PRA - Earnings call transcript Q2 2022 | ProAssurance Corporation

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Operator

Good morning. Thank you for attending the ProAssurance Second Quarter Earnings Call. My name is Matt, and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Jason Gingerich, VP of Investor Relations. Jason, please go ahead.

Jason Gingerich

Matt. you, Thank everyone. Good morning, ProAssurance's quarter conference the to to call results. second XXXX company's Welcome discuss These in quarterly were August XXXX, XX-Q, results reported was X, and August issued which in X, XXXX. on the filed company's also report Form a on on news release and company's alter Included those control affect business and uncertainties and results. cautionary that are the significant statements could in factors about out expected were risks, documents other of the ProAssurance's review Please statements. those with the projections, make identifies statements on dealing and statements this Management and expects explicitly estimates call these within to expectations the U.S. forward-looking as meaning of federal securities to safe harbor laws protections. and subject applicable of this content August only on X, XXXX. The is call accurate And statements. undertake disclosed alter except ProAssurance information regulation, disclaims by part update will or of these or and as as forward-looking not any required law expressly obligation to management ProAssurance of today's non-GAAP expects reference call. to team The items during also a recent their counterparts. news release company's The of provides to numbers these GAAP non-GAAP reconciliation remind be to like remarks. you recorded is for being conclusion prepared the time I'd after a there of call will the and questions we selected release call our aspects the quarterly on to results investors complete remind and XX-Q discuss morning, and information. full and accompanying Form will for of press our This review have Chief we Casualty President Operations. today, President call Dana Kevin Rand, Shook, Hendricks, and Lines; our On our Specialty CEO; Workers' our Financial Insurance Compensation and Boguski, Mike and Officer; Ned of Property President of please? off, us start you will Ned,

Ned Rand

of largest a testament for have operating acquisition to to completed our our and and we year what solid completed Jason, morning. the the can people integration hint extremely that at to we full Thank of results as Positive all first and expect good this are see pleased largely future. quarter and we the with continues we The date is you, of NORCAL. acquisition momentum since are side process a The our of ProAssurance in success accomplished.

custom and in walk line physician the of the Specialty this cover through are competitive improvements segment important an the business areas, trends posted marketplace in driver organization, tough Dana Compensation and already the business. and results segment. underwriting our specifically in Our will a will acquired Insurance efforts we company-wide to leading standard again are the across in results and claims in the of Mike a Property Casualty Workers' profit The and are seeing quarter.

conditions business on While results have remark remain of specifically begun the in positivity both see of in line macroeconomic the discusses signs and this he challenging, segment environment we detail. more Kevin to that the will as

create. of costs inflation Regarding rising compensation help this that broader business expense growth investment economic level general conditions, portfolio and how general overall, cost depositor, are trends I'd up and that our the in like index. to as many of cost and premium drive the may our of feel the loss we affect consider our liability rates pressures professional we payrolls of influence business making note negative rising higher loss that are mindful professional There in bond the market strictly the workers' not that price inflation. consumer linked inflation more today level trends other to headline medical within considerably each business such than factors liability our are including figures

view behavior a have greater certainly and we become the trends inflationary to today, ultimate market inflation of factor, claim our on as ability impact see While the a jury have social costs.

for results the the Dana? share to Dana ask quarter. I'll Now

Dana Hendricks

good Thanks, everyone. Ned, morning, and

drove income touching our difference net further operating X.X%, ROE net per points quarter, million operating reported $X.X we per share. from or the up million share a Operating of of was $XX.X second loss first X about or the $X.XX quarter, and Consistent loss the income core For after current quarter. quarter, on of impact operating the with and discuss which the the the the results. environment in first I'll between investment $X.XX

premium results, by an of income. underwriting our on in last XX%, improvement net driven expense NORCAL legacy continued NORCAL renewal almost premiums and from the quarter Gross and reflected the additional synergies investment increased Specialty of quarter pricing the the the month of acquisition in year written in benefit income operating in close the of growth current continued P&C book timing in gains given segment. the acquisition the Our

