v3.26.1
Investments
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Available-for-sale fixed maturities at March 31, 2026 and December 31, 2025 included the following:
March 31, 2026
(In thousands)Amortized
Cost		Allowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$187,671 $— $490 $5,759 $182,402 
U.S. Government-sponsored enterprise obligations9,131 — 2 287 8,846 
State and municipal bonds447,641 — 3,739 13,648 437,732 
Corporate debt1,805,088 3,767 6,999 64,998 1,743,322 
Residential mortgage-backed securities634,414 204 3,678 45,269 592,619 
Agency commercial mortgage-backed securities5,920 — 6 721 5,205 
Other commercial mortgage-backed securities224,308 62 486 7,487 217,245 
Other asset-backed securities461,535 266 2,052 7,479 455,842 
$3,775,708 $4,299 $17,452 $145,648 $3,643,213 
 December 31, 2025
(In thousands)Amortized
Cost		Allowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$224,114 $— $871 $5,583 $219,402 
U.S. Government-sponsored enterprise obligations10,124 — 9 281 9,852 
State and municipal bonds439,082 — 4,297 13,316 430,063 
Corporate debt1,807,392 3,767 14,932 57,043 1,761,514 
Residential mortgage-backed securities629,348 210 5,659 42,956 591,841 
Agency commercial mortgage-backed securities6,062 — 10 712 5,360 
Other commercial mortgage-backed securities214,535 62 851 7,203 208,121 
Other asset-backed securities463,120 267 3,431 6,650 459,634 
$3,793,777 $4,306 $30,060 $133,744 $3,685,787 
The recorded cost basis and estimated fair value of available-for-sale fixed maturities at March 31, 2026, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(In thousands)Amortized
Cost		Due in one
year or less		Due after
one year
through
five years		Due after
five years
through
ten years		Due after
ten years		Total Fair
Value
Fixed maturities, available-for-sale
U.S. Treasury obligations$187,671 $34,896 $123,730 $21,187 $2,589 $182,402 
U.S. Government-sponsored enterprise obligations9,131 1,963 4,147 753 1,983 8,846 
State and municipal bonds447,641 23,273 159,273 130,129 125,057 437,732 
Corporate debt1,805,088 212,980 834,028 527,565 168,749 1,743,322 
Residential mortgage-backed securities634,414 592,619 
Agency commercial mortgage-backed securities5,920 5,205 
Other commercial mortgage-backed securities224,308 217,245 
Other asset-backed securities461,535 455,842 
$3,775,708 $3,643,213 
Excluding obligations of the U.S. Government, U.S. Government-sponsored enterprises and a U.S. Government obligations money market fund, no investment in any entity or its affiliates exceeded 10% of shareholders’ equity at March 31, 2026.
Cash and securities with a carrying value of $52.1 million at March 31, 2026 were on deposit with various state insurance departments to meet regulatory requirements. ProAssurance also held securities with a carrying value of $49.3 million at March 31, 2026 that are pledged as collateral security for advances under the Company's borrowing relationships with FHLBs.
As a member of Lloyd's, ProAssurance is required to maintain capital at Lloyd's, referred to as FAL, to support the Company's previous participation in underwriting years that remain open at Syndicate 1729. At March 31, 2026, the fair value of ProAssurance's FAL investments was $15.2 million and was comprised of cash and cash equivalents on deposit with Lloyd's, in order to satisfy these FAL requirements.
Investments Held in a Loss Position
The following tables provide summarized information with respect to investments held in an unrealized loss position at March 31, 2026 and December 31, 2025, including the length of time the investment had been held in a continuous unrealized loss position.
