ProAssurance Stays in Top 50

As published on the company website on July 9, 2009, the Ward Group has recognized ProAssurance Corporation (PRA - Analyst Report), a holding company for property and casualty insurance companies, as one of the top 50 performing property and casualty insurance companies in America.

This is the third consecutive year the company has received such recognition from Ward Group. We think that this prestigious award strengthens PRA’s brand equity and reflects its solid financial strength in the ongoing market turmoil.

Ward's rigorous safety and consistency screening process recognizes the importance given by PRA to protect its policyholders. Though lower rates and the challenges of writing new business are expected to keep pressure on written premiums, with prudent operating and financial leverage, responsible pricing, loss reserve practice, and conservative investments in assets, we think the company will be able to sustain its net written premium growth rate in the long run.

PRA employs a unique strategy of strongly defending the claims, wherever appropriate. As a matter of fact, the company tries more claims than any of its peers (American Physicians Capital, Inc. [ACAP - Snapshot Report], American Physicians Service Group Inc. [AMPH - Analyst Report] and FPIC Insurance Group, Inc. [FPIC - Snapshot Report]). As a result, PRA had 83% average favorable outcomes against the industry average of 74% for the last five years.

This strategy helps in attracting customers and cutting costs, resulting in long-term financial and marketing advantage. We also anticipate future results to continue to benefit from PRA’s geographic diversity and strong finances. As such, we are maintaining our Hold recommendation on the shares.