XXXX Additionally, higher ceased a Lloyd's were an audit premium compensation of our a for premium increase offset in These participation at workers' Syndicate our premiums. XXXX partially as by in result drove increases underwriting the year. insurance in decline

points P&C as excluding quarter quarter, XXXX, improvement improved costs, X.X ratio, higher last combined following the in by post-acquisition rules NORCAL's from driven transaction-related the accounting second of the increased business. purchase GAAP application expected XXXX. Specialty points reflecting XXXX, combined of our consolidated compared first in quarter of X the DPAC to Our of amortization the Despite ratio as development to our by compared favorable buildup

compared the I change to net Before for as due ratio, that discussing the want amounts process loss allocating our to by offsetting are combined periods P&C to ULAE ratios prior Specialty of components impacted XXXX remind of and expense our segment. in you our in

that of ratio operating an results. decrease offsetting and increase equal our the points net in to our X.X had no impact or change to resulted total Note, expenses, consolidated in change expense with current a quarter, the consolidated our For combined loss ratio. ratio

of current as accident second to change ratio essentially was year compared net unchanged in ULAE, consolidated the Excluding XXXX. quarter the our loss

primarily quarter impact we the business, quarter, $XX development the ratios impact the this in the was improvements quarter. Specialty year the million business, of While favorable by of ceded ratios premium XXXX NORCAL majority reduced reflect the P&C by standard our came of in of in and muted prior tail to our mix adjustment which second nonrecurring position We segment. of year a half beneficial a in in the large recognized as during loss the from current driven changes book as well loss prior in legacy premium certain

However, excluding Lloyd's, segments, all operating favorably. contributed

performance-related XX% expenses. addition plans, average investment improved our our and our $XX increase NORCAL's to increase quarter, ULAE investment buildup the rates the Also DPAC due costs prior year increase million in the accrual compensation-related impact of a and nonrecurring to ratio tail in of for and transaction-related the expense to higher and yields the portfolio positive the to in in larger driven grew operating rates higher each income performance quarter, Net by interest change prior by at other X.X% was NORCAL's an mentioned excluding ratio, matures. begin period. reflecting reinvesting earlier was amortization as policy in the expense the consolidated rising the in incentive premium period Our as contributing book of the as year portfolio than effect of driven

interest investors quarter, Although income as interest produced on quarter year changes as Rising which rates also quarter. our our to markets securities lower realized the was to general rates the comprehensive equity, most through classified unrealized the Net decline and losses loss our our of LLC LP $XXX A for rise leading it. prior through unrealized net $XX of portfolio. portfolio sale investment increases the for The challenge investment the the than to losses to value. inflation investment primarily and to earnings, These contributed related continued in an classified and losses holdings to equities. convertible of to accounting fair other additional Fed losses led million on equities. interest million fixed in related after-tax net actions directly some of to of These income portion rate our of $X tame are quarter. a were by bond book holding fears also the flow as recognized this remained net funds, in fixed million the losses in value loss on

last the we majority higher to fair securities consider we Continuing an reinvest have value the changes maturity. by rising a temporary. Therefore, average earnings. on rates have yield until As approach to future emphasized in that increase my impact our rates to and meaningful beginning is remarks holds our at book driven these of should quarter, be interest vast investment in

quarterly are We to result to approximately a that content as temporary basis current price employed income the evidence book points average it rates quarter. that, I'll Jason. turn operating for continue current basis show reported we've With XXX to decline. this Overall, than that I'll our XXX our working. improvement, higher tradeoff take bond over note earnings for yield are points strategies are back reinvestment the to fixed

Jason Gingerich

Thanks, Dana.

