v3.26.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy has been established for valuing assets and liabilities based on how transparent (observable) the inputs are that are used to determine fair value, with the inputs considered most observable categorized as Level 1 and those that are the least observable categorized as Level 3. Hierarchy levels are defined as follows:
 Level 1:quoted (unadjusted) market prices in active markets for identical assets and liabilities. For ProAssurance, Level 1 inputs are generally quotes for securities actively traded in exchange or over-the-counter markets.
 Level 2:market data obtained from sources independent of the reporting entity (observable inputs). For ProAssurance, Level 2 inputs generally include quoted prices in markets that are not active, quoted prices for similar assets or liabilities, and results from pricing models that use observable inputs such as interest rates and yield curves that are generally available at commonly quoted intervals.
 Level 3:the reporting entity’s own assumptions about market participant assumptions based on the best information available in the circumstances (non-observable inputs). For ProAssurance, Level 3 inputs are used in situations where little or no Level 1 or 2 inputs are available or are inappropriate given the particular circumstances. Level 3 inputs include results from pricing models for which some or all of the inputs are not observable, discounted cash flow methodologies, single non-binding broker quotes and adjustments to externally quoted prices that are based on management judgment or estimation.
Fair values of assets measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 are shown in the following tables. Where applicable, the tables also indicate the fair value hierarchy of the valuation techniques utilized to determine those fair values. For some assets, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When this is the case, the asset is categorized based on the level of the most significant input to the fair value measurement. Assessments of the significance of a particular input to the fair value measurement require judgment and consideration of factors specific to the assets being valued. See Note 2 of the Notes to Consolidated Financial Statements in ProAssurance’s December 31, 2025 report on Form 10-K for a summary description of the valuation methodologies used regarding securities in the Level 2 and Level 3 categories, by security type.
March 31, 2026
Fair Value Measurements UsingTotal
(In thousands)Level 1Level 2Level 3Fair Value
Assets:
Fixed maturities, available-for-sale
U.S. Treasury obligations$— $182,402 $— $182,402 
U.S. Government-sponsored enterprise obligations— 8,846 — 8,846 
State and municipal bonds— 437,732 — 437,732 
Corporate debt, multiple observable inputs— 1,659,439 — 1,659,439 
Corporate debt, limited observable inputs— — 83,883 83,883 
Residential mortgage-backed securities— 592,619 — 592,619 
Agency commercial mortgage-backed securities— 5,205 — 5,205 
Other commercial mortgage-backed securities— 217,245 — 217,245 
Other asset-backed securities— 450,496 5,346 455,842 
Fixed maturities, trading— 13,567 — 13,567 
Equity investments
Financial10,391 2,368 — 12,759 
Utilities/Energy1,525 — — 1,525 
Bond funds80,695 — — 80,695 
All other10,729 — — 10,729 
Short-term investments240,407 69,103 — 309,510 
Other assets— 1,765 — 1,765 
Total assets categorized within the fair value hierarchy$343,747 $3,640,787 $89,229 4,073,763 
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of:
Investment in unconsolidated subsidiaries214,423 
Total assets at fair value$4,288,186 
Liabilities:
Other liabilities$2,124 $286 $— $2,410 
Total liabilities categorized within the fair value hierarchy$2,124 $286 $— $2,410 
December 31, 2025
Fair Value Measurements UsingTotal
(In thousands)Level 1Level 2Level 3Fair Value
Assets:
Fixed maturities, available-for-sale
U.S. Treasury obligations$— $219,402 $— $219,402 
U.S. Government-sponsored enterprise obligations— 9,852 — 9,852 
State and municipal bonds— 430,063 — 430,063 
Corporate debt, multiple observable inputs— 1,682,003 — 1,682,003 
Corporate debt, limited observable inputs— — 79,511 79,511 
Residential mortgage-backed securities— 591,841 — 591,841 
Agency commercial mortgage-backed securities— 5,360 — 5,360 
Other commercial mortgage-backed securities— 208,121 — 208,121 
Other asset-backed securities— 456,130 3,504 459,634 
Fixed maturities, trading— 14,316 — 14,316 
Equity investments
Financial10,838 2,368 — 13,206 
Utilities/Energy1,103 — — 1,103 
Bond funds81,137 — — 81,137 
All other11,542 — — 11,542 
Short-term investments222,354 63,275 — 285,629 
Other investments— 1,215 — 1,215 
Other assets390 399 — 789 
Total assets categorized within the fair value hierarchy$327,364 $3,684,345 $83,015 4,094,724 
Assets carried at NAV, which approximates fair value and which are not categorized within the fair value hierarchy, reported as a part of:
Investment in unconsolidated subsidiaries214,455 
Total assets at fair value$4,309,179 
Liabilities:
Other liabilities$809 $475 $— $1,284 
Total liabilities categorized within the fair value hierarchy$809 $475 $— $1,284 
Level 3 Valuations
Quantitative Information Regarding Level 3 Valuations
Below is quantitative information regarding securities in the Level 3 category, by security type:
Fair Value at
($ in thousands)March 31, 2026December 31, 2025Valuation TechniqueUnobservable InputRange
(Weighted Average)
Assets:
Corporate debt, limited observable inputs$83,883$79,511Market Comparable
Securities		Comparability Adjustment
0% - 5% (2.5%)
Discounted Cash FlowsComparability Adjustment
0% - 5% (2.5%)
Other asset-backed securities$5,346$3,504Market Comparable
Securities		Comparability Adjustment
0% - 5% (2.5%)
Discounted Cash FlowsComparability Adjustment
0% - 5% (2.5%)
The significant unobservable inputs used in the fair value measurement of the above listed securities were the valuations of comparable securities with similar issuers, credit quality and maturity. Changes in the availability of comparable securities could result in changes in the fair value measurements.
