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ProAssurance

DB:PRK
Snowflake Description

Adequate balance sheet unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRK
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The last earnings update was 78 days ago. More info.


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PRK Share Price and Events
7 Day Returns
0.5%
DB:PRK
0.1%
DE Insurance
-0.6%
DE Market
1 Year Returns
5.3%
DB:PRK
18.8%
DE Insurance
-8.3%
DE Market
PRK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ProAssurance (PRK) 0.5% 0.7% 10.8% 5.3% -27.5% 4%
DE Insurance 0.1% 3.2% 2.2% 18.8% 61.6% 61.1%
DE Market -0.6% 1.8% -3.2% -8.3% 8.9% 10.6%
1 Year Return vs Industry and Market
  • PRK underperformed the Insurance industry which returned 18.8% over the past year.
  • PRK outperformed the Market in Germany which returned -8.3% over the past year.
Price Volatility
PRK
Industry
5yr Volatility vs Market

PRK Value

 Is ProAssurance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ProAssurance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ProAssurance.

DB:PRK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= $27.73 * 2.6%
$0.73
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. $27.73
Discount Rate (Cost of Equity) See below 5.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:PRK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.684 (1 + (1- 21%) (14.55%))
0.841
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.841 * 5.96%)
5.24%

Discounted Cash Flow Calculation for DB:PRK using Excess Returns Model Model

The calculations below outline how an intrinsic value for ProAssurance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:PRK Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (2.6% – 5.24%) * $27.73)
$-0.72
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.72 / (5.24% - 0.23%)
$-14.41
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $27.73 + $-14.41
$13.32
DB:PRK Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:PRK represents 0.87687x of NYSE:PRA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87687x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 13.32 x 0.87687
€11.68
Value per share (EUR) From above. €11.68
Current discount Discount to share price of €33.97
= -1 x (€33.97 - €11.68) / €11.68
-190.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ProAssurance is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ProAssurance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ProAssurance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:PRK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.25
NYSE:PRA Share Price ** NYSE (2019-07-18) in USD $38.74
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.37x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ProAssurance.

DB:PRK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PRA Share Price ÷ EPS (both in USD)

= 38.74 ÷ 1.25

31.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ProAssurance is overvalued based on earnings compared to the DE Insurance industry average.
  • ProAssurance is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does ProAssurance's expected growth come at a high price?
Raw Data
DB:PRK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-15.1%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

DB:PRK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.08x ÷ -15.1%

-2.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ProAssurance earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ProAssurance's assets?
Raw Data
DB:PRK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $29.06
NYSE:PRA Share Price * NYSE (2019-07-18) in USD $38.74
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 569 Publicly-Listed Companies 1.75x
DB:PRK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PRA Share Price ÷ Book Value per Share (both in USD)

= 38.74 ÷ 29.06

1.33x

* Primary Listing of ProAssurance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ProAssurance is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess ProAssurance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. ProAssurance has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PRK Future Performance

 How is ProAssurance expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-15.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ProAssurance expected to grow at an attractive rate?
  • ProAssurance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • ProAssurance's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • ProAssurance's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:PRK Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:PRK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -15.1%
DB:PRK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4.7%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:PRK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:PRK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,132 62 1
2020-12-31 1,035 39 6
2019-12-31 1,009 58 5
DB:PRK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 954 138 67
2018-12-31 886 177 47
2018-09-30 916 177 89
2018-06-30 895 148 87
2018-03-31 844 177 78
2017-12-31 866 173 107
2017-09-30 895 158 145
2017-06-30 891 150 150
2017-03-31 900 182 173
2016-12-31 870 179 151
2016-09-30 818 135 131
2016-06-30 769 144 108