Boguski to going commentary the Property Casualty Mike & to segment. Mike? for pivot we're on Now Specialty

Michael Boguski

accident second and ratios. Thank the calendar you, Jason. to improved loss results The NORCAL top Specialty P&C related segment quarter, the driven year produced premium and acquisition growth line positive in by

In addition, the across segment. prudent benefits re-underwriting the and the quarter expense of management continued included

retention XX% year-over-year. driven ratio The Direct of as by retention the consistent from average and result loss the in be loss book the NORCAL representing net units a The in including We reflected XX% ratios. the which our $X current results ratio points, solid focused competitive for retention health retention was Physician small by percentage in strong the health ULAE a underwriting on respectively. bottom business, with $XXX noted in technology marketplace. resulting XX% continue efforts result medical point XX%, renewal care the premium the by in XXXX XX% NORCAL by million of accident of new million, runs delivered reduced results re-underwriting book, focus a improved on strategic line. increased to specialty XX% acquisition primarily comparisons business second higher by accounts year the and of increases business current to Gross the The integration value at the currently our quarter and and of periods written also X.X are X.X as a by and provided primarily We as as the NORCAL a the accounting retention continued efforts and purchase premium year and improvement loss specialty loss Overall, improved assumptions care continued of Standard influenced writings. premium the X result NORCAL business transaction the large despite price transaction Dana. progress included to prior to NORCAL date. pleased premium accident

efforts on continue focus to loss with pleased the are in the line with re-underwriting book. the We bringing NORCAL legacy ratios we ProAssurance as

with the we long-tailed addition, full a in loss year in We this ratio of in liability compared of business our underwriting recognizing due million related the of included to to pandemic encouraged uncertainty second in recognized care lower $XX accident pandemic. be the NORCAL's the the frequency claims accounting by development health the in prior period nature reserve we trend combination cautious quarter continue year of impact. In our of estimates million quarter the Favorable million attribute the accident purchase $XX remain our period same than current of $X development healthcare in liability adjustments impact of the our XXXX. compared on beneficial million $X in which to to reserves to in We historical and same XXXX. efforts of the favorable COVID-XX net continued the professional amortization

prior point increased period X.X of The ratio premium, the XXXX. NORCAL estimate year partially compared of the changes to to broker subject accounting to the Excluding of same expense was book. by in DPAC, volume the the tail in higher increase a of to integration disciplined underwriting in efforts ratio focus on impact XXXX remain consolidation, offset in the on target. premium, year-over-year in results, respect the a information ULAE are NORCAL our and related change In positive summary, continued technology This and segment purchase in the impact which was NORCAL's focused continues commissions related to system percentage NORCAL Thank integration benefit of performance. with and transaction operational NORCAL of you. premium levels. move on higher back-office position, excellence, continue The direction overall improved and with competitive to integration to Jason? in earned our this the as in forward the

Jason Gingerich

date will Compensation you Kevin, the the to reinsurance Workers' Mike. up and cell Insurance Thanks, segregated on bring portfolio segments? us

Kevin Shook

ratio, The book the earned quarter increase combined for to we adjust pandemic offset representing audit The of but was an Thank reported recorded ratio a audits. fee ratio, unbilled our ratio of asset offset compared quarter, premium driven segment second XX.X% Compensation corporate net business underwriting increased quarter asset renewal Audit in restrictions $X XXXX. the the the the by combined you, partially and our quarter, actual in in expense the relatively XXXX Jason. management decrease the territories. not million audit payroll our amortization and an excluding premium of rate by Consistent processed I in ratio. adjustments, of by the premium payroll ongoing premium lower intangible indicator will. underwriting with lifting result rebound and Insurance Gross with were second the performance. flat traditional of increased business the Workers' after loss reflects audits premium XX.X%, of The results combined of second and indicative first XXXX, decreases. new our related did business quarter-over-quarter, in written

a ratio secure the of loss new We price remain decreased profitable XX% competitive were assets The pressures last EBO focused and X% workers' in to our will X activity year audit year book to for our same to continue million X% retention XX% was the second and reflecting impact Premium ratio. year underwriting future to for renewal quarter year. lower XXXX, maintaining business in loss business highly The continued to to year in ratio calendar of compensation decreases period the in reflecting compared loss in the quarters. an quarter-over-quarter, Renewal compared point wage in and traditional XXXX accident trends. on decreased a XXXX quarter of on We retaining current monitor net standards the process accident current compared second business. both accounts indicative to decreased inflation in the the improvement XX% new loss $X.X XX% ago, marketplace.

