PRA Earnings Prediction
The chart below shows how PRA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PRA sees a -0.01% change in stock price 10 days leading up to the earnings, and a -7.18% change 10 days following the report. On the earnings day itself, the stock moves by +0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
PRA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
278.40M
0.89%
-2.59%
Gross Margin
--
--
--
Operating Margin
7.16%
391.06%
7.51%
Net Margin
5.91%
133.00%
8.84%
EPS
0.32
133.68%
6.67%
No Data Available
PRA Earnings Analysis
ProAssurance Corporation Corporation (PRA.N) Earnings Conference Call
Positive
Operating Earnings Performance: 1. Operating Earnings Growth: ProAssurance reported operating earnings of $17.3 million or $0.34 per share for Q3 2024, reflecting a strong performance in the Specialty P&C segment with a combined ratio of 99.5%.
Favorable Reserve Development: 2. Favorable Reserve Development: The Specialty P&C segment benefited from 10.5 points of favorable prior accident year reserve development, indicating better-than-expected claims closure for accident years 2018 and prior.
Premium Increase Trends: 3. Significant Premium Increases: Since 2018, renewal premiums in the Medical Professional Liability lines have increased by over 65%, with a 14% increase in standard business and an 18% increase in specialty business this quarter alone.
Loss Ratio Improvement: 4. Improved Loss Ratios: The current accident year net loss ratio for the Workers’ Compensation segment was about 4 points below the full year 2023 ratio, demonstrating effective management of underwriting and claims.
Investment Income Surge: 5. Strong Investment Performance: Net investment income rose by $5 million or 14% in Q3 2024, with new purchase yields at 5.2%, significantly higher than the average book yield of 3.6%, contributing positively to overall earnings.
Negative
New Business Decline: 1. Decline in New Business: New business in the Specialty P&C segment fell to $8 million, down from the previous year, indicating a significant reduction in growth opportunities.
Workers' Compensation Challenges: 2. High Combined Ratio: The Workers’ Compensation segment reported a combined ratio of 111%, reflecting ongoing challenges in managing costs and claims despite some improvements in loss ratios.
Expense Ratio Increase: 3. Increased Expense Ratio: The expense ratio increased by nearly two points compared to 2023, primarily due to higher compensation costs associated with improved profitability, which could pressure future margins.
Limited Premium Increase: 4. Limited Premium Growth: Net written premiums in the Workers’ Compensation segment only increased by $2 million, suggesting limited growth potential in a challenging market environment.
Medical Cost Inflation Impact: 5. Negative Impact of Medical Cost Inflation: Medical cost inflation remains high, with average medical costs down only about 3%, indicating persistent pressure on the company's loss ratios and profitability.
PRA FAQs
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PRA Earning Call Sentiment
ProAssurance Corporation (PRA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PRA.N
-0.33%Positive
The earnings call presents mixed signals: strong investment income growth and improved book value are positive, but regulatory risks, competitive pressures, and supply chain challenges pose concerns. The Q&A revealed no significant changes or alarming trends, though management's lack of clarity on future expense projections is a downside. The absence of a share repurchase plan and the potential impact of unrealized investment losses further contribute to a neutral sentiment. With no market cap data available, the stock's reaction is expected to be within a neutral range of -2% to 2%.