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ProAssurance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • ProAssurance's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:PRK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from ProAssurance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:PRK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.15 1.15 1.15 1.00
2020-12-31 0.73 1.00 0.55 6.00
2019-12-31 0.98 1.22 0.70 5.00
DB:PRK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.25
2018-12-31 0.88
2018-09-30 1.66
2018-06-30 1.62
2018-03-31 1.45
2017-12-31 2.01
2017-09-30 2.71
2017-06-30 2.81
2017-03-31 3.25
2016-12-31 2.84
2016-09-30 2.47
2016-06-30 2.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ProAssurance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ProAssurance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ProAssurance has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PRK Past Performance

  How has ProAssurance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ProAssurance's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ProAssurance's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • ProAssurance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • ProAssurance's 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.
Earnings and Revenue History
ProAssurance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ProAssurance Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:PRK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 953.87 66.85
2018-12-31 886.03 47.06
2018-09-30 915.67 88.85
2018-06-30 894.80 86.57
2018-03-31 844.18 77.67
2017-12-31 866.15 107.26
2017-09-30 894.70 144.77
2017-06-30 890.60 149.66
2017-03-31 899.83 173.22
2016-12-31 870.21 151.08
2016-09-30 818.44 131.18
2016-06-30 769.02 107.62
2016-03-31 757.63 97.70
2015-12-31 772.08 116.20
2015-09-30 804.18 146.36
2015-06-30 833.08 170.86
2015-03-31 852.11 187.65
2014-12-31 852.33 196.57
2014-09-30 827.24 202.32
2014-06-30 804.90 230.90
2014-03-31 753.26 231.40
2013-12-31 740.18 297.52
2013-09-30 742.68 327.92
2013-06-30 737.19 324.67
2013-03-31 730.26 332.68
2012-12-31 715.85 275.47
2012-09-30 726.03 314.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ProAssurance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ProAssurance used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • ProAssurance's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ProAssurance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ProAssurance has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PRK Health

 How is ProAssurance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ProAssurance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ProAssurance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ProAssurance's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ProAssurance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ProAssurance Company Filings, last reported 3 months ago.

DB:PRK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,561.90 287.49 326.64
2018-12-31 1,523.00 287.76 852.50
2018-09-30 1,586.90 288.01 327.07
2018-06-30 1,574.62 288.27 311.02
2018-03-31 1,569.17 371.53 398.42
2017-12-31 1,594.80 411.81 1,038.96
2017-09-30 1,850.89 400.46 824.68
2017-06-30 1,838.10 426.37 788.67
2017-03-31 1,825.69 448.29 772.47
2016-12-31 1,798.70 448.20 946.71
2016-09-30 2,042.17 348.12 748.86
2016-06-30 2,028.20 348.03 701.87
2016-03-31 1,984.51 347.94 671.54
2015-12-31 1,958.35 347.86 682.69
2015-09-30 2,006.79 350.00 677.29
2015-06-30 2,057.18 350.00 603.04
2015-03-31 2,128.64 350.00 649.99
2014-12-31 2,157.94 250.00 642.78
2014-09-30 2,321.21 250.00 649.61
2014-06-30 2,360.77 250.00 684.64
2014-03-31 2,351.98 250.00 736.26
2013-12-31 2,394.41 250.00 631.53
2013-09-30 2,373.36 0.00 644.70
2013-06-30 2,336.79 125.00 463.34
2013-03-31 2,361.04 125.00 501.96
2012-12-31 2,270.58 125.00 392.91
2012-09-30 2,349.40 0.00 449.15
  • ProAssurance's level of debt (18.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (10.6% vs 18.4% today).
  • Debt is well covered by operating cash flow (48.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess ProAssurance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ProAssurance has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PRK Dividends

