ProAssurance 2nd-quarter profit jumps 15 percent

BIRMINGHAM, Ala.—Medical malpractice insurer ProAssurance Corp. said Wednesday its second-quarter profit rose 15 percent as the company spent less administering claims.

For the three months ended June 30, the company reported net income of $43.3 million, or $1.27 per share, compared with $37.6 million, or $1.06 per share, in the year-ago period.

The per-share results reflect a 4 percent decline in the number of outstanding shares versus the prior-year quarter.

Analysts polled by Thomson Financial, on average, expected earnings of $1.18 per share.

ProAssurance collected $115.8 million in premiums, a 13 percent decline from the second quarter of last year.

Net premiums written during the quarter also fell 13 percent to $78.8 million from $90.9 million in the same period of 2007.

Additionally, ProAssurance booked a $5.3 million net realized loss on investments.

Of each premium dollar collected, ProAssurance spent 78.4 cents administering claims, 15.4 cents on the dollar less than in the second quarter of 2007.

Total expenses dropped 27 percent to $93.1 million from $127.4 million the same time last year.

Shares gained 53 cents to $53.53 in midday trading.