ProAssurance 2019 results 'not acceptable' says CEO Rand

US P&C insurer ProAssurance has reported lacklustre results for 2019, with a sharp dip in income. CEO Ned Rand said these results were “not acceptable” and reflected a very challenging property and casualty landscape. He added that he expects this landscape to remain very challenging in the near term.

The company's gross written premiums were $967 million for 2019, up from $957 million in 2018. The company’s combined ratio rose to 119 percent in 2019, compared to 102 percent for 2018, while net income dropped 98 percent to $1 million in 2019 from $47 million in 2018.

“2019 was a consequential year for ProAssurance,” said Ned Rand, president and chief executive officer of ProAssurance. “In the span of 12 months, we restructured the majority of our executive team, consolidated our Specialty Property & Casualty operations under Mike Boguski’s leadership, reduced our Lloyd’s participation, and, with the planned acquisition of NORCAL, negotiated the largest single transaction in our company’s history.

“There is much more to do in 2020. Our results for 2019 were not acceptable. While I believe our accomplishments in the past year position ProAssurance well for the next chapter in the company’s story, the evolving property & casualty landscape remains challenging in the near term. In our estimation, the market is beginning to harden in the healthcare professional liability line, but only time will tell the exact duration and course of this new cycle. As we continue to navigate the challenges presented by large and complex medical groups, our core physicians book of business continues to perform as expected, and our Workers’ Compensation Insurance segment reported strong results despite a highly competitive marketplace.”

Rand continued: “2020 has only just begun, and already it has the potential to be a transformative year with our announcement of the NORCAL transaction. As we take the steps necessary to ensure the integrity of our balance sheet, become a more efficient and effective organization, and grow the ProAssurance family of companies, I am excited for what the future will bring.”