 What is ProAssurance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.49%
Current annual income from ProAssurance dividends. Estimated to be 3.94% next year.
If you bought €2,000 of ProAssurance shares you are expected to receive €90 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ProAssurance's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • ProAssurance's dividend is above the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:PRK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:PRK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.74 1.00
2020-12-31 1.63 4.00
2019-12-31 1.37 4.00
DB:PRK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-22 1.740 4.598
2019-03-06 1.740 4.730
2018-11-28 1.740 4.206
2018-09-05 5.930 13.104
2018-05-23 5.930 14.682
2018-03-07 5.930 12.953
2017-11-29 5.930 10.805
2017-09-06 5.930 10.535
2017-05-31 5.930 10.182
2017-05-04 5.930 10.029
2016-11-30 5.930 10.180
2016-09-07 2.240 4.195
2016-05-25 2.240 4.255
2016-03-02 2.240 4.530
2015-12-02 2.240 4.549
2015-09-02 1.240 2.428
2015-05-27 1.240 2.619
2015-03-03 1.240 2.737
2014-12-03 1.240 2.707
2014-09-03 1.200 2.649
2014-05-28 1.200 2.673
2014-03-05 1.200 2.697
2013-12-04 1.200 2.559
2013-09-11 1.000 2.172
2013-05-22 1.000 1.966
2013-03-06 1.000 2.070
2012-12-05 1.000 2.231
2012-08-31 0.500 1.120
2012-05-16 0.500 1.124
2012-03-07 0.500 1.133
2011-12-07 0.500 1.219
2011-09-07 0.500 1.332

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ProAssurance has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but ProAssurance only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of ProAssurance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.5x coverage).
X
Income/ dividend checks
We assess ProAssurance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ProAssurance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ProAssurance has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PRK Management

 What is the CEO of ProAssurance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ned Rand
COMPENSATION $1,533,466
AGE 52
TENURE AS CEO 0 years
CEO Bio

Mr. Edward Lewis Rand, Jr.., also known as Ned, C.P.A., serves as Chief Executive Officer of ProAssurance Corporation since July 1, 2019, its President since December 3, 2018 and its Director since May 22, 2019. He served as Chief Operating Officer at ProAssurance Corporation since January 2018 until July 1, 2019 and served as its Chief Accounting Officer since April 6, 2017. Previously, he was Chief Financial Officer of ProAssurance Corporation since April 01, 2005 to September 1, 2018. Mr. Rand has been the President of Medmarc Casualty Insurance Company since March 1, 2016. He is President of Noetic Specialty Insurance Co. He served as Senior Vice President and Treasurer of ProAssurance Casualty Company and ProAssurance Indemnity Company, Inc. He was Treasurer of ProAssurance Specialty Insurance Company, Inc. He also serves as Assistant Treasurer of Eastern Insurance Holdings since January 1, 2014. He was Senior Vice President and Treasurer of American Physicians Insurance Company and was its Chief Financial Officer and Director until 2010. He served as an Executive Vice President at ProAssurance Corporation since January 2014. He served as the Chief Financial Officer of NCRIC Group Inc. He served as a Senior Vice President of Finance at ProAssurance Corporation since November 2004. Prior to joining ProAssurance in November of 2004, he served as a Chief Accounting Officer and Head of Corporate Finance at PartnerRe Ltd. from 2000 to 2004. He served as Chief Financial Officer of Atlantic American Corporation from 1996 to January 30, 2001. Prior to joining PartnerRe in August 1997, he served as Vice President and Controller of United Capitol Insurance Company from 1992 to 1996. Prior to this time, Mr. Rand was employed by Coopers & Lybrand (now PriceWaterhouseCoopers) for four years. He served as Treasurer of Self Insurance Administrators Inc., a subsidiary of PartnerRe. He serves as Director of Podiatry Insurance Company of America and PACO Assurance Company, Inc. He is Director of Eastern Advantage Assurance Co Eastern Alliance Insurance Co. & Allied Eastern Indemnity Co. since 2004. He servers as Assistant Treasurer at Eastern Alliance Insurance Co. He served as Director of Georgia Casualty, Director of Association Casualty and a Director of Bankers Fidelity Life Insurance Company, all are subsidiaries of Atlantic American Corporation. Mr. Rand is a graduate of Davidson College, where he received a B.A. in Economics. He is a Certified Public Accountant from AICPA.

