ProAssurance and the Cooperative of American Physicians Partner to Offer California Hospitals Groundbreaking Liability

   ProAssurance and the Cooperative of American Physicians Partner to Offer
           California Hospitals Groundbreaking Liability Protection

CAPAssurance Program for Hospitals Combines Financial Strength with Provider

PR Newswire

BIRMINGHAM, Ala., March 21, 2013

BIRMINGHAM, Ala., March 21, 2013 /PRNewswire/ --ProAssurance Corporation
(NYSE:PRA), a specialty writer of professional liability insurance, and the
Cooperative of American Physicians, Inc. (CAP) are partnering to offer a new
liability protection product, CAPAssurance, designed to meet the unique needs
of hospitals and other medical facilities in California.

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"California's regional and community hospitals and other healthcare facilities
face a growing and expensive set of liabilities requiring creative solutions.
CAP, as a California-based physician organization with deep medical
professional liability experience, understands that meeting these needs
requires a partner with broad experience in writing hospitals and facilities,
all backed by unquestioned financial strength," said James L. Weidner, Chief
Executive Officer of CAP. He went on to say, "ProAssurance, an NYSE listed
company with an 'A' rating and rock-solid balance sheet, meets all the
qualifications we were looking for when we set out to establish this
innovative partnership."

"We are excited to join forces with CAP to offer this new program. CAP's
demonstrated track record of long-term success and its experience in
California are among the key reasons we decided to partner with CAP," said W.
Stancil Starnes, Chairman and Chief Executive Officer of ProAssurance. Starnes
also said, "For nearly 40 years CAP has been working with physicians to help
them lower risk, mitigate exposure, and provide the highest quality legal
support services when a claim is filed. There is no better partner for
ProAssurance in developing and offering this product than CAP."

CAPAssurance will use the same CAP Claims Services professionals who have
earned the respect of healthcare providers – and opposing counsel – in
thousands of medical professional liability claims throughout California.
Weidner added, "The difference that CAPAssurance will bring to the hospital
market is CAP's decades of understanding what individual physicians need to
care for patients plus ProAssurance's ability to provide a broad range of
risk-sharing options."

"As the nation's healthcare system aligns physicians and hospitals ever more
closely, each needs to anticipate how the other must respond to the options
available in this new era of patient health," said John E. Ingram, M.D., Chair
and President of CAP. Dr