ProAssurance (PRA) 8-K ProAssurance Increases Regular Dividend and Adds to Share Repurchase Authorization

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 Eastern Insurance
Holdings, Inc. and proposed Lloyd's Syndicate 1729 as Forward Looking Statements
and direct your attention to our news releases issued on September 24, 2013, our Current Report on
Form 8K, issued on September 24, 2013 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

Hot Topics for Investors

Our commentary on
recent announcements and transactions

Capital Management Thoughts

Dividend increase to $1.20/year

20% increase over dividend paid in 2013

Demonstrates our commitment to a steady return of
capital via a regular dividend

$100 million increase in share buyback
authorization—now at $227 million

To be deployed prudently in the near term

Demonstrates our confidence in future growth and
financial strength

Greater tax-efficiency than a special dividend

3

Debt Issuance

$250 million long-term debt

10-year notes due 11/15/2023 at a coupon of 5.30%

4

Debt to Equity

$125 million borrowed from our credit facility in Q4 2012
repaid prior to debt issuance

No Debt Prior to 2001

2013 Premium is annualized

Prudent Capital Management

Balancing our future needs vs. expectations from rating agencies
and investors

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

Regular dividend now $1.20/share

~2.5% yield based on
current share price

Share repurchase program

Current authorization now
$227 million

$329 million spent to
repurchase 6.3 million shares
since 2007

5

Returning Capital to Shareholders

$ in millions

Eastern Insurance Transaction Details

All cash transaction

Aggregate value: $205 million

1.38x Book Value per Share at September 30, 2013

Regulatory approvals expected

Pennsylvania DOI and HSR

Shareholder vote forthcoming

Projected closing by January 1, 2014

No financing contingency

Modestly accretive to ProAssurance in 2014

6

Eastern Insurance Transaction Rationale

Continues building the platform to serve the
needs of larger integrated health systems
healthcare delivery organizations

Workers’ compensation represents one of the
single largest liability expenditures for healthcare
entities

Eastern’s business is 20% healthcare
and growing

Provides diversification for ProAssurance with
a consistently profitable workers’ compensation
book

7

Eastern Insurance Transaction Operations

Management will remain in place to provide
operational expertise and ensure continuity

Eastern will have access to greater capital to
support growth

Cross-selling opportunities exist

Insureds

Agents

8

Eastern Insurance Performance: Combined Ratio

9

Source: Eastern Insurance Holdings Investor Presentation 6/30/13 and Q3 2013 10 Q

Combined Ratio
YTD at 9/30/13:

89.7%

vs

92.3%

At 9/30/12

Eastern Insurance Performance: Premium Growth

10

Source: Eastern Insurance Holdings Investor Presentation 6/30/13

Eastern Insurance Performance: Book Value

11

Source: Eastern Insurance Holdings Investor Presentation 6/30/13 and Q3 2013 10 Q

Fully-Diluted
Book Value
9/30/13:

$17.66

Eastern Insurance Transaction ProForma

12

ProForma Written Premium (GAAP at 12/31/12 in millions)
Product line	Direct	Assumed	Ceded	Net
Medical Professional Liability	$529	$-	$7	$521
Lawyers Professional Liability	$27	$-	$3	$24
Products Liability	$32	$-	$11	$21
Workers' Compensation	$183	$3	$16	$170
Other	$2	$-	$-	$2
	$772	$3	$38	$737

Eastern Insurance Footprint

13

Source: Eastern Insurance Holdings Investor Presentation 6/30/13

Lloyd’s Syndicate Transaction Details

Inception approved for January 1, 2014

Primarily an investment

Some anticipated insurance benefits

ProAssurance providing approximately 51% of
underwriting capital

Remaining capital contributed by other corporates
and private names

ProAssurance Capital Commitment

Up to $75 mln in 2014

Six-Year Commitment of up to $200 mln

14

Lloyd’s Syndicate Transaction Rationale

Provides access to international medical
professional liability opportunities

Increases flexibility for ProAssurance when
working with complex risks

Primary and excess business can be written

15

Lloyd’s Syndicate Transaction Operations

Led by Duncan Dale

Thirty-years experience in the London market

Preeminent MPL underwriter

Start-up assisted by Asta Managing Agency Ltd.

ProAssurance executives are assisting in start-up
operations

16

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

We are uniquely positioned to succeed by serving both
the emerging, complex healthcare market and the
legacy business that will remain

Smaller competitors with less experience and capacity
have decisions to make about their future in this new
healthcare environment

18

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 demand sophisticated coverages
that span the continuum of healthcare

Broad healthcare liability experience is our
foundation

Adding capacity & capability through M&A

Eastern Insurance, Medmarc, PICA & 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

19

Worker’s Compensation

ProAssurance Will Grow Prudently

We are building the platform that will allow us
to serve the broad spectrum of healthcare

Prudent leverage of our success and experience
with the addition of specialized expertise

Healthcare and related coverages that compliment
our MPL line

ProAssurance is a demonstrated leader in M&A

The MPL market will firm and we are prepared
to grow organically as opportunities arise

