ProAssurance reports Q1 EPS 8c, consensus 35c
Reports Q1 revenue $269M, consensus $258.7M. "Our concern about the broad loss trends in healthcare professional liability continues to have a major impact on operating results, and this increasing severity will likely affect our results for the foreseeable future. Our view of these trends influences our current accident year loss picks, which continue to rise, and leads us to increased caution in our analysis of prior period reserves, both of which have a significant impact on the operating results of our largest operating segment, Specialty P&C. We make no apology for taking the actions needed to protect our balance sheet, no matter the short-term impact. This is consistent with our long-term strategy and the long tail nature of our business. As has historically been the case the caution we take in establishing our reserves allows us to focus on our future without undue concerns about past liabilities, something that will be especially important as Mike Boguski and his team bring together all of our Specialty P&C operations under unified leadership. All of this overshadows several positive aspects of the quarter, including higher renewal pricing, solid retention of existing business, continued profitability in our Workers' Compensation Insurance segment, and a recovery of the majority of last quarter's mark-to-market losses in our equity trading portfolio resulting in a quarter-over-quarter increase in net income," said Stan Starnes, the Chairman and Chief Executive Officer of ProAssurance.