*38954201820100100* PROPERTY AND CASUALTY COMPANIES—ASSOCIATION EDITION ANNUAL STATEMENT For the Year Ended December 31, 2018 OF THE CONDITION AND AFFAIRS OF THE PROASSURANCE CASUALTY COMPANY NAIC Group Code 02698 , 02698 NAIC Company Code 38954 Employer’s ID Number 38-2317569 (Current Period) (Prior Period) Organized under the Laws of Michigan , State of Domicile or Port of Entry Michigan Country of Domicile United States Incorporated/Organized 06/27/1980 Commenced Business 06/27/1980 Statutory Home Office 2600 PROFESSIONALS DRIVE , OKEMOS, MI, US 48864 (Street and Number) (City or Town, State, Country and Zip Code) Main Administrative Office 100 BROOKWOOD PLACE BIRMINGHAM, AL, US 35209 205-877-4400 (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Mail Address PO BOX 590009 , BIRMINGHAM, AL, US 35259-0009 (Street and Number or P.O. Box) (City or Town, State, Country and Zip Code) Primary Location of Books and Records 100 BROOKWOOD PLACE BIRMINGHAM, AL, US 35209 205-877-4400 (Street and Number) (City or Town, State, Country and Zip Code) (Area Code) (Telephone Number) Internet Web Site Address www.proassurance.com Statutory Statement Contact ELAINE MARIE SPARKS 615-301-1445 (Name) (Area Code) (Telephone Number) (Extension) [email protected] 615-324-9169 (E-Mail Address) (Fax Number) OFFICERS Name Title Name Title PRESIDENT, CHIEF CLAIMS DARRYL KEITH THOMAS , OFFICER KATHRYN ANNE NEVILLE , SECRETARY DANA SHANNON HENDRICKS # , TREASURER WILLIAM STANCIL STARNES , CHAIRMAN OTHER OFFICERS ROGER SMITH , SENIOR VICE PRESIDENT JEFFREY LYNN BOWLBY , SENIOR VICE PRESIDENT LAWRENCE KERRY COCHRAN , VICE PRESIDENT HOWARD HARLEY FRIEDMAN , CHIEF UNDERWRITING OFFICER FRANK BERRY O'NEIL , SENIOR VICE PRESIDENT EDWARD LEWIS RAND, JR. , SENIOR VICE PRESIDENT HAYES VANCE WHITESIDE, MD , SENIOR VICE PRESIDENT , DIRECTORS OR TRUSTEES HOWARD HARLEY FRIEDMAN JEFFREY PATTON LISENBY EDWARD LEWIS RAND, JR. MICHAEL JOHN SEVERYN WILLIAM STANCIL STARNES DARRYL KEITH THOMAS

State of ALABAMA ss County of JEFFERSON

The officers of this reporting entity, being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

DARRYL KEITH THOMAS KATHRYN ANNE NEVILLE DANA SHANNON HENDRICKS PRESIDENT SECRETARY TREASURER a. Is this an original filing? Yes [ X ] No [ ] Subscribed and sworn to before me b. If no: this day of , 1. State the amendment number 2. Date filed 3. Number of pages attached

JEAN H. NOOJIN, APRIL 22, 2021 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

ASSETS Current Year Prior Year 1 2 3 4

Net Admitted Assets Net Admitted Assets Nonadmitted Assets (Cols. 1 - 2) Assets 1. Bonds (Schedule D) 592,272,761 592,272,761 594,224,315 2. Stocks (Schedule D): 2.1 Preferred stocks 0 0 0 2.2 Common stocks 154,604,606 154,604,606 134,846,676 3. Mortgage loans on real estate (Schedule B): 3.1 First liens 0 0 3.2 Other than first liens 0 0 4. Real estate (Schedule A): 4.1 Properties occupied by the company (less $ encumbrances) 2,345,458 2,345,458 2,544,198 4.2 Properties held for the production of income (less $ encumbrances) 0 0 4.3 Properties held for sale (less $ encumbrances) 0 0 5. Cash ($ 196,465 , Schedule E-Part 1), cash equivalents ($ 35,824,369 , Schedule E-Part 2) and short-term investments ($ 3,391,429 , Schedule DA) 39,412,263 39,412,263 64,917,138 6. Contract loans (including $ premium notes) 0 0 7. Derivatives (Schedule DB) 0 0 0 8. Other invested assets (Schedule BA) 110,298,114 110,298,114 120,025,486 9. Receivables for securities 558,835 558,835 14,744 10. Securities lending reinvested collateral assets (Schedule DL) 0 0 11. Aggregate write-ins for invested assets 0 0 0 0 12. Subtotals, cash and invested assets (Lines 1 to 11) 899,492,037 0 899,492,037 916,572,557 13. Title plants less $ charged off (for Title insurers only) 0 0 14. Investment income due and accrued 5,373,608 5,373,608 5,905,987 15. Premiums and considerations: 15.1 Uncollected premiums and agents’ balances in the course of collection 15,896,014 862,192 15,033,822 18,000,252 15.2 Deferred premiums, agents’ balances and installments booked but deferred and not yet due (including $ earned but unbilled premiums) 32,004,739 32,004,739 25,713,187 15.3 Accrued retrospective premiums ($ 405,064 ) and contracts subject to redetermination ($ ) 405,064 40,506 364,558 1,045,147 16. Reinsurance: 16.1 Amounts recoverable from reinsurers 2,793,193 2,793,193 2,040,686 16.2 Funds held by or deposited with reinsured companies 25,067,000 25,067,000 67,000 16.3 Other amounts receivable under reinsurance contracts 0 0 17. Amounts receivable relating to uninsured plans 0 0 18.1 Current federal and foreign income tax recoverable and interest thereon 0 620,811 18.2 Net deferred tax asset 14,722,307 7,806,733 6,915,574 7,539,974 19. Guaranty funds receivable or on deposit 0 1,240 20. Electronic data processing equipment and software 39,050 39,050 12,501 21. Furniture and equipment, including health care delivery assets ($ ) 806,368 806,368 0 0 22. Net adjustment in assets and liabilities due to foreign exchange rates 0 0 23. Receivables from parent, subsidiaries and affiliates 7,940,790 7,940,790 135,853 24. Health care ($ ) and other amounts receivable 0 0 25. Aggregate write-ins for other-than-invested assets 13,269,130 295,899 12,973,231 12,352,367 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) 1,017,809,300 9,811,698 1,007,997,602 990,007,562 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 0 0 28. Total (Lines 26 and 27) 1,017,809,300 9,811,698 1,007,997,602 990,007,562 DETAILS OF WRITE-INS 1101. 0 0 1102. 1103. 1198. Summary of remaining write-ins for Line 11 from overflow page 0 0 0 0 1199. Totals (Lines 1101 through 1103 plus 1198) (Line 11 above) 0 0 0 0 2501. Prepaid Expenses and Other Assets 295,899 295,899 0 0 2502. Amounts Receivable under High Deductible Policies 0 15,880 2503. Cash Surrender Value of Company Owned Life Insurance 12,531,277 12,531,277 12,141,018 2598. Summary of remaining write-ins for Line 25 from overflow page 441,954 0 441,954 195,469 2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above) 13,269,130 295,899 12,973,231 12,352,367

2 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current Year Prior Year 1. Losses (Part 2A, Line 35, Column 8) 353,546,383 295,494,661 2. Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6) 5,085,657 8,699,054 3. Loss adjustment expenses (Part 2A, Line 35, Column 9) 239,823,037 249,761,201 4. Commissions payable, contingent commissions and other similar charges 1,130,354 262,653 5. Other expenses (excluding taxes, licenses and fees) 1,092,631 2,532,498 6. Taxes, licenses and fees (excluding federal and foreign income taxes) 997,990 686,672 7.1 Current federal and foreign income taxes (including $ on realized capital gains (losses)) 554,191 0 7.2 Net deferred tax liability 0 8. Borrowed money $ and interest thereon $ 0 9. Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of $ 11,165,277 and including warranty reserves of $ 0 and accrued accident and health experience rating refunds including $ 0 for medical loss ratio rebate per the Public Health Service Act) 104,886,386 107,903,639 10. Advance premium 2,627,418 2,553,625 11. Dividends declared and unpaid: 11.1 Stockholders 0 11.2 Policyholders 0 12. Ceded reinsurance premiums payable (net of ceding commissions) 12,873,232 6,930,193 13. Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 20) 54,956 6,427,315 14. Amounts withheld or retained by company for account of others 342,016 430,337 15. Remittances and items not allocated 0 16. Provision for reinsurance (including $ certified) (Schedule F, Part 3, Column 78) 18,097,000 6,562,400 17. Net adjustments in assets and liabilities due to foreign exchange rates 0 18. Drafts outstanding 0 19. Payable to parent, subsidiaries and affiliates 2,274,438 5,006,928 20. Derivatives 0 0 21. Payable for securities 1,508,551 1,873,034 22. Payable for securities lending 0 23. Liability for amounts held under uninsured plans 0 24. Capital notes $ and interest thereon $ 0 25. Aggregate write-ins for liabilities 17,690,992 0 26. Total liabilities excluding protected cell liabilities (Lines 1 through 25) 762,585,232 695,124,210 27. Protected cell liabilities 0 28. Total liabilities (Lines 26 and 27) 762,585,232 695,124,210 29. Aggregate write-ins for special surplus funds 631,000 0 30. Common capital stock 3,188,145 3,188,145 31. Preferred capital stock 0 32. Aggregate write-ins for other-than-special surplus funds 0 0 33. Surplus notes 10,093,603 10,093,603 34. Gross paid in and contributed surplus 85,754,824 85,754,824 35. Unassigned funds (surplus) 145,744,798 195,846,780 36. Less treasury stock, at cost: 36.1 shares common (value included in Line 30 $ ) 0 36.2 shares preferred (value included in Line 31 $ ) 0 37. Surplus as regards policyholders (Lines 29 to 35, less 36) (Page 4, Line 39) 245,412,370 294,883,352 38. Totals (Page 2, Line 28, Col. 3) 1,007,997,602 990,007,562 DETAILS OF WRITE-INS

2501. Retroactive insurance reserve assumed 17,690,992 0 2502. 0 2503. 2598. Summary of remaining write-ins for Line 25 from overflow page 0 0 2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above) 17,690,992 0 2901. Gain on LPT 631,000 0 2902. 0 2903. 2998. Summary of remaining write-ins for Line 29 from overflow page 0 0 2999. Totals (Lines 2901 through 2903 plus 2998) (Line 29 above) 631,000 0 3201. 0 3202. 3203. 3298. Summary of remaining write-ins for Line 32 from overflow page 0 0 3299. Totals (Lines 3201 through 3203 plus 3298) (Line 32 above) 0 0

3 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY STATEMENT OF INCOME 1 2 Current Year Prior Year UNDERWRITING INCOME 1. Premiums earned (Part 1, Line 35, Column 4) 182,690,594 156,091,070 DEDUCTIONS: 2. Losses incurred (Part 2, Line 35, Column 7) 107,411,295 50,338,939 3. Loss adjustment expenses incurred (Part 3, Line 25, Column 1) 50,111,730 53,952,541 4. Other underwriting expenses incurred (Part 3, Line 25, Column 2) 50,618,570 50,331,733 5. Aggregate write-ins for underwriting deductions 0 0 6. Total underwriting deductions (Lines 2 through 5) 208,141,595 154,623,213 7. Net income of protected cells 0 8. Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7) (25,451,001) 1,467,857

INVESTMENT INCOME

9. Net investment income earned (Exhibit of Net Investment Income, Line 17) 39,385,454 29,683,101 10. Net realized capital gains (losses) less capital gains tax of $ 185,481 (Exhibit of Capital Gains (Losses)) 596,070 3,900,286 11. Net investment gain (loss) (Lines 9 + 10) 39,981,524 33,583,387

OTHER INCOME

12. Net gain (loss) from agents' or premium balances charged off (amount recovered $ amount charged off $ 26,559 ) (26,559) (321) 13. Finance and service charges not included in premiums 0 14. Aggregate write-ins for miscellaneous income 614,542 1,005,388 15. Total other income (Lines 12 through 14) 587,983 1,005,067 16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines 8 + 11 + 15) 15,118,506 36,056,311 17. Dividends to policyholders 0 18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17) 15,118,506 36,056,311 19. Federal and foreign income taxes incurred (3,108,978) 2,541,171 20. Net income (Line 18 minus Line 19) (to Line 22) 18,227,484 33,515,140

CAPITAL AND SURPLUS ACCOUNT

21. Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2) 294,883,352 406,845,516 22. Net income (from Line 20) 18,227,484 33,515,140 23. Net transfers (to) from Protected Cell accounts 0 24. Change in net unrealized capital gains or (losses) less capital gains tax of $ (5,439,139) (20,470,357) 2,680,358 25. Change in net unrealized foreign exchange capital gain (loss) (25,656) 0 26. Change in net deferred income tax 320,126 (9,354,718) 27. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Col. 3) (6,373,125) (2,087,344) 28. Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1) (11,534,600) 3,284,400 29. Change in surplus notes 0 30. Surplus (contributed to) withdrawn from protected cells 0 31. Cumulative effect of changes in accounting principles 0 32. Capital changes: 32.1 Paid in 0 32.2 Transferred from surplus (Stock Dividend) 0 32.3 Transferred to surplus 0 33. Surplus adjustments: 33.1 Paid in 0 33.2 Transferred to capital (Stock Dividend) 0 33.3 Transferred from capital 0 34. Net remittances from or (to) Home Office 0 35. Dividends to stockholders (29,614,854) (140,000,000) 36. Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1) 0 0 37. Aggregate write-ins for gains and losses in surplus 0 0 38. Change in surplus as regards policyholders for the year (Lines 22 through 37) (49,470,982) (111,962,164) 39. Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37) 245,412,369 294,883,352 DETAILS OF WRITE-INS 0501. 0 0502. 0503. 0598. Summary of remaining write-ins for Line 5 from overflow page 0 0 0599. Totals (Lines 0501 through 0503 plus 0598) (Line 5 above) 0 0 1401. Increase in cash surrender value of business owned life insurance 390,259 383,040 1402. Risk management income 165,682 147,575 1403. Other miscellaneous income 204,692 474,773 1498. Summary of remaining write-ins for Line 14 from overflow page (146,091) 0 1499. Totals (Lines 1401 through 1403 plus 1498) (Line 14 above) 614,542 1,005,388 3701. 0 3702. 0 3703. 0 3798. Summary of remaining write-ins for Line 37 from overflow page 0 0 3799. Totals (Lines 3701 through 3703 plus 3798) (Line 37 above) 0 0

4 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

CASH FLOW 1 2 Current Year Prior Year Cash from Operations 1. Premiums collected net of reinsurance 151,645,840 167,331,632 2. Net investment income 46,231,880 41,496,537 3. Miscellaneous income 197,724 622,027 4. Total (Lines 1 through 3) 198,075,444 209,450,196 5. Benefit and loss related payments 102,989,737 104,310,691 6. Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts 0 0 7. Commissions, expenses paid and aggregate write-ins for deductions 53,704,250 51,564,744 8. Dividends paid to policyholders 0 0 9. Federal and foreign income taxes paid (recovered) net of $ tax on capital gains (losses) (4,098,499) 7,080,023 10. Total (Lines 5 through 9) 152,595,488 162,955,457 11. Net cash from operations (Line 4 minus Line 10) 45,479,956 46,494,739 Cash from Investments 12. Proceeds from investments sold, matured or repaid: 12.1 Bonds 170,673,080 225,541,196 12.2 Stocks 41,285,639 53,713,060 12.3 Mortgage loans 0 0 12.4 Real estate 0 0 12.5 Other invested assets 20,502,009 12,098,121 12.6 Net gains or (losses) on cash, cash equivalents and short-term investments 0 (552) 12.7 Miscellaneous proceeds 1,057,081 512,919 12.8 Total investment proceeds (Lines 12.1 to 12.7) 233,517,809 291,864,744 13. Cost of investments acquired (long-term only): 13.1 Bonds 190,086,526 202,016,755 13.2 Stocks 75,792,699 58,999,171 13.3 Mortgage loans 0 0 13.4 Real estate 12,401 36,700 13.5 Other invested assets 23,243,911 10,369,470 13.6 Miscellaneous applications 2,076,832 1,187,988 13.7 Total investments acquired (Lines 13.1 to 13.6) 291,212,369 272,610,084 14. Net increase (decrease) in contract loans and premium notes 0 0 15. Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14) (57,694,560) 19,254,660 Cash from Financing and Miscellaneous Sources 16. Cash provided (applied): 16.1 Surplus notes, capital notes 0 0 16.2 Capital and paid in surplus, less treasury stock 0 0 16.3 Borrowed funds 0 0 16.4 Net deposits on deposit-type contracts and other insurance liabilities 0 16.5 Dividends to stockholders 13,290,271 31,448,007 16.6 Other cash provided (applied) 0 0 17. Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6) (13,290,271) (31,448,007) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 18. Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) (25,504,875) 34,301,392 19. Cash, cash equivalents and short-term investments: 19.1 Beginning of year 64,917,138 30,615,746 19.2 End of year (Line 18 plus Line 19.1) 39,412,263 64,917,138

Note: Supplemental disclosures of cash flow information for non-cash transactions: 20.0001. Dividends to stockholders settled with securities 16,324,583 108,551,993 20.0002. Change in unsettled purchase of Other Invested Assets (85,523) 116,880 20.0003. 0

5 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - PREMIUMS EARNED 1 2 3 4 Unearned Premiums Unearned Premiums Net Premiums Dec. 31 Prior Year - Dec. 31 Current Premiums Earned Written per per Col. 3, Last Year’s Year - per Col. 5 During Year Line of Business Column 6, Part 1B Part 1 Part 1A (Cols. 1 + 2 - 3)

1. Fire 0 0 0 0

2. Allied lines 0 0 0 0

3. Farmowners multiple peril 0 0 0 0

4. Homeowners multiple peril 0 0 0 0

5. Commercial multiple peril 0 0 0 0

6. Mortgage guaranty 0 0 0 0

8. Ocean marine 0 0 0 0

9. Inland marine 0 0 0 0

10. Financial guaranty 0 0 0 0

11.1 Medical professional liability-occurrence 15,044,538 2,349,927 2,390,842 15,003,623

11.2 Medical professional liability-claims-made 157,666,887 102,621,946 99,083,116 161,205,717

12. Earthquake 0 0 0 0

13. Group accident and health 0 0 0 0

14. Credit accident and health (group and individual) 0 0 0 0

15. Other accident and health 0 0 0 0

16. Workers' compensation 0 0 0 0

17.1 Other liability-occurrence 2,787,197 1,059,998 941,221 2,905,974

17.2 Other liability-claims-made 3,571,615 1,625,376 2,090,833 3,106,158

17.3 Excess workers’ compensation 0 0 0 0

18.1 Products liability-occurrence 0 0 0 0

18.2 Products liability-claims-made 0 0 0 0

19.1,19.2 Private passenger auto liability 0 0 0 0

19.3,19.4 Commercial auto liability 0 0 0 0

21. Auto physical damage 0 0 0 0

22. Aircraft (all perils) 0 0 0 0

23. Fidelity 0 0 0 0

24. Surety 0 0 0 0

26. Burglary and theft 0 0 0 0

27. Boiler and machinery 0 0 0 0

28. Credit 0 0 0 0

29. International 0 0 0 0

30. Warranty 0 0 0 0

31. Reinsurance-nonproportional assumed property 0 0 0 0

32. Reinsurance-nonproportional assumed liability 603,104 246,392 380,374 469,122

33. Reinsurance-nonproportional assumed financial lines 0 0 0 0

34. Aggregate write-ins for other lines of business 0 0 0 0

35. TOTALS 179,673,341 107,903,639 104,886,386 182,690,594

DETAILS OF WRITE-INS

3401.

3402.

3403.

3498. Sum. of remaining write-ins for Line 34 from overflow page 0 0 0 0

3499. Totals (Lines 3401 through 3403 plus 3498) (Line 34 above) 0 0 0 0

6 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY UNDERWRITING AND INVESTMENT EXHIBIT

PART 1A - RECAPITULATION OF ALL PREMIUMS

1 2 3 4 5 Amount Unearned Amount Unearned Reserve for Rate (Running One Year or (Running More Than Credits and Total Reserve Less from Date of One Year from Date Earned Retrospective for Policy) of Policy) but Adjustments Based Unearned Premiums Line of Business (a) (a) Unbilled Premium on Experience Cols. 1 + 2 + 3 + 4

1. Fire 0

2. Allied lines 0

3. Farmowners multiple peril 0

4. Homeowners multiple peril 0

5. Commercial multiple peril 0

6. Mortgage guaranty 0

8. Ocean marine 0

9. Inland marine 0

10. Financial guaranty 0

11.1 Medical professional liability-occurrence 2,390,842 2,390,842

11.2 Medical professional liability-claims-made 73,265,656 24,000,000 1,817,460 99,083,116

12. Earthquake 0

13. Group accident and health 0

14. Credit accident and health (group and individual) 0

15. Other accident and health 0

16. Workers' compensation 0

17.1 Other liability-occurrence 941,221 941,221

17.2 Other liability-claims-made 2,090,833 2,090,833

17.3 Excess workers’ compensation 0

18.1 Products liability-occurrence 0

18.2 Products liability-claims-made 0

19.1,19.2 Private passenger auto liability 0

19.3,19.4 Commercial auto liability 0

21. Auto physical damage 0

22. Aircraft (all perils) 0

23. Fidelity 0

24. Surety 0

26. Burglary and theft 0

27. Boiler and machinery 0

28. Credit 0

29. International 0

30. Warranty 0

31. Reinsurance-nonproportional assumed property 0

32. Reinsurance-nonproportional assumed liability 380,374 380,374

33. Reinsurance-nonproportional assumed financial lines 0

34. Aggregate write-ins for other lines of business 0 0 0 0 0

35. TOTALS 79,068,926 24,000,000 0 1,817,460 104,886,386

36. Accrued retrospective premiums based on experience

37. Earned but unbilled premiums

38. Balance (Sum of Lines 35 through 37) 104,886,386

DETAILS OF WRITE-INS 3401. 0 3402.

3403.

3498. Sum. of remaining write-ins for Line 34 from overflow page 0 0 0 0 0

3499. Totals (Lines 3401 through 3403 plus 3498) (Line 34 above) 0 0 0 0 0

(a) State here basis of computation used in each case. Column 1: Daily pro rata. Column 2: DDR reserves actuarially determined. Column 4: Computed individually.