Fair Value Measurements - Level 3 Assets
The following tables present summary information regarding changes in the fair value of assets and liabilities measured using Level 3 inputs.
 March 31, 2026
 Level 3 Fair Value Measurements – Assets
(In thousands)Corporate DebtAsset-backed SecuritiesTotal
Balance, December 31, 2025$79,511 $3,504 $83,015 
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment income (loss)27 — 27 
Included in other comprehensive income (loss)(448)(62)(510)
Purchases
6,331 — 6,331 
Sales
(1,277)— (1,277)
Transfers in
1,658 1,904 3,562 
Transfers out
(1,919)— (1,919)
Balance, March 31, 2026$83,883 $5,346 $89,229 
 March 31, 2025
 Level 3 Fair Value Measurements – Assets
(In thousands)Corporate DebtAsset-backed SecuritiesEquity InvestmentsOther InvestmentsTotal
Balance, December 31, 2024$81,062 $3,774 $5,506 $500 $90,842 
Total gains (losses) realized and unrealized:
Included in earnings, as a part of:
Net investment gains (losses)(1,727)— (689)— (2,416)
Included in other comprehensive income (loss)417 (20)— — 397 
Purchases683 866 — 521 2,070 
Sales(2,538)— — — (2,538)
Transfers in1,988 1,001 — — 2,989 
Transfers out(10,938)(1,048)— — (11,986)
Balance, March 31, 2025$68,947 $4,573 $4,817 $1,021 $79,358 
Change in unrealized gains (losses) included in earnings for the above period for Level 3 assets and liabilities held at period-end
$— $— $(689)$— $(689)
Transfers
Transfers shown in the preceding Level 3 tables were as of the end of the period in which the transfer occurred. All transfers were to or from Level 2.
All transfers in and out of Level 3 during the three months ended March 31, 2026 and 2025 related to securities held for which the level of market activity for identical or nearly identical securities varies from period to period. The securities were valued using multiple observable inputs when those inputs were available; otherwise the securities were valued using limited observable inputs.
Fair Values Not Categorized
At March 31, 2026 and December 31, 2025, certain LPs/LLCs and investment funds measure fund assets at fair value on a recurring basis and provide a NAV for ProAssurance's interest. The carrying value of these interests is based on the NAV provided and was considered to approximate the fair value of the interests. For investment in unconsolidated subsidiaries, ProAssurance recognizes any changes in the NAV of its interests in equity in earnings (loss) of unconsolidated subsidiaries during the period of change. In accordance with GAAP, the fair value of these investments was not classified within the fair value hierarchy. The amount of ProAssurance's unfunded contractual commitments related to these investments as of March 31, 2026 and fair values of these investments as of March 31, 2026 and December 31, 2025 were as follows:
 Unfunded
Contractual Commitments		Fair Value
(In thousands)March 31,
2026		March 31,
2026		December 31,
2025
Investment in unconsolidated subsidiaries:
Private debt funds(1)
$3,667$10,450 $10,736 
Non-public equity funds(2)
$33,10589,443 92,164 
Credit funds(3)
$70,48554,914 54,373 
Strategy focused funds(4)
$44,64859,616 57,182 
Total investments carried at NAV$214,423 $214,455 
Below is additional information regarding each of the investments listed in the table above as of March 31, 2026.
