Here’s Why ProAssurance Corporation (PRA) Declined in Q2
Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. Unlike the volatile first quarter, there was a methodological increase in returns in the second quarter. The fund returned 2.98% in Q2 compared to a 3.18% return for the Russell 2000 Value Index. For the first half of 2023, the fund returned 7.27% compared to 2.50% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Small-Cap Value Fund highlighted stocks like ProAssurance Corporation (NYSE:PRA) in the second quarter 2023 investor letter. Headquartered in Birmingham, Alabama, ProAssurance Corporation (NYSE:PRA) is a US-based insurance and reinsurance provider. On July 31, 2023, ProAssurance Corporation (NYSE:PRA) stock closed at $16.80 per share. One-month return of ProAssurance Corporation (NYSE:PRA) was 8.39%, and its shares lost 21.35% of their value over the last 52 weeks. ProAssurance Corporation (NYSE:PRA) has a market capitalization of $907.665 million.
Third Avenue Small-Cap Value Fund made the following comment about ProAssurance Corporation (NYSE:PRA) in its second quarter 2023 investor letter:
"Relative performance was diluted predominantly by select financial companies. Casualty insurer, ProAssurance Corporation (NYSE:PRA) declined 18% after a weak 1Q 2023 earnings report. Loss costs were higher than projections which is prolonging the turnaround process. The company remains well-capitalized and trades at a 20% discount to tangible book value. Social inflation (loss costs rising at faster rate than inflation) is rising due to elevated jury verdicts. ProAssurance is adjusting pricing for the new reality. The current valuation is in deep value territory and the strong balance sheet gives the company time to adjust pricing."
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ProAssurance Corporation (NYSE:PRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held ProAssurance Corporation (NYSE:PRA) at the end of first quarter which was 15 in the previous quarter.
We discussed ProAssurance Corporation (NYSE:PRA) in another article and shared TimesSquare Capital's views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