7 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY UNDERWRITING AND INVESTMENT EXHIBIT

PART 1B - PREMIUMS WRITTEN

1 Reinsurance Assumed Reinsurance Ceded 6 Direct 2 3 4 5 Net Premiums Business From From To To Written Cols. Line of Business (a) Affiliates Non-Affiliates Affiliates Non-Affiliates 1 + 2 + 3 - 4 - 5

1. Fire 0 2. Allied lines 0 3. Farmowners multiple peril 0 4. Homeowners multiple peril 0 5. Commercial multiple peril 0 6. Mortgage guaranty 0 8. Ocean marine 0 9. Inland marine 0 10. Financial guaranty 0 11.1 Medical professional liability-occurrence 13,966,298 8,168,168 7,089,928 15,044,538 11.2 Medical professional liability-claims-made 116,987,400 73,693,135 4,296,473 28,717,175 157,666,887 12. Earthquake 0 13. Group accident and health 0 14. Credit accident and health (group and individual) 0 15. Other accident and health 0 16. Workers' compensation 0 17.1 Other liability-occurrence 872,289 2,764,493 849,585 2,787,197 17.2 Other liability-claims-made 470,267 4,582,100 775,896 704,856 3,571,615 17.3 Excess workers’ compensation 0 18.1 Products liability-occurrence 0 18.2 Products liability-claims- made 0 19.1,19.2 Private passenger auto liability 0 19.3,19.4 Commercial auto liability 0 21. Auto physical damage 0 22. Aircraft (all perils) 0 23. Fidelity 0 24. Surety 0 26. Burglary and theft 0 27. Boiler and machinery 0 28. Credit 0 29. International 0 30. Warranty 0 31. Reinsurance- nonproportional assumed property XXX 0 32. Reinsurance- nonproportional assumed liability XXX 685,465 44,918 127,279 603,104 33. Reinsurance- nonproportional assumed financial lines XXX 0 34. Aggregate write-ins for other lines of business 0 0 0 0 0 0 35. TOTALS 132,296,254 89,893,361 44,918 5,072,369 37,488,823 179,673,341 DETAILS OF WRITE-INS 3401. 0 3402. 3403. 3498. Sum. of remaining write- ins for Line 34 from overflow page 0 0 0 0 0 0 3499. Totals (Lines 3401 through 3403 plus 3498) (Line 34 above) 0 0 0 0 0 0 (a) Does the company’s direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes: 1. The amount of such installment premiums $ 2. Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $

8 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - LOSSES PAID AND INCURRED Losses Paid Less Salvage 5 6 7 8 1 2 3 4 Percentage of Losses Net Losses Incurred Unpaid Net Losses Losses Incurred (Col. 7, Part 2) Reinsurance Reinsurance Net Payments Current Year Unpaid Current Year to Premiums Earned Line of Business Direct Business Assumed Recovered (Cols. 1 + 2 - 3) (Part 2A, Col. 8) Prior Year (Cols. 4 + 5 - 6) (Col. 4, Part 1) 1. Fire 0 0 0 0 0.0 2. Allied lines 0 0 0 0 0.0 3. Farmowners multiple peril 0 0 0 0 0.0 4. Homeowners multiple peril 0 0 0 0 0.0 5. Commercial multiple peril 0 0 0 0 0.0 6. Mortgage guaranty 0 0 0 0 0.0 8. Ocean marine 0 0 0 0 0.0 9. Inland marine 0 0 0 0 0.0 10. Financial guaranty 0 0 0 0 0.0 11.1 Medical professional liability-occurrence 2,742,500 281,040 262,288 2,761,252 43,650,954 46,019,773 392,433 2.6 11.2 Medical professional liability-claims-made 41,517,647 12,084,743 9,845,693 43,756,697 297,462,486 233,486,288 107,732,895 66.8 12. Earthquake 0 0 0 0 0.0 13. Group accident and health 0 0 0 0 0.0 14. Credit accident and health (group and individual) 0 0 0 0 0.0 15. Other accident and health 0 0 0 0 0.0 16. Workers' compensation 6,400 1,760 4,640 114,838 96,470 23,008 0.0 17.1 Other liability-occurrence 243,694 1,278,102 12,339 1,509,457 3,887,441 4,083,261 1,313,637 45.2 17.2 Other liability-claims-made 1,287,585 41,861 1,919 1,327,527 7,760,576 11,504,674 (2,416,571) (77.8) 17.3 Excess workers’ compensation 0 0 0 0 0.0 9 18.1 Products liability-occurrence 0 0 0 0 0.0 18.2 Products liability-claims-made 0 0 0 0 0.0 19.1,19.2 Private passenger auto liability 0 0 0 0 0.0 19.3,19.4 Commercial auto liability 0 0 0 0 0.0 21. Auto physical damage 0 0 0 0 0.0 22. Aircraft (all perils) 0 0 0 0 0.0 23. Fidelity 0 0 0 0 0.0 24. Surety 0 0 0 0 0.0 26. Burglary and theft 0 0 0 0 0.0 27. Boiler and machinery 0 0 0 0 0.0 28. Credit 0 0 0 0 0.0 29. International 0 0 0 0 0.0 30. Warranty 0 0 0 0 0.0 31. Reinsurance-nonproportional assumed property XXX 0 0 0 0 0.0 32. Reinsurance-nonproportional assumed liability XXX 0 670,088 304,195 365,893 78.0 33. Reinsurance-nonproportional assumed financial lines XXX 0 0 0 0 0.0 34. Aggregate write-ins for other lines of business 0 0 0 0 0 0 0 0.0 35. TOTALS 45,791,426 13,692,146 10,123,999 49,359,573 353,546,383 295,494,661 107,411,295 58.8 DETAILS OF WRITE-INS 3401. 0 0 0 0 0.0 3402. 3403. 3498. Sum. of remaining write-ins for Line 34 from overflow page 0 0 0 0 0 0 0 0.0 3499. Totals (Lines 3401 through 3403 + 3498) (Line 34 above) 0 0 0 0 0 0 0 0.0 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Reported Losses Incurred But Not Reported 8 9 1 2 3 4 5 6 7

Net Losses Excl. Incurred But Net Losses Net Unpaid Loss Reinsurance Deduct Reinsurance Not Reported Reinsurance Reinsurance Unpaid Adjustment Line of Business Direct Assumed Recoverable (Cols. 1 + 2 - 3) Direct Assumed Ceded (Cols. 4 +5 + 6 - 7) Expenses 1. Fire 0 0 2. Allied lines 0 0 3. Farmowners multiple peril 0 0 4. Homeowners multiple peril 0 0 5. Commercial multiple peril 0 0 6. Mortgage guaranty 0 0 8. Ocean marine 0 0 9. Inland marine 0 0 10. Financial guaranty 0 0 11.1 Medical professional liability-occurrence 31,048,352 2,787,511 4,779,593 29,056,270 19,966,532 6,319,683 11,691,531 43,650,954 39,314,483 11.2 Medical professional liability-claims-made 270,995,678 117,581,119 55,760,427 332,816,370 (31,023,225) 13,644,827 17,975,486 297,462,486 191,720,616 12. Earthquake 0 0 13. Group accident and health 0 (a) 0 14. Credit accident and health (group and individual) 0 0 15. Other accident and health 0 (a) 0 16. Workers' compensation 103,571 15,946 87,625 27,213 114,838 17.1 Other liability-occurrence 1,363,890 699,492 18,982 2,044,400 915,104 2,006,427 1,078,490 3,887,441 2,948,963 17.2 Other liability-claims-made 1,616,891 1,496,324 277,937 2,835,278 4,573,339 2,159,326 1,807,367 7,760,576 5,588,019 17.3 Excess workers’ compensation 0 0 1 18.1 Products liability-occurrence 0 0 0 18.2 Products liability-claims-made 0 0 19.1,19.2 Private passenger auto liability 0 0 19.3,19.4 Commercial auto liability 0 0 21. Auto physical damage 0 0 22. Aircraft (all perils) 0 0 23. Fidelity 0 0 24. Surety 0 0 26. Burglary and theft 0 0 27. Boiler and machinery 0 0 28. Credit 0 0 29. International 0 0 30. Warranty 0 0 31. Reinsurance-nonproportional assumed property XXX 0 XXX 0 32. Reinsurance-nonproportional assumed liability XXX 0 XXX 761,561 91,473 670,088 250,956 33. Reinsurance-nonproportional assumed financial lines XXX 0 XXX 0 34. Aggregate write-ins for other lines of business 0 0 0 0 0 0 0 0 0 35. TOTALS 305,024,811 122,668,017 60,852,885 366,839,943 (5,568,250) 24,919,037 32,644,347 353,546,383 239,823,037 DETAILS OF WRITE-INS 3401. 0 0 3402. 0 0 3403. 3498. Sum. of remaining write-ins for Line 34 from overflow page 0 0 0 0 0 0 0 0 0 3499. Totals (Lines 3401 through 3403 + 3498) (Line 34 above) 0 0 0 0 0 0 0 0 0 (a) Including $ 0 for present value of life indemnity claims. ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES 1 2 3 4 Loss Adjustment Other Underwriting Investment Expenses Expenses Expenses Total 1. Claim adjustment services: 1.1 Direct 18,695,536 18,695,536 1.2 Reinsurance assumed 29,017,772 29,017,772 1.3 Reinsurance ceded 11,092,706 11,092,706 1.4 Net claim adjustment services (1.1 + 1.2 - 1.3) 36,620,602 0 0 36,620,602 2. Commission and brokerage: 2.1 Direct, excluding contingent 10,744,550 10,744,550 2.2 Reinsurance assumed, excluding contingent 31,472,557 31,472,557 2.3 Reinsurance ceded, excluding contingent 5,503,811 5,503,811 2.4 Contingent-direct 305,186 305,186 2.5 Contingent-reinsurance assumed 0 2.6 Contingent-reinsurance ceded 0 2.7 Policy and membership fees 0 2.8 Net commission and brokerage (2.1 + 2.2 - 2.3 + 2.4 + 2.5 - 2.6 + 2.7) 0 37,018,482 0 37,018,482 3. Allowances to manager and agents 0 4. Advertising 0 384,882 384,882 5. Boards, bureaus and associations 8,507 220,669 229,176 6. Surveys and underwriting reports 0 7. Audit of assureds' records 0 8. Salary and related items: 8.1 Salaries 8,493,960 6,474,814 14,968,774 8.2 Payroll taxes 568,739 423,552 992,291 9. Employee relations and welfare 1,534,129 1,129,439 2,663,568 10. Insurance 1,460 1,386 2,846 11. Directors' fees 182,302 134,331 316,633 12. Travel and travel items 618,281 442,703 1,060,984 13. Rent and rent items 1,424,630 820,830 2,245,460 14. Equipment 162,145 26,850 188,995 15. Cost or depreciation of EDP equipment and software 512,957 738,549 1,251,506 16. Printing and stationery 105,797 91,697 109 197,603 17. Postage, telephone and telegraph, exchange and express 76,795 64,916 141,711 18. Legal and auditing 2,086,351 901,660 5,269 2,993,280 19. Totals (Lines 3 to 18) 15,776,053 11,856,278 5,378 27,637,709 20. Taxes, licenses and fees: 20.1 State and local insurance taxes deducting guaranty association credits of $ 2,149,505 2,149,505 20.2 Insurance department licenses and fees 1,718 62,638 64,356 20.3 Gross guaranty association assessments 32,373 32,373 20.4 All other (excluding federal and foreign income and real estate) 144,685 144,685 20.5 Total taxes, licenses and fees (20.1 + 20.2 + 20.3 + 20.4) 1,718 2,389,201 0 2,390,919 21. Real estate expenses 831,947 831,947 22. Real estate taxes 143,549 143,549 23. Reimbursements by uninsured plans 0 24. Aggregate write-ins for miscellaneous expenses (2,286,643) (645,391) 1,460,145 (1,471,889)

25. Total expenses incurred 50,111,730 50,618,570 2,441,019 (a) 103,171,319 26. Less unpaid expenses-current year 239,823,037 3,067,627 242,890,664 27. Add unpaid expenses-prior year 249,761,201 3,481,825 0 253,243,026 28. Amounts receivable relating to uninsured plans, prior year 0 0 0 0 29. Amounts receivable relating to uninsured plans, current year 0 30. TOTAL EXPENSES PAID (Lines 25 - 26 + 27 - 28 + 29) 60,049,894 51,032,768 2,441,019 113,523,681 DETAILS OF WRITE-INS 2401. Change in ULAE Unpaid Expenses (2,197,997) (2,197,997) 2402. Portfolio Management, Treasury, and Bank Fees 1,460,145 1,460,145 2403. Other Expenses (88,646) (14,391) (103,037) 2498. Summary of remaining write-ins for Line 24 from overflow page 0 (631,000) 0 (631,000) 2499. Totals (Lines 2401 through 2403 plus 2498) (Line 24 above) (2,286,643) (645,391) 1,460,145 (1,471,889) (a) Includes management fees of $ 3,308,529 to affiliates and $ to non-affiliates.

11 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

EXHIBIT OF NET INVESTMENT INCOME 1 2 Collected Earned During Year During Year 1. U.S. Government bonds (a) 1,064,483 985,314 1.1 Bonds exempt from U.S. tax (a) 3,746,235 2,714,194 1.2 Other bonds (unaffiliated) (a) 17,244,437 17,546,560 1.3 Bonds of affiliates (a) 0 2.1 Preferred stocks (unaffiliated) (b) 0 2.11 Preferred stocks of affiliates (b) 0 2.2 Common stocks (unaffiliated) 7,543,711 7,802,901 2.21 Common stocks of affiliates 3,653 1,072 3. Mortgage loans (c) 4. Real estate (d) 1,125,652 1,125,652 5. Contract loans 6. Cash, cash equivalents and short-term investments (e) 691,895 711,994 7. Derivative instruments (f) 8. Other invested assets 16,491,478 11,162,628 9. Aggregate write-ins for investment income 1,473 1,473 10. Total gross investment income 47,913,017 42,051,787 11. Investment expenses (g) 2,441,019 12. Investment taxes, licenses and fees, excluding federal income taxes (g) 13. Interest expense (h) 14,173 14. Depreciation on real estate and other invested assets (i) 211,141 15. Aggregate write-ins for deductions from investment income 0 16. Total deductions (Lines 11 through 15) 2,666,333 17. Net investment income (Line 10 minus Line 16) 39,385,454 DETAILS OF WRITE-INS 0901. Other Investment Income 1,473 1,473 0902. 0903. 0998. Summary of remaining write-ins for Line 9 from overflow page 0 0 0999. Totals (Lines 0901 through 0903 plus 0998) (Line 9 above) 1,473 1,473 1501. 1502. 1503. 1598. Summary of remaining write-ins for Line 15 from overflow page 0 1599. Totals (Lines 1501 through 1503 plus 1598) (Line 15 above) 0

(a) Includes $ 348,349 accrual of discount less $ 2,147,010 amortization of premium and less $ 433,612 paid for accrued interest on purchases. (b) Includes $ accrual of discount less $ amortization of premium and less $ 0 paid for accrued dividends on purchases. (c) Includes $ 0 accrual of discount less $ 0 amortization of premium and less $ paid for accrued interest on purchases. (d) Includes $ for company’s occupancy of its own buildings; and excludes $ interest on encumbrances. (e) Includes $ 51,386 accrual of discount less $ 53 amortization of premium and less $ 14,813 paid for accrued interest on purchases. (f) Includes $ accrual of discount less $ amortization of premium. (g) Includes $ investment expenses and $ investment taxes, licenses and fees, excluding federal income taxes, attributable to segregated and Separate Accounts. (h) Includes $ interest on surplus notes and $ interest on capital notes. (i) Includes $ depreciation on real estate and $ depreciation on other invested assets. EXHIBIT OF CAPITAL GAINS (LOSSES) 1 2 3 4 5

Realized Change in Gain (Loss) Other Total Realized Capital Change in Unrealized Foreign On Sales or Realized Gain (Loss) Unrealized Capital Exchange Capital Maturity Adjustments (Columns 1 + 2) Gain (Loss) Gain (Loss) 1. U.S. Government bonds 88,311 88,311 1.1 Bonds exempt from U.S. tax 136,153 136,153 1.2 Other bonds (unaffiliated) (886,557) (264,685) (1,151,242) (2,226,094) 1.3 Bonds of affiliates 0 0 0 0 0 2.1 Preferred stocks (unaffiliated) 0 0 0 0 0 2.11 Preferred stocks of affiliates 0 0 0 0 0 2.2 Common stocks (unaffiliated) 2,526,378 (818,050) 1,708,328 (16,448,626) 0 2.21 Common stocks of affiliates 0 0 0 (8,834) 0 3. Mortgage loans 0 0 0 0 0 4. Real estate 0 0 0 0 5. Contract loans 0 6. Cash, cash equivalents and short-term investments 0 0 0 7. Derivative instruments 0 8. Other invested assets 0 0 0 (7,225,946) 0 9. Aggregate write-ins for capital gains (losses) 0 0 0 0 0 10. Total capital gains (losses) 1,864,286 (1,082,735) 781,551 (25,909,500) 0 DETAILS OF WRITE-INS: 0901. 0 0902. 0 0903. 0998. Summary of remaining write-ins for Line 9 from overflow page 0 0 0 0 0 0999. Totals (Lines 0901 through 0903 plus 0998) (Line 9 above) 0 0 0 0 0

12 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

EXHIBIT OF NONADMITTED ASSETS 1 2 3 Change in Total Current Year Total Prior Year Total Nonadmitted Assets Nonadmitted Assets Nonadmitted Assets (Col. 2 - Col. 1) 1. Bonds (Schedule D) 0 0 0 2. Stocks (Schedule D): 2.1 Preferred stocks 0 0 0 2.2 Common stocks 0 0 0 3. Mortgage loans on real estate (Schedule B): 3.1 First liens 0 0 0 3.2 Other than first liens 0 0 0 4. Real estate (Schedule A): 4.1 Properties occupied by the company 0 0 0 4.2 Properties held for the production of income 0 0 0 4.3 Properties held for sale 0 0 0 5. Cash (Schedule E-Part 1), cash equivalents (Schedule E-Part 2) and short-term investments (Schedule DA) 0 0 0 6. Contract loans 0 0 0 7. Derivatives (Schedule DB) 0 0 0 8. Other invested assets (Schedule BA) 0 0 0 9. Receivables for securities 0 0 0 10. Securities lending reinvested collateral assets (Schedule DL) 0 0 0 11. Aggregate write-ins for invested assets 0 0 0 12. Subtotals, cash and invested assets (Lines 1 to 11) 0 0 0 13. Title plants (for Title insurers only) 0 0 0 14. Investment income due and accrued 0 0 0 15. Premiums and considerations: 15.1 Uncollected premiums and agents’ balances in the course of collection 862,192 759,128 (103,064) 15.2 Deferred premiums, agents’ balances and installments booked but deferred and not yet due 0 0 0 15.3 Accrued retrospective premiums and contracts subject to redetermination 40,506 116,128 75,622 16. Reinsurance: 16.1 Amounts recoverable from reinsurers 0 0 0 16.2 Funds held by or deposited with reinsured companies 0 0 0 16.3 Other amounts receivable under reinsurance contracts 0 0 0 17. Amounts receivable relating to uninsured plans 0 0 0 18.1 Current federal and foreign income tax recoverable and interest thereon 0 0 0 18.2 Net deferred tax asset 7,806,733 1,423,067 (6,383,666) 19. Guaranty funds receivable or on deposit 0 0 0 20. Electronic data processing equipment and software 0 0 0 21. Furniture and equipment, including health care delivery assets 806,368 1,074,283 267,915 22. Net adjustment in assets and liabilities due to foreign exchange rates 0 0 0 23. Receivables from parent, subsidiaries and affiliates 0 0 0 24. Health care and other amounts receivable 0 0 0 25. Aggregate write-ins for other-than-invested assets 295,899 65,967 (229,932) 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) 9,811,698 3,438,573 (6,373,125) 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 0 0 0 28. Total (Lines 26 and 27) 9,811,698 3,438,573 (6,373,125) DETAILS OF WRITE-INS 1101. 0 0 1102. 0 0 1103. 0 0 1198. Summary of remaining write-ins for Line 11 from overflow page 0 0 0 1199. Totals (Lines 1101 through 1103 plus 1198) (Line 11 above) 0 0 0 2501. Prepaid Expenses and Other Assets 295,899 65,967 (229,932) 2502. 0 0 2503. 0 0 2598. Summary of remaining write-ins for Line 25 from overflow page 0 0 0 2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above) 295,899 65,967 (229,932)

13 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS Note 1 - Summary of Significant Accounting Policies and Going Concern

A. Accounting practices

The financial statements of ProAssurance Casualty Company (the Company) are presented on the basis of accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services (DIFS).

The DIFS recognizes only statutory accounting practices (SAP) prescribed or permitted by the State of Michigan for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under the Michigan Insurance Code. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual has been adopted as a component of prescribed or permitted practices by the State of Michigan. The Company does not employ any accounting practices prescribed or permitted by the State of Michigan that depart from NAIC SAP, as shown in the following table:

Year-to-date period ended SSAP F/S F/S December 31, December 31, NET INCOME # Page Line # 2018 2017 (1) State basis (Page 4, Line 20, Columns 1 & 2) XXX XXX XXX $ 18,227,484 $ 33,515,140 State Prescribed Practices that are an increase/ (2) (decrease) from NAIC SAP: — — State Permitted Practices that are an increase/ (3) (decrease) from NAIC SAP: — — (4) NAIC SAP (1-2-3=4) XXX XXX XXX $ 18,227,484 $ 33,515,140

SURPLUS (5) State basis (Page 3, Line 37, Columns 1 & 2) XXX XXX XXX $ 245,412,370 $ 294,883,352 State Prescribed Practices that are an increase/ (6) (decrease) from NAIC SAP: — — State Permitted Practices that are an increase/ (7) (decrease) from NAIC SAP: — — (8) NAIC SAP (5-6-7=8) XXX XXX XXX $ 245,412,370 $ 294,883,352

The term “none” or “no significant change” is used in the following notes to indicate that the Company does not have any items requiring disclosure under the respective note.

B. Use of estimates

The preparation of financial statements in conformity with NAIC SAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.

C. Accounting policies

Premiums are earned over the terms of the related insurance policies and reinsurance contracts. Unearned premium reserves are established to cover the unexpired portion of premiums written. Such reserves are computed by pro rata methods for direct business and are based on internal reports. Unearned premiums for Death, Disability, and Retirement premiums are determined actuarially.

