ProAssurance Corporation saw its stock surge 13.39% in pre-market trading on Tuesday, following the release of its fourth-quarter 2024 financial results. The medical professional liability insurer reported an adjusted earnings per share of $0.36, significantly exceeding analysts' consensus estimate of $0.17. Additionally, the company's revenue of $241.07 million surpassed the expected $209.77 million.

The strong quarterly performance was driven by several key factors. ProAssurance witnessed improved underwriting results, with its Specialty P&C segment achieving a combined ratio of 100.9%, a notable improvement from 104.8% in the prior-year quarter. This improvement was attributed to disciplined underwriting and pricing actions implemented by the company's management. Furthermore, net investment income rose by 9.2% year-over-year to $36.8 million, benefiting from the higher interest rate environment and ProAssurance's reinvestment strategy. The company also reported a significant increase in equity in earnings from unconsolidated subsidiaries, primarily investment fund partnerships, which soared to $5.8 million from $1.3 million in the same quarter last year.

Analysts welcomed ProAssurance's strong financial performance and positive outlook. JMP Securities analyst Matthew Carletti reiterated a Buy rating on the stock and set a price target of $20.00, expressing confidence in the company's efforts to achieve sustained profitability across all business segments.