20

ProAssurance’s Successful M&A History

Original
Companies

Purchased Company

Demutualization

OHIC
HOSPITALS ONLY

2

1

1

1

1

1

1

1

1

3

4

4

1

4

Renewal Rights

Assumed Business

2

2

†

2

3

1

3

3

1

SERTA

21

In Progress

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

22

Positioned to Succeed

ProAssurance has the right combination of geographic scope, broad experience, and
financial strength for success in the new world of healthcare liability

23

SNL 2012 Statutory Data, MPL Writers with Direct Written Premiums >$80million

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*

24

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

25

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

26

Sound Strategy = Consistent Profitability

Captures our focus on long-term excellence

Increased every year we have been public

The Payoff: Consistent Book Value Growth

28

Inception to 9/30/13
CAGR: 16%

Cumulative: 2,222%

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

$38.48

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

The Payoff: Steady Share Price Increase

29

Historical Share Price

Reflects all stock splits

2012 excludes
$2.50/share
special dividend

Inception to 11/30/13
CAGR: 14%

Cumulative: 1,735%

10 Year Summary (2003-2012)CAGR: 15%

Cumulative: 302%

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 Reflect the Solid Value of ProAssurance

Current Price to Q3 2013 Book: 1.2xAverage Since Inception: 1.4x

Unadjusted for dividends

Prices Adjusted for 2:1 Stock Split

30

Operational Overview

Management is Experienced & Invested

Effective senior management remains in place—13 years average tenure

Average ProAssurance tenure through the VP level is 16 years, 25 years average 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	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: 13 Years Prior MPL Experience: - Total Industry & Related Experience: 13 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
Mary Todd Peterson, CPA 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	Edward L. Rand, Jr., CPA Sr. Vice-President & Chief Financial Officer Company Tenure: 9 Years Prior MPL Experience: - Total Industry & Related Experience: 21 Years Career-long experience in insurance finance and accounting. Most recently Chief Accounting Officer for Partner Re	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
Darryl K. Thomas, JDHayes V. Whiteside, MD, FACS Sr. Vice-President & Chief Claims OfficerSr. Vice-President & Chief Medical Officer Company Tenure: 19 YearsCompany Tenure: 10 Years Prior MPL Experience: 10 YearsPrior MPL Experience: - Total Industry & Related Experience: 29 YearsTotal Industry & Related Experience: 30 Years Career-long experience in MPL claims managementFormerly in the private practice of Urology

32

ProAssurance Corporate Profile

Specialty liability insurance writer

Healthcare Professional Liability (HCPL)

Only public company writing predominately HCPL

Life sciences and medical devices

Attorney’s professional liability

Market Cap: ~$2.9 billion

Shareholders’ Equity: $2.4 billion

Total Assets: $5.3 billion

Claims-Paying Ratings: “A+” (Superior) by A. M. Best
and “A” by Fitch

33

ProAssurance Business Profile

34

YTD Q3 2013 Policyholders: ~70,000

YTD Q3 2013Premium: $452 mln

September 30, 2013
Includes Acquisitions

Tail Premium Allocated by Line

Distribution Channels (by premium)
	HCPL	LPL	Life Sciences
Agent / Broker	63%	76%	100%
Direct	37%	24%	--

ProAssurance Geographic Profile

Broad geographic diversification

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

National Footprint

(Birmingham)

Corporate Headquarters

Corporate Headquarters

Claims Offices

Claims Offices

Claims / Underwriting Offices

Claims / Underwriting Offices

Underwriting Offices

Underwriting Offices

35

Seeking Increased Yield But Balancing Risk

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

We have made incremental
changes to obtain higher yields in
blue chip investments

$3.9 Billion
Portfolio

$3.9 Billion
Portfolio

Fixed Income:
83%

Fixed Income:
83%

Short Term: 3%

Short Term: 3%

Equity and Equity Substitutes: 12%

Equity and Equity Substitutes: 12%

BOLI: 1%

BOLI: 1%

9/30/13

Does not Equal 100% due to rounding

36

Consistent Approach to Reserves

Recognizing loss trends as they appear

No change in long-term results but potential
volatility quarter-to-quarter

No change in reserving philosophy or process

37

$ in millions

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

38

ProAssurance Outperforms the Industry

40

Source:1991-2012 A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business

89.7%

107.9%

77.5%

94.6%

58.1%

84.3%

ProAssurance Outperforms the Industry

1991-2012 A.M. Best Aggregates and Averages, Medical Malpractice Lines of Business

Weighted
Average
High/Low

Industry
Average

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

42

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

43

ProAssurance’s Standing in HCPL

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

Fourth largest overall writer

DPW: SNL Data 2012

44

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%

45

Key State Rate Comparison

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

Filed or Approved at 1/01/13

46

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

47

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

48

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: 73% No Paid Losses

Source:PIAA 2012 Claim Trend Analysis,
ProAssurance Excluded

Ten Year Average
2003-2012

Source:ProAssurance,
as reported to
PIAA

49

The Ohio Example: 2005 - 2011 Data

Comprehensive, reliable data provided by the Ohio Department of Insurance

Broad range of competitors and business approaches

More Claims Closed With No Indemnity

More Claims Defended in Court

2x Lower Average Indemnity Payment per Closed Claim

50

The Bottom Line Benefits of Strong Defense

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

ProAssurance vs. Industry

Average Loss Ratio (2006-2012)