return restrictions the in $X XXXX. the XXXX reported ratio in XXXX reflected as increased year, Favorable development footprint. activity in of we accident to our As loss lifting second and was workers million last quarter pandemic-related claim of with employment both underwriting full the year

XXXX prior claims, one of representing the closing During closed best years. claim percentages XX claims last XX% X operation months the in of the of and the XXXX, first

Our than and for segment investment return business team a this of an renewal for events unrealized with increased finish and renewed last was This from all Segregated $XXX,XXX travel full We losses. programs to to loss period quarter segment. the Portfolio normal quarter. in second offset quarter, due with general member the of Cell that to expense that reported increase available compared included the ratio more during I'll income Reinsurance during largely which the $XXX,XXX the Jason? the same year. underwriting captive the expenses by business-related year, compensation activities higher were

Jason Gingerich

Kevin. you, Thank

the back results turn for I'll Now to Ned Ned? Lloyd's. of a from review

Ned Rand

written Thanks, Jason. segment XXXX. The just half profit in quarter under Lloyd's in of the and a second reported level premium the

a compared are has we ceased its XXXX the portion Syndicate and of with our business XXXX from be For quota Syndicate participation continued earlier pleased The Syndicate to business the years, share this X% retained segment. profitability year, will reduced applicable XXXX in underwriting continuing we business XXXX. syndicate. underwriting are to on see within investment Lloyd's of

heard integrated should yet was as it come had for us the not You transaction after to was beginning NORCAL congratulations we're time successfully the when been that announced congratulations. and Rather companies say one. perform

ProAssurance wraps the to on so hard appropriate who the team do, we it with everyone together. quarter, results answer integration over While to efforts would we our team pleased success and worked XX now to months work segment to bring and had organizations still for have terrific the some I have review the in up by our is the questions. consolidated our congratulate That believe of two has these last be

Jason Gingerich

Ned. prepared you, that we remarks, are Thank ready Matt, for our and questions. concludes

Operator

line The from the with first question JMP. Instructions] [Operator of Matt is Carletti

Matthew Carletti

metrics on comments be inflation and business comments applicable some you jury but social some pertinent. started not of like your might more with as your and off to and inflation might opening things behavior how the broader Ned, your be around

is us as a you hoping items relates the might it more kind of able each view into just how of those. So of dig to I world your to update be little was and those

Ned Rand

spent that question considerable amount as It's you of a time have might and one we, great imagine, a on.

of has long that come I between line more of medical always seen in broader-based CPI. well medical think medical above down, couple of has there's the what ran inflation. kind and years inflation not. been CPI a with a CPI last has disconnect the inflation as risen, for that is CPI time, we've medical But inflation And and over the actually period

as and that general side. -- perfect often I CPI or of the the medical change begin to a trends, proxy as to medical to up catch to likely we severity medical over time, But see it's cost up, go likely perfect continues within CPI while side a not on measure. And that's to of use the organizations on of staffing increased not a Now measure for especially some a reasons. CPI think number

we call, in always about societal line heard we see a willing to particular case. behavior of driven certainly into jury hasn't now on number that's As I mentioned broader -- think and been quite changed in social award concerns trends, the for verdicts the for inflation, and the impact social a really a that's about about business. CPI and social larger by for those medical behaviors the -- talk talk beyond influential have us when and where reserving built inflation professional have you've more while. and has larger we certainly And concerns jury that And our been of years process inflation inflation

claims And I Another what thing impact ultimate gets often or a ultimately on policy ultimately limit claims limits of awarded that is will a does those dampener limits. as act policy resolution settle. or think where

XXXX. As an industry, $X largely million we've writing been policy since

the as time moderating of as has passed. And policies inflation value that the drives has the kind on trend impact more million had an the I of on $X think up dollar, so of of limit some

your Matt. answers that hope I So question,

Matthew Carletti

kind give we and NORCAL thinking ratio kind a bit a the there about close, can It probably couple things right anniversarying P&C. On if with of direction. about of but expense rate Specialty Is ratio how kind you run of can, us questions I of kind numbers now in of been with us, a think bit then maybe the -- like on I had QX couple just the is about does. behind help is -- pluses any that your the little talked minuses within directionally Am -- should a that expense not feels And Dana. it you has of it, hot, for right?

