ProAssurance Corporation in Birmingham, Ala. reported net income for the second quarter of 2006 of $30.0 million, or $0.90 per diluted share. For the six months ended June 30, 2006 net income was $167.3 million, or $4.95 per diluted share.
Through the first six months of 2006, cash flow from continuing operations was $97 million. ProAssurance also reported quarter-over-quarter growth of 3 percent in gross premiums written due to the company’s purchase of NCRIC, Inc. a year ago.
ProAssurance said it believes premiums will continue to grow with the successful completion of its transaction with Physicians Insurance Company of Wisconsin, Inc. (PIC Wisconsin) on August 1, 2006.
Other notes from the second quarter:
Policyholder retention continued to move upward, to 88 percent in the second quarter,
Premiums on renewing policies were higher by 5 percent in the quarter and 4 percent higher year-to-date, compared to year-ago periods.
Prior accident years, primarily 2003 and 2004, continue to show favorable claim severity results, producing favorable net reserve development of $8.0 million in the quarter. Favorable net reserve development stands at $12.0 million year-to-date.
The merger of PIC Wisconsin into ProAssurance was effective August 1, 2006. Integration planning has been underway for several months and is moving forward as expected, according to officials. PIC Wisconsin will operate as the northwestern hub for the company’s professional liability group, giving it a market leading position in Wisconsin, while strengthening its existing business in Illinois, Iowa and Kansas. PIC Wisconsin also brings business from Minnesota, Nebraska, South Dakota and Nevada into ProAssurance.
ProAssurance Corporation writes medical professional liability insurance through The Medical Assurance Company, Inc., ProNational Insurance Company, NCRIC, Inc., Physicians Insurance Company of Wisconsin, Inc., and Red Mountain Casualty Insurance Company, Inc. It also writes professional liability coverage through Woodbrook Casualty Insurance Company, Inc.
The company will hold a live webcast to discuss second quarter resutls on Tuesday, August 8, 2006, 10:00 AM ET. Dial (800) 262-1292 or (719) 457-2680 outside North America. The call will also be webcast at www.ProAssurance.com.