Expenses in connection with acquiring new business, including acquisition costs, are recorded as incurred. Expenses incurred are reduced for ceding allowances received or receivable.

In addition, the Company also uses the following accounting policies:

(1) Short-term investments are securities with an original maturity greater than three months but less than one year. Short-term investments are reported at amortized cost. Cash and cash equivalents includes all short-term, highly liquid investments that are readily convertible to cash and were acquired with an original maturity of three months or less.

(2) Bonds not backed by loans are reported at amortized cost or at the lower of amortized cost or fair value, if rated NAIC 3 or below, in accordance with SSAP No. 26 - Bonds, Excluding Loan-Backed and Structured Securities. Premiums and discounts on bonds are amortized or accreted, respectively, over the life of the related debt security as an adjustment to yield using the scientific method. Interest income is recognized when it is earned.

(3) Common stocks are reported at fair value. Stocks in unconsolidated subsidiaries and affiliates wherein the Company has an interest of 20% or more are reported at a value determined using the equity method.

(4) Investment grade redeemable preferred stocks are stated at amortized cost. Investment grade perpetual preferred stocks are stated at fair value. Non-investment grade preferred stocks are stated at the lower of amortized cost or fair value.

(5) The Company has no investment in mortgage loans.

14 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS (6) Loan-backed securities are reported at amortized cost provided that the SVO's designation is 1 or 2. If the SVO's designation is 3 or greater, the security is reported at the lower of amortized cost or fair value. The Company uses the prospective method to make valuation adjustments when necessary.

(7) The Company has no subsidiaries.

(8) The Company reports the value of interest in joint ventures, partnerships and limited liability companies based on the underlying audited GAAP equity of the investee. The Company reports the value of its interests in limited partnerships which invest in Low Income Housing Tax Credits in accordance with SSAP No. 93, Accounting for Low Income Housing Tax Credit Property Investments.

(9) The Company has no investment in derivatives.

(10) The Company anticipates investment income as a factor in the premium deficiency calculation, in accordance with SSAP No. 53, Property-Casualty Contracts - Premiums.

(11) Unpaid losses and loss adjustment expenses include an amount determined from individual case estimates and loss reports and an actuarially determined amount, based on past experience, for losses incurred but not reported and development on reported claims. Such liabilities are based on assumptions and estimates and while management believes the amount is adequate, the ultimate liability may be in excess of or less than the amount provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in the period determined.

(12) The Company has not modified its capitalization policy from the prior period.

(13) The Company has no pharmaceutical rebate receivables.

D. Going Concern

Management has concluded that there is no doubt regarding the Company's ability to continue as a going concern.

Note 2 - Accounting Changes and Corrections of Errors - None.

Note 3 - Business Combinations and Goodwill - None.

Note 4 - Discontinued Operations - None.

Note 5 - Investments

A. Mortgage loans, including mezzanine real estate loans - None.

B. Debt restructuring - None.

C. Reverse mortgages - None.

14.1 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS D. Loan-backed securities

(1) Prepayment assumptions for single-class and multi-class mortgage-backed/asset-backed securities were obtained from broker dealer survey values or internal estimates.

(2) The Company has recognized no other-than-temporary impairments of loan-backed securities for intent to sell or for inability to hold to recovery as of December 31, 2018.

(3) No loan-backed securities, held as of December 31, 2018, have incurred other-than-temporary impairments recognized in earnings based on the fact that the present value of projected cash flows expected to be collected was less than the amortized cost of the securities.

(4) For all loan-backed securities held at December 31, 2018 for which fair value is less than cost, but which have had no other-than-temporary impairment recognized in earnings, the following table displays balances, according to duration of the loss position:

a. The aggregate amount of unrealized losses: 1. Less than 12 Months $ (149,945) 2. 12 Months or Longer $ (2,366,337)

b. The aggregate related fair value of securities with unrealized losses: 1. Less than 12 Months $ 29,458,813 2. 12 Months or Longer $ 99,671,185

(5) The Company used pricing services in determining the fair value of its loan-backed securities. In determining that a security is not other-than-temporarily impaired, securities are analyzed for future cash flows by using current and expected losses, historical and expected prepayment speeds (based on Bloomberg and broker dealer survey values), and assumptions about recoveries relative to the seniority or subordination in the capital structure. If the results indicate that the Company will be able to maintain the current book yield, no other-than-temporary impairment is warranted.

E. Dollar repurchase agreements and/or securities lending transactions - None.

F. Repurchase agreements transactions accounted for as secured borrowing - None.

G. Reverse repurchase agreements transactions accounted for as secured borrowing - None.

H. Repurchase agreements transactions accounted for as a sale - None.

I. Reverse repurchase agreements transactions accounted for as a sale - None.

J. Real estate - None.

K. Low-income housing tax credits (LIHTC)

The Company has invested in limited partnerships whose primary benefits are derived through the utilization of tax credits and losses related to Section 42 of the Internal Revenue Code, commonly referred to as Low Income Housing Tax Credits (LIHTC). The average remaining period of unexpired tax credits is approximately 5 years and the average remaining required holding period is approximately 10 years. The Company has recognized a tax benefit of $5,993,737 during 2018. As of December 31, 2018, the balance of LIHTCs recognized in the statement of financial position is $21,729,163.

14.2 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS L. Restricted assets

(1) Restricted assets (including pledged)

Gross (Admitted & Nonadmitted) Restricted Current Year Current Year Percentage 1 2 3 4 5 6 7 8 9 10 11 Protected G/A Total Cell Supporting Protected Account Admitted Total Protected Cell Assets Total Gross Restricted General Cell Account Supporting Increase/ Total Admitted Restricted to Total Restricted Asset Category Account Account Restricted G/A Total Total From (Decrease) Nonadmitted Restricted to Total Admitted (G/A) Activity (a) Assets Activity (b) (1 plus 3) Prior Year (5 minus 6) Restricted (5 minus 8) Assets (c) Assets (d) a. Subject to contractual obligation for which liability is not shown $ — $ — $ — $ — $ — $ — $ — $ — $ — —% —% b. Collateral held under security lending agreements — — — — — — — — $ — —% —% c. Subject to repurchase agreements — — — — — — — — $ — —% —% d. Subject to reverse repurchase agreements — — — — — — — — $ — —% —% e. Subject to dollar repurchase agreements — — — — — — — — $ — —% —% f. Subject to dollar reverse repurchase agreements — — — — — — — — $ — —% —% g. Placed under option contracts — — — — — — — — $ — —% —% h. Letter stock or securities restricted as to sale - excluding FHLB capital stock — — — — — — — — $ — —% —% i. FHLB capital stock 719,400 — — — 719,400 719,400 — — $ 719,400 0.1% 0.1% j. On deposit with states 2,755,759 — — — 2,755,759 2,732,938 22,821 — $2,755,759 0.3% 0.3% k. On deposit with other regulatory bodies — — — — — — — — $ — —% —% l. Pledged as collateral to FHLB (including assets backing funding agreements) — — — — — — — — $ — —% —% m. Pledged as collateral not captured in other categories — — — — — — — — $ — —% —% n. Other restricted assets — — — — — — — — $ — —% —% o. Total Restricted Assets $3,475,159 $ — $ — $ — $3,475,159 $3,452,338 $ 22,821 $ — $3,475,159 0.3% 0.3% (a) Subset of column 1 (b) Subset of column 3 (c) Column 5 divided by Asset Page, Column 1 Line 28 (d) Column 9 divided by Asset Page, Column 3, Line 28

(2) Detail of assets pledged as collateral not captured in other categories - None.

(3) Detail of other restricted assets - None.

(4) Collateral received and reflected as assets within the reporting entity's financial statements - None.

L. Working capital finance investments - None.

M. Offsetting and netting of assets and liabilities - None.

N. Structured notes

Book/Adjusted Mortgage-Referenced CUSIP Identification Actual Cost Fair Value Carrying Value Security (YES/NO) 039483BB7 $ 503,645 $ 514,344 $ 500,919 NO Total $ 503,645 $ 514,344 $ 500,919 XXX

14.3 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS P. 5*GI Securities

Number of 5* Securities Aggregate BACV Aggregate Fair Value Investment Current Year Prior Year Current Year Prior Year Current Year Prior Year (1) Bonds - AC — 1 $ — $ 87,755 $ — $ 91,539 (2) Bonds - FV — — — — — — (3) LB&SS - AC — — — — — — (4) LB&SS - FV — — — — — — (5) Preferred Stock - AC — — — — — — (6) Preferred Stock - FV — — — — — — (7) Total (1+2+3+4+5+6) — 1 $ — $ 87,755 $ — $ 91,539 AC - Amortized Cost FV - Fair Value

Q. Short sales - None.

R. Prepayment penalty and acceleration fees

General Protected Account Cell (1) Number of CUSIPs 59 — (2) Aggregate amount of investment income $ 611,642 $ —

Note 6 - Joint Ventures, Partnerships and Limited Liability Companies

A. Detail for those greater than 10% of admitted assets - None.

B. Write-downs for impairments - None.

Note 7 - Investment Income

A. Accrued investment income - None.

B. Amounts nonadmitted - None.

Note 8 - Derivative Instruments - None.

14.4 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS Note 9 - Income Taxes

A. The components of the net deferred tax asset/(liability) at December 31 are as follows:

1.

12/31/2018 (1) (2) (3) (Col 1+2) Ordinary Capital Total

(a) Gross Deferred Tax Assets $ 14,731,421 $ 2,994,587 $ 17,726,008 (b) Statutory Valuation Allowance Adjustments — — — (c) Adjusted Gross Deferred Tax Assets (1a - 1b) 14,731,421 2,994,587 17,726,008 (d) Deferred Tax Assets Nonadmitted 4,855,523 2,951,210 7,806,733 (e) Subtotal Net Admitted Deferred Tax Asset (1c - 1d) 9,875,898 43,377 9,919,275 (f) Deferred Tax Liabilities 2,960,324 43,377 3,003,701 (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (1e-1f) $ 6,915,574 $ — $ 6,915,574

12/31/2017 (4) (5) (6) (Col 4+5) Ordinary Capital Total

(a) Gross Deferred Tax Assets $ 11,149,638 $ 2,505,477 $ 13,655,115 (b) Statutory Valuation Allowance Adjustments — — — (c) Adjusted Gross Deferred Tax Assets (1a - 1b) 11,149,638 2,505,477 13,655,115 (d) Deferred Tax Assets Nonadmitted 1,423,067 — 1,423,067 (e) Subtotal Net Admitted Deferred Tax Asset (1c - 1d) 9,726,571 2,505,477 12,232,048 (f) Deferred Tax Liabilities 174,308 4,517,766 4,692,074 (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (1e-1f) $ 9,552,263 $ (2,012,289) $ 7,539,974

Change (7) (8) (9) (Col 1-4) (Col 2-5) (Col 7+8) Ordinary Capital Total

(a) Gross Deferred Tax Assets $ 3,581,783 $ 489,110 $ 4,070,893 (b) Statutory Valuation Allowance Adjustments — — — (c) Adjusted Gross Deferred Tax Assets (1a - 1b) 3,581,783 489,110 4,070,893 (d) Deferred Tax Assets Nonadmitted 3,432,456 2,951,210 6,383,666 (e) Subtotal Net Admitted Deferred Tax Asset (1c - 1d) 149,327 (2,462,100) (2,312,773) (f) Deferred Tax Liabilities 2,786,016 (4,474,389) (1,688,373) (g) Net Admitted Deferred Tax Asset/(Net Deferred Tax Liability) (1e-1f) $ (2,636,689) $ 2,012,289 $ (624,400)

14.5 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS 2.

12/31/2018 (1) (2) (3) (Col 1+2) Admission Calculation Components SSAP No. 101 Ordinary Capital Total

(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $ — $ — $ — (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Lesser of 2(b)1 and 2(b)2 Below) $ 6,915,574 $ — $ 6,915,574 (1) Adjusted Gross Deferred Tax Assets Expected To Be Realized Following the Balance Sheet Date $ 6,915,574 $ — $ 6,915,574 (2) Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX $ 35,768,662 (c) Adjusted Gross Deferred Tax Assets Offset by Gross Deferred Tax Liabilities $ 2,960,324 $ 43,377 $ 3,003,701 (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101 $ 9,875,898 $ 43,377 $ 9,919,275

12/31/2017 (4) (5) (6) (Col 4+5) Ordinary Capital Total

(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $ 7,539,976 $ — $ 7,539,976 (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Lesser of 2(b)1 and 2(b)2 Below) $ — $ — $ — (1) Adjusted Gross Deferred Tax Assets Expected To Be Realized Following the Balance Sheet Date $ — $ — $ — (2) Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX $ 43,099,631 (c) Adjusted Gross Deferred Tax Assets Offset by Gross Deferred Tax Liabilities $ 2,186,597 $ 2,505,477 $ 4,692,074 (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101 $ 9,726,573 $ 2,505,477 $ 12,232,050

Change (7) (8) (9) (Col 1-4) (Col 2-5) (Col 7+8) Ordinary Capital Total

(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $ (7,539,976) $ — $ (7,539,976) (b) Adjusted Gross Deferred Tax Assets Expected To Be Realized (Lesser of 2(b)1 and 2(b)2 Below) $ 6,915,574 $ — $ 6,915,574 (1) Adjusted Gross Deferred Tax Assets Expected To Be Realized Following the Balance Sheet Date $ 6,915,574 $ — $ 6,915,574 (2) Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold XXX XXX $ (7,330,969) (c) Adjusted Gross Deferred Tax Assets Offset by Gross Deferred Tax Liabilities $ 773,727 $ (2,462,100) $ (1,688,373) (d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101 $ 149,325 $ (2,462,100) $ (2,312,775)

3.

12/31/2018 12/31/2017 (a) Ratio Percentage Used To Determine Recovery Period And Threshold Limitation Amount 406% 524% (b) Amount Of Adjusted Capital And Surplus Used To Determine Recovery Period And Threshold Limitation in 2(b)2 Above $ 238,496,796 $ 287,343,378

14.6 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS 4.

12/31/2018 (1) (2)

Impact of Tax-Planning Strategies Ordinary Capital

(a) Determination Of Adjusted Gross Deferred Tax Assets And Net Admitted Deferred Tax Assets, By Tax Character As A Percentage. 1. Adjusted Gross DTAs Amount From Note 9A1(c) $ 14,731,421 $ 2,994,587 2. Percentage Of Adjusted Gross DTAs By Tax Character Attributable To The Impact Of Tax Planning Strategies — — 3. Net Admitted Adjusted Gross DTAs Amount From Note 9A1(e) 9,875,898 43,377 4. Percentage Of Net Admitted Adjusted Gross DTAs By Tax Character Admitted Because Of The Impact Of Tax Planning Strategies — —

12/31/2017 (3) (4)

Ordinary Capital

(a) Determination Of Adjusted Gross Deferred Tax Assets And Net Admitted Deferred Tax Assets, By Tax Character As A Percentage. 1. Adjusted Gross DTAs Amount From Note 9A1(c) $ 11,149,638 $ 2,505,477 2. Percentage Of Adjusted Gross DTAs By Tax Character Attributable To The Impact Of Tax Planning Strategies — — 3. Net Admitted Adjusted Gross DTAs Amount From Note 9A1(e) 9,726,571 2,505,477 4. Percentage Of Net Admitted Adjusted Gross DTAs By Tax Character Admitted Because Of The Impact Of Tax Planning Strategies — —

Change (5) (6) (Col 1-3) (Col 2-4) Ordinary Capital

(a) Determination Of Adjusted Gross Deferred Tax Assets And Net Admitted Deferred Tax Assets, By Tax Character As A Percentage. 1. Adjusted Gross DTAs Amount From Note 9A1(c) $ 3,581,783 $ 489,110 2. Percentage Of Adjusted Gross DTAs By Tax Character Attributable To The Impact Of Tax Planning Strategies — — 3. Net Admitted Adjusted Gross DTAs Amount From Note 9A1(e) 149,327 (2,462,100) 4. Percentage Of Net Admitted Adjusted Gross DTAs By Tax Character Admitted Because Of The Impact Of Tax Planning Strategies — —

(b) Does the Company's tax-planning strategies include the use of reinsurance? No

B. Deferred Tax Liabilities Not Recognized - None.

14.7 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS C. Current income taxes consist of the following major components:

(1) (2) (3) (Col 1-2) 12/31/2018 12/31/2017 Change 1. Current Income Tax

(a) Federal $ (2,777,625) $ 33,870 $ (2,811,495) (b) Foreign — — — (c) Subtotal (2,777,625) 33,870 (2,811,495) (d) Federal income tax on net capital gains 185,481 2,181,309 (1,995,828) (e) Utilization of capital loss carry-forwards — — — (f) Other (331,353) 2,507,301 (2,838,654) (g) Federal and foreign income taxes incurred $ (2,923,497) $ 4,722,480 $ (7,645,977)

2. Deferred Tax Assets:

(a) Ordinary (1) Discounting of unpaid losses $ 10,125,202 $ 6,437,648 $ 3,687,554 (2) Unearned premium reserve 3,507,580 3,446,405 61,175 (3) Policyholder reserves — — — (4) Investments — — — (5) Deferred acquisition costs — — — (6) Policyholder dividends accrual — — — (7) Fixed assets 226,896 191,275 35,621 (8) Compensation and benefits accrual 317,294 492,693 (175,399) (9) Pension accrual — — — (10) Receivables - nonadmitted 181,060 159,417 21,643 (11) Net operating loss carry-forward — — — (12) Tax credit carry-forward — — — (13) Other (including items <5% of total ordinary tax assets) 373,389 422,200 (48,811) (99) Subtotal 14,731,421 11,149,638 3,581,783

(b) Statutory valuation allowance adjustment — — — (c) Nonadmitted 4,855,523 1,423,067 3,432,456

(d) Admitted ordinary deferred tax assets (2a99 - 2b - 2c) 9,875,898 9,726,571 149,327

(e) Capital (1) Investments 2,994,587 2,505,477 489,110 (2) Net capital loss carry-forward — — — (3) Real estate — — — (4) Other (including items <5% of total capital tax assets) — — — (99) Subtotal 2,994,587 2,505,477 489,110

(f) Statutory valuation allowance adjustment — — — (g) Nonadmitted 2,951,210 — 2,951,210

(h) Admitted capital deferred tax assets (2e99 - 2f - 2g) 43,377 2,505,477 (2,462,100)

(i) Admitted deferred tax assets (2d + 2h) $ 9,919,275 $ 12,232,048 $ (2,312,773)

3. Deferred Tax Liabilities:

(a) Ordinary (1) Investments $ 224,172 $ 172,480 $ 51,692 (2) Fixed assets — — — (3) Deferred and uncollected premium — — — (4) Policyholder reserves — — — (5) Other (including items <5% of total ordinary tax liabilities) 2,736,152 1,828 2,734,324 (99) Subtotal 2,960,324 174,308 2,786,016

(b) Capital (1) Investments 43,377 4,517,766 (4,474,389) (2) Real estate — — — (3) Other (including items <5% of total capital tax liabilities) — — — (99) Subtotal 43,377 4,517,766 (4,474,389)

(c) Deferred tax liabilities (3a99 + 3b99) $ 3,003,701 $ 4,692,074 $ (1,688,373)

4. Net deferred tax assets/liabilities (2i - 3c) $ 6,915,574 $ 7,539,974 $ (624,400)

14.8 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

12/31/2018 12/31/2017 Change Total deferred tax assets $ 17,726,008 $ 13,655,115 $ 4,070,893 Total deferred tax liabilities 3,003,701 4,692,074 (1,688,373) Net deferred tax asset 14,722,307 8,963,041 5,759,266 Tax effect of unrealized [(gains)/losses] 1,364,034 (4,075,107) 5,439,141 Change in net deferred income tax [(charge)/benefit] $ 13,358,273 $ 13,038,148 $ 320,125

The Tax Cuts and Jobs Act was signed into law on December 22, 2017, and included a reduction in the corporate tax rate to 21%. The deferred tax assets and deferred tax liabilities as of December 31, 2017, were remeasured using the newly enacted tax rate. The effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted.

On December 19, 2018, the IRS released the 2018 discount factors which allowed us to complete the accounting for the income tax effects of the Tax Cuts and Jobs Act on discounted loss reserves. The Tax Act's changes to the statutes for discounting loss reserves included a transitional rule that resulted in a transition liability that will be included in taxable income over the subsequent eight years beginning in 2018. The net deferred tax asset presented on line 18.2 of the Assets page includes a deferred tax liability for the transitional rule of $2,678,007.

The Tax Cuts and Jobs Act also included the Repatriation Transition Tax, a one-time transition tax on untaxed foreign earnings of foreign subsidiaries of U.S. companies. The total transition tax owed under the Tax Cuts and Jobs Act is $200,911. The remaining amount payable of $184,838 is included in current federal and foreign income taxes presented on line 7.1 of the Liabilities, Surplus and Other Funds page. ProAssurance Casualty Company has elected to pay the liability under the the permitted installments as follows:

Payments Future Year Made Installments 2017 $ 16,073 $ — 2018 16,073 2019 16,073 2020 16,073 2021 16,073 2022 30,137 2023 40,182 2024 50,227 Total $ 16,073 $ 184,838

D. Reconciliation of federal income tax rate to actual effective rate

Among the more significant book to tax adjustments were the following:

December 31, 2018 Effective Amount Tax Effect Tax Rate Provision computed at statutory rate $ 15,303,987 $ 3,213,837 21.0 % Tax-exempt interest (2,037,233) (427,819) (2.8)% Low income housing tax credits — (5,455,654) (35.6)% Change in nonadmitted assets 10,532 2,212 — % Other (2,112,659) (576,199) (3.8)% Totals $ 11,164,627 $ (3,243,623) (21.2)%

Federal income taxes incurred [expense/(benefit)] $ (3,108,978) (20.3)% Tax on gains/(losses) 185,481 1.2 % Change in net deferred income tax [charge/(benefit)] (320,126) (2.1)% Total statutory income taxes $ (3,243,623) (21.2)%

E. Operating loss and tax credit carryforwards and protective tax deposits

1. At December 31, 2018, the Company did not have any unused operating loss carryforwards available to offset against future taxable income.

2. The following is income tax expense for 2018 and 2017 that is available for recoupment in the event of future net losses.

December 31, 2018 $ — December 31, 2017 $ —

3. The Company did not have any protective tax deposits under Section 6603 of the Internal Revenue Code.

F. Consolidated federal income tax return

14.9 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS 1. The Company, the domestic entities listed in Schedule Y (except ProAssurance American Mutual, A Risk Retention Group), and segregated portfolio P18, a segregated portfolio cell of Inova Re Ltd., S.P.C., are included in the consolidated federal income tax return of ProAssurance Corporation, the ultimate parent.