CEO Compensation
  • Ned's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ned's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ProAssurance management team in years:

5.5
Average Tenure
56
Average Age
  • The average tenure for the ProAssurance management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Stan Starnes

TITLE
Executive Chairman of the Board
COMPENSATION
$2M
AGE
70

Ned Rand

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
52

Jeff Lisenby

TITLE
Executive VP
COMPENSATION
$1M
AGE
50

Michael Boguski

TITLE
President of Specialty P&C Operations
COMPENSATION
$2M
AGE
56
TENURE
0.2 yrs

Howard Friedman

TITLE
Chief Underwriting Officer & Chief Actuary
COMPENSATION
$1M
AGE
60
TENURE
5.5 yrs

Dana Hendricks

TITLE
EVP & CFO
AGE
51
TENURE
0.8 yrs

Larry Cochran

TITLE
Chief Investment Officer
TENURE
17.5 yrs

Michael Stoeckert

TITLE
CTO & VP
TENURE
5.5 yrs

Frank O'Neil

TITLE
Senior VP of Corporate Communications & Investor Relations
AGE
66
TENURE
17.8 yrs

Katie Neville

TITLE
Chief Compliance Officer & VP
TENURE
5.5 yrs
Board of Directors Tenure

Average tenure and age of the ProAssurance board of directors in years:

4.8
Average Tenure
60.5
Average Age
  • The tenure for the ProAssurance board of directors is about average.
Board of Directors

Ned Rand

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
52
TENURE
0.2 yrs

Robert Flowers

TITLE
Independent Director
COMPENSATION
$151K
AGE
69
TENURE
18.1 yrs

Stan Starnes

TITLE
Executive Chairman of the Board
COMPENSATION
$2M
AGE
70
TENURE
10.8 yrs

Thomas A. Wilson

TITLE
Lead Independent Director
COMPENSATION
$139K
AGE
57
TENURE
1.5 yrs

Sam Di Piazza

TITLE
Independent Director
COMPENSATION
$163K
AGE
68
TENURE
5.5 yrs

Frank Spinosa

TITLE
Independent Director
COMPENSATION
$153K
AGE
64
TENURE
7.2 yrs

Jim Gorrie

TITLE
Independent Director
COMPENSATION
$129K
AGE
56
TENURE
7.2 yrs

Ziad Haydar

TITLE
Independent Director
COMPENSATION
$133K
AGE
56
TENURE
4.2 yrs

Bruce Angiolillo

TITLE
Independent Director
COMPENSATION
$156K
AGE
66
TENURE
3.2 yrs

Katisha Vance

TITLE
Independent Director
COMPENSATION
$130K
AGE
44
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • ProAssurance individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
27. Jun 19 Sell John McMahon Individual 25. Jun 19 25. Jun 19 -933 €31.79 €-29,659
X
Management checks
We assess ProAssurance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ProAssurance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PRK News

Simply Wall St News

PRK Company Info

Description

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Lloyd's Syndicate segments. It offers professional liability insurance for healthcare professionals and facilities; professional liability insurance for attorneys; liability insurance for medical technology and life sciences risks; and workers' compensation insurance for employers, groups, and associations. The company also participates in Lloyd's of London Syndicate 1729, which underwrites property and casualty insurance, and reinsurance; and Syndicate 6131 that underwrites contingency and specialty property insurance. ProAssurance Corporation markets its products through independent agencies and brokers, as well as an internal sales force. The company was founded in 1976 and is headquartered in Birmingham, Alabama.

Details
Name: ProAssurance Corporation
PRK
Exchange: DB
Founded: 1976
$1,869,949,213
53,742,438
Website: http://www.proassurance.com
Address: ProAssurance Corporation
100 Brookwood Place,
Birmingham,
Alabama, 35209,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PRA Common Stock New York Stock Exchange US USD 04. Sep 1991
DB PRK Common Stock Deutsche Boerse AG DE EUR 04. Sep 1991
Number of employees
Current staff
Staff numbers
991
ProAssurance employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 21:30
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.