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 Meetings

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
Company and Independent Nevada Doctors Insurance Company 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

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

Shareholder’s Equity and Total Assets at record
levels

Recent transactions contributing to our results
with integration proceeding as planned

ProAssurance Corporate Profile

Specialty liability insurance writer

Healthcare Professional Liability (HCPL)

Only “pure play” public company writing predominately 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 Fitch and A. M. Best

Ratings affirmed by Fitch on May 1st

Debt ratings recently upgraded by Moody’s

ProAssurance Business Profile

HCPL Distribution is Independent Agent (64%) / Direct (36%)

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

Dual distribution in DC, Texas and parts of Missouri

LPL and Life Sciences is 100% broker / agent

Legal Professional is direct in Georgia / MGAs used in other states

Q1 2013 Policyholders: ~64,600

Q1 2013 Premium: $163.2 mln

March 31, 2013
Includes Acquisitions

Tail Premium Allocated by Line

ProAssurance Geographic Profile

Broad geographic diversification

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

ProAssurance Footprint / All Lines

(Birmingham)

Corporate Headquarters

Claims Offices

Claims / Underwriting Offices

Underwriting Offices

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

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 ~5.6 % of ProAssurance stock

W. Stancil Starnes, JD Chairman & Chief Executive Officer Company Tenure: 6 Years Prior MPL Experience: 29 Years Total Industry & Related Experience: 35 Years Formerly in the private practice of law in MPL defense and complex corporate litigation	Victor T. Adamo, JD, CPCU Vice-Chairman Company Tenure: 28 Years Prior MPL Experience: 5 Years Total Industry & Related Experience: 33 Years 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: 2 Year Prior MPL Experience: - Total Industry & Related Experience: 28 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 Officer Company Tenure: 15 Years Prior MPL Experience: - Total Industry & Related Experience: 29 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: 17 Years Prior MPL Experience: 16 Years Total Industry & Related Experience: 33 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: 13 Years Prior MPL Experience: 7 Years Total Industry & Related Experience: 20 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: 26 Years Prior MPL Experience: - Total Industry & Related Experience: 26 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	Mary Todd Peterson President & CEO of Medmarc Company Tenure: 12 Years Prior Industry Experience: 14 Years Total Industry & Related Experience: 26 Years Former Partner with Johnson Lambert and VP Finance & Controller with Acacia

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

Strategies for Future Success

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

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’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

†

SERTA

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

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%

87% of top 100 companies have <2%

76% of top 100 companies have <1%

ProAssurance’s Standing in HCPL

ProAssurance is the largest independent
publicly-traded writer of HCPL insurance

Fourth largest overall writer

DPW: SNL Data 2012

Sound Strategy = Consistent Profitability

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 (2003-2012)
CAGR: 15%

Cumulative: 302%

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

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%

2012 Income Statement Highlights

in millions, except per share data

	December 31,		Y-OVER-Y Change
	2012	2011	Y-OVER-Y Change
Gross Premiums Written	$ 536	$ 566	-5%
Net Investment Result	129	132	-2%
Total Expenses (Includes Loss Costs)	320	302	+6%
Net Income (Includes Realized Investment Gains & Losses)	$ 275	$ 287	-4%
Operating Income	$ 257	$ 279	-8%
Net Income per Diluted Share	$4.46	$4.65	-4%
Operating Income per Diluted Share	$4.16	$4.52	-8%

Consistent Approach to Reserves

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

$ in thousands

Disciplined Underwriting

Five Year Premium History

Consistently writing profitable business to ensure
long-term success

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

Gross Premiums Written

Net Premiums Earned

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%

Long-Term Financial Strength

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

Total Assets

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

Calendar Year Combined Ratio: ProAssurance Consistently Outperforms in MPL

ProAssurance Outperforms the Industry

Five Years: ProAssurance Average: 58.7% / Industry Average: 84.4%

Ten Years: ProAssurance Average: 77.8% / Industry Average: 94.7%

All Years: ProAssurance Average: 89.8% / Industry Average: 107.9%

Source: A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business, preliminary 2012 data used

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 2013 likely will 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

Retention remains in line with recent quarters

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

Key State Rate Comparison

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

Filed or Approved at 1/01/13

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 2%-3%

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 give our insureds the opportunity for
an uncompromising defense of each 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 - 2011 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/2011ClosedClaimReport.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%

Behind the Numbers

Capital Growth: 2008-Q1 2013

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

* Includes economic cost of holding treasury shares

Inside ProAssurance’s Balance Sheet

3/31/13

Inside ProAssurance’s Income Statement

3/31/13

$35.5 Non-Taxable Gain on Acquisition

Recent Book Value per Share History

Steady Return in an Unfavorable Environment

Long-term ROE target: 12% -14%

Driven to Excel / Focused on Shareholder Value

Maintaining profitability

Continuing growth in book value per share

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 Q1 2013 Book: 1.2x Average Since Inception: 1.4x

Unadjusted for dividends

Prices Adjusted for 2:1 Stock Split

ProAssurance Transaction Discussion

Medmarc is broadening our product offerings and capabilities in
protecting the delivery of healthcare

With the acquisition of
Independent Nevada Doctors Insurance Exchange (IND),
ProAssurance becomes the leading
medical professional liability writer in Nevada

Medmarc Transaction Update

A leading products liability writer in medical
technology and life sciences

Meaningful legal professional liability book

Acquisition completed effective January 1, 2013

Functioning as an operationally independent
subsidiary

Broad acceptance in Medmarc’s target markets

Coordinated marketing opportunities growing

IND Transaction Update

Leading MPL writer in Nevada

Acquisition completed in late November 2012

Integration well underway and proceeding
smoothly

New business opportunities evolving as agents
understand the scope and capability of the
combined organizations

Investment Portfolio Detail

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

ProAssurance: Investment Profile

$4.3 Billion Overall Portfolio

$3.6 Billion Fixed Income Portfolio

Average duration: 3.9 years

Average tax-equivalent
income yield: Q1 13: 4.2% / Q1 12: 4.4%

Investment grade: 93%

Weighted average: A+

03/31/13

Tax credit portfolio not reflected in investment
income—provides approximately $17.8 million
in tax credits and $10.9 million in deductions in
2013

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

ProAssurance Portfolio Detail: Asset Backed

03/31/13

Subject to Rounding

Asset Backed: $490 Million

Weighted Average Rating: “AA+”

ProAssurance Portfolio Detail: Corporate

Corporates: $1.6 Billion

Weighted Average Rating: A-

3/31/13

ProAssurance Portfolio Detail: Municipals

Municipals: $1.3 Billion / Average Rating is AA

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

Weighted Average Rating: AA

12/31/12

ProAssurance Portfolio Detail: Equities & Other

12/31/12

Equities & Other: $489 Million

4.9% TE Book Yield

13% TE IRR

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: $291 Million

Short Term: $149 Million

BOLI: $53 Million

03/3/13

Additional Financial Data

Prepared for an improving market

Conservative Use of Debt / Low Leverage

Credit facility accessed for
$125 million in short-term
borrowing (December 2012)

Debt to Equity

No Debt Prior to 2001

Strong Capital Position

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 12%-14%

The Yield Trap

Revised to reflect yields at 03/31/13

ProAssurance (PRA) 8-KRegulation FD Disclosure