2. Except for the segregated portfolio P18, the method of allocation among companies is subject to a written agreement, approved by the Board of Directors, whereby allocation is made based upon separate return calculations in proportion to the total positive separate company taxable income of the group. Segregated portfolio P18 is subject to a separate written agreement with ProAssurance Corporation whereby allocation is made based upon a calculation of its separate company taxable income and the prohibition against the consolidated group's use of the segregated portfolio cell's loss against the income of other group members.

G. The Company believes it is reasonably possible that the liability related to any federal or foreign tax loss contingencies may change within the next twelve months. However, an estimate of the change cannot be made at this time.

Note 10 - Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties

A. Nature of relationships

The Company’s affiliate, Eastern Insurance Holdings, Inc. established a new segregated portfolio company, Inova Re Ltd, S.P.C., which was approved by the Cayman Islands Registrar of Companies effective February 28, 2018.

The Company entered into reinsurance agreements with Inova Re Ltd., SPC for two of the segregated portfolio cells previously reinsured with Eastern Re for all new and renewal business on or after January 1, 2018. The agreements were filed under a Form D and approval was received from DIFS.

The Company has a Quota Share Reinsurance Agreement with ProAssurance Specialty Insurance Company, Inc. (Specialty) originally dated March 1, 2010 (Quota Share Agreement) under which it reinsures business written by Specialty. The Quota Share Agreement did not specifically address risks where the ceding company does not incur acquisition costs. Per Note 23.F., the Company assumed a portion of a risk for which Specialty did not incur acquisition costs. Accordingly, the Company and Specialty mutually agreed Specialty would not retain a ceding commission for this portion of the premiums that were ceded under the Quota Share Agreement. On August 1, 2018, the Company filed an amendment to its Quota Share Agreement under a Form D with the DIFS to address these types of risks within the Quota Share Agreement. The amendment was not disapproved on August 14, 2018.

B. Detail of transactions greater than 0.5% of admitted assets - None.

C. Effect of change in terms of related party transactions - None.

D. Amounts due (to) or from related parties:

December 31, December 31, 2018 2017 ProAssurance Group Services Corporation $ 7,585,599 $ — ProAssurance Specialty Insurance Company, Inc. 246,904 — ProAssurance Mid-Continent Underwriters, Inc. 108,287 135,853 Subtotal: due from affiliates 7,940,790 135,853

ProAssurance Specialty Insurance Company, Inc. — (2,637) Podiatry Insurance Company of America — (453) Medmarc Casualty Insurance Company (57,500) (9,130) Hamilton Resources Corporation — (89,500) ProAssurance Corporation (837,724) (903,148) ProAssurance Indemnity Company, Inc. (1,379,214) (4,002,060) Subtotal: due to affiliates (2,274,438) (5,006,928) Total due from/(to) affiliates $ 5,666,352 $ (4,871,075)

Affiliate balances are normally settled in the succeeding month.

E. Guarantees or contingencies for related parties - None.

F. Management, service contracts, cost sharing agreements

The Company participates in an Expense Allocation Agreement and a Management Services Agreement (the Agreements) with affiliates under which expenses are allocated in accordance with SSAP No. 70 - Allocation of Expenses.

The Management Services Agreement provides for a management fee to be charged and as a matter of practice, management fees are paid directly to ProAssurance Corporation on behalf of the manager as warranted based on where the expenses for services are originally incurred, as directed by the Manager.

G. Nature of control relationships - None.

H. Amounts deducted from value of upstream intermediate entity or ultimate parent owned

14.10 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

The Company owns shares of its ultimate parent, ProAssurance Corporation, whose shares are publicly traded. The statement value of the investment is based on the fair value of the shares reduced by $4,247 for the reciprocal ownership calculation by the NAIC Securities Valuation Office.

I. Investments in SCA entities exceeding 10% of admitted assets - None.

J. Impairments of SCA entities - None.

K. Investments in foreign insurance subsidiaries - None.

L. Valuation of downstream noninsurance holding company - None.

M. All SCA Investments - None.

N. Investment in Insurance SCAs - None.

O. SCA Loss Tracking - None.

Note 11 - Debt

A. Amount, interest, maturities, collateral, covenants - None.

B. Funding agreements with Federal Home Loan Bank (FHLB)

(1) The Company is a member of the Federal Home Loan Bank (FHLB) of Indianapolis. Through its membership, the Company has access to cash advances, but has not established a line of credit or utilized the arrangement to any material standard. The Company plans to utilize these funds for liquidity purposes or other operational needs if necessary. Any funds obtained from the FHLB of Indianapolis for use in general operations would be accounted for consistent with SSAP No. 15, Debt and Holding Company Obligations, as borrowed money. The Company has determined the estimated maximum borrowing capacity as approximately $225 million.

(2) FHLB Capital Stock

a. Aggregate Totals

1 2 3 Total General Protected Cell 1. Current Year 2+3 Account Accounts (a) Membership Stock - Class A $ 719,400 $ 719,400 $ — (b) Membership Stock - Class B — — — (c) Activity Stock — — — (d) Excess Stock — — — (e) Aggregate Total (a+b+c+d) $ 719,400 $ 719,400 $ — (f) Actual or Estimated Borrowing Capacity as Determined by the Insurer $ 224,900,000 XXX XXX

2. Prior Year-end (a) Membership Stock - Class A $ 719,400 $ 719,400 $ — (b) Membership Stock - Class B — — — (c) Activity Stock — — — (d) Excess Stock — — — (e) Aggregate Total (a+b+c+d) $ 719,400 $ 719,400 $ — (f) Actual or Estimated Borrowing Capacity as Determined by the Insurer $ 147,320,000 XXX XXX

11B(2)a1(f) should be equal to or greater than 11B(4)a1(d) 11B(2)a2(f) should be equal to or greater than 11B(4)a2(d)

The FHLB borrowing capacity for the Company is calculated using 25% of the total admitted cash and invested assets from the prior reporting period under the assumption all collateralization and stock requirements are met.

14.11 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS b. Membership Stock (Class A and B) Eligible for Redemption

Eligible for Redemption 1 2 3 4 5 6 Current Year Not Eligible 6 Months to 1 to Less Total for Less Than Less Than Than 3 3 to 5 Membership Stock (2+3+4+5+6) Redemption 6 Months 1 Year Years Years 1. Class A $ 719,400 $ 719,400 $ — $ — $ — $ — 2. Class B — — — — — —

11B(2)b1 Current Year Total (Column 1) should equal 11B(2)a1(a) Total (Column 1) 11B(2)b2 Current Year Total (Column 1) should equal 11B(2)a1(b) Total (Column 1)

(3) Collateral Pledged to FHLB - None.

(4) Borrowing from FHLB - None.

Note 12 - Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans

A - D. Defined benefit plans - None.

E. Defined contribution plans - See G: Consolidated/Holding company plans.

F. Multiemployer plans - None.

G. Consolidated/Holding company plans

While the Company has no direct employees pursuant to the Expense Allocation and Management Services Agreements, a liability for earned but untaken vacation pay has been accrued for employee expenses allocated to the Company. In addition, the Company participates in a defined contribution plan and a stock ownership plan sponsored by ProAssurance Group Services Corporation, an affiliate. The Company has no legal obligation for benefits under these plans. ProAssurance Group Services Corporation allocates amounts to the Company based on gross written premiums. The segment level expenses are allocated to the Company based on direct plus assumed non-affiliate written premiums. The expenses allocated for the defined contribution plan were $1,015,391 for 2018 and $1,217,321 for 2017. Gross expenses allocated for the stock ownership plan were $150,572 in 2018 and $170,986 in 2017. During 2017, the employee stock ownership plan was discontinued and existing purchase match units will continue to vest according to the vesting period.

H. Postemployment benefits and compensated absences - None.

I. Impact of Medicare Modernization Act on postretirement benefits - None.

Note 13 - Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations

1. Capital stock outstanding

The Company has 10,000,000 common shares authorized; 3,188,145 common shares issued and outstanding.

2. Dividend rate of preferred stock - None.

3. Dividend restrictions

The maximum amount of dividends which can be paid in 2019 by the Company to its shareholder without prior approval of the DIFS is limited to 10% of December 31, 2018 surplus or net income excluding capital gains for the year ended December 31, 2018, whichever is greater. Dividends are non-cumulative and are paid as determined by the Board of Directors.

4. Dates and amounts of dividends paid

The Company declared an ordinary dividend of $29,614,854 on April 4, 2018 to be paid to its parent no sooner than May 16, 2018 and no later than May 30, 2018. The ordinary dividend was not disapproved by the DIFS on April 17, 2018 and was paid in cash and securities on May 17, 2018.

5. Amount of ordinary dividends that may be paid

The maximum dividend payout to shareholders that may be paid in 2019 without prior approval of the DIFS is $24,541,237.

6. Restrictions on unassigned funds - None.

7. Advances to surplus not repaid for mutual reciprocals - Not applicable.

14.12 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS 8. Stock held for special purposes - Not applicable.

9. Changes in balances of special surplus funds - None.

10. Unassigned funds represented by cumulative unrealized gains / (losses)

The portion of unassigned funds (surplus) represented by cumulative unrealized capital gains / (losses) is $(6,476,652).

11. Surplus notes

From 1984 through 1990, new Florida policyholders were required to make a contribution to the surplus of the Company. The contributions were required during a high growth period in Florida and were intended to help maintain the Company's premium to surplus ratio. When the contributions were paid, non-interest bearing surplus notes of $10,094,000 were issued to the policyholders. Under the terms of the notes, repayment of principal and payment of any interest are at the discretion of the Board of Directors and upon prior approval of the Michigan Insurance Commissioner. The Company does not plan to refund surplus contributions at this time.

12. Impact of quasi-reorganization - None.

13. Effective date of quasi-reorganization - None.

Note 14 - Liabilities, Contingencies and Assessments

A. Contingent commitments

1. Total SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 88, and SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Company contingent liabilities $ 75,397,545 The Company has committed to invest additional funds in limited partnerships or limited liability companies carried on Schedule BA, as follows:

The Company has a remaining commitment of $1,750,000 of the $5,000,000 committed to the Morgan Keegan partnership. The Company has effectively funded its commitment through reinvested capital and expects no further capital to be drawn down by the General Partner, although the commitment is still legally outstanding.

The Company has a remaining commitment of approximately $293,556 of the $1,500,000 committed to the New Capital Partners Private Equity Fund II, L.P. The investment period has ended. The General Partner has the right to call capital as needed for continued funding of current investments to the extent that uncalled capital is available until the termination of the LP in 2020.

The Company has a remaining commitment of approximately $3,726,822 of the $25,000,000 committed to ArcLight V, L.P., an energy infrastructure private equity fund. The Company has effectively funded its commitment through reinvested capital and expects no further capital to be drawn down by the General Partner, although the commitment is still legally outstanding.

The Company has a remaining commitment of approximately $2,502,832 of the $25,000,000 committed to Neuberger Berman Strategic Co-Investment Partners II, L.P., a private equity fund. The Company has effectively funded its commitment and expects no further capital to be drawn down by the General Partner, although the commitment is still legally outstanding.

The Company has a remaining commitment of approximately $8,119,232 of the $25,000,000 committed to the Neuberger Berman Secondary Opportunities Fund III, L.P. The Company has effectively funded its commitment through reinvested capital and expects no further capital to be drawn down by the General Partner, although the commitment is still legally outstanding.

The Company has a remaining commitment of approximately $2,433,438 of the $12,500,000 committed to the Neuberger Berman Private Debt Fund, L.P. The investment period has ended. The General Partner has the right to call capital as needed for continued funding of current investments to the extent that uncalled capital is available until the termination of the L.P. in 2024.

The Company has a remaining commitment of approximately $16,721,767 of the $20,000,000 to Neuberger Berman Secondary Opportunities Fund IV, L.P., a private equity fund. Capital is expected to be called periodically over a four year period beginning January 1, 2017.

The Company has a remaining commitment of approximately $11,124,019 of the $15,000,000 to Neuberger Berman Private Equity Credit Opportunities Fund, L.P., a private credit fund. Capital is expected to be called periodically over a four year period beginning January 1, 2017.

The Company has a remaining commitment of approximately $8,043,690 of the $10,000,000 committed to Neuberger Berman Private Debt Fund III, L.P., a private debt fund. Capital is expected to be called periodically over a three year period following the Fund's final closing date, yet to be declared.

14.13 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS The Company has a remaining commitment of approximately $8,916,000 of the $10,000,000 to Park Cities Specialty Finance Fund L.P., a credit fund. Capital is expected to be called periodically over a two and a half year period beginning September 1, 2018.

The Company has a remaining commitment of approximately $2,417,513 of the $5,000,000 to Fenwick Brands Fund I, LLC., a strategy focused fund. Capital is expected to be called periodically over a five year period beginning August 16, 2017.

The Company has a remaining commitment of approximately $4,000,000 of the $5,000,000 committed to Ivoryton Opportunity Fund, LLC, a private equity fund. Capital is expected to be called periodically over a one year period.

The Company has a remaining commitment of approximately $5,000,000 of the $5,000,000 committed to Octagon CLO Opportunity Fund III, an opportunistic credit fund. Capital is expected to be called periodically over a five year period beginning on the effective date, yet to be declared.

Additionally, the Company has invested $62,698,003 in various Low Income Housing Tax Credit (LIHTC) limited partnerships accounted for under SSAP No. 93. See Note 5.K. for additional information. As of December 31, 2018, the Company has unfunded investments in these LIHTC limited partnerships that are expected to be settled as follows:

2019 $ 71,873 2020 46,154 2021 39,161 2022 140,618 2023 15,401 2024 and thereafter 35,469 For all periods $ 348,676

B. Assessments - None.

C. Gain contingencies - None.

D. Claims related extra contractual obligation and bad faith losses stemming from lawsuits - None.

E. Product warranties - None.

F. Joint and several liabilities - None.

G. All other contingencies

The Company is involved in various other legal actions related to insurance policies and claims handling including, but not limited to, claims asserted by policyholders. The Company has considered such legal actions in establishing its loss and loss adjustment expense reserves. The outcome of such legal actions is not presently determinable for a number of reasons. For example, in the event that the Company or its insureds receive adverse verdicts, post-trial motions may result in unfavorable rulings; any appeals that may be undertaken may be unsuccessful; the Company may be unsuccessful in legal efforts to limit the scope of coverage available to its insureds; and the Company may become a party to bad faith litigation over the payment of any judgment above an insured's policy limits. The Company's management is of the opinion, based on consultation with legal counsel, that the resolution of these actions will not have a material adverse effect on the Company’s financial position. However, the ultimate cost of resolving these legal actions may differ from the reserves established, and the resulting difference could have a material effect on the Company’s results of operations for the period in which any such action is resolved.

Included in the calculation of the balance on line 7.1 - Current federal and foreign income taxes on page 3 - Liabilities, Surplus and Other Funds is $138,880 for tax contingencies. The amount relates to tax contingencies for which the ultimate deductibility is certain, but for which there is uncertainty about the timing of deductibility. The amount of taxes related to the contingency may differ from the reserve established, but the ultimate outcome would not affect the annual effective tax rate.

Note 15 - Leases

A. Lessee leasing arrangements

1. The Company leases real estate, office equipment, and off-site storage spaces in its operations. The Company incurred rent expenses of $2,188,578 in 2018 and $2,685,631 in 2017.

2. The Company’s future minimum annual commitments under non-cancelable leases as of December 31, 2018 are as follows:

14.14 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

Year ending Operating December 31 Leases 2019 $ 806,993 2020 632,435 2021 442,368 2022 366,574 2023 346,412 For all periods $ 2,619,641

The Company has additional operating lease commitments after 2023 of $24,859.

3. The Company is not involved in any sale-leaseback transactions.

B. Lessor leasing arrangements - None.

Note 16 - Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk - None.

Note 17 - Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

A. Transfers of receivables reported as sales - None.

B. Transfer and servicing of financial assets - None.

C. Wash sales

1. The Company employs multiple equity managers who may periodically generate a wash sale as a result of normal portfolio management activities. Additionally, with multiple managers, there exists the potential for one manager to sell and another to reacquire the same security within 30 days.

2. No securities with an NAIC designation of 3 or below, nor unrated were sold and reacquired within 30 days during the year ended December 31, 2018.

Note 18 - Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured Plans - None.

Note 19 - Direct Premium Written/Produced by Managing General Agents/Third Party Administrators - None.

Note 20 - Fair Value Measurements

A. Fair value measurements

1. Fair value measurements at reporting date:

December 31, 2018 Net Asset Description (Level 1) (Level 2) (Level 3) Value (NAV) Total a. Assets at fair value Bonds $ — $ 48,114,805 $ — $ — $ 48,114,805 Common stock 153,864,468 — — — 153,864,468 Cash equivalents 35,824,369 — — — 35,824,369 Total assets at fair value/NAV $ 189,688,837 $ 48,114,805 $ — $ — $ 237,803,642

December 31, 2017 Net Asset Description (Level 1) (Level 2) (Level 3) Value (NAV) Total Assets at fair value Bonds $ — $ 20,322,015 $ — $ — $ 20,322,015 Common stock 134,097,705 — — — 134,097,705 Cash equivalents 49,579,043 — — — 49,579,043 Total assets at fair value/NAV $ 183,676,748 $ 20,322,015 $ — $ — $ 203,998,763

Transfers between Levels 1 and 2 of the fair value hierarchy - None.

2. Fair value measurements in (Level 3) of the fair value hierarchy - None.

3. The Company’s policy is to recognize transfers between levels at the end of the reporting period. 14.15 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

4. The Company values securities in the Level 1 category using unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date.

The Company values securities in the Level 2 category using market data obtained from sources independent of the reporting entity (observable inputs). Level 2 inputs generally include quoted prices in markets that are not active, quoted prices for similar assets or liabilities, and results from pricing models that use observable inputs such as interest rates and yield curves that are generally available at commonly quoted intervals.

The fair values for securities included in the Level 2 category have been developed by third party, nationally recognized pricing services. These services use complex methodologies to determine values for securities and subject the values they develop to quality control reviews. Management reviews service-provided values for reasonableness by comparing data among pricing services and to available market and trade data. Values that appear inconsistent are further reviewed for appropriateness. If a value does not appear reasonable, the valuation is discussed with the service that provided the value and would be adjusted, if necessary. No such adjustments have been necessary to date.

The Company values assets classified as Level 3 in the Fair Value Hierarchy using the Company’s own assumptions about market participant assumptions based on the best information available in the circumstances (non-observable inputs). Level 3 inputs are used in situations where little or no Level 1 or 2 inputs are available or are inappropriate given the particular circumstances. Level 3 inputs include results from pricing models for which some or all of the inputs are not observable, discounted cash flow methodologies, single non-binding broker quotes and adjustments to externally quoted prices that are based on management judgment or estimation.

Additional information regarding the valuation methodologies used by the pricing services by security type is included in C. Fair values of financial instruments below.

5. Fair value of derivative assets and liabilities - None.

B. Additional fair value disclosures - None.

C. Fair values of financial instruments

December 31, 2018 Not Practicable Type of Financial Aggregate Admitted Net Asset (Carrying Instrument Fair Value Assets (Level 1) (Level 2) (Level 3) Value (NAV) Value) Bonds $588,251,452 $592,272,761 $ — $587,304,532 $ 946,920 $ — $ — Common stocks 154,608,853 154,604,606 153,889,453 719,400 — — — Cash equivalents 35,824,369 35,824,369 35,824,369 — — — — Short term investments 3,388,493 3,391,429 — 3,388,493 — — — Other invested assets 28,399,596 25,229,163 — 3,728,050 24,671,546 — — Aggregate write-ins for other than invested assets: Cash surrender value of company 12,531,277 12,531,277 — — 12,531,277 — — owned life insurance

December 31, 2017 Not Practicable Type of Financial Aggregate Admitted Net Asset (Carrying Instrument Fair Value Assets (Level 1) (Level 2) (Level 3) Value (NAV) Value) Bonds $603,980,481 $594,224,315 $ — $603,350,066 $ 630,415 $ — $ — Common stocks 134,852,310 134,846,676 134,132,910 — 719,400 — — Cash equivalents 60,069,073 60,069,073 49,579,043 10,490,030 — — — Short term investments 2,898,501 2,900,053 — 2,898,501 — — — Other invested assets 36,528,393 30,570,990 — 3,859,902 32,668,491 — — Aggregate write-ins for other than invested assets: Cash surrender value of company 12,141,018 12,141,018 — — 12,141,018 — — owned life insurance The following methods are used to estimate fair value for the instruments included in the above table and for fair value measurements in the financial statements in the table A1. Fair value measurements at reporting date, above.

Cash equivalents in Level 1 are comprised of money market mutual funds that are reported at fair value using net asset value as a practical expedient as prescribed by the NAIC.

Level 2 Valuation Methodologies

Below is a summary description of the valuation methodologies primarily used by the pricing services for bonds included in the Level 2 category, by security type:

U.S. Government obligations, including treasury bills classified as cash equivalents, are valued based on quoted prices for identical assets, or, in markets that are not active, quotes for similar assets, taking into consideration adjustments for variations in contractual cash flows and yields to maturity. 14.16 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

U.S. Government-sponsored enterprise obligations are valued using pricing models that consider current and historical market data, normal trading conventions, credit ratings, and the particular structure and characteristics of the security being valued, such as yield to maturity, redemption options, and contractual cash flows. Adjustments to model inputs or model results are included in the valuation process when necessary to reflect recent events, such as regulatory, government or corporate actions or significant economic, industry or geographic events that would affect the security’s fair value.

State and municipal bonds are valued using a series of matrices that consider credit ratings, the structure of the security, the sector in which the security falls, yields, and contractual cash flows. Valuations are further adjusted, when necessary, to reflect recent events such as significant economic or geographic events or rating changes that would affect the security’s fair value.

Corporate debt consists primarily of corporate bonds, but also includes a small number of bank loans and certificates of deposit with original maturities greater than one year. The methodology used to value Level 2 corporate bonds is the same as the methodology previously described for U.S. Government-sponsored enterprise obligations. Bank loans are valued by an outside vendor based upon a widely distributed, loan-specific listing of average bid and ask prices published daily by an investment industry group. The publisher of the listing derives the averages from data received from multiple market-makers for bank loans.