Dana Hendricks

that we've quarter think past inside the to I that think of ratio continues of expense over favorable after as about P&C been talked our how It buildup segment, to expense course the year, ratio about quarter. the DPAC build. amortization you the Specialty the has

be year second amortization at what the With quarter rate fluctuations, can a we now X normalized run DPAC there past you and not certainly in that over expense post-acquisition, -- not for meaningful may terms than the the of -- to year. has we're is ratio, view been most but significant other variable so that, minor normalized of what fluctuations expecting be course expect the we've the

Matthew Carletti

Great. look as consolidated terms is -- just that's investment we the could, of trying the think the get X-quarter to then we other if kind line we partnerships, there already think that as both have reporting we I'm anything should about refresher might I as a what anything And tax a there's investments to LPs happened the direct QX sort should QX? of in question, in of of of kind subsidiaries lag on of and about and if equity the earnings credit of income some on as well

Dana Hendricks

our occurring in does a lag. LLCs So in on fact terms a LPs on investment of report our that X lag, portion quarter portfolio what's of and

do we're outlined that reinvestment have coming sort sort I want at terms of and to forward, So the to forward. from of we need might the investment our and of get and look going about of be might portion what might the yields now as that that's to consider project would portfolio just you investor our on of our you portfolio so that website looking net that as then sense income expect encourage to generated income a in at can consider it you rate of the take lag that, you there. you portfolio a determine you're looking investment what over maturing that portion thinking our quarters

Operator

is Sandler. The with next Newsome question line from of Paul the Piper

Paul Newsome

profit revisit could journey I was your of NORCAL wondering step the an that make maybe we is finished if and back now underwriting to commercial you in several rate really what to the you to long-term hope kind years? specialty working and do are or that see or to And it How we the over business. that be accomplish, out there? things get whether the whatever need the next underwriting that

Ned Rand

that's start Mike I'll Maybe and question, yes, let in. great start -- come Yes. and I'll Paul. then then a

said don't want a We of have to being understate lot finished. work NORCAL to You do. that. still I

the there's done stuff, We the that's of opportunities the of one the integration those and have still of of that a lot will the IT incredibly lot client-facing and for go drive market to I organization we are and back-office as as office important. two benefits further sort the of companies things front future a company, think But in systems into the accomplished.

that's professional ratio and So to and done, part effective opportunity to health that side Specialty the be have the of which our particular, and this, a can expense Mike to of And really gets job still organization and the continue answer has most masterful team business, that, the a really question, the down. be as certainly a care need side. work expense his P&C on lot about to There's our it ratio excited of business work on work your to ratio we -- that drive been liability A drive is as that lot do. we done. and there done in to been of is much loss efficient, not we're

it some them. determine indications they bearing we're And We takes are will. that the and ratio recognizing believe of we business, have also long-tail the you've or But and a we're whether in loss they lot certainly efforts undertaken side re-underwriting time that that re-pricing book, to so efforts been recognize on we book. not have of to And the a the the are, the line fruit. that extent

think the what to just pandemic the over war to the done. created, you've and it going ability I'm a things lot fog of of I some has recognize that, down with that hand to pandemic that slows Mike. of With But

Michael Boguski

Thank you, Ned.

to loss if ratio a over conditions year points more year come past underwriting on it XX look NORCAL rates, X, down, bit of has gone mean the little improved. well. very have add the book accident side this The Just I very, The terms, color. over that X year, to kind really we're the you has at past next over trying the XX months. to and around repeat

So of on I is of would describe side at where book. that we're ahead plan the re-underwriting

