ProAssurance Corporation (PRA), a leading specialty insurer, reported impressive financial results for the fourth quarter and full year of 2024, driving its stock price up 6.31% in after-hours trading on Monday.

For the fourth quarter ended December 31, 2024, ProAssurance reported net income of $16.2 million, or $0.31 per diluted share, compared to $6.4 million, or $0.12 per diluted share, in the same quarter of 2023. The company's adjusted operating income, a non-GAAP measure excluding certain items, was $18.3 million, or $0.36 per diluted share, significantly higher than the $2.8 million loss reported in Q4 2023.

The strong fourth-quarter performance was driven by several factors:

• Improved underwriting results: The company's Specialty P&C segment, which includes medical professional liability insurance, achieved a combined ratio of 100.9%, a significant improvement from 104.8% in Q4 2023. This was due to disciplined underwriting and pricing actions taken by management.

• Higher net investment income: Net investment income rose 9.2% year-over-year to $36.8 million, benefiting from the higher interest rate environment and the company's reinvestment strategy.

• Strong returns from limited partnership investments: Equity in earnings from unconsolidated subsidiaries, primarily investment fund partnerships, soared to $5.8 million from $1.3 million in the prior-year quarter.

For the full year 2024, ProAssurance reported net income of $52.7 million, or $1.03 per diluted share, compared to a net loss of $38.6 million in 2023. Adjusted operating income for 2024 was $48.6 million, or $0.95 per diluted share, a significant turnaround from the $9.0 million loss reported in 2023.

The company's management expressed confidence in their ongoing efforts to achieve sustained profitability across all business segments, citing the positive impact of their underwriting and pricing actions, particularly in the medical professional liability business.

ProAssurance's strong financial performance and positive outlook were well-received by investors, driving the stock's after-hours surge of 6.31%.