Residential and commercial mortgage backed securities. Agency pass-through securities are valued using a matrix, considering the issuer type, coupon rate and longest cash flows outstanding. The matrix is developed daily based on available market information. Agency and non-agency collateralized mortgage obligations are both valued using models that consider the structure of the security, current and historical information regarding prepayment speeds, ratings and ratings updates, and current and historical interest rate and interest rate spread data. Evaluations of Alt-A mortgages include a review of collateral performance data, which is generally updated monthly.

Other asset-backed securities are valued using models that consider the structure of the security, monthly payment information, current and historical information regarding prepayment speeds, ratings and ratings updates, and current and historical interest rate and interest rate spread data. Spreads and prepayment speeds consider collateral type.

Evaluations of subprime mortgages are the same as the evaluation methodology previously described for Alt-A mortgages.

Short term investments in Level 2 consists of a short term corporate bond purchased with less than one year remaining until maturity. The methodology used to value Level 2 short term investments is the same as the methodology previously described for U.S. Government-sponsored enterprise obligations.

Other Invested Assets included in the Level 2 category are surplus debentures issued by an unaffiliated insurance company. The methodology used to value these debentures is the same as the methodology previously described for U.S. Government-sponsored enterprise obligations and Corporate debt.

Level 3 Valuations

The Company values assets and liabilities classified as Level 3 in the Fair Value Hierarchy using the Company’s own assumptions about market participant assumptions based on the best information available in the circumstances (non- observable inputs). Level 3 inputs are used in situations where little or no Level 1 or 2 inputs are available or are inappropriate given the particular circumstances. Level 3 inputs include results from pricing models for which some or all of the inputs are not observable, discounted cash flow methodologies, single non-binding broker quotes and adjustments to externally quoted prices that are based on management judgment or estimation.

Level 3 Valuation Processes

• Level 3 securities are priced by ProAssurance Group's Chief Investment Officer, who reports to ProAssurance Group's Chief Operating Officer. • Level 3 valuations are computed quarterly. Prices are evaluated quarterly against prior period prices and the expected change in price. • The Company’s Level 3 valuations are not overly sensitive to changes in the unobservable inputs used. The securities noted in the disclosure are primarily investment grade debt where comparable market inputs are commonly available for evaluating the securities in question.

Level 3 Valuation Methodologies

Below is a summary description of the valuation methodologies primarily used by the pricing services for bonds included in the Level 3 category, by security type:

State and municipal bonds consists of auction rate municipal bonds valued internally using published quotes for similar securities or by using a model based on discounted cash flows using yields currently available on fixed rate securities with a similar term and collateral, adjusted to consider the effect of a floating rate and a premium for illiquidity.

Corporate debt consists of corporate bonds. Valuations are determined using dealer quotes for similar securities or discounted cash flow models using yields currently available for similar securities. Similar securities are defined as securities having like terms and payment features that are of comparable credit quality. Assessments of credit quality are based on nationally recognized statistical rating organization (NRSRO) ratings, if available, or are subjectively determined by management if not available.

14.17 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

Below is a summary description of the valuation methodologies used for other financial instruments included in the Level 3 category, by security type:

Common stock listed in the table above include securities for which limited observable inputs were available at December 31, 2018. The securities were valued internally based on expected cash flows, including the expected final recovery, discounted at a yield that considered the lack of liquidity and the financial status of the issuer. The estimated fair value of the FHLB common stock is based on the amount the Company would receive if its membership were canceled, as the membership cannot be sold.

Other Invested Assets listed in the table above includes investments in tax credit partnerships. Fair values of investments in tax credit partnerships are based on the present value of the cash flows expected to be generated by the partnerships discounted at rates for investments with similar risk structures and repayment periods.

Aggregate write-ins for Other than Invested Assets listed in the table above include Business Owned Life Insurance (BOLI). The fair value of the BOLI is the cash surrender value associated with the policies on the valuation date.

D. Items for which it is not practicable to estimate fair value - None.

E. Investments measured using the NAV practical expedient - None.

Note 21 - Other Items

A. Unusual or infrequent items - None.

B. Troubled debt restructuring: debtors - None.

C. Other disclosures

Agents’ Balances Certification, Section 625.012(5), Florida Statutes

At December 31, 2018 the Company had admitted assets of $15,033,822 in accounts receivable for amounts due from policyholders and agents. The Company routinely assesses the collectibility of these receivables and establishes an allowance for uncollectible amounts. There are no amounts due from “controlled” or “controlling” persons included in this balance.

D. Business interruption insurance recoveries - None.

E. State transferable and non-transferable tax credits - None.

F. Subprime-mortgage-related risk exposure

1. The Company defines subprime by the description of the underlying assets as provided by Bloomberg data, using a combination of: higher than average interest rates on underlying loans, credit scores, and high loan-to-value ratios.

2. Direct exposure through subprime mortgage loans - None.

3. Direct exposure through other investments

Other-Than- Book/Adjusted Temporary Type Actual Cost Carrying Value Fair Value Impairments a. Residential mortgage-backed securities $ — $ — $ — $ — b. Commercial mortgage-backed securities — — — — c. Collateralized debt obligations — — — — d. Structured securities — — — — e. Equity investment in SCAs — — — — f. Other assets 4,070,938 4,048,463 3,984,825 — g. Total $ 4,070,938 $ 4,048,463 $ 3,984,825 $ —

4. Underwriting exposure to subprime mortgage risk through Mortgage Guaranty or Financial Guaranty insurance coverage - None.

G. Insurance-linked securities (ILS) contracts - None.

Note 22 - Events Subsequent

Subsequent events have been considered through February 18, 2019 for the statutory statement filed on or before March 1, 2019.

Type I - Recognized subsequent events - None.

14.18 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS Type II - Nonrecognized subsequent events - None.

Note 23 - Reinsurance

A. Unsecured reinsurance recoverables - None.

B. Reinsurance recoverables in dispute - None.

C. Reinsurance assumed and ceded

(1) Assumed Reinsurance Ceded Reinsurance Net Unearned Commission Unearned Commission Unearned Commission Premium Equity Premium Equity Premium Equity a. Affiliates $ 39,991,272 $ 13,996,945 $ 621,525 $ 206,838 $ 39,369,747 $ 13,790,107 b. All other 21,812 — 10,543,752 1,304,925 (10,521,940) (1,304,925) c. Total $ 40,013,084 $ 13,996,945 $ 11,165,277 $ 1,511,763 $ 28,847,807 $ 12,485,182 d. Direct Unearned Premium Reserve: $ 76,038,578 Line (c) of Ceded Reinsurance Premium Reserve Column must equal Page 3, Line 9, first inside amount.

(2) Additional or return commission predicated on loss experience or other profit sharing arrangements - None.

(3) The Company does not use protected cells as an alternative to traditional reinsurance.

D. Uncollectible reinsurance - None.

E. Commutation of ceded reinsurance - None.

14.19 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS F. Retroactive reinsurance

In the second quarter of 2018, the Company assumed a retroactive insurance liability under the 100% quota share reinsurance agreement with ProAssurance Specialty (Specialty). Specialty is the originating insurer of a loss portfolio transfer with a large healthcare organization that covers a specific inventory of known claims plus future claims, all covered claims having been incurred by a healthcare organization prior to its acquisition by Specialty's insured. Under the agreement, Specialty will direct and control the claims settlement processes. As the contract included both prospective coverage and retroactive coverage, the Company bifurcated the provisions of the contract, thereby accounting separately for each of the prospective and retroactive components. The retroactive portion of the coverage was $18,077,000 which was recorded as a retroactive insurance reserve assumed.

The tables below show the current effects of the retroactive reinsurance coverage assumed and ceded.

(1)

Assumed Ceded a. Reserves transferred: 1. Initial Reserves $ (18,077,000) $ — 2. Adjustments - Prior Year(s) — — 3. Adjustments - Current Year 386,008 — 4. Current Total $ (17,690,992) $ — b. Consideration Paid or Received: 1. Initial Consideration $ 18,708,000 $ — 2. Adjustments - Prior Year(s) — — 3. Adjustments - Current Year — — 4. Current Total $ 18,708,000 $ — c. Paid Losses Reimbursed or Recovered: 1. Prior Year(s) $ — $ — 2. Current Year (386,008) — 3. Current Total $ (386,008) $ — d. Special Surplus from Retroactive Reinsurance 1. Initial Surplus Gain or Loss $ 631,000 $ — 2. Adjustments - Prior Year(s) — — 3. Adjustments - Current Year 386,008 — 4. Current Year Restricted Surplus $ 1,017,008 $ — 5. Cumulative Total Transferred to Unassigned Funds $ — $ —

e. All cedents and reinsurers involved in all transactions included in summary totals above: Assumed Ceded Company Amount Amount ProAssurance Specialty Insurance Company, Inc. $ (17,690,992) $ — Total $ (17,690,992) $ —

f. Total Paid Loss/LAE amounts recoverable (for authorized, unauthorized and certified reinsurers), any amounts more than 90 days overdue (for authorized, unauthorized and certified reinsurers), and for amounts recoverable the collateral held (for authorized, unauthorized and certified reinsurers) as respects amounts recoverable from unauthorized reinsurers: 1. Authorized Reinsurers - None.

2. Unauthorized Reinsurers - None.

3. Certified Reinsurers - None.

G. Reinsurance accounted for as a deposit - None.

H. Transfer of property and casualty run-off agreements - None.

I. Certified reinsurer rating downgraded or status subject to revocation - None.

J. Reinsurance agreements qualifying for reinsurer aggregation - None.

14.20 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS Note 24 - Retrospectively Rated Contracts & Contracts Subject to Redetermination

A. The Company sells medical professional liability policies for which the premiums vary based on loss experience. Future premium adjustments for these retrospective policies are estimated and accrued. The Company estimates these accrued retrospective premium adjustments through the review of each individual retrospectively rated risk, comparing case basis loss development with that anticipated in the policy contracts to arrive at the best estimates of return or additional retrospective premiums.

B. The Company records accrued return retrospective premiums due to insureds by adjusting unearned premium and records accrued additional retrospective premiums due from insureds through written premium.

C. Net premiums written for the current year for medical professional liability policies that are subject to retrospective rating features are $7,648,780, or 4.3% of total net premiums written.

D. Medical loss ratio rebates - None.

E. The Company uses the 10% method of determining nonadmitted retrospective premium.

(1) For ten percent (10%) method of determining nonadmitted retrospective premium

Ten percent of the amount of accrued retrospective premiums not offset by retrospective return premiums, other liabilities to the same party (other than loss and loss adjustment expenses reserves), or collateral as permitted by SSAP No. 66, Retrospectively Rated Contracts, has been nonadmitted.

a. Total accrued retro premium $ 405,064 b. Unsecured amount — c. Less: Nonadmitted amount (10%) 40,506 d. Less: Nonadmitted for any person for whom agents' balances or uncollected premiums are nonadmitted — e. Admitted amount (a) - (c) - (d) $ 364,558

(2) For quality rating method of determining nonadmitted retrospective premium - None.

F. Risk sharing provisions of the Affordable Care Act (ACA) - None.

Note 25 - Change in Incurred Losses and Loss Adjustment Expenses

Combined reserves for incurred losses and loss adjustment expenses attributable to insured events as of December 31, 2017 were $545,255,862. The following provides information concerning the re-estimation of those reserves during the twelve months ended December 31, 2018:

Losses and loss adjustment expenses December 31, 2017 $ 545,255,862 Re-estimation of reserves (favorable) / unfavorable (22,017,514) Re-estimated December 31, 2017 losses and loss adjustment expenses $ 523,238,348

The re-estimation amount above relates principally to the medical professional liability line of insurance, principally for prior years' development, and is the result of ongoing analysis of recent loss trends. Original estimates are increased or decreased as additional information becomes available.

Note 26 - Intercompany Pooling Arrangements - None.

Note 27 - Structured Settlements - None.

Note 28 - Health Care Receivables - None.

Note 29 - Participating Policies - None.

Note 30 - Premium Deficiency Reserves

(1) 1. Liability carried for premium deficiency reserves $ — 2. Date of the most recent evaluation of this liability 12/31/2018 3. Was anticipated investment income utilized in the calculation? Yes [ X ] No [ ]

Note 31 - High Deductibles - None.

14.21 ; Statement;as;of;December;31,;2018;of;the;;PROASSURANCE;CASUALTY;COMPANY

NOTES;TO;FINANCIAL;STATEMENTS

Note 32 - Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses - None.

Note 33 - Asbestos/Environmental Reserves - None.

Note 34 - Subscriber Savings Accounts - None.

Note 35 - Multiple Peril Crop Insurance - None.

Note 36 - Financial Guaranty Insurance - None.

14.22 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

GENERAL INTERROGATORIES PART 1 - COMMON INTERROGATORIES GENERAL 1.1 Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? Yes [ X ] No [ ] If yes, complete Schedule Y, Parts 1, 1A and 2. 1.2 If yes, did the reporting entity register and file with its domiciliary State Insurance Commissioner, Director or Superintendent or with such regulatory official of the state of domicile of the principal insurer in the Holding Company System, a registration statement providing disclosure substantially similar to the standards adopted by the National Association of Insurance Commissioners (NAIC) in its Model Insurance Holding Company System Regulatory Act and model regulations pertaining thereto, or is the reporting entity subject to standards and disclosure requirements substantially similar to those required by such Act and regulations? Yes [ X ] No [ ] N/A [ ] 1.3 State Regulating? MICHIGAN 1.4 Is the reporting entity publicly traded or a member of a publicly traded group? Yes [ X ] No [ ] 1.5 If the response to 1.4 is yes, provide the CIK (Central Index Key) code issued by the SEC for the entity/group. 0001127703 2.1 Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? Yes [ ] No [ X ] 2.2 If yes, date of change: 3.1 State as of what date the latest financial examination of the reporting entity was made or is being made. 12/31/2015 3.2 State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. 12/31/2015 3.3 State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). 06/06/2017 3.4 By what department or departments? MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES 3.5 Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with Departments? Yes [ ] No [ ] N/A [ X ] 3.6 Have all of the recommendations within the latest financial examination report been complied with? Yes [ ] No [ ] N/A [ X ]

4.1 During the period covered by this statement, did any agent, broker, sales representative, non-affiliated sales/service organization or any combination thereof under common control (other than salaried employees of the reporting entity) receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of: 4.11 sales of new business? Yes [ ] No [ X ] 4.12 renewals? Yes [ ] No [ X ] 4.2 During the period covered by this statement, did any sales/service organization owned in whole or in part by the reporting entity or an affiliate, receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of: 4.21 sales of new business? Yes [ ] No [ X ] 4.22 renewals? Yes [ ] No [ X ] 5.1 Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? Yes [ ] No [ X ] If yes, complete and file the merger history data file with the NAIC. 5.2 If yes, provide the name of the entity, NAIC company code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.

1 2 3 Name of Entity NAIC Company Code State of Domicile

6.1 Has the reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? Yes [ ] No [ X ] 6.2 If yes, give full information 7.1 Does any foreign (non-United States) person or entity directly or indirectly control 10% or more of the reporting entity? Yes [ ] No [ X ] 7.2 If yes, 7.21 State the percentage of foreign control 0.0 % 7.22 State the nationality(s) of the foreign person(s) or entity(s); or if the entity is a mutual or reciprocal, the nationality of its manager or attorney-in-fact and identify the type of entity(s) (e.g., individual, corporation, government, manager or attorney- in-fact).

1 2 Nationality Type of Entity

15 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY GENERAL INTERROGATORIES

8.1 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? Yes [ ] No [ X ] 8.2 If response to 8.1 is yes, please identify the name of the bank holding company.

8.3 Is the company affiliated with one or more banks, thrifts or securities firms? Yes [ ] No [ X ] 8.4 If response to 8.3 is yes, please provide the names and locations (city and state of the main office) of any affiliates regulated by a federal financial regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate’s primary federal regulator.

1 2 3 4 5 6 Location Affiliate Name (City, State) FRB OCC FDIC SEC

9. What is the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit? ERNST & YOUNG, LLP, 1901 6TH AVENUE NORTH, SUITE 1200, BIRMINGHAM, AL 35203 10.1 Has the insurer been granted any exemptions to the prohibited non-audit services provided by the certified independent public accountant requirements as allowed in Section 7H of the Annual Financial Reporting Model Regulation (Model Audit Rule), or substantially similar state law or regulation? Yes [ ] No [ X ] 10.2 If the response to 10.1 is yes, provide information related to this exemption:

10.3 Has the insurer been granted any exemptions related to the other requirements of the Annual Financial Reporting Model Regulation as allowed for in Section 18A of the Model Regulation, or substantially similar state law or regulation? Yes [ ] No [ X ] 10.4 If the response to 10.3 is yes, provide information related to this exemption:

10.5 Has the reporting entity established an Audit Committee in compliance with the domiciliary state insurance laws? Yes [ ] No [ ] N/A [ X ] 10.6 If the response to 10.5 is no or n/a, please explain THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF A SOX COMPLIANT ENTITY AND IS THEREFORE NOT REQUIRED TO SEPARATELY ESTABLISH AN AUDIT COMMITTEE AS PROVIDED FOR BY SECTION 14 OF THE ANNUAL FINANCIAL REPORTING MODEL REGULATION. 11. What is the name, address and affiliation (officer/employee of the reporting entity or actuary/consultant associated with an actuarial consulting firm) of the individual providing the statement of actuarial opinion/certification? ALISON M. MILFORD, ACAS, MAAA, WILLIS TOWERS WATSON, 5 CONCOURSE PARKWAY, 18TH FLOOR, ATLANTA, GA 30328 12.1 Does the reporting entity own any securities of a real estate holding company or otherwise hold real estate indirectly? Yes [ ] No [ X ] 12.11 Name of real estate holding company 12.12 Number of parcels involved 0 12.13 Total book/adjusted carrying value $ 12.2 If yes, provide explanation

13. FOR UNITED STATES BRANCHES OF ALIEN REPORTING ENTITIES ONLY: 13.1 What changes have been made during the year in the United States manager or the United States trustees of the reporting entity?

13.2 Does this statement contain all business transacted for the reporting entity through its United States Branch on risks wherever located? Yes [ ] No [ ] 13.3 Have there been any changes made to any of the trust indentures during the year? Yes [ ] No [ ] 13.4 If answer to (13.3) is yes, has the domiciliary or entry state approved the changes? Yes [ ] No [ ] N/A [ ] 14.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards? Yes [ X ] No [ ] a. Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; b. Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity; c. Compliance with applicable governmental laws, rules and regulations; d. The prompt internal reporting of violations to an appropriate person or persons identified in the code; and e. Accountability for adherence to the code. 14.11 If the response to 14.1 is no, please explain:

14.2 Has the code of ethics for senior managers been amended? Yes [ ] No [ X ] 14.21 If the response to 14.2 is yes, provide information related to amendment(s)

14.3 Have any provisions of the code of ethics been waived for any of the specified officers? Yes [ ] No [ X ] 14.31 If the response to 14.3 is yes, provide the nature of any waiver(s).

15.1 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

GENERAL INTERROGATORIES

15.1 Is the reporting entity the beneficiary of a Letter of Credit that is unrelated to reinsurance where the issuing or confirming bank is not on the SVO Bank List? Yes [ X ] No [ ] 15.2 If the response to 15.1 is yes, indicate the American Bankers Association (ABA) Routing Number and the name of the issuing or confirming bank of the Letter of Credit and describe the circumstances in which the Letter of Credit is triggered.

1 2 3 4

American Bankers Association (ABA) Routing Issuing or Confirming Number Bank Name Circumstances That Can Trigger the Letter of Credit Amount 43000096 PNC BANK INSURANCE POLICY RELATED DEDUCTIBLES 150,000 42000013 US BANK INSURANCE POLICY RELATED DEDUCTIBLES 700,000 91900944 STERLING STATE BANK INSURANCE POLICY RELATED DEDUCTIBLES 375,000 51404419 BANK OF DADEVILLE INSURANCE POLICY RELATED DEDUCTIBLES 10,000

BOARD OF DIRECTORS 16. Is the purchase or sale of all investments of the reporting entity passed upon either by the board of directors or a subordinate committee thereof? Yes [ X ] No [ ] 17. Does the reporting entity keep a complete permanent record of the proceedings of its board of directors and all subordinate committees thereof? Yes [ X ] No [ ] 18. Has the reporting entity an established procedure for disclosure to its board of directors or trustees of any material interest or affiliation on the part of any of its officers, directors, trustees or responsible employees that is in conflict or is likely to conflict with the official duties of such person? Yes [ X ] No [ ]

FINANCIAL 19. Has this statement been prepared using a basis of accounting other than Statutory Accounting Principles (e.g., Generally Accepted Accounting Principles)? Yes [ ] No [ X ] 20.1 Total amount loaned during the year (inclusive of Separate Accounts, exclusive of policy loans): 20.11 To directors or other officers $ 20.12 To stockholders not officers $ 20.13 Trustees, supreme or grand (Fraternal only) $ 20.2 Total amount of loans outstanding at the end of year (inclusive of Separate Accounts, exclusive of policy loans): 20.21 To directors or other officers $ 20.22 To stockholders not officers $ 20.23 Trustees, supreme or grand (Fraternal only) $ 21.1 Were any assets reported in this statement subject to a contractual obligation to transfer to another party without the liability for such obligation being reported in the statement? Yes [ ] No [ X ] 21.2 If yes, state the amount thereof at December 31 of the current year: 21.21 Rented from others $ 21.22 Borrowed from others $ 21.23 Leased from others $ 21.24 Other $ 22.1 Does this statement include payments for assessments as described in the Annual Statement Instructions other than guaranty fund or guaranty association assessments? Yes [ ] No [ X ] 22.2 If answer is yes: 22.21 Amount paid as losses or risk adjustment $ 22.22 Amount paid as expenses $ 22.23 Other amounts paid $ 23.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? Yes [ X ] No [ ] 23.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount: $ 0 INVESTMENT

24.01 Were all the stocks, bonds and other securities owned December 31 of current year, over which the reporting entity has exclusive control, in the actual possession of the reporting entity on said date? (other than securities lending programs addressed in 24.03) Yes [ X ] No [ ] 24.02 If no, give full and complete information, relating thereto

24.03 For security lending programs, provide a description of the program including value for collateral and amount of loaned securities, and whether collateral is carried on or off-balance sheet. (an alternative is to reference Note 17 where this information is also provided)

24.04 Does the company’s security lending program meet the requirements for a conforming program as outlined in the Risk-Based Capital Instructions? Yes [ ] No [ ] NA [ X ] 24.05 If answer to 24.04 is yes, report amount of collateral for conforming programs. $ 24.06 If answer to 24.04 is no, report amount of collateral for other programs. $ 24.07 Does your securities lending program require 102% (domestic securities) and 105% (foreign securities) from the counterparty at the outset of the contract? Yes [ ] No [ ] NA [ X ] 24.08 Does the reporting entity non-admit when the collateral received from the counterparty falls below 100%? Yes [ ] No [ ] NA [ X ] 24.09 Does the reporting entity or the reporting entity’s securities lending agent utilize the Master Securities Lending Agreement (MSLA) to conduct securities lending? Yes [ ] No [ ] NA [ X ] 24.10 For the reporting entity’s security lending program, state the amount of the following as of December 31 of the current year: 24.101 Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2 $ 0 24.102 Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2 $ 0 24.103 Total payable for securities lending reported on the liability page $ 0

15.2 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

GENERAL INTERROGATORIES

25.1 Were any of the stocks, bonds or other assets of the reporting entity owned at December 31 of the current year not exclusively under the control of the reporting entity or has the reporting entity sold or transferred any assets subject to a put option contract that is currently in force? (Exclude securities subject to Interrogatory 21.1 and 24.03). Yes [ X ] No [ ] 25.2 If yes, state the amount thereof at December 31 of the current year: 25.21 Subject to repurchase agreements $ 25.22 Subject to reverse repurchase agreements $ 25.23 Subject to dollar repurchase agreements $ 25.24 Subject to reverse dollar repurchase agreements $ 25.25 Placed under option agreements $ 25.26 Letter stock or securities restricted as to sale – excluding FHLB Capital Stock $ 25.27 FHLB Capital Stock $ 719,400 25.28 On deposit with states $ 2,755,759 25.29 On deposit with other regulatory bodies $ 25.30 Pledged as collateral – excluding collateral pledged to an FHLB $ 25.31 Pledged as collateral to FHLB – including assets backing funding agreements $ 25.32 Other $ 25.3 For category (25.26) provide the following:

1 2 3 Nature of Restriction Description Amount

26.1 Does the reporting entity have any hedging transactions reported on Schedule DB? Yes [ ] No [ X ]

26.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? Yes [ ] No [ ] N/A [ X ] If no, attach a description with this statement.