March 31, 2026
 TotalLess than 12 months12 months or longer
 FairUnrealizedFairUnrealizedFairUnrealized
(In thousands)ValueLossValueLossValueLoss
Fixed maturities, available-for-sale
U.S. Treasury obligations$138,974 $5,759 $43,751 $1,253 $95,223 $4,506 
U.S. Government-sponsored enterprise obligations7,819 287 4,900 84 2,919 203 
State and municipal bonds267,976 13,648 68,256 2,656 199,720 10,992 
Corporate debt1,230,806 64,998 468,453 16,568 762,353 48,430 
Residential mortgage-backed securities378,365 45,269 148,276 5,105 230,089 40,164 
Agency commercial mortgage-backed securities4,754 721 470 8 4,284 713 
Other commercial mortgage-backed securities151,942 7,487 60,456 465 91,486 7,022 
Other asset-backed securities210,269 7,479 133,532 1,380 76,737 6,099 
$2,390,905 $145,648 $928,094 $27,519 $1,462,811 $118,129 

December 31, 2025
 TotalLess than 12 months12 months or longer
 FairUnrealizedFairUnrealizedFairUnrealized
(In thousands)ValueLossValueLossValueLoss
Fixed maturities, available-for-sale
U.S. Treasury obligations$157,145 $5,583 $18,979 $706 $138,166 $4,877 
U.S. Government-sponsored enterprise obligations8,819 281 — — 8,819 281 
State and municipal bonds271,950 13,316 62,940 2,863 209,010 10,453 
Corporate debt1,066,878 57,043 191,825 10,359 875,053 46,684 
Residential mortgage-backed securities317,483 42,956 81,600 4,130 235,883 38,826 
Agency commercial mortgage-backed securities4,909 712 1,059 128 3,850 584 
Other commercial mortgage-backed securities133,487 7,203 40,131 426 93,356 6,777 
Other asset-backed securities149,152 6,650 64,975 1,413 84,177 5,237 
$2,109,823 $133,744 $461,509 $20,025 $1,648,314 $113,719 
Each quarter, ProAssurance performs a detailed analysis for the purpose of assessing whether any of the securities it holds in an unrealized loss position has suffered an impairment due to credit or non-credit factors. A detailed discussion of the factors considered in the assessment is included in Note 1 of the Notes to Consolidated Financial Statements in ProAssurance's December 31, 2025 report on Form 10-K.
As of March 31, 2026, excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 2,098 debt securities (51.5% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 1,177 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $4.3 million and $2.7 million, respectively.
As of December 31, 2025, excluding U.S. Government or U.S. Government-sponsored enterprise obligations, there were 1,824 debt securities (45.0% of all available-for-sale fixed maturity securities held) in an unrealized loss position representing 1,066 issuers. The greatest and second greatest unrealized loss positions among those securities were approximately $4.1 million and $2.5 million, respectively.
Fixed maturity securities held in an unrealized loss position at March 31, 2026, excluding asset-backed securities, have paid all scheduled contractual payments and are expected to continue. Expected future cash flows of asset-backed securities, excluding those issued by GNMA, FNMA and FHLMC, held in an unrealized loss position were estimated as part of the March 31, 2026 impairment evaluation using the most recently available six-month historical performance data for the collateral (loans) underlying the security or, if historical data was not available, sector based assumptions, and equaled or exceeded the current amortized cost basis of the security.
The following tables present a roll forward of the allowance for expected credit losses on available-for-sale fixed maturities for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31, 2026
(In thousands)Corporate DebtResidential mortgage-backed securitiesOther commercial mortgage-backed securitiesOther asset-backed securitiesTotal
Balance, at December 31, 2025$3,767 $210 $62 $267 $4,306 
Reductions related to:
Securities sold during the period— (6)— (1)(7)
Balance, at March 31, 2026$3,767 $204 $62 $266 $4,299 
Three Months Ended March 31, 2025
(In thousands)Corporate DebtResidential mortgage-backed securitiesOther commercial mortgage-backed securitiesOther asset-backed securitiesTotal
Balance, at December 31, 2024$2,608 $197 $406 $188 $3,399 
Additional credit losses related to securities for which:
No allowance for credit losses has been previously recognized— — 62 91 153 
An allowance for credit losses was recorded in a previous period1,727 — — — 1,727 
Reductions related to:
Securities sold during the period(1,210)(5)(406)(2)(1,623)
Balance, at March 31, 2025$3,125 $192 $62 $277 $3,656 
Other information regarding sales and purchases of fixed maturity available-for-sale securities is as follows:
Three Months Ended March 31
(In millions)20262025
Proceeds from sales (exclusive of maturities and paydowns)$35.7 $138.2 
Purchases$220.1 $314.8 
Net Investment Income
Net investment income (loss) by investment category was as follows:
Three Months Ended
March 31
(In thousands)20262025
Fixed maturities$37,777 $35,033 
Equities806 878 
Short-term investments, including Other3,083 2,574 
BOLI454 618 
Investment fees and expenses(2,148)(2,152)
Net investment income$39,972 $36,951 
Investment in Unconsolidated Subsidiaries
ProAssurance's investment in unconsolidated subsidiaries was as follows:
 March 31, 2026Carrying Value
(In thousands)Percentage
Ownership		March 31,
2026		December 31,
2025
Qualified affordable housing project tax credit partnershipsSee below$60 $53 
All other investments, primarily investment fund LPs/LLCs
See below240,351 245,419 
$240,411 $245,472 
Qualified affordable housing project tax credit partnership interests held by ProAssurance generate investment returns by providing tax benefits to fund investors in the form of tax credits and project operating losses. The carrying value of these investments reflects ProAssurance's total commitments (both funded and unfunded) to the partnerships, less any amortization. At March 31, 2026 and December 31, 2025, ProAssurance did not have an ownership percentage greater than 20% in any tax credit partnership interests. Since ProAssurance has the ability to exert influence over the partnerships but does not control them, all are accounted for using the equity method. See further discussion of the entities in which ProAssurance holds passive interests in Note 10.
