Profit rises at Birmingham's ProAssurance
by Cindy F. Crawford – Birmingham Business Journal
Thanks to fewer client accidents in the fourth quarter of 2007, Birmingham’s ProAssurance Corp. reported a net income of $51.4 million, a 30 percent increase from the $35.7 million recorded same time last year.
The nation’s fourth largest writer of medical professional liability insurance reported earnings of $168 million for 2007, which is a 28 percent drop from the $236 million profit in 2006.
However, CEO W. Stancil Starnes said the company has fared well in the fourth quarter with fewer claims than anticipated, which has allowed for lower rates.
Because of fewer accidents from 2003 to 2005, ProAssurance has saved $44.4 million in reserves during the fourth quarter, a news release said. For the year, the company reported a net loss reserve of $105 million.
The company’s expenses fell to $94.9 million in the fourth quarter of 2007, down from $146 million in the fourth quarter of 2006.