27.1 Were any preferred stocks or bonds owned as of December 31 of the current year mandatorily convertible into equity, or, at the option of the issuer, convertible into equity? Yes [ ] No [ X ] 27.2 If yes, state the amount thereof at December 31 of the current year. $

28. Excluding items in Schedule E – Part 3 – Special Deposits, real estate, mortgage loans and investments held physically in the reporting entity’s offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1, III – General Examination Considerations, F. Outsourcing of Critical Functions, Custodial or Safekeeping agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ]

28.01 For agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following:

1 2 Name of Custodian(s) Custodian’s Address 2204 LAKESHORE PLAZA, SUITE 302, BIRMINGHAM, AL US BANK 35209

28.02 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation:

1 2 3 Name(s) Location(s) Complete Explanation(s)

28.03 Have there been any changes, including name changes, in the custodian(s) identified in 28.01 during the current year? Yes [ ] No [ X ] 28.04 If yes, give full and complete information relating thereto:

1 2 3 4 Date of Old Custodian New Custodian Change Reason

15.3 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

GENERAL INTERROGATORIES

28.05 Investment management – Identify all investment advisors, investment managers, broker/dealers, including individuals that have the authority to make investment decisions on behalf of the reporting entity. For assets that are managed internally by employees of the reporting entity, note as such. [“…that have access to the investment accounts”; “…handle securities”]

1 2 Name of Firm or Individual Affiliation OPPENHEIMER INVESTMENT MANAGEMENT U CONNING ASSET MANAGEMENT U STANDISH MELLON ASSET MANAGEMENT U PRIME ADVISORS, INC. U CONFLUENCE INVESTMENT MANAGEMENT, LLC U REGIONS BANK U WELLS CAPITAL MANAGEMENT U STERLING CAPITAL MANAGEMENT, LLC U LAWRENCE COCHRAN I

28.0597 For those firms/individuals listed in the table for Question 28.05, do any firms/individuals unaffiliated with the reporting entity (i.e., designated with a “U”) manage more than 10% of the reporting entity’s assets? Yes [ X ] No [ ]

28.0598 For firms/individuals unaffiliated with the reporting entity (i.e., designated with a “U”) listed in the table for Question 28.05, does the total assets under management aggregate to more than 50% of the reporting entity’s assets? Yes [ X ] No [ ]

28.06 For those firms or individuals listed in the table for 28.05 with an affiliation code of “A” (affiliated) or “U” (unaffiliated), provide the information for the table below.

1 2 3 4 5 Central Registration Name of Firm or Legal Entity Investment Management Depository Number Individual Identifier (LEI) Registered With Agreement (IMA) Filed OPPENHEIMER INVESTMENT 133243 MANAGEMENT N/A SEC NO 107423 CONNING ASSET MANAGEMENT 549300Z0G14KK37BDV40 SEC NO STANDISH MELLON ASSET 113972 MANAGEMENT N/A SEC NO 107680 PRIME ADVISORS, INC. N/A SEC NO CONFLUENCE INVESTMENT 146019 MANAGEMENT, LLC N/A SEC NO 111715 REGIONS BANK EQTWLK1G70DGC2MGLV11 SEC NO 104973 WELLS CAPITAL MANAGEMENT 549300B3H21002L85190 SEC NO STERLING CAPITAL MANAGEMENT 6255 LLC N/A SEC NO

29.1 Does the reporting entity have any diversified mutual funds reported in Schedule D - Part 2 (diversified according to the Securities and Exchange Commission (SEC) in the Investment Company Act of 1940 [Section 5 (b) (1)])? Yes [ X ] No [ ] 29.2 If yes, complete the following schedule:

1 2 3 CUSIP # Name of Mutual Fund Book/Adjusted Carrying Value 29.2001 54400U-50-2 LORD ABBETT INFL FOCUS-I 35,213,279 29.2002 72201F-49-0 PIMCO INCOME FUND-INS 20,000,000 29.2003 09256H-33-6 BLCKRCK MULTI-ASST INC-I 25,000,000

29.2999 TOTAL 80,213,279

29.3 For each mutual fund listed in the table above, complete the following schedule:

1 2 3 4 Amount of Mutual Fund’s Name of Mutual Fund Name of Significant Holding Book/Adjusted Carrying Value (from above table) of the Mutual Fund Attributable to the Holding Date of Valuation LORD ABBETT INFL FOCUS-I VNO Mortgage Trust 246,493 12/31/2018 LORD ABBETT INFL FOCUS-I GE Capital Interantion Funding Co 211,280 12/31/2018 LORD ABBETT INFL FOCUS-I Ally Master Owner Trust 211,280 12/31/2018 Citibank Credit Card Issuance LORD ABBETT INFL FOCUS-I Trust 176,066 12/31/2018 California Republic Auto LORD ABBETT INFL FOCUS-I Receivables Trust 2016- 176,066 12/31/2018 BLCKRCK MULTI-ASST INC-I Ishares IBOXX 1,347,500 12/31/2018 BLCKRCK MULTI-ASST INC-I SPDR Bloomberg Barclays 340,000 12/31/2018 BLCKRCK MULTI-ASST INC-I Meck & Co ELN 147,500 12/31/2018 BLCKRCK MULTI-ASST INC-I Enterprise Product Partners MLP 117,500 12/31/2018 BLCKRCK MULTI-ASST INC-I Energy Transfer Partners 115,000 12/31/2018 PIMCO INCOME FUND-INS Fannie Mae 1,629,250 12/31/2018 PIMCO INCOME FUND-INS Fannie Mae 1,080,250 12/31/2018 Credit Suisse Mortgage Capital PIMCO INCOME FUND-INS Trust 835,250 12/31/2018 Credit Suisse Mortgage Capital PIMCO INCOME FUND-INS Trust 778,000 12/31/2018 PIMCO INCOME FUND-INS Brazil Letras do Tesouro Nacional 718,500 12/31/2018

15.4 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

GENERAL INTERROGATORIES

30. Provide the following information for all short-term and long-term bonds and all preferred stocks. Do not substitute amortized value or statement value for fair value. 1 2 3 Excess of Statement over Fair Value (-), Statement (Admitted) or Fair Value Value Fair Value over Statement (+) 30.1 Bonds 595,664,190 591,639,946 (4,024,244) 30.2 Preferred Stocks 0 0 30.3 Totals 595,664,190 591,639,946 (4,024,244) 30.4 Describe the sources or methods utilized in determining the fair values: THE COMPANY OBTAINS FAIR VALUES FROM SVO, THIRD-PARTY PRICING SERVICES, AND/OR INVESTMENT MANAGERS. 31.1 Was the rate used to calculate fair value determined by a broker or custodian for any of the securities in Schedule D? Yes [ X ] No [ ] 31.2 If the answer to 31.1 is yes, does the reporting entity have a copy of the broker’s or custodian’s pricing policy (hard copy or electronic copy) for all brokers or custodians used as a pricing source? Yes [ ] No [ X ] 31.3 If the answer to 31.2 is no, describe the reporting entity’s process for determining a reliable pricing source for purposes of disclosure of fair value for Schedule D: SEE FOOTNOTE 31.3 32.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Investment Analysis Office been followed? Yes [ X ] No [ ] 32.2 If no, list exceptions:

15.5 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

GENERAL INTERROGATORIES

33. By self-designating 5GI securities, the reporting entity is certifying the following elements of each self-designated 5GI security: a.Documentation necessary to permit a full credit analysis of the security does not exist or an NAIC CRP credit rating for an FE or PL security is not available. b.Issuer or obligor is current on all contracted interest and principal payments. c.The insurer has an actual expectation of ultimate payment of all contracted interest and principal. Has the reporting entity self-designated 5GI securities? Yes [ X ] No [ ]

34. By self-designating PLGI securities, the reporting entity is certifying the following elements of each self-designated PLGI security: a. The security was purchased prior to January 1, 2018. b. The reporting entity is holding capital commensurate with the NAIC Designation reported for the security. c. The NAIC Designation was derived from the credit rating assigned by an NAIC CRP in its legal capacity as a NRSRO which is shown on a current private letter rating held by the insurer and available for examination by state insurance regulators. d. The reporting entity is not permitted to share this credit rating of the PL security with the SVO. Has the reporting entity self-designated PLGI securities? Yes [ ] No [ X ]

OTHER 35.1 Amount of payments to trade associations, service organizations and statistical or rating bureaus, if any? $ 5,400 35.2 List the name of the organization and the amount paid if any such payment represented 25% or more of the total payments to trade associations, service organizations and statistical or rating bureaus during the period covered by this statement.

1 2 Name Amount Paid ISS $ 5,400

36.1 Amount of payments for legal expenses, if any? $ 9,965 36.2 List the name of the firm and the amount paid if any such payment represented 25% or more of the total payments for legal expenses during the period covered by this statement.

1 2 Name Amount Paid RADEY, THOMAS, YON, & CLARK P.A. $ 6,525 GUTGLASS, ERICKSON, BONVILLE, & LARSON $ 3,440

37.1 Amount of payments for expenditures in connection with matters before legislative bodies, officers or departments of government, if any? $ 0 37.2 List the name of the firm and the amount paid if any such payment represented 25% or more of the total payment expenditures in connection with matters before legislative bodies, officers or departments of government during the period covered by this statement.

1 2 Name Amount Paid $ $ $

31.3 If the pricing service does not provide a price, prices are obtained from the dealers/market makers for the securities. These prices are non-binding but represent their best estimate of fair value per market conditions. Alternatively, management may estimate fair value using pricing models that utilize market based assumptions which have limited observable inputs and compares those results to the prices provided by the broker or custodian.

15.6 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY GENERAL INTERROGATORIES PART 2 - PROPERTY & CASUALTY INTERROGATORIES 1.1 Does the reporting entity have any direct Medicare Supplement Insurance in force? Yes [ ] No [ X ] 1.2 If yes, indicate premium earned on U. S. business only. $ 0 1.3 What portion of Item (1.2) is not reported on the Medicare Supplement Insurance Experience Exhibit? $ 1.31 Reason for excluding

1.4 Indicate amount of earned premium attributable to Canadian and/or Other Alien not included in Item (1.2) above. $ 1.5 Indicate total incurred claims on all Medicare Supplement insurance. $ 0 1.6 Individual policies: Most current three years: 1.61 Total premium earned $ 0 1.62 Total incurred claims $ 0 1.63 Number of covered lives 0 All years prior to most current three years: 1.64 Total premium earned $ 0 1.65 Total incurred claims $ 0 1.66 Number of covered lives 0 1.7 Group policies: Most current three years: 1.71 Total premium earned $ 0 1.72 Total incurred claims $ 0 1.73 Number of covered lives 0 All years prior to most current three years: 1.74 Total premium earned $ 0 1.75 Total incurred claims $ 0 1.76 Number of covered lives 0

2. Health Test:

1 2 Current Year Prior Year 2.1 Premium Numerator $ 0 $ 0 2.2 Premium Denominator $ 182,690,594 $ 156,091,070 2.3 Premium Ratio (2.1/2.2) 0.000 0.000 2.4 Reserve Numerator $ 0 $ 0 2.5 Reserve Denominator $ 701,524,003 $ 660,590,524 2.6 Reserve Ratio (2.4/2.5) 0.000 0.000

3.1 Does the reporting entity issue both participating and non-participating policies? Yes [ ] No [ X ] 3.2 If yes, state the amount of calendar year premiums written on: 3.21 Participating policies $ 3.22 Non-participating policies $

4. For Mutual reporting entities and Reciprocal Exchanges only: 4.1 Does the reporting entity issue assessable policies? Yes [ ] No [ ] 4.2 Does the reporting entity issue non-assessable policies? Yes [ ] No [ ] 4.3 If assessable policies are issued, what is the extent of the contingent liability of the policyholders? % 4.4 Total amount of assessments paid or ordered to be paid during the year on deposit notes or contingent premiums. $

5. For Reciprocal Exchanges Only: 5.1 Does the exchange appoint local agents? Yes [ ] No [ ] 5.2 If yes, is the commission paid: 5.21 Out of Attorney's-in-fact compensation Yes [ ] No [ ] N/A [ ] 5.22 As a direct expense of the exchange Yes [ ] No [ ] N/A [ ] 5.3 What expenses of the Exchange are not paid out of the compensation of the Attorney-in-fact?

5.4 Has any Attorney-in-fact compensation, contingent on fulfillment of certain conditions, been deferred? Yes [ ] No [ ] 5.5 If yes, give full information

16 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY GENERAL INTERROGATORIES PART 2 - PROPERTY & CASUALTY INTERROGATORIES

6.1 What provision has this reporting entity made to protect itself from an excessive loss in the event of a catastrophe under a workers’ compensation contract issued without limit of loss: N/A 6.2 Describe the method used to estimate this reporting entity’s probable maximum insurance loss, and identify the type of insured exposures comprising that probable maximum loss, the locations of concentrations of those exposures and the external resources (such as consulting firms or computer software models), if any, used in the estimation process: N/A 6.3 What provision has this reporting entity made (such as a catastrophic reinsurance program) to protect itself from an excessive loss arising from the types and concentrations of insured exposures comprising its probable maximum property insurance loss? N/A 6.4 Does the reporting entity carry catastrophe reinsurance protection for at least one reinstatement, in an amount sufficient to cover its estimated probable maximum loss attributable to a single loss event or occurrence? Yes [ ] No [ X ] 6.5 If no, describe any arrangements or mechanisms employed by the reporting entity to supplement its catastrophe reinsurance program or to hedge its exposure to unreinsured catastrophic loss DUE TO THE NATURE OF MEDICAL PROFESSIONAL AND OTHER PROFESSIONAL LIABILITY COVERAGES, THE COMPANY IS NOT EXPOSED TO CATASTROPHIC OCCURRENCES 7.1 Has the reporting entity reinsured any risk with any other entity under a quota share reinsurance contract that includes a provision that would limit the reinsurer's losses below the stated quota share percentage (e.g., a deductible, a loss ratio corridor, a loss cap, an aggregate limit or any similar provisions)? Yes [ ] No [ X ] 7.2 If yes, indicate the number of reinsurance contracts containing such provisions. 7.3 If yes, does the amount of reinsurance credit taken reflect the reduction in quota share coverage caused by any applicable limiting provision(s)? Yes [ ] No [ ] 8.1 Has this reporting entity reinsured any risk with any other entity and agreed to release such entity from liability, in whole or in part, from any loss that may occur on this risk, or portion thereof, reinsured? Yes [ ] No [ X ] 8.2 If yes, give full information

9.1 Has the reporting entity ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates) for which during the period covered by the statement: (i) it recorded a positive or negative underwriting result greater than 5% of prior year- end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss and loss expense reserves ceded greater than 5% of prior year-end surplus as regards policyholders; (ii) it accounted for that contract as reinsurance and not as a deposit; and (iii) the contract(s) contain one or more of the following features or other features that would have similar results: (a) A contract term longer than two years and the contract is noncancellable by the reporting entity during the contract term; (b) A limited or conditional cancellation provision under which cancellation triggers an obligation by the reporting entity, or an affiliate of the reporting entity, to enter into a new reinsurance contract with the reinsurer, or an affiliate of the reinsurer; (c) Aggregate stop loss reinsurance coverage; (d) A unilateral right by either party (or both parties) to commute the reinsurance contract, whether conditional or not, except for such provisions which are only triggered by a decline in the credit status of the other party; (e) A provision permitting reporting of losses, or payment of losses, less frequently than on a quarterly basis (unless there is no activity during the period); or (f) Payment schedule, accumulating retentions from multiple years or any features inherently designed to delay timing of the reimbursement to the ceding entity. Yes [ ] No [ X ] 9.2 Has the reporting entity during the period covered by the statement ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates), for which, during the period covered by the statement, it recorded a positive or negative underwriting result greater than 5% of prior year-end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss and loss expense reserves ceded greater than 5% of prior year-end surplus as regards policyholders; excluding cessions to approved pooling arrangements or to captive insurance companies that are directly or indirectly controlling, controlled by, or under common control with (i) one or more unaffiliated policyholders of the reporting entity, or (ii) an association of which one or more unaffiliated policyholders of the reporting entity is a member where: (a) The written premium ceded to the reinsurer by the reporting entity or its affiliates represents fifty percent (50%) or more of the entire direct and assumed premium written by the reinsurer based on its most recently available financial statement; or (b) Twenty–five percent (25%) or more of the written premium ceded to the reinsurer has been retroceded back to the reporting entity or its affiliates in a separate reinsurance contract. Yes [ ] No [ X ] 9.3 If yes to 9.1 or 9.2, please provide the following information in the Reinsurance Summary Supplemental Filing for General Interrogatory 9: (a) The aggregate financial statement impact gross of all such ceded reinsurance contracts on the balance sheet and statement of income; (b) A summary of the reinsurance contract terms and indicate whether it applies to the contracts meeting the criteria in 9.1 or 9.2; and (c) A brief discussion of management's principle objectives in entering into the reinsurance contract including the economic purpose to be achieved. 9.4 Except for transactions meeting the requirements of paragraph 31 of SSAP No. 62R - Property and Casualty Reinsurance, has the reporting entity ceded any risk under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statement, and either: (a) Accounted for that contract as reinsurance (either prospective or retroactive) under statutory accounting principles (“SAP”) and as a deposit under generally accepted accounting principles (“GAAP”); or (b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP? Yes [ ] No [ X ] 9.5 If yes to 9.4, explain in the Reinsurance Summary Supplemental Filing for General Interrogatory 9 (Section D) why the contract(s) is treated differently for GAAP and SAP. 9.6 The reporting entity is exempt from the Reinsurance Attestation Supplement under one or more of the following criteria: (a) The entity does not utilize reinsurance; or, Yes [ ] No [ X ] (b) The entity only engages in a 100% quota share contract with an affiliate and the affiliated or lead company has filed an attestation supplement; or Yes [ ] No [ X ] (c) The entity has no external cessions and only participates in an intercompany pool and the affiliated or lead company has filed an attestation supplement. Yes [ ] No [ X ]

10. If the reporting entity has assumed risks from another entity, there should be charged on account of such reinsurances a reserve equal to that which the original entity would have been required to charge had it retained the risks. Has this been done? Yes [X] No [ ] N/A [ ]

16.1 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY GENERAL INTERROGATORIES PART 2 - PROPERTY & CASUALTY INTERROGATORIES

11.1 Has the reporting entity guaranteed policies issued by any other entity and now in force: Yes [ ] No [ X ] 11.2 If yes, give full information

12.1 If the reporting entity recorded accrued retrospective premiums on insurance contracts on Line 15.3 of the asset schedule, Page 2, state the amount of corresponding liabilities recorded for: 12.11 Unpaid losses $ 2,852,037 12.12 Unpaid underwriting expenses (including loss adjustment expenses) $ 1,201,355 12.2 Of the amount on Line 15.3, Page 2, state the amount that is secured by letters of credit, collateral and other funds? $ 0 12.3 If the reporting entity underwrites commercial insurance risks, such as workers’ compensation, are premium notes or promissory notes accepted from its insureds covering unpaid premiums and/or unpaid losses? Yes [ ] No [X] N/A [ ] 12.4 If yes, provide the range of interest rates charged under such notes during the period covered by this statement: 12.41 From % 12.42 To % 12.5 Are letters of credit or collateral and other funds received from insureds being utilized by the reporting entity to secure premium notes or promissory notes taken by a reporting entity, or to secure any of the reporting entity’s reported direct unpaid loss reserves, including unpaid losses under loss deductible features of commercial policies? Yes [ X ] No [ ] 12.6 If yes, state the amount thereof at December 31 of current year: 12.61 Letters of Credit $ 1,660,000 12.62 Collateral and other funds $ 300,000

13.1 Largest net aggregate amount insured in any one risk (excluding workers’ compensation): $ 2,300,000 13.2 Does any reinsurance contract considered in the calculation of this amount include an aggregate limit of recovery without also including a reinstatement provision? Yes [ ] No [ X ] 13.3 State the number of reinsurance contracts (excluding individual facultative risk certificates, but including facultative programs, automatic facilities or facultative obligatory contracts) considered in the calculation of the amount. 2

14.1 Is the reporting entity a cedant in a multiple cedant reinsurance contract? Yes [ X ] No [ ] 14.2 If yes, please describe the method of allocating and recording reinsurance among the cedants: REINSURANCE PREMIUMS AND LOSSES ARE RECORDED BASED UPON THE ACTUAL PREMIUMS AND LOSSES FOR EACH CEDANT THAT IS SUBJECT TO THE REINSURANCE COVERAGE.

