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Shares of ProAssurance Corporation PRA dipped marginally since it reported third-quarter 2025 results on Nov. 4. The quarterly results were hurt by weaker underwriting performance, declining gross premiums written and an elevated expense level. Combined ratio deteriorated across key segments, such as Specialty P&C and Workers' Compensation Insurance segments. Nevertheless, the downside was partly offset by strong investment income growth and the robust performance of the Segregated Portfolio Cell Reinsurance segment.
PRA reported a third-quarter 2025 adjusted operating income of 15 cents per share, which lagged the Zacks Consensus Estimate by 46.4%. The bottom line dropped 53.1% year over year.
Operating revenues of $274 million dipped 1.4% year over year. The top line missed the consensus mark by 0.7%.
ProAssurance Corporation price-consensus-eps-surprise-chart | ProAssurance Corporation Quote
Gross premiums written fell 5.7% year over year to $290.4 million, which fell short of our estimate of $301.9 million. Net premiums earned of $233.4 million tumbled 4% year over year. Yet, the reported figure outpaced the Zacks Consensus Estimate of $225 million but missed our estimate of $236.3 million.
Net investment income advanced 8.5% year over year to $40.4 million in the quarter under review on the back of improved average book yields. The metric beat the consensus mark of $39.2 million and our estimate of $39.3 million.
Total expenses came in at $275.2 million, which increased 4.2% year over year and came higher than our estimate of $261.5 million. The year-over-year increase was due to higher net losses and loss adjustment expenses, and underwriting, policy acquisition and operating costs.
ProAssurance’s net income plunged 91.2% year over year to $1.4 million. The combined ratio of 114.7% deteriorated 910 bps year over year.
The segment recorded revenues of $181.8 million in the third quarter, which slipped 4.4% year over year. The metric marginally missed the Zacks Consensus Estimate of $183 million and our estimate of $184.6 million. Net premiums earned decreased 4.2% year over year to $180.8 million, lower than the consensus mark of $182 million.
Total expenses came in at $200.3 million, which escalated 6.4% year over year. The unit incurred a loss of $18.5 million against the year-ago profit of $1.9 million. The combined ratio deteriorated 910 bps year over year to 109.1%.
Revenues in the segment fell 2.3% year over year to $41.4 million in the quarter under review. The metric marginally missed the Zacks Consensus Estimate of $42.5 million and our estimate of $42.8 million. Net premiums earned of $41 million declined 2% year over year, lower than the consensus mark of $42 million.
Total expenses dipped 0.1% year over year to $46.5 million. The unit incurred a loss of $5.1 million, wider than the prior-year quarter’s loss of $4.2 million. The combined ratio deteriorated 210 bps year over year to 113.5%.
The segment’s gross premiums written of $14.2 million improved 4.2% year over year and beat our estimate of $12.9 million. However, net premiums earned tumbled 7.8% year over year to $11.7 million, which beat the Zacks Consensus Estimate of $11.2 million and our estimate of $11.5 million.
Underwriting, policy acquisition and operating expenses amounted to $4.2 million in the third quarter, which inched up 0.3% year over year. The unit reported a quarterly profit of $924 million, which surged 66.5% year over year. The combined ratio improved 630 bps year over year to 88.3%.
Net investment income of the unit grew 8.5% year over year to $39.3 million and beat our estimate of $38.4 million.
Operating expenses of $7.8 million dropped 23.9% year over year. The unit’s profit climbed 49.1% year over year to $27.1 million. Interest expenses fell 8.1% year over year to $5.2 million.
ProAssurance exited the third quarter with cash and cash equivalents of $54.5 million, which dipped 0.8% from the 2024-end level. Total investments were $4.4 billion, up 1.6% from the figure at 2024-end.
Total assets of $5.6 billion dipped 0.4% from the 2024-end level.
Debt less unamortized debt issuance costs amounted to $421.5 million, down 0.8% from the figure as of Dec. 31, 2024.
Total shareholders’ equity of $1.3 billion advanced 8.5% from the level at 2024-end.
Net cash used in operating activities amounted to $12.4 million for the first nine months of 2025, while the company used $10.5 million of net cash in operations in the prior-year comparable period.
Book value per share was $25.37 as of Sept. 30, 2025, which grew 8% from the 2024-end figure. Adjusted operating return on equity deteriorated 320 bps year over year to 2.4% in the quarter under review.
ProAssurance did not repurchase any common shares in the third quarter of 2025. A leftover capacity of $55.9 million remained in place to be utilized for common share repurchases or retirement of outstanding debt as of Sept. 30, 2025.
ProAssurance currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Of the insurance industry players that have reported third-quarter 2025 results so far, the bottom-line results of Aflac Incorporated AFL, Assurant, Inc. AIZ and The Allstate Corporation ALL beat the respective Zacks Consensus Estimate.
Aflac reported third-quarter 2025 adjusted earnings per share (EPS) of $2.49, which outpaced the Zacks Consensus Estimate by 38.3%. The bottom line improved 15.3% year over year. Adjusted revenues came in at $4.7 billion, which surged 60.7% year over year. The top line beat the consensus mark by 5.6%. Adjusted net investment income advanced 7.7% year over year to $1 billion. Pre-tax earnings increased nearly 22-fold year over year to $2 billion.
In the Aflac Japan segment, adjusted revenues dipped 1.8% year over year to $2.3 billion in the third quarter. Net earned premiums of $1.66 billion slipped 2.7% year over year. Adjusted net investment income inched up 0.5% year over year to $665 million. New annualized premium sales advanced 11.8% year over year to $133 million. Aflac U.S.’s adjusted revenues of $1.73 billion grew 2.6% year over year. Pretax adjusted earnings of the segment improved 7.1% year over year to $375 million
Assurant’s third-quarter 2025 net operating income of $5.73 per share beat the Zacks Consensus Estimate by 35.4%. The bottom line surged 91% year over year. Total revenues increased 8.6% year over year to nearly $3.2 billion. The top line beat the Zacks Consensus Estimate by 2.6%. Net earned premiums, fees and other income increased 8.9% year over year to $3.1 billion. Net investment income was up 2.9% year over year to $133.5 million.
Adjusted EBITDA, excluding reportable catastrophes, increased 13% to $433.5 million. Revenues at the Global Housing segment increased 16.2% year over year to $738.9 million. Net earned premiums, fees and other income increased 16% year over year to $702.9 million. Revenues at the Global Lifestyle unit increased 6.8% year over year to $2.5 billion, primarily. Adjusted EBITDA of $206.8 million increased 12% year over year.
Allstate reported a third-quarter 2025 adjusted net income of $11.17 per share, which beat the Zacks Consensus Estimate by 36.2%. The bottom line rose significantly from $3.91 a year ago. Operating revenues advanced 3.8% year over year to $17 billion but missed the consensus mark by 2%. Property and casualty insurance premiums increased 6.4% year over year to $15.3 billion. Net investment income was $949 million, which rose 21.2% year over year.
Allstate’s pretax income was $4.8 billion in the third quarter, significantly up from the year-ago figure of $1.4 billion. As of Sept. 30, 2025, total policies in force were 209.5 million, which grew 3.8% year over year. The Property-Liability segment’s premiums earned advanced 6.1% year over year to $14.5 billion. Underwriting income in the unit amounted to $2.9 billion compared with the prior-year quarter’s figure of $495 million. The underlying combined ratio improved 450 basis points year over year to 78.7%.
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This article originally published on Zacks Investment Research (zacks.com).
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