Our analysis is based on comparing ProAssurance Corp. with the following peers – Markel Corporation, W. R. Berkley Corporation, Alleghany Corporation, RLI Corp., Aspen Insurance Holdings Limited, Travelers Companies, Inc., Loews Corporation, AmTrust Financial Services Inc. and Hallmark Financial Services, Inc. (MKL-US, WRB-US, Y-US, RLI-US, AHL-US, TRV-US, L-US, AFSI-US and HALL-US).
ProAssurance Corp.’s dividend yield is 19.28 percent and its dividend payout is 46.10 percent. This compares to a peer median dividend yield of 2.34 percent and a payout level of 12.65 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 25 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), PRA-US paid a low quality dividend, which represents a yield of 2.19% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2017), PRA-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 0.62x), investing cash flow (coverage of 0.19x), issuance cash flow (coverage of 0.16x) and twelve-month prior cash (coverage of 0.41x), for a total dividend coverage of 1.38x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||7.7||1.56||2.79||8.45||3.97||19.28|
|Dividend Payout (%)||14.01||21.88||36.67||58.77||43.82||46.1|
A complete list of metrics and analysis is available on the company page.
ProAssurance Corp. is a holding company for property and casualty insurance companies. It operates through the following business segments: Specialty Property and Casualty, Workers’ Compensation, Lloyd’s Syndicate and Corporate. The Specialty Property and Casualty segment includes professional liability business and medical technology and life sciences business. The Workers’ Compensation segment includes the workers’ compensation business which the company provides for employers, groups and associations. The Lloyd’s Syndicate segment includes operating results from participation in Lloyd’s Syndicate 1729. The Corporate segment includes investing operations managed at the corporate level, non-premium revenues generated outside of insurance entities, and corporate expenses, including interest and U.S. income taxes. ProAssurance was founded in June 2001 and is headquartered in Birmingham, AL.
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