14.3 If the answer to 14.1 is yes, are the methods described in item 14.2 entirely contained in the respective multiple cedant reinsurance contracts? Yes [ X ] No [ ] 14.4 If the answer to 14.3 is no, are all the methods described in 14.2 entirely contained in written agreements? Yes [ ] No [ ] 14.5 If the answer to 14.4 is no, please explain:

15.1 Has the reporting entity guaranteed any financed premium accounts? Yes [ ] No [ X ] 15.2 If yes, give full information

16.1 Does the reporting entity write any warranty business? Yes [ ] No [ X ] If yes, disclose the following information for each of the following types of warranty coverage:

1 2 3 4 5 Direct Losses Direct Losses Direct Written Direct Premium Direct Premium Incurred Unpaid Premium Unearned Earned 16.11 Home $ $ $ $ $ 16.12 Products $ $ $ $ $ 16.13 Automobile $ $ $ $ $ 16.14 Other* $ $ $ $ $ * Disclose type of coverage:

16.2 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY GENERAL INTERROGATORIES PART 2 - PROPERTY & CASUALTY INTERROGATORIES

17.1 Does the reporting entity include amounts recoverable on unauthorized reinsurance in Schedule F – Part 3 that is exempt from the statutory provision for unauthorized reinsurance? Yes [ ] No [ X ]

Incurred but not reported losses on contracts in force prior to July 1, 1984, and not subsequently renewed are exempt from the statutory provision for unauthorized reinsurance. Provide the following information for this exemption: Gross amount of unauthorized reinsurance in Schedule F – Part 3 17.11 exempt from the statutory provision for unauthorized reinsurance $ 0 17.12 Unfunded portion of Interrogatory 17.11 $ 0 17.13 Paid losses and loss adjustment expenses portion of Interrogatory 17.11 $ 0 17.14 Case reserves portion of Interrogatory 17.11 $ 0 17.15 Incurred but not reported portion of Interrogatory 17.11 $ 0 17.16 Unearned premium portion of Interrogatory 17.11 $ 0 17.17 Contingent commission portion of Interrogatory 17.11 $ 0

18.1 Do you act as a custodian for health savings accounts? Yes [ ] No [ X ] 18.2 If yes, please provide the amount of custodial funds held as of the reporting date. $ 18.3 Do you act as an administrator for health savings accounts? Yes [ ] No [ X ] 18.4 If yes, please provide the balance of the funds administered as of the reporting date. $ 19. Is the reporting entity licensed or chartered, registered, qualified, eligible or writing business in at least two states? Yes [ X ] No [ ] 19.1 If no, does the reporting entity assume reinsurance business that covers risks residing in at least one state other than the state of domicile of the reporting entity? Yes [ ] No [ ]

16.3 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY FIVE-YEAR HISTORICAL DATA Show amounts in whole dollars only, no cents; show percentages to one decimal place, i.e., 17.6. 1 2 3 4 5 2018 2017 2016 2015 2014 Gross Premiums Written (Page 8, Part 1B, Cols. 1, 2 & 3) 1. Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 17.3, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4) 221,504,150 207,648,387 190,900,583 177,627,922 178,656,849 2. Property lines (Lines 1, 2, 9, 12, 21 & 26) 0 0 0 0 0 3. Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27) 0 0 0 0 0 4. All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29, 30 & 34) 0 0 0 0 0 5. Nonproportional reinsurance lines (Lines 31, 32 & 33) 730,383 466,277 663,451 507,647 390,000 6. Total (Line 35) 222,234,533 208,114,664 191,564,034 178,135,569 179,046,849 Net Premiums Written (Page 8, Part 1B, Col. 6) 7. Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 17.3, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4) 179,070,237 169,952,769 156,688,734 150,617,864 157,685,678 8. Property lines (Lines 1, 2, 9, 12, 21 & 26) 0 0 0 0 0 9. Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27) 0 0 0 0 0 10. All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29, 30 & 34) 0 0 0 0 0 11. Nonproportional reinsurance lines (Lines 31, 32 & 33) 603,104 461,773 658,841 507,647 390,000 12. Total (Line 35) 179,673,341 170,414,542 157,347,575 151,125,511 158,075,678 Statement of Income (Page 4) 13. Net underwriting gain (loss) (Line 8) (25,451,001) 1,467,857 10,368,409 24,746,410 50,351,428 14. Net investment gain (loss) (Line 11) 39,981,524 33,583,387 32,570,941 34,200,762 45,781,134 15. Total other income (Line 15) 587,983 1,005,067 684,269 1,346,439 1,006,088 16. Dividends to policyholders (Line 17) 0 0 0 0 0 17. Federal and foreign income taxes incurred (Line 19) (3,108,978) 2,541,171 3,870,890 8,783,609 15,719,375 18. Net income (Line 20) 18,227,484 33,515,140 39,752,729 51,510,002 81,419,275 Balance Sheet Lines (Pages 2 and 3) 19. Total admitted assets excluding protected cell business (Page 2, Line 26, Col. 3) 1,007,997,602 990,007,562 1,092,912,418 1,139,878,362 1,274,129,972 20. Premiums and considerations (Page 2, Col. 3) 20.1 In course of collection (Line 15.1) 15,033,822 18,000,252 17,188,431 11,000,777 6,772,860 20.2 Deferred and not yet due (Line 15.2) 32,004,739 25,713,187 22,340,322 21,799,788 24,098,353 20.3 Accrued retrospective premiums (Line 15.3) 364,558 1,045,147 417,088 1,009,577 1,438,050 21. Total liabilities excluding protected cell business (Page 3, Line 26) 762,585,232 695,124,210 686,066,902 696,315,292 740,059,136 22. Losses (Page 3, Line 1) 353,546,383 295,494,661 293,695,731 313,061,885 325,450,475 23. Loss adjustment expenses (Page 3, Line 3) 239,823,037 249,761,201 254,563,491 260,858,730 278,070,714 24. Unearned premiums (Page 3, Line 9) 104,886,386 107,903,639 93,580,167 85,488,291 93,317,054 25. Capital paid up (Page 3, Lines 30 & 31) 3,188,145 3,188,145 3,188,145 3,188,145 3,188,145 26. Surplus as regards policyholders (Page 3, Line 37) 245,412,370 294,883,352 406,845,516 443,563,070 534,070,836 Cash Flow (Page 5) 27. Net cash from operations (Line 11) 45,479,956 46,494,739 33,599,167 23,922,796 23,087,329 Risk-Based Capital Analysis 28. Total adjusted capital 245,412,370 294,883,352 406,845,516 443,563,070 534,070,836 29. Authorized control level risk-based capital 59,964,884 54,863,939 54,609,905 52,607,192 53,611,793 Percentage Distribution of Cash, Cash Equivalents and Invested Assets (Page 2, Col. 3)(Item divided by Page 2, Line 12, Col. 3) x 100.0 30. Bonds (Line 1) 65.8 64.8 71.6 73.5 80.1 31. Stocks (Lines 2.1 & 2.2) 17.2 14.7 12.4 10.3 6.7 32. Mortgage loans on real estate (Lines 3.1 and 3.2) 0.0 0.0 0.0 0.0 0.0 33. Real estate (Lines 4.1, 4.2 & 4.3) 0.3 0.3 0.3 0.5 0.5 34. Cash, cash equivalents and short-term investments (Line 5) 4.4 7.1 3.0 4.2 2.7 35. Contract loans (Line 6) 0.0 0.0 0.0 0.0 0.0 36. Derivatives (Line 7) 0.0 0.0 0.0 0.0 0.0 37. Other invested assets (Line 8) 12.3 13.1 12.7 11.6 10.0 38. Receivables for securities (Line 9) 0.1 0.0 0.0 0.0 0.1 39. Securities lending reinvested collateral assets (Line 10) 0.0 0.0 0.0 0.0 0.0 40. Aggregate write-ins for invested assets (Line 11) 0.0 0.0 0.0 0.0 0.0 41. Cash, cash equivalents and invested assets (Line 12) 100.0 100.0 100.0 100.0 100.0 Investments in Parent, Subsidiaries and Affiliates 42. Affiliated bonds, (Sch. D, Summary, Line 12, Col. 1) 0 0 0 0 0 43. Affiliated preferred stocks (Sch. D, Summary, Line 18, Col. 1) 0 0 0 0 0 44. Affiliated common stocks (Sch. D, Summary, Line 24, Col. 1) 20,738 29,571 28,041 23,316 21,693 45. Affiliated short-term investments (subtotals included in Schedule DA Verification, Col. 5, Line 10) 0 0 0 0 0 46. Affiliated mortgage loans on real estate 0 0 0 0 47. All other affiliated 0 0 0 0 0 48. Total of above Lines 42 to 47 20,738 29,571 28,041 23,316 21,693 49. Total Investment in parent included in Lines 42 to 47 above 0 0 0 0 50. Percentage of investments in parent, subsidiaries and affiliates to surplus as regards policyholders (Line 48 above divided by Page 3, Col. 1, Line 37 x 100.0) 0.0 0.0 0.0 0.0 0.0

17 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY FIVE-YEAR HISTORICAL DATA (Continued) 1 2 3 4 5 2018 2017 2016 2015 2014 Capital and Surplus Accounts (Page 4)

51. Net unrealized capital gains (losses) (Line 24) (20,470,357) 2,680,358 14,905,798 (11,324,637) (2,347,447) 52. Dividends to stockholders (Line 35) (29,614,854) (140,000,000) (94,000,000) (124,000,000) (62,500,000) 53. Change in surplus as regards policyholders for the year (Line 38) (49,470,982) (111,962,164) (36,717,554) (90,507,766) 10,469,210

Gross Losses Paid (Page 9, Part 2, Cols. 1 & 2)

54. Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 17.3, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4) 59,483,572 67,355,269 60,648,391 70,253,624 76,348,058 55. Property lines (Lines 1, 2, 9, 12, 21 & 26) 0 0 0 0 0 56. Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27) 0 0 0 0 709,571 57. All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29, 30 & 34) 0 0 0 0 0 58. Nonproportional reinsurance lines (Lines 31, 32 & 33) 0 0 0 0 300,000 59. Total (Line 35) 59,483,572 67,355,269 60,648,391 70,253,624 77,357,629

Net Losses Paid (Page 9, Part 2, Col. 4)

60. Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 17.3, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4) 49,359,573 48,527,509 54,601,577 56,670,563 65,407,499 61. Property lines (Lines 1, 2, 9, 12, 21 & 26) 0 0 0 0 0 62. Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27) 0 0 0 27,278 538,557 63. All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29, 30 & 34) 0 0 0 0 0 64. Nonproportional reinsurance lines (Lines 31, 32 & 33) 0 12,500 0 0 250,000 65. Total (Line 35) 49,359,573 48,540,009 54,601,577 56,697,841 66,196,056

Operating Percentages (Page 4) (Item divided by Page 4, Line 1) x 100.0

66. Premiums earned (Line 1) 100.0 100.0 100.0 100.0 100.0 67. Losses incurred (Line 2) 58.8 32.2 23.7 28.0 21.1 68. Loss expenses incurred (Line 3) 27.4 34.6 39.3 31.8 23.4 69. Other underwriting expenses incurred (Line 4) 27.7 32.2 30.0 24.5 25.6 70. Net underwriting gain (loss) (Line 8) (13.9) 0.9 7.0 15.7 29.9

Other Percentages

71. Other underwriting expenses to net premiums written (Page 4, Lines 4 + 5 - 15 divided by Page 8, Part 1B, Col. 6, Line 35 x 100.0) 27.8 28.9 27.9 24.7 26.7 72. Losses and loss expenses incurred to premiums earned (Page 4, Lines 2 + 3 divided by Page 4, Line 1 x 100.0) 86.2 66.8 63.0 59.9 44.5 73. Net premiums written to policyholders' surplus (Page 8, Part 1B, Col. 6, Line 35 divided by Page 3, Line 37, Col. 1 x 100.0) 73.2 57.8 38.7 34.1 29.6

One Year Loss Development ($000 omitted)

74. Development in estimated losses and loss expenses incurred prior to current year (Schedule P, Part 2-Summary, Line 12, Col. 11) (17,730) (38,709) (49,783) (49,896) (74,192) 75. Percent of development of losses and loss expenses incurred to policyholders' surplus of prior year end (Line 74 above divided by Page 4, Line 21, Col. 1 x 100.0) (6.0) (9.5) (11.2) (9.3) (14.2)

Two Year Loss Development ($000 omitted)

76. Development in estimated losses and loss expenses incurred 2 years before the current year and prior year (Schedule P, Part 2 - Summary, Line 12, Col. 12) (68,186) (88,431) (95,889) (124,192) (146,910) 77. Percent of development of losses and loss expenses incurred to reported policyholders' surplus of second prior year end (Line 76 above divided by Page 4, Line 21, Col. 2 x 100.0) (16.8) (19.9) (18.0) (23.7) (25.9) NOTE: If a party to a merger, have the two most recent years of this exhibit been restated due to a merger in compliance with the disclosure requirements of SSAP No. 3 - Accounting Changes and Correction of Errors? Yes [ ] No [ ] If no, please explain

18 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES SCHEDULE P - PART 1 - SUMMARY ($000 Omitted) Premiums Earned Loss and Loss Expense Payments 12 Years in 1 2 3 Defense and Cost Adjusting and Other 10 11 Which Loss Payments Containment Payments Payments Number of Premiums 4 5 6 7 8 9 Salvage Total Net Claims Were Earned and Paid (Cols. Reported and Losses Direct and Net Direct and Direct and Direct and Subrogation 4 - 5 + 6 - Direct and Were Incurred Assumed Ceded (Cols. 1 - 2) Assumed Ceded Assumed Ceded Assumed Ceded Received 7 + 8 - 9) Assumed

1. Prior XXX XXX XXX 446 112 1,407 170 107 0 2 1,678 XXX 2. 2009 208,987 17,081 191,906 38,868 2,037 39,183 551 14,763 0 74 90,226 XXX 3. 2010 206,514 15,879 190,635 69,845 12,941 55,939 1,066 18,477 0 186 130,254 XXX 4. 2011 200,979 9,626 191,353 70,794 11,756 50,419 995 17,552 0 39 126,015 XXX 5. 2012 212,227 13,748 198,479 74,914 5,306 51,584 2,388 18,979 0 90 137,784 XXX 6. 2013 186,410 22,230 164,180 52,106 3,795 42,912 3,312 21,544 0 22 109,455 XXX 7. 2014 188,632 20,132 168,500 60,134 12,315 41,151 4,298 19,244 0 4 103,916 XXX 8. 2015 184,137 26,052 158,085 38,376 4,800 35,038 4,326 17,145 0 3 81,433 XXX 9. 2016 181,284 32,917 148,367 22,974 3,981 26,115 4,096 13,574 0 0 54,586 XXX 10. 2017 197,797 41,707 156,090 13,096 4,919 14,486 4,972 11,259 0 0 28,949 XXX 11. 2018 223,402 40,712 182,690 3,419 594 4,303 402 6,772 0 0 13,498 XXX

12. Totals XXX XXX XXX 444,973 62,557 362,536 26,575 159,416 0 419 877,794 XXX

Adjusting and Other 23 24 25 Losses Unpaid Defense and Cost Containment Unpaid Unpaid Case Basis Bulk + IBNR Case Basis Bulk + IBNR 21 22 Total Number of 13 14 15 16 17 18 19 20 Salvage Net Claims and Losses Outstand- Subrog- and ing Direct Direct and Direct and Direct and Direct and Direct and ation Expenses and Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded Anticipated Unpaid Assumed

1. 15,347 6,539 (1,741) (398) 780 1,616 5,803 505 617 0 0 12,544 XXX 2. 9,977 2,437 (2,170) 151 629 364 4,519 107 540 0 0 10,435 XXX 3. 11,673 3,302 (2,032) (68) 1,204 203 4,977 383 459 0 0 12,461 XXX 4. 12,265 1,910 (1,779) 101 1,167 0 5,621 250 730 0 0 15,743 XXX 5. 16,837 4,846 (620) (206) 1,353 697 8,684 523 826 0 0 21,220 XXX 6. 22,236 2,674 (1,416) 583 2,603 298 9,202 517 1,468 0 0 30,022 XXX 7. 32,712 2,671 (2,540) 1,014 4,678 447 9,192 474 2,219 0 0 41,655 XXX 8. 39,283 3,557 (854) 2,264 8,588 731 15,527 724 3,114 0 0 58,382 XXX 9. 93,912 9,396 (19,151) 2,310 21,153 1,977 10,284 950 4,745 0 0 96,310 XXX 10. 105,559 13,934 (6,779) 8,468 33,167 3,594 17,756 2,427 7,273 0 0 128,552 XXX 11. 67,898 9,587 58,427 18,426 29,519 3,018 34,715 4,493 11,008 0 0 166,043 XXX

12. 427,699 60,853 19,344 32,644 104,840 12,944 126,280 11,353 33,000 0 0 593,369 XXX

Total Loss and Loss Expense Percentage 34 Net Balance Sheet Losses and Loss Expenses Incurred (Incurred/Premiums Earned) Nontabular Discount Inter- Reserves After Discount 26 27 28 29 30 31 32 33 Company 35 36 Pooling Loss Direct and Direct and Loss Participation Losses Expenses Assumed Ceded Net Assumed Ceded Net Loss Expense Percentage Unpaid Unpaid

1. XXX XXX XXX XXX XXX XXX 0 0 XXX 7,465 5,079 2. 106,308 5,647 100,662 50.9 33.1 52.5 0 0 5,220 5,216 3. 160,543 17,827 142,716 77.7 112.3 74.9 0 0 6,407 6,054 4. 156,769 15,011 141,758 78.0 155.9 74.1 0 0 8,475 7,268 5. 172,557 13,553 159,004 81.3 98.6 80.1 0 0 11,576 9,644 6. 150,655 11,179 139,476 80.8 50.3 85.0 0 0 17,562 12,459 7. 166,791 21,220 145,571 88.4 105.4 86.4 0 0 26,487 15,168 8. 156,216 16,401 139,815 84.8 63.0 88.4 0 0 32,608 25,774 9. 173,606 22,710 150,896 95.8 69.0 101.7 0 0 63,055 33,255 10. 195,816 38,315 157,502 99.0 91.9 100.9 0 0 76,378 52,174 11. 216,062 36,520 179,542 96.7 89.7 98.3 0 0 98,312 67,731

12. XXX XXX XXX XXX XXX XXX 0 0 XXX 353,546 239,823 Note: Parts 2 and 4 are gross of all discounting, including tabular discounting. Part 1 is gross of only nontabular discounting, which is reported in Columns 32 and 33 of Part 1. The tabular discount, if any, is reported in the Notes to Financial Statements, which will reconcile Part 1 with Parts 2 and 4.

33 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY SCHEDULE P - PART 2 - SUMMARY INCURRED NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) DEVELOPMENT Years in Which 1 2 3 4 5 6 7 8 9 10 11 12 Losses Were Incurred 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 One Year Two Year

1. Prior 731,252 628,083 499,229 376,120 315,140 268,440 245,530 234,792 230,229 224,488 (5,741) (10,304)

2. 2009 158,234 161,483 152,347 145,199 124,215 112,733 101,233 91,321 89,027 85,359 (3,668) (5,962)

3. 2010 XXX 152,365 154,772 152,695 157,827 146,062 139,463 134,850 124,899 123,779 (1,120) (11,071)

4. 2011 XXX XXX 149,167 150,253 152,327 149,344 142,588 135,439 128,790 123,476 (5,315) (11,963)

5. 2012 XXX XXX XXX 155,935 157,143 156,713 155,631 147,579 141,707 139,198 (2,508) (8,380)

6. 2013 XXX XXX XXX XXX 135,969 135,135 133,983 130,153 123,838 116,464 (7,374) (13,689)

7. 2014 XXX XXX XXX XXX XXX 131,188 131,291 129,594 127,252 124,108 (3,144) (5,486)

8. 2015 XXX XXX XXX XXX XXX XXX 130,877 127,086 126,424 119,556 (6,868) (7,530)

9. 2016 XXX XXX XXX XXX XXX XXX XXX 126,378 126,316 132,577 6,261 6,199

10. 2017 XXX XXX XXX XXX XXX XXX XXX XXX 127,223 138,970 11,747 XXX

11. 2018 XXX XXX XXX XXX XXX XXX XXX XXX XXX 161,761 XXX XXX

12. Totals (17,730) (68,186)

SCHEDULE P - PART 3 - SUMMARY CUMULATIVE PAID NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 11 12 OMITTED) Number of 1 2 3 4 5 6 7 8 9 10 Number of Claims Claims Closed Years in Which Closed With Without Losses Were Loss Loss Incurred 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Payment Payment

1. Prior 000 86,590 139,205 168,695 187,000 200,356 205,049 209,234 210,990 212,561 XXX XXX

2. 2009 4,548 18,922 37,443 53,874 63,070 66,910 70,132 71,835 72,739 75,463 XXX XXX

3. 2010 XXX 5,353 27,491 56,325 77,426 92,549 100,967 108,951 110,841 111,777 XXX XXX

4. 2011 XXX XXX 5,837 28,343 58,147 80,946 91,363 97,620 104,759 108,463 XXX XXX

5. 2012 XXX XXX XXX 7,364 33,958 69,379 90,129 102,837 111,158 118,805 XXX XXX

6. 2013 XXX XXX XXX XXX 7,435 25,869 51,521 71,951 82,293 87,910 XXX XXX

7. 2014 XXX XXX XXX XXX XXX 6,672 29,427 53,614 73,951 84,672 XXX XXX

8. 2015 XXX XXX XXX XXX XXX XXX 6,264 24,185 45,207 64,288 XXX XXX

9. 2016 XXX XXX XXX XXX XXX XXX XXX 5,714 20,527 41,012 XXX XXX

10. 2017 XXX XXX XXX XXX XXX XXX XXX XXX 3,182 17,691 XXX XXX

11. 2018 XXX XXX XXX XXX XXX XXX XXX XXX XXX 6,726 XXX XXX

SCHEDULE P - PART 4 - SUMMARY Years in Which BULK AND IBNR RESERVES ON NET LOSSES AND DEFENSE AND COST CONTAINMENT EXPENSES REPORTED AT YEAR END ($000 OMITTED) Losses Were 1 2 3 4 5 6 7 8 9 10 Incurred 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1. Prior 420,244 311,966 229,127 125,731 78,548 43,568 22,748 13,689 9,333 3,955