Legal Payments as
a Percentage of
Total Loss Ratio

Loss Payments as a
Percentage of Total
Loss Ratio

64%

44%

62%

46%

42%

76%

37%

ProAssurance Stand Alone

Loss Ratio (2006-2012)
Calendar Year

25%

79%

68%

52%

58%

56%

82%

18%

21%

32%

48%

42%

44%

51

31%

55%

45%

The HCPL Market Today

52

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

53

Behind the Numbers

Historical Financial Performance

Our disciplined, long-term approach drives
consistent profitability

$ in millions

Net Income1

Operating Income2

55

1 Includes a gain of $36.0 million in 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

YTD 2013 Income Statement Highlights

in millions, except per share data

56

	September 30,		Y-OVER-Y Change
	2013	2012
Gross Premiums Written	$452	$429	+5%
Net Investment Result	$96	$98	-2%
Total Revenues	$547	$520	+5%
Total Expenses(Includes Loss Costs)	$297	$282	+5%
Net Income(Includes Realized Investment Gains & Losses and Gain on Acquisition)	$227	$174	+30%
Operating Income	$160	$161	-1%
Net Income per Diluted Share	$3.65	$2.82	+29%
Operating Income per Diluted Share	$2.57	$2.60	-1%

Q3 2013 Income Statement Highlights

in millions, except per share data

57

	September 30,		Y-OVER-Y Change
	2013	2012
Gross Premiums Written	$166	$157	+6%
Net Investment Result	$34	$34	-2%
Total Revenues	$181	$176	+3%
Total Expenses(Includes Loss Costs)	$95	$92	+3%
Net Income(Includes Realized Investment Gains & Losses and Gain on Acquisition)	$63	$60	+5%
Operating Income	$55	$53	+4%
Net Income per Diluted Share	$1.02	$0.97	+5%
Operating Income per Diluted Share	$0.88	$0.86	+2%

Consistently writing profitable business to ensure long-
term success

Premium driven by competition, physician consolidation

Loss trends remains favorable

Disciplined Underwriting

Five Year Premium History

58

Gross Premiums Written

Net Premiums Earned

YTD 2013 Balance Sheet Highlights

Split adjusted, in billions, except Book Value per share

Shareholders’ Equity$2.4 $2.3+5%

Total Investments3.93.9-2%

Total Assets5.04.9+2%

Policy Liabilities2.52.3+6%

9/30/1312/31/12CHANGE

Shareholders’ Equity

67% increase since 2008

Book Value per Share$38.48$36.85+4%

59

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

60

Capital Growth: 2008-Q3 2013

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

61

Inside ProAssurance’s Balance Sheet

9/30/13

62

Inside ProAssurance’s Income Statement

9/30/13

63

$36.0 Non-Taxable Gain on Acquisition

Book Value per Share History

64

Steady Return in an Unfavorable Environment

Long-term ROE target: 12% -14%

Producing Sustained Return on Equity

Targeting a long-term ROE of 12% - 14%

Eight-year average is 13% (2005-2012)

66

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 6/30/13

67

Strong capital positions us for a firming market

We recognize the effect on ROE

The manner in which
capital is used has an
effect on financial ratings

Capital Management Priorities

68

Conceptual Model of Projected A. M. Best BCAR Scores if

Excess Capital vs. Excess Capacity

Premiums to Surplus

9/30/13 Premium is annualized

“A+” Rating
Threshold

Investment Portfolio Detail

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

ProAssurance: Investment Profile

70

$3.9 Billion Overall Portfolio

$3.2 Billion Fixed Income Portfolio

Average duration: 3.9 years

Average tax-equivalent income yield

Q313: 4.3%

Q312: 4.5%

Investment grade: 93%

Weighted average: A+

09/30/13

Tax credit portfolio not reflected
in investment income

Provides approximately $17.9 million
in tax credits and $10.9 million in
deductions in 2013

CUSIP-level portfolio disclosure at:www.proassurance.com/investorrelations/supplemental.aspx

Does not total due to rounding

ProAssurance Portfolio Detail: Asset Backed

09/30/13

Subject to Rounding

Asset Backed: $429 Million

Weighted Average Rating: “AAA”

71

ProAssurance Portfolio Detail: Corporate

Corporates: $1.4 Billion

Weighted Average Rating: BBB+

9/30/13

72

ProAssurance Portfolio Detail: Municipals

Municipals: $1.2 Billion

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

Weighted Average Rating: AA

06/30/13

73

ProAssurance Portfolio Detail: Equities & Other

09/30/13

74

Equities & Other: $476 Million

5.4% 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: $271 Million

Short Term: $87 Million

BOLI: $54 Million

09/30/13

75