(1)This investment is comprised of one LP fund that is structured to provide interest distributions primarily through diversified portfolios of private debt instruments. The LP allows redemptions by special consent. Income and capital are to be periodically distributed at the discretion of the LP over an anticipated time frame that spans from three to eight years.
(2)This investment is comprised of interests in multiple unrelated LP funds, each structured to provide capital appreciation through diversified investments in private equity, which can include investments in buyout, venture capital, debt including senior, second lien and mezzanine, distressed debt, collateralized loan obligations and other private equity-oriented LPs. Two of the LPs allow redemption by terms set forth in the LP agreements; the others do not permit redemption. Income and capital are to be periodically distributed at the discretion of the LP over time frames that are anticipated to span up to ten years.
(3)This investment is comprised of multiple unrelated LP funds. Three funds seek to obtain superior risk-adjusted absolute returns through a diversified portfolio of debt securities, including bonds, loans and other asset-backed instruments. The remaining funds focus on private middle market company mezzanine and senior secured loans, opportunities across the credit spectrum, mortgage backed-loans, as well as various types of loan-backed investments. One fund allows redemptions at any quarter-end with prior notice requirements of 180 days, while two other funds allow for redemptions with consent of the General Partner. The remaining funds do not allow redemptions. For the funds that do not allow redemptions, income and capital are to be periodically distributed at the discretion of the LP over time frames throughout the remaining life of the funds.
(4)This investment is comprised of multiple unrelated LPs/LLCs funds. One fund is an LLC focused on investing in North American consumer products companies, comprised of equity and equity-related securities, as well as debt instruments. A second fund is focused on aircraft investments, along with components and assets related to aircraft. A third fund is an LLC focused on acquiring ownership stakes in insurance agencies. For all three funds, redemptions are not permitted. The remaining funds are real estate focused LPs, three of which allow for redemption with prior notice.
ProAssurance may not sell, transfer or assign its interest in any of the above LPs/LLCs without special consent from the LPs/LLCs.
Nonrecurring Fair Value Measurement
ProAssurance did not have any assets or liabilities that were measured at fair value on a nonrecurring basis at March 31, 2026 or December 31, 2025.
Financial Instruments - Methodologies Other Than Fair Value
The following table provides the estimated fair value of the Company's financial instruments that, in accordance with GAAP for the type of investment, are measured using a methodology other than fair value. Fair values provided primarily fall within the Level 3 fair value category.
 March 31, 2026December 31, 2025
(In thousands)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Financial assets:
BOLI$83,241 $83,241 $82,787 $82,787 
Other investments$7,207 $7,207 $7,185 $7,185 
Other assets$21,747 $21,747 $23,257 $23,257 
Financial liabilities:
Revolving Credit Agreement*$125,000 $125,000 $125,000 $125,000 
Term Loan*
$112,500 $112,500 $114,063 $114,063 
Contribution Certificates$182,838 $157,895 $182,500 $165,449 
Other liabilities$20,915 $20,915 $22,469 $22,469 
* Carrying value excludes unamortized debt issuance costs.
The fair value of the BOLI was equal to the cash surrender value associated with the policies on the valuation date.
Other investments listed in the table above primarily include FHLB common stock carried at cost. Two of ProAssurance's insurance subsidiaries are members of an FHLB. The estimated fair value of the FHLB common stock was based on the amount the subsidiaries would receive if their memberships were canceled, as the memberships cannot be sold.
Other assets and other liabilities primarily consisted of related investment assets and liabilities associated with funded deferred compensation agreements. The fair value of the funded deferred compensation assets was based upon quoted market prices, which is categorized as a Level 1 valuation, and had a fair value of $21.7 million and $23.2 million at March 31, 2026 and December 31, 2025, respectively. Other assets at December 31, 2025 also included an unsecured note receivable. The fair value of the note receivable was based on the present value of expected cash flows from the note receivable, discounted at
market rates on the valuation date for receivables with similar credit standings and similar payment structures. Other liabilities consisted of liabilities associated with funded deferred compensation agreements. The reported balance is determined based on the amount of elective deferrals and employer contributions adjusted for periodic changes in the fair value of the participant balances based on the performance of the funds selected by the participants and had a fair value of $20.9 million and $22.5 million at March 31, 2026 and December 31, 2025, respectively.
The fair value of the debt was estimated based on the present value of expected future cash outflows, discounted at rates available on the valuation date for similar debt issued by entities with a similar credit standing to ProAssurance.