ProAssurance 8K Regulation FD Disclosure | PRA 14 May 13

May 14, 2013

2013 Securities Research Conference

Edward L. Rand, Jr. Chief Financial Officer

Frank B. O’Neil Investor Relations Officer

Investor Presentation

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 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, our Current Report on Form 8K,
issued on June 28, 2012 and our 10K, filed on February 19, 2013 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 Report on Form 8K disclosing that release.

FORWARD LOOKING STATEMENTS

NON-GAAP MEASURES

ProAssurance Financial & Strategy Overview

Edward L. Rand, Jr.
Chief Financial Officer

ProAssurance Corporate Profile

Specialty liability insurance writer

Healthcare Professional Liability (HCPL)

Life sciences and medical devices

Attorney’s professional liability

Market Cap: ~$3.0 billion

Shareholders’ Equity: $2.4 billion

Total Assets: $5.3 billion

Claims-Paying Ratings: “A” by A. M. Best and Fitch

Debt ratings recently upgraded by Moody’s

Q1 2013 Highlights

Increased Net and Operating Income Y-O-Y

ROE of 13.4%

Book Value per share now $38.19

4% increase since year-end 2012

Book Value per Share has grown each year since
1991

Recent transactions contributing to our results
with integration proceeding as planned

Q1 2013 Income Statement Highlights

in millions, except per share data

	March 31,		Y-OVER-Y Change
	2013	2012	Y-OVER-Y Change
Gross Premiums Written	$ 163	$ 170	-4%
Net Investment Result	32	31	+2%
Total Expenses (Includes Loss Costs)	95	105	-10%
Net Income (Includes Realized Investment Gains & Losses and gain on acquisition)	$ 113	$ 56	+103%
Operating Income	$ 60	$ 48	+24%
Net Income per Diluted Share	$1.82	$0.90	+102%
Operating Income per Diluted Share	$0.97	$0.78	+24%

Disciplined Underwriting

Five year Premium History

Focused on writing profitable business to ensure
long-term success

Premium decline driven by competition, physician
consolidation and rate actions driven by an
improving loss environment

Gross Premiums Written

Net Premiums Earned

Q1 2013 Income Statement Highlights

in millions, except per share data

	March 31,		Y-OVER-Y Change
	2013	2012	Y-OVER-Y Change
Gross Premiums Written	$ 163	$ 170	-4%
Net Investment Result	32	31	+2%
Total Expenses (Includes Loss Costs)	95	105	-10%
Net Income (Includes Realized Investment Gains & Losses and gain on acquisition)	$ 113	$ 56	+103%
Operating Income	$ 60	$ 48	+24%
Net Income per Diluted Share	$1.82	$0.90	+102%
Operating Income per Diluted Share	$0.97	$0.78	+24%

Seeking Increased Yield But Balancing Risk

We continue to focus on
maintaining a high quality,
well diversified fixed income
portfolio

We are making incremental
changes to obtain higher yields
in blue chip investments

$4.3 Billion
Portfolio

Fixed Income:
84%

Short Term: 2%

Equity and Equity Substitutes: 12%

BOLI: 1%

3/31/13

Q1 2013 Balance Sheet Highlights

Split adjusted, in billions, except Book Value per share

Shareholders�� Equity $ 2.4 $ 2.3 +4%

Total Investments 4.3 3.9 +10%

Total Assets 5.2 4.9 +6%

Policy Liabilities 2.5 2.3 +9%

3/31/13 12/31/12 CHANGE

Shareholders’ Equity

66% increase since 2008

Book Value per Share $ 38.19 $36.85 +4%

Historical Financial Performance

Our disciplined, long-term approach drives
consistent profitability

$ in millions

Net Income1

Operating Income2

1 Includes a gain of $35.5 million in the first quarter of 2013 in connection with our acquisition of Medmarc as a result of the value
of the net assets acquired vs. our purchase price.

2 Excludes the after-tax effects of net realized gains or losses and one-time items that do not reflect normal operating results

Consistent Approach to Reserves

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

$ in thousands

Capital Management Priorities

Preferred use is to support growth through M&A or new business

We balance future needs with current market reality

Regular dividend is $1.00/share

~2% yield based on 5/8/13 closing price

Prudent share repurchase program

$321 million spent to
repurchase 6.1 million shares
since 2005

Repurchasing shares at prices
that enhance shareholder value
and build Book Value

Additional funds utilized
to eliminate long-term debt

Share Repurchase History

Captures our focus on long-term excellence

Increased every year we have been public

The Payoff: Consistent Book Value Growth

Inception to 3/31/13
CAGR: 16%

Cumulative: 2,179%

10 Year Summary (2003 -2012)
CAGR: 16%

Cumulative: 360%

Historical Book Value Per Share
Split Adjusted
Dividends Shown in the Year Declared

Reflects all stock splits and includes all dividends in the year declared

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

The Payoff: Steady Share Price Increase

Historical Share Price

Reflects all stock splits

2012 excludes
$2.50/share
special dividend

Inception to 3/31/13
CAGR: 15%

Cumulative: 1,706%

10 Year Summary (2002 -2012)
CAGR: 15%

Cumulative: 302%

Strategies for Future Success

Frank B. O’Neil

Senior Vice-President

Building a Bridge to the Future

Our core business is at a pivot point

We are uniquely positioned to succeed by serving the
emerging market and remaining legacy business

Smaller competitors with less experience and capacity
have decisions to make

Legacy business is largely
single-state, solo
and small groups.
A substantial amount of this
business will remain, but
will demand more from
insurers.

The future will be
dominated by large
groups and institutions,
often multi-disciplinary
and multi-state. They
will demand financial
strength and deep
expertise.

Building a Bridge to the Future

Larger risks will demand sophisticated
coverages that span the continuum of healthcare

Broad healthcare liability experience is our
foundation

We added capacity & capability through M&A

Example: Medmarc, PICA and Mid-Continent

Home
Healthcare

Non-Traditional
Delivery Settings

Multi-Specialty
Clinics

Hospital & Facility
Centered Care

New delivery
devices,
techniques and
research

ProAssurance spans the continuum of care

Traditional
Practices

ProAssurance Will Grow Prudently

ProAssurance is a demonstrated leader in M&A

We will broaden our lines of coverage as needed

Healthcare-related

Through prudent leverage of our expertise and the
addition of specialized expertise

The market will firm and we are prepared to
grow organically

Past history teaches us the turn will be sudden and
capital will allow us to respond rapidly

Strategy for an Evolving Market

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

Expanding our capabilities and commitment
across the continuum of healthcare

Building on two decades of hospital experience

Recent expansion into products liability for life
sciences and medical devices through M&A

Enhancing our historical commitment to
individual providers and small groups

Strategy for an Evolving Market

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*

Strategy for an Evolving Market

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

Partnerships with existing physician-focused
companies to leverage hospital expertise

Recently announced California venture with
CAP-MPT: CAPAssurance

Alternative risk and self-insurance mechanisms

Captive insurance, risk sharing programs and
Risk Retention Groups for
specific specialties or regions

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 (PRA) 8-KRegulation FD Disclosure