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- **5Q Operating Earnings Growth**: Specialty P&C combined ratio improved to 104% annually, driven by 70% cumulative premium increases since 2018.
- **Investment Performance**: 12% Y/Y net investment income growth with 5.8% new purchase yields, boosting book value to $23.49.
- **Strategic Priorities**: Rate-focused underwriting in MPL (10% Q4 renewals), disciplined WC pricing, and AI-driven efficiency initiatives.
- **Capital Efficiency**: Maintaining A.M. Best rating with cautious investment diversification and consideration of buybacks at $26.86 adjusted book value.

**【CEO Opening Remarks】**
- Reported 5th consecutive quarter of improved operating earnings, driven by Specialty P&C segment with a combined ratio of 101% in Q4 and 104% for the full year.
- Renewal premium increases of 10% (standard MPL) and 8% (specialty MPL) in Q4, cumulatively 70% since 2018.
- Retention rates remain strong at 83% in Q4, despite new business being below 2023 levels due to rate adequacy focus.
- Innovation tools like AI-powered web portals and predictive analytics are enhancing risk selection and workflows.
- Workers' Compensation segment combined ratio improved for the quarter and year, with current accident year loss ratio at 77%.

**【CFO Financial Breakdown】**
- Specialty P&C segment net written premiums declined due to disciplined pricing, but combined ratio improved due to 6 points of favorable prior year reserve development.
- Workers' Compensation segment net written premiums rose $4M for the year, driven by audit premiums and renewal pricing, with combined ratio of 114%.
- Investment income up 9% Q/Q and 12% Y/Y, with new purchase yields at 5.8% and 93% of fixed maturities in investment-grade bonds.
- Book value per share increased to $23.49, with adjusted book value at $26.86, supported by $22M in equity contributions from limited partnerships.

**【Q&A Key Takeaways】**
- **Competition & Pricing**: Market remains competitive with excess capital, but ProAssurance prioritizes rate over growth, achieving 10%+ renewal increases despite retention rates.
- **Reserve Development**: Favorable prior year reserve development from 2021 and earlier, with ongoing focus on severity trends in MPL.
- **Workers' Comp Strategy**: Balancing state-mandated loss cost decreases with individual account underwriting to maintain rate adequacy.
- **Capital Management**: Focus on capital efficiency, maintaining A.M. Best rating, and cautiously adding investment risk to enhance yield.
- **Expense Ratio**: Higher incentive-based compensation due to improved performance, but efforts to manage expenses downward continue.


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