ProAssurance holds interests in investment fund LPs/LLCs and other equity method investments and LPs/LLCs which are not considered to be investment funds. ProAssurance's ownership percentage relative to five of the LPs/LLCs is greater than 25% at March 31, 2026 and December 31, 2025 which is likely to be reduced as the funds mature and other investors participate in the funds; these investments had a carrying value of $29.0 million at March 31, 2026 and December 31, 2025. ProAssurance's ownership percentage relative to the remaining investments and LPs/LLCs is less than 25%; these interests had a carrying value of $211.4 million at March 31, 2026 and $216.4 million at December 31, 2025. ProAssurance does not have the ability to exert control over any of these funds.
Equity in Earnings (Loss) of Unconsolidated Subsidiaries
Equity in earnings (loss) of unconsolidated subsidiaries included losses from tax credit partnerships. Investment results recorded reflect ProAssurance's allocable portion of partnership operating results. Tax credits reduce income tax expense in the period they are utilized. The results recorded and tax credits recognized related to ProAssurance's tax credit partnership investments were as follows:
Three Months Ended
March 31
(In thousands)20262025
Qualified affordable housing project tax credit partnerships
Losses (gains) recorded
$(52)$55 
Tax credits recognized$1 $5 
ProAssurance accounts for its tax credit partnership investments under the equity method of accounting and records its allocable portion of the operating losses of the underlying properties based on estimates provided by the partnerships. For the Company's qualified affordable housing project tax credit partnerships, it adjusts its estimates of their allocable portion of operating losses periodically as actual operating results of the underlying properties become available. The primary benefits of tax credits and tax-deductible operating losses from the historic tax credit partnerships are earned in a short period with potential for additional cash flows extending over several years. The Company generated a nominal amount of tax credits from its tax credit partnership investments for the three months ended March 31, 2026 and 2025, which were deferred and are expected to be utilized in future periods. Not included in the table above is $0.9 million of tax credits that were earned in 2019, utilized in 2024 and are expected to be recaptured during 2026 as a result of the carryback of the Company’s estimated NOL for 2026 to the 2024 tax year. As of March 31, 2026, the Company had approximately $34.7 million of available tax credit carryforwards generated from its investments in tax credit partnerships which they expect to utilize in future periods.
Net Investment Gains (Losses)
Realized investment gains and losses are recognized on the first-in, first-out basis. The following table provides detailed information regarding net investment gains (losses):
Three Months Ended
March 31
(In thousands)20262025
Total impairment gains (losses):
Corporate debt$— $(415)
Asset-backed securities7 260 
Portion of impairment losses recognized in other comprehensive income before taxes:
Corporate debt— (102)
Net impairment gains (losses) recognized in earnings
7 (257)
Gross realized gains, available-for-sale fixed maturities580 774 
Gross realized (losses), available-for-sale fixed maturities(2,999)(2,609)
Net realized gains (losses), trading fixed maturities8 9 
Net realized gains (losses), equity investments225 (598)
Net realized gains (losses), other investments22 — 
Change in unrealized holding gains (losses), trading fixed maturities 3 (188)
Change in unrealized holding gains (losses), equity investments(1,261)1,216 
Change in unrealized holding gains (losses), convertible securities, carried at fair value (10)(40)
Net investment gains (losses)$(3,425)$(1,693)
For the three months ended March 31, 2026, ProAssurance recognized a nominal reversal of credit-related impairment losses in earnings related to the sale of asset-backed securities. For the three months ended March 31, 2025, ProAssurance recognized $0.3 million of credit-related impairment losses in earnings and a reversal of a nominal amount of non-credit impairment losses in OCI. The credit-related impairment losses in earnings for the three months ended March 31, 2025 primarily related to four corporate bonds in the real estate sector, partially offset by the reversal of credit-related impairment losses in earnings due to the sale of a corporate bond in the consumer sector.
The following table presents a roll forward of cumulative credit losses recorded in earnings related to impaired debt securities for which a portion of the impairment was recorded in OCI.
Three Months Ended
March 31
(In thousands)20262025
Balance beginning of period$1,598 $1,267 
Reductions due to:
Securities sold during the period— (1,210)
Balance March 31$1,598 $57