medmarc to again offer competitive
limits

ProAssurance will extend its “A” (Excellent) rating to
Medmarc to reassure brokers

Financial strength and higher rating may allow
Medmarc to recapture business it lost due to tighter
self-imposed underwriting guidelines

Combined organization will have greater standing with
reinsurers

Medmarc Transaction Analysis

Buying at a discount to tangible book value

Will increase ProAssurance book value per share

Experienced management team has committed to
ProAssurance

ProAssurance adds

Broader product offerings and capabilities in
protecting the delivery of healthcare

Expertise in medically-focused product liability

A recognizable brand

Premium growth at a reasonable price

Strengthens ties with shared brokers and creates new
relationships with desirable brokers

Adds another strategic alliance as we gain name
recognition outside legacy MPL business

Adds significant scale to our lawyers’ professional
liability program

Little or no overlap in key LPL states

Advantages ProAssurance Gains from Medmarc

Medmarc Profitability Drives Surplus Growth

Surplus at highest level in company history

Significantly reduced exposure to accounts with sales greater
than $100 million (2011)

Recent Events at Medmarc

Investment Portfolio Detail

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

ProAssurance: Investment Profile

$4.1 Billion Overall Portfolio

$3.6 Billion Fixed Income Portfolio

Average duration: 3.8 years

Average tax-equivalent Income yield: 4.5%

Investment grade: 94%

Weighted average: AA-

9/30/12

Key portfolio actions in Q3 2012

Added dividend-paying equities

Added to high yield investments

$89.2 million tax credit portfolio not reflected in
investment income—provides approximately
$10.5 million in tax credits and $8 million in
deductions in 2012.

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

ProAssurance Portfolio Detail: Asset Backed

9/30/12

Subject to Rounding

Asset Backed: $599 Million

Weighted Average Rating: “AA+”

Breakdown of Agency MBS/CMBS Holdings

Key CMBS Details Provided on Following Page

Sub-Prime: $7.3 mil Market Value (AFS)
$0.8 mil net unrealized loss

ProAssurance Portfolio Detail: Non-Agency CMBS

$76.7 million Fair Value in non-agency CMBS

Book Value: $70.3 million (2% of fixed income portfolio)

We have experienced no losses on our CMBS positions

9/30/12

ProAssurance Portfolio Detail: Municipals

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

9/30/12

ProAssurance Portfolio Detail: Equities & Other

Equities & Other: $336 Million

9/30/12

ProAssurance Portfolio Detail: Corporate

Corporates: $1.4 Billion

Weighted Average Rating: A-

9/30/12

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: $281 Million

Short Term: $168 Million

BOLI: $52 Million

9/30/12

Additional Financial Data

Management is Experienced & Invested

Effective senior management remains in place—14 years average tenure

Average ProAssurance tenure through the VP level is 16 years, with an average of 26 years
industry experience

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

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 Vice-Chairman 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: 14 Years 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: 16 Years Prior MPL Experience: 16 Years Total Industry & Related Experience: 32 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: 12 Years Prior MPL Experience: - Total Industry & Related Experience: 12 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: 25 Years Prior MPL Experience: - Total Industry & Related Experience: 25 Years Formerly a television news executive and anchor.	Edward L. Rand, Jr., CPA Sr. Vice-President & Chief Financial Officer Company Tenure: 8 Years Prior MPL Experience: - Total Industry & Related Experience: 20 Years 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: 18 Years Prior MPL Experience: 10 Years Total Industry & Related Experience: 28 Years Career-long experience in MPL claims management.	Hayes V. Whiteside, MD, FACS Sr. Vice-President & Chief Medical Officer Company Tenure: 9 Years Prior MPL Experience: - Total Industry & Related Experience: 29 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: 20 Years Total Industry & Related Experience: 36 Years Former executive with Medical Inter-Insurance Exchange (MIIX) and Chubb.

Prepared for an improving market

Conservative Use of Debt / Low Leverage

No debt as of September 20, 2012

Debt to Equity

No Debt Prior to 2001

Strong Capital Position

*

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

The choice: chase yield or extend duration

We are maintaining duration, looking for
opportunities

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

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 Yield Trap

Revised to reflect yields at 9/30/12

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

Shareholders’ Equity

87% Increase Since 12/31/07

Total Assets

Net Investment Income

Net Premiums Written

($ in millions. Excludes discontinued operations)

Net Income

Operating Income1

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

YTD = Nine months ended September 30th each period

ProAssurance (PRA) 8-KRegulation FD Disclosure