2. 2009 108,126 74,076 52,475 46,681 32,584 21,463 12,096 5,624 2,602 2,090

3. 2010 XXX 81,121 32,558 12,280 14,755 14,896 11,831 6,110 4,872 2,629

4. 2011 XXX XXX 85,702 20,429 11,554 15,467 14,581 9,921 6,085 3,491

5. 2012 XXX XXX XXX 77,922 26,318 4,812 3,182 5,797 5,817 7,747

6. 2013 XXX XXX XXX XXX 85,989 10,246 13,458 8,343 6,887 6,687

7. 2014 XXX XXX XXX XXX XXX 78,497 35,627 17,879 2,964 5,164

8. 2015 XXX XXX XXX XXX XXX XXX 84,232 34,488 11,414 11,685

9. 2016 XXX XXX XXX XXX XXX XXX XXX 69,595 8,222 (12,127)

10. 2017 XXX XXX XXX XXX XXX XXX XXX XXX 60,609 81

11. 2018 XXX XXX XXX XXX XXX XXX XXX XXX XXX 70,223

34 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

SCHEDULE T - EXHIBIT OF PREMIUMS WRITTEN Allocated By States And Territories 1 Gross Premiums, Including 4 5 6 7 8 9 Policy and Membership Fees Direct Less Return Premiums and Premium Premiums on Policies Not Dividends Written for Taken Paid Finance and Federal 2 3 or Credited to Direct Losses Service Purchasing Active Direct Direct Policyholders Paid Charges Not Groups Status Premiums Premiums on Direct (Deducting Direct Losses Direct Losses Included in (Included in States, etc. (a) Written Earned Business Salvage) Incurred Unpaid Premiums Col. 2) 1. Alabama AL E 1,080,486 2,552,051 0 0 1,463,814 3,721,797 0 2. Alaska AK N 0 0 0 0 0 0 0 3. Arizona AZ N 0 0 0 0 0 0 0 4. Arkansas AR N 0 0 0 0 0 0 0 5. California CA E 8,160,482 9,760,841 0 8,665,771 10,423,404 13,598,857 0 6,440,914 6. Colorado CO N 0 0 0 0 0 0 0 7. Connecticut CT L 0 0 0 0 0 0 0 8. Delaware DE L 10,313,925 10,488,783 0 2,117,701 4,134,599 18,656,499 0 2,234,190 9. Dist. Columbia DC N 0 0 0 0 0 0 0 10. Florida FL L 14,540,258 15,513,763 0 6,454,161 5,587,833 19,521,336 0 42,929 11. Georgia GA L 0 23,290 0 776,991 (2,022,211) 2,843,500 0 12. Hawaii HI N 0 0 0 0 0 0 0 13. Idaho ID N 0 0 0 0 0 0 0 14. Illinois IL L 11,807,754 12,628,328 0 4,763,143 3,215,828 48,948,404 0 4,850,277 15. Indiana IN L 100 45 0 32,500 (186,360) 381,650 0 16. Iowa IA L 3,499,959 3,769,612 0 1,378,186 6,883,380 20,060,840 0 17. Kansas KS L 0 (6) 0 0 0 0 0 18. Kentucky KY L 10,959,826 11,423,099 0 2,946,084 481,535 38,933,049 0 7,591,027 19. Louisiana LA N 0 0 0 0 0 0 0 20. Maine ME N 0 0 0 0 0 0 0 21. Maryland MD L 0 0 0 0 0 0 0 22. Massachusetts MA E 387,784 149,839 0 0 15,255 40,815 0 23. Michigan MI L 28,331,335 27,865,012 0 8,157,211 11,248,229 43,136,983 0 12,517,463 24. Minnesota MN L 1,963,466 1,952,618 0 4,425,703 5,107,226 7,111,510 0 72,419 25. Mississippi MS L 539,549 558,544 0 3,279 1,565,281 3,054,197 0 346,988 26. Missouri MO L 0 0 0 0 0 0 0 27. Montana MT N 0 0 0 0 0 0 0 28. Nebraska NE L 1,925,739 2,034,496 0 791,314 3,307,015 11,225,567 0 5,677 29. Nevada NV L 15,171,810 15,575,477 0 1,497,253 2,625,710 28,040,188 0 2,754,221 30. New Hampshire NH N 0 0 0 0 0 0 0 31. New Jersey NJ L 1,486,199 1,481,717 0 305,165 (288,947) 4,556,279 0 8,616 32. New Mexico NM N 0 0 0 0 0 0 0 33. New York NY E 260,097 166,287 0 0 105,690 114,901 0 34. No.Carolina NC N 0 0 0 0 0 0 0 35. No.Dakota ND L 0 0 0 0 0 0 0 36. Ohio OH L 0 5,498 0 251,875 (1,175,400) 1,696,567 0 37. Oklahoma OK N 0 0 0 0 0 0 0 38. Oregon OR N 0 0 0 0 0 0 0 39. Pennsylvania PA L 2,180,175 2,033,008 0 51,124 797,835 1,245,776 0 40. Rhode Island RI N 0 0 0 0 0 0 0 41. So. Carolina SC L 0 0 0 0 0 0 0 42. So. Dakota SD L 184,461 211,777 0 345 724,817 2,299,846 0 43. Tennessee TN L 0 0 0 0 0 0 0 44. Texas TX N 0 0 0 0 0 0 0 45. Utah UT N 0 0 0 0 0 0 0 46. Vermont VT L 0 0 0 0 0 0 0 47. Virginia VA L 0 0 0 0 0 0 0 48. Washington WA N 0 0 0 0 0 0 0 49. West Virginia WV L 0 0 0 0 0 0 0 50. Wisconsin WI L 19,502,849 19,912,076 0 3,173,626 7,514,106 30,267,999 0 1,893,022 51. Wyoming WY N 0 0 0 0 0 0 0 52. American Samoa AS N 0 0 0 0 0 0 0 53. Guam GU N 0 0 0 0 0 0 0 54. Puerto Rico PR N 0 0 0 0 0 0 0 55. U.S. Virgin Islands VI N 0 0 0 0 0 0 0 56. Northern Mariana Islands MP N 0 0 0 0 0 0 0 57. Canada CAN N 0 0 0 0 0 0 0 58. Aggregate other alien OT XXX 0 0 0 0 0 0 0 0 59. Totals XXX 132,296,254 138,106,155 0 45,791,432 61,528,639 299,456,560 0 38,757,743

DETAILS OF WRITE-INS 58001. XXX 58002. XXX 58003. XXX 58998. Sum. of remaining write-ins for Line 58 from overflow page XXX 0 0 0 0 0 0 0 0 58999. Totals (Lines 58001 through 58003 + 58998) (Line 58 above) XXX 0 0 0 0 0 0 0 0

(a) Active Status Counts

L – Licensed or Chartered – Licensed insurance carrier or domiciled RRG 27 R – Registered – Non-domiciled RRGs 0 E – Eligible – Reporting entities eligible or approved to write surplus lines in the state (other than their state of domicile – See DSLI) 4 Q – Qualified – Qualified or accredited reinsurer 0 D – Domestic Surplus Lines Insurer (DSLI) – Reporting entities authorized to write surplus lines in the state of domicile 0 N – None of the above – Not allowed to write business in the state 26

(b) Explanation of basis of allocation of premiums by states, etc. Premiums are allocated by the location of the policyholder or by the location of the majority of the exposures on the policy.

94 ANNUAL STATEMENT FOR THE YEAR 2018 OF THE PROASSURANCE CASUALTY COMPANY

SCHEDULE Y – INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 – ORGANIZATIONAL CHART

ProAssurance Corporation A Delaware Holding Corporation / FEIN: 63-1261433

PRA Professional Liability Group, Inc. A Delaware Holding Corporation (100%) FEIN: 01-0874962

ProAssurance Indemnity Company, Inc. ProAssurance Mid-Continent Underwriters, Inc. An Alabama Stock Insurance Corporation (100%) A Texas Corporation (100%) FEIN: 63-0720042 / NAIC: 33391 FEIN: 76-0205255

ProAssurance Casualty Company IAO, Inc. d/b/a ProAssurance Agency A Michigan Stock Insurance Company (100%) An Alabama Insurance Agency (100%) FEIN: 38-2317569 / NAIC: 38954 FEIN: 63-0725911

Medmarc Casualty Insurance Company PRA Group Holdings, Inc. A Vermont Stock Insurance Company (100%) A Delaware Holding Corporation (100%) FEIN: 59-0615164 / NAIC: 22241 FEIN: 27-0386608

Hamilton Resources Corporation A Delaware Corporation (100%) PRA Services Corporation FEIN: 52-1422519 A Michigan Corporation (100%) FEIN: 38-2684456 Noetic Specialty Insurance Company A Vermont Stock Insurance Company (100%) PRACCL Ltd. FEIN: 62-1216444 / NAIC: 17400 A UK Corporation (100%) Registration Number: 8704220 ProAssurance Specialty Insurance Company, Inc. An Alabama Stock Insurance Corporation (100%) PRA Corporate Capital Ltd. FEIN: 36-3990058 / NAIC: 10179 A UK Corporation (100%) Registration Number: 8704267

ProAssurance General Insurance Company, Ltd. Domiciled in Bermuda (100%) Eastern Insurance Holdings, Inc. Company Registration No: EC-27597 d/b/a Eastern Alliance Insurance Group A Pennsylvania Corporation (100%) FEIN: 20-2653793 Podiatry Insurance Company of America An Illinois Stock Insurance Company (100%) FEIN: 58-1403235 / NAIC: 14460 Eastern Re Ltd, S.P.C. A Cayman Islands Segregated Portfolio Company (100%) FEIN: 98-0434659 PACO Assurance Company, Inc. An Illinois Stock Insurance Company (100%) FEIN:36-3998471 / NAIC: 10222 Inova Re Ltd, S.P.C. A Cayman Islands Segregated Portfolio Company (100%) FEIN: 98-1421114 ProAssurance American Mutual, A Risk Retention Group A District of Columbia Mutual RRG FEIN: 47-2511641 / NAIC: 15647 Eastern Advantage Assurance Company A Pennsylvania Stock Insurance Company (100%) FEIN: 65-1316719 / NAIC: 13019

Allied Eastern Indemnity Company Pennsylvania Stock Insurance Company (100%) FEIN: 26-0026993 / NAIC: 11242

Eastern Alliance Insurance Company A Pennsylvania Stock Insurance Company (100%) FEIN: 23-2900463 / NAIC: 10724

ProAssurance Group Services Corporation An Alabama Corporation (100%) FEIN: 63-1285505

96 ALPHABETICAL INDEX

ANNUAL STATEMENT BLANK

Assets 2 Cash Flow 5 Exhibit of Capital Gains (Losses) 12 Exhibit of Net Investment Income 12 Exhibit of Nonadmitted Assets 13 Exhibit of Premiums and Losses (State Page) 19 Five-Year Historical Data 17 General Interrogatories 15 Jurat Page 1 Liabilities, Surplus and Other Funds 3 Notes To Financial Statements 14 Overflow Page For Write-Ins 100 Schedule A – Part 1 E01 Schedule A – Part 2 E02 Schedule A – Part 3 E03 Schedule A – Verification Between Years SI02 Schedule B – Part 1 E04 Schedule B – Part 2 E05 Schedule B – Part 3 E06 Schedule B – Verification Between Years SI02 Schedule BA – Part 1 E07 Schedule BA – Part 2 E08 Schedule BA – Part 3 E09 Schedule BA – Verification Between Years SI03 Schedule D – Part 1 E10 Schedule D – Part 1A – Section 1 SI05 Schedule D – Part 1A – Section 2 SI08 Schedule D – Part 2 – Section 1 E11 Schedule D – Part 2 – Section 2 E12 Schedule D – Part 3 E13 Schedule D – Part 4 E14 Schedule D – Part 5 E15 Schedule D – Part 6 – Section 1 E16 Schedule D – Part 6 – Section 2 E16 Schedule D – Summary By Country SI04 Schedule D – Verification Between Years SI03 Schedule DA – Part 1 E17

INDEX1 ALPHABETICAL INDEX

ANNUAL STATEMENT BLANK (Continued)

Schedule DA – Verification Between Years SI10 Schedule DB – Part A – Section 1 E18 Schedule DB – Part A – Section 2 E19 Schedule DB – Part A – Verification Between Years SI11 Schedule DB – Part B – Section 1 E20 Schedule DB – Part B – Section 2 E21 Schedule DB – Part B – Verification Between Years SI11 Schedule DB – Part C – Section 1 SI12 Schedule DB – Part C – Section 2 SI13 Schedule DB – Part D – Section 1 E22 Schedule DB – Part D – Section 2 E23 Schedule DB – Verification SI14 Schedule DL – Part 1 E24 Schedule DL – Part 2 E25 Schedule E – Part 1 – Cash E26 Schedule E – Part 2 – Cash Equivalents E27 Schedule E – Part 2 - Verification Between Years SI15 Schedule E – Part 3 – Special Deposits E28 Schedule F – Part 1 20 Schedule F – Part 2 21 Schedule F – Part 3 22 Schedule F – Part 4 27 Schedule F – Part 5 28 Schedule F – Part 6 29 Schedule H – Accident and Health Exhibit – Part 1 30 Schedule H – Part 2, Part 3, and Part 4 31 Schedule H – Part 5 – Health Claims 32 Schedule P – Part 1 – Summary 33 Schedule P – Part 1A – Homeowners/Farmowners 35 Schedule P – Part 1B – Private Passenger Auto Liability/Medical 36 Schedule P – Part 1C – Commercial Auto/Truck Liability/Medical 37 Schedule P – Part 1D – Workers’ Compensation (Excluding Excess Workers’ Compensation) 38

INDEX2 ALPHABETICAL INDEX

ANNUAL STATEMENT BLANK (Continued)

Schedule P – Part 1E – Commercial Multiple Peril 39 Schedule P – Part 1F – Section 1 – Medical Professional Liability – Occurrence 40 Schedule P – Part 1F – Section 2 – Medical Professional Liability – Claims-Made 41 Schedule P – Part 1G – Special Liability (Ocean, Marine, Aircraft (All Perils), Boiler and Machinery) 42 Schedule P – Part 1H – Section 1 – Other Liability–Occurrence 43 Schedule P – Part 1H – Section 2 – Other Liability – Claims-Made 44 Schedule P – Part 1I – Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary & Theft) 45 Schedule P – Part 1J – Auto Physical Damage 46 Schedule P – Part 1K – Fidelity/Surety 47 Schedule P – Part 1L – Other (Including Credit, Accident and Health) 48 Schedule P – Part 1M – International 49 Schedule P – Part 1N – Reinsurance – Nonproportional Assumed Property 50 Schedule P – Part 1O – Reinsurance – Nonproportional Assumed Liability 51 Schedule P – Part 1P – Reinsurance – Nonproportional Assumed Financial Lines 52 Schedule P – Part 1R – Section 1 – Products Liability – Occurrence 53 Schedule P – Part 1R – Section 2 – Products Liability – Claims – Made 54 Schedule P – Part 1S – Financial Guaranty/Mortgage Guaranty 55 Schedule P – Part 1T – Warranty 56 Schedule P – Part 2, Part 3 and Part 4 – Summary 34 Schedule P – Part 2A – Homeowners/Farmowners 57 Schedule P – Part 2B – Private Passenger Auto Liability/Medical 57 Schedule P – Part 2C – Commercial Auto/Truck Liability/Medical 57 Schedule P – Part 2D – Workers’ Compensation (Excluding Excess Workers’ Compensation) 57 Schedule P – Part 2E – Commercial Multiple Peril 57 Schedule P – Part 2F – Section 1 – Medical Professional Liability – Occurrence 58 Schedule P – Part 2F – Section 2 – Medical Professional Liability – Claims – Made 58 Schedule P – Part 2G – Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery) 58 Schedule P – Part 2H – Section 1 – Other Liability – Occurrence 58 Schedule P – Part 2H – Section 2 – Other Liability – Claims – Made 58 Schedule P – Part 2I – Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary, and Theft) 59 Schedule P – Part 2J – Auto Physical Damage 59 Schedule P – Part 2K – Fidelity, Surety 59 Schedule P – Part 2L – Other (Including Credit, Accident and Health) 59 Schedule P – Part 2M – International 59 Schedule P – Part 2N – Reinsurance – Nonproportional Assumed Property 60 Schedule P – Part 2O – Reinsurance – Nonproportional Assumed Liability 60 Schedule P – Part 2P – Reinsurance – Nonproportional Assumed Financial Lines 60 Schedule P – Part 2R – Section 1 – Products Liability – Occurrence 61 Schedule P – Part 2R – Section 2 – Products Liability – Claims-Made 61 Schedule P – Part 2S – Financial Guaranty/Mortgage Guaranty 61 Schedule P – Part 2T – Warranty 61 Schedule P – Part 3A – Homeowners/Farmowners 62

INDEX3 ALPHABETICAL INDEX

ANNUAL STATEMENT BLANK (Continued)

Schedule P – Part 3B – Private Passenger Auto Liability/Medical 62 Schedule P – Part 3C – Commercial Auto/Truck Liability/Medical 62 Schedule P – Part 3D – Workers’ Compensation (Excluding Excess Workers’ Compensation) 62 Schedule P – Part 3E – Commercial Multiple Peril 62 Schedule P – Part 3F – Section 1 – Medical Professional Liability – Occurrence 63 Schedule P – Part 3F – Section 2 – Medical Professional Liability – Claims-Made 63 Schedule P – Part 3G – Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery) 63 Schedule P – Part 3H – Section 1 – Other Liability – Occurrence 63 Schedule P – Part 3H – Section 2 – Other Liability – Claims-Made 63 Schedule P – Part 3I – Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary, and Theft) 64 Schedule P – Part 3J – Auto Physical Damage 64 Schedule P – Part 3K – Fidelity/Surety 64 Schedule P – Part 3L – Other (Including Credit, Accident and Health) 64 Schedule P – Part 3M – International 64 Schedule P – Part 3N – Reinsurance – Nonproportional Assumed Property 65 Schedule P – Part 3O – Reinsurance – Nonproportional Assumed Liability 65 Schedule P – Part 3P – Reinsurance – Nonproportional Assumed Financial Lines 65 Schedule P – Part 3R – Section 1 – Products Liability – Occurrence 66 Schedule P – Part 3R – Section 2 – Products Liability – Claims-Made 66 Schedule P – Part 3S – Financial Guaranty/Mortgage Guaranty 66 Schedule P – Part 3T – Warranty 66 Schedule P – Part 4A – Homeowners/Farmowners 67 Schedule P – Part 4B – Private Passenger Auto Liability/Medical 67 Schedule P – Part 4C – Commercial Auto/Truck Liability/Medical 67 Schedule P – Part 4D – Workers’ Compensation (Excluding Excess Workers’ Compensation) 67 Schedule P – Part 4E – Commercial Multiple Peril 67 Schedule P – Part 4F – Section 1 – Medical Professional Liability – Occurrence 68 Schedule P – Part 4F – Section 2 – Medical Professional Liability – Claims-Made 68 Schedule P – Part 4G – Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery) 68 Schedule P – Part 4H – Section 1 – Other Liability – Occurrence 68 Schedule P – Part 4H – Section 2 – Other Liability – Claims-Made 68 Schedule P – Part 4I – Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary and Theft) 69 Schedule P – Part 4J – Auto Physical Damage 69 Schedule P – Part 4K – Fidelity/Surety 69 Schedule P – Part 4L – Other (Including Credit, Accident and Health) 69 Schedule P – Part 4M – International 69 Schedule P – Part 4N – Reinsurance – Nonproportional Assumed Property 70 Schedule P – Part 4O – Reinsurance – Nonproportional Assumed Liability 70 Schedule P – Part 4P – Reinsurance – Nonproportional Assumed Financial Lines 70 Schedule P – Part 4R – Section 1 – Products Liability – Occurrence 71 Schedule P – Part 4R – Section 2 – Products Liability – Claims-Made 71

INDEX4 ALPHABETICAL INDEX

ANNUAL STATEMENT BLANK (Continued)

Schedule P – Part 4S – Financial Guaranty/Mortgage Guaranty 71 Schedule P – Part 4T – Warranty 71 Schedule P – Part 5A – Homeowners/Farmowners 72 Schedule P – Part 5B – Private Passenger Auto Liability/Medical 73 Schedule P – Part 5C – Commercial Auto/Truck Liability/Medical 74 Schedule P – Part 5D – Workers’ Compensation (Excluding Excess Workers’ Compensation) 75 Schedule P – Part 5E – Commercial Multiple Peril 76 Schedule P – Part 5F – Medical Professional Liability – Claims-Made 78 Schedule P – Part 5F – Medical Professional Liability – Occurrence 77 Schedule P – Part 5H – Other Liability – Claims-Made 80 Schedule P – Part 5H – Other Liability – Occurrence 79 Schedule P – Part 5R – Products Liability – Claims-Made 82 Schedule P – Part 5R – Products Liability – Occurrence 81 Schedule P – Part 5T – Warranty 83 Schedule P – Part 6C – Commercial Auto/Truck Liability/Medical 84 Schedule P – Part 6D – Workers’ Compensation (Excluding Excess Workers’ Compensation) 84 Schedule P – Part 6E – Commercial Multiple Peril 85 Schedule P – Part 6H – Other Liability – Claims-Made 86 Schedule P – Part 6H – Other Liability – Occurrence 85 Schedule P – Part 6M – International 86 Schedule P – Part 6N – Reinsurance – Nonproportional Assumed Property 87 Schedule P – Part 6O – Reinsurance – Nonproportional Assumed Liability 87 Schedule P – Part 6R – Products Liability – Claims-Made 88 Schedule P – Part 6R – Products Liability – Occurrence 88 Schedule P – Part 7A – Primary Loss Sensitive Contracts 89 Schedule P – Part 7B – Reinsurance Loss Sensitive Contracts 91 Schedule P Interrogatories 93 Schedule T – Exhibit of Premiums Written 94 Schedule T – Part 2 – Interstate Compact 95 Schedule Y – Information Concerning Activities of Insurer Members of a Holding Company Group 96 Schedule Y – Part 1A – Detail of Insurance Holding Company System 97 Schedule Y – Part 2 – Summary of Insurer’s Transactions With Any Affiliates 98 Statement of Income 4 Summary Investment Schedule SI01 Supplemental Exhibits and Schedules Interrogatories 99 Underwriting and Investment Exhibit Part 1 6 Underwriting and Investment Exhibit Part 1A 7 Underwriting and Investment Exhibit Part 1B 8 Underwriting and Investment Exhibit Part 2 9 Underwriting and Investment Exhibit Part 2A 10 Underwriting and Investment Exhibit Part 3 11

INDEX5 INDEX6