ProAssurance Announces $100 Million Repurchase Authorization
10 Septembre 2009 - 3:00PM
PR Newswire (US)
BIRMINGHAM, Ala., Sept. 10 /PRNewswire-FirstCall/ -- The Board of
Directors of ProAssurance Corporation (NYSE:PRA) has authorized an
additional $100 million to repurchase our shares or retire
outstanding debt. The authorization is effective immediately, but
the timing and quantity of any purchases will depend on market
conditions and changes in our capital requirements. Additionally,
our repurchase activity is subject to limitations that may be
imposed on such purchases by applicable securities laws and
regulations and the rules of the New York Stock Exchange. (Logo:
http://www.newscom.com/cgi-bin/prnh/20081024/PROASSURANCELOGO ) In
addition to this new authorization, the Company has $31.3 million
remaining from previous authorizations. Since April 2007 we have
purchased 3.6 million shares at a cost of $177.8 million.
Additionally, we have used $40.9 million to retire debt, including
the recent retirement of $7 million in surplus notes that we
acquired in the PICA transaction. "The authorization was granted as
part of the execution of our overall capital management strategy.
Though we continue to evaluate appropriate business expansion and
acquisition opportunities, we also believe that the prudent
repurchase of our shares can play an important role in optimizing
shareholder value," said ProAssurance's Chairman and Chief
Executive Officer, W. Stancil Starnes. About ProAssurance
ProAssurance Corporation is the nation's fifth largest writer of
medical professional liability insurance, based on the 2008 writing
of its subsidiaries. ProAssurance is recognized as one of the top
performing insurance companies in America by virtue of its
inclusion in the Ward's 50 for the past three years. ProAssurance
is rated "A" by Fitch Ratings and the ProAssurance Group is rated
"A" (Excellent) by A.M. Best. Caution Regarding Forward-Looking
Statements Statements in this news release that are not historical
fact or that convey our view of future business, events or trends
are specifically identified as forward-looking statements.
Forward-looking statements are based upon our estimates and
anticipation of future events and highlight certain risks and
uncertainties that could cause actual results to vary materially
from our expected results. We expressly claim the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, for any forward-looking statements in this news release.
Forward-looking statements represent our outlook only as of the
date of this news release. Except as required by law or regulation,
we do not undertake and specifically decline any obligation to
publicly release the result of any revisions that may be made to
any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of
anticipated or unanticipated events. Forward-looking statements are
generally identified by words such as, but not limited to,
"anticipate," "believe," "estimate," "expect," "hope," "hopeful,"
"intend," "may," "optimistic," "potential," "preliminary,"
"project," "should," "will," and other analogous expressions. When
we address topics such as liquidity and capital requirements,
return on equity, financial ratios, net income, premiums, losses
and loss reserves, premium rates and retention of current business,
competition and market conditions, the expansion of product lines,
the development or acquisition of business in new geographical
areas, the availability of acceptable reinsurance, actions by
regulators and rating agencies, court actions, legislative actions,
payment or performance of obligations under indebtedness, payment
of dividends, and other, similar matters, we are making
forward-looking statements. The following important factors are
among those that could affect the actual outcome of future events:
-- general economic conditions, either nationally or in our market
areas, that are different than anticipated; -- regulatory,
legislative and judicial actions or decisions could affect our
business plans or operations; -- the enactment or repeal of tort
reforms; -- formation of state-sponsored malpractice insurance
entities that could remove some physicians from the private
insurance market; -- the impact of deflation or inflation; --
changes in the interest rate environment; -- the effect that
changes in laws or government regulations affecting the U.S.
economy or financial institutions, including the Emergency Economic
Stabilization Act of 2008 and the American Recovery and
Reinvestment Act of 2009, may have on the U.S. economy and our
business; -- performance of financial markets affecting the fair
value of our investments or making it difficult to determine the
value of our investments; -- changes in accounting policies and
practices that may be adopted by our regulatory agencies and the
Financial Accounting Standards Board or the Securities and Exchange
Commission; changes in laws or government regulations affecting
medical professional liability insurance or the financial
community; -- the effects of changes in the health care delivery
system; -- uncertainties inherent in the estimate of loss and loss
adjustment expense reserves and reinsurance, and changes in the
availability, cost, quality, or collectability of
insurance/reinsurance; -- the results of litigation, including
pre-or-post-trial motions, trials and/or appeals we undertake; bad
faith litigation which may arise from our handling of any
particular claim, including failure to settle; -- the loss of
independent agents; -- changes in our organization, compensation
and benefit plans; -- our ability to retain and recruit senior
management; -- our ability to purchase reinsurance and collect
payments from our reinsurers; -- increases in guaranty fund
assessments; -- our ability to achieve continued growth through
expansion into other states or through acquisitions or business
combinations; -- changes to the ratings assigned by rating agencies
to our insurance subsidiaries, individually or as a group; --
changes in competition among insurance providers and related
pricing weaknesses in our markets; and -- the expected benefits
from completed and proposed acquisitions may not be achieved or may
be delayed longer than expected due to business disruption, loss of
customers and employees, increased operating costs or inability to
achieve cost savings, and assumption of greater than expected
liabilities, among other reasons. Additional risk factors that may
cause outcomes that differ from our expectations or projections are
described in various documents we file with the Securities and
Exchange Commission, such as our current reports on Form 8-K, and
our regular reports on Forms 10-Q and 10-K, particularly in "Item
1A, Risk Factors."
http://www.newscom.com/cgi-bin/prnh/20081024/PROASSURANCELOGODATASOURCE:
ProAssurance Corporation CONTACT: Frank B. O'Neil, Sr. Vice
President, Corporate Communications & Investor Relations,
1-800-282-6242, +1-205-877-4461, Web Site:
http://www.proassurance.com/
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