The that ProAssurance we We're over there. the targets to you're 'XX, really NORCAL on really book XXXX on that as period had piece other we're got later worked is, a looking to book. for our that aware, year the and

kind XX in So improvements. months, to that we next play the the of expect to out XX additional

which result and the and of is underwriting thing as some of really the a cautious the our some NORCAL I in being about the -- book efforts in significant think said other that frequency we've the So important to pandemic, is statements. we we're experienced decrease as have degree,

that's innovation And team, that And as with can the So our term. and where couldn't drive at. we're a systems in systems see term, XX XX in really the our you'll longer we the quarter, over as the we're well there as some the and And statutory we'll efficiencies just that progress there. culture more item think won't third as see we team, where NORCAL is think presented next you I into be with the delighted and going. consolidation but of we're but other opportunity consolidation short entities, impact are one I get well. evaluate final fourth pleased tremendous we final in And the months to and

Paul Newsome

And this, this integrated much is business, work today? How to I comp be sort how separate of surrogated being a with operations? opposed workers' other didn't each know the they as closely do as -- accounts are realized Great. they just The curious. in

Kevin Shook

from business. I'm claims Workers' their point, management the separate Ned's of books other But understanding risk Insurance are they and segment each question in Compensation in is from of terms as our the to if your our same cells correctly. side, So is autonomous it underwriting all

Paul Newsome

or other's question, was integration not not or matter distribution of well, an there's That but there they well. each scale, was as not my whether claims or operations, to a segregation curious whether and for also overlap of whether --

Kevin Shook

bit again, but Specialty operationally, overlap. of And it's workers' MPL, in the P&C or within all the a there comp operate But themselves is the cells little of case distribution autonomously.

Ned Rand

the good But to services able the provide. to that those I some a the us clients Segregated leverage HCPL that services to we're uses charge fees think business able much we and for business want risk. that compensation model a people about the we're within to provide to the Specialty resources, self-insure very expertise Cell same the retain and within the same way workers' Portfolio is people fee-for-service it business the through allows to way drive of expense more efficiencies to works where think P&C and the

Operator

is The Truist. of the of next question Hughes from Mark line

Mark Hughes

in to What months? X in months, X formulation the did the you've points XX about Mike, that P&C you Was think, or say in did what terms talked done -- business. of correctly? a to XX XX goal be to the I that of hear repeat kind timing? of to Specialty you XX I And improvement,

Michael Boguski

tail Mark, have actions long taken the for come through XX book think we it that all business XX underwriting you line another to in to the at months. and a as look And earned of premiums of yes, months XX fruition. we've business, at I been can

Mark Hughes

data issued some wasn't are And indications, inflation loss seeing not been There you're social you've inflation. stand the then within necessarily clear or manifesting your but improve and book extent experience. costs really happening whether it's know do in and much there wrestling of for opportunity that just that? And you we what's in I the get losses to on more you is itself the with the of business? Where issue to book. how so about

Ned Rand

to saying was some So of the things on I earlier. expand maybe

very in million on has social large earlier lot typical you when the think the a awards. write we think I of $X jury I inflation, policy it. And a itself cover manifests that mentioned about that

harder has resolves to ultimate impact of even the it is we data is and up inflation. when increase that trend a that look lines and at if kind inflation kind up -- social continues the severity So and an that becomes quantify. resolution of trend claim not where drives within heighten we've kind expectations. million of But the $X limit and historic that our with policy And it in that seen broader to

by run it the that probably layer. we're between depending is on overall, that X% and think severity somewhere closer jurisdiction. jurisdiction and million trend that in X% jurisdiction what X% varies first I seeing to But

Now We when write your we the if reinsure of with do. But policies that million. business limits an has most it's reinsurance future. impact, what obviously, reinsured excess of of that kind and into in even we it costs $X are

something So be to of think continue it's very as mindful we about. we

think what largely systems been resolution reluctant headed, uncertainty are claims. And about of to created of claims a ProAssurance couple book an about in that lack decline The that question kind that of claims of increase come now. court to ProAssurance the we've claims, those? will kind to clarity we and other mentioned the Because by thinking a where of seen leads the the your of that's be the the frequency by and about give in X-year the legacy assumed to in infrequently that. slower legacy which frequency we've Mike kind the down about door offset pandemic, severity in that I what of occasions and have you piece, the in of claims the are the claims both have really is decline in over slow of book credit almost decline that the full book period what NORCAL

so we're the kind see anything what I to that And wait-and-see of that. mentioned. this that's where going on I think we've date, approach seen trends says we don't with down But severity

