ProAssurance Continues To Repurchase Shares

Oppeneheimer has published a research report on ProAssurance Corporation PRA following the company's 3Q EPS miss due to several shortcomings. In the report, Oppenheimer writes "ProAssurance reported 3Q operating EPS of $1.30 compared to our estimate of $1.51. The $0.21 shortfall to our estimate was driven by three items in the quarter: 1) lower than expected investment income, 2) a loss in the company's investment in unconsolidated subsidiaries, and 3) less favorable development than we had assumed. Our thesis on PRA and the medical professional liability space appears to be intact as reserve development lowered the company's loss ratio by 25 points in the quarter and renewal rates increased by 2%. However, we will look for some additional color on these items and for an update on the pending acquisition on the call." Oppenheimer maintains its Outperform rating and $65 price target. ProAssurance Corporation closed yesterday at $58.35.