Mark Hughes

higher sort Is a where -- you right, do... putting severity you're or not what high-single-digits assumption reserves. And I X%, of aren't in that your the think in

Ned Rand

depending X% I on kind it again, mentioned, of the jurisdiction. the jurisdiction, trend, X% somewhere between kind Well, depends and severity by as jurisdiction of

perfectly lot probably we've the the taken because credit frequency. effect Now say of which because decline decline that's in not hard not for that is a the of the in it's would trend to quantify baked into frequency, that taken in higher we've

Mark Hughes

number the give gross And in you then quarter? NORCAL written for specific by did premiums a

Ned Rand

know and don't that we for while did. here and try back on the on We'll get it. We I you. call can certainly if circle it get we're

Mark Hughes

verdicts you Is then good out around And data just mean, inflation social or too question Okay. where get the are to courts issue. Do that? up you coming I enough are getting points? line days you running? a and -- a early still the sight the are on seeing final of

Ned Rand

data in It a The in -- it's kind increased this pulls verdicts the of we of think hit. and to up seeing and shared, or million court feels some industry I on TransRe -- the space in and pandemic about through range back claims is early of $XX the they data the XXXX definitely that the some actually and well those for the to back number Follows we like verdicts were of million are if normalized doing we've same systems million kind seeing. million that about you together and $XX $XX to even $XX XXXX, up the levels think were very that larger.

Mark Hughes

Great.

Ned Rand

for $XX.X QX for or NORCAL of for million. is written 'XX premium gross -- 'XX all And

Mark Hughes

million. then that I right $XX.X $XXX And have it QX do was million?

Dana Hendricks

Yes.

Ned Rand

Yes.

Operator

the & from with is line of Partners. question Gary Dowling next Ransom The

Gary Ransom

and you there is limits to $X pressure that offering more, than inadequate be more? million I on if you for any but looking that, market just limits wrong more I'm how most for million them would higher about for of have start that $X that seems Maybe I'm pressuring a doctor, question on thinking so a broadly? the mentioned

Ned Rand

And we I it think don't that see see of broadly. pockets it we

I come. think will it

has inflation it point to I think today. $X it at I number the mid-XXXXs, mean, industry. adjust of when a excess million up the in $X for some from you million come ends

also agree you the those inadequate, as a today. be mentioned, sense the case. a that with won't there. always out would in bit limiter I of But I is becoming act limits probably And so they that as are But

practice the higher seen hospitals looks doctors physicians by fully know, and but they pressure may I are a limits. for in higher the we of that limits expect hospital requirements driven have does hospital so that it's well the very horizon like, that by in. carry systems mean, require limits I that And time, often it be where systems. carry determined instances some So push beginning be certainly are to what the build. over a don't to I push time think we there the And

Gary Ransom

-- it. the most is okay. you remind reinsure over Or million? your Got is yes, -- it's $X me, claims And do

Ned Rand

-- of for yes, and We business, retain retain care million above reinsure $X health the professional first we so liability the -- then that. on exposure

Gary Ransom

if I long-term equity. had Got goals get any have any that that you're on it. -- over to. you time? that trying I particular on question one remember trying do to other you get there's to then returns to you're said couldn't goals And didn't But

Ned Rand

you do to want Dana, that? take

Dana Hendricks

XXX What risk-free and time been for rate. long-term working objective we're we're shooting continues what some is to above our basis for points here And towards. stated what be. that's has That's

Gary Ransom

up, as to closer free is guess go number rates at And I getting point? one that this XX%

Dana Hendricks

That's Right. right.

Gary Ransom

Maybe at yes. both, not quite

Okay. All right.

Operator

additional at no waiting time. this are questions There

So any the to closing over I'll the team for management pass conference remarks.

Jason Gingerich

everyone We you for you thank to that in today. forward joined and Matt, look you, with again Thank speaking XXXX. us

Operator

Thank conference That call. concludes for your the participation. you

your You lines. now may disconnect

ProAssurance (PRA) 13 Aug 222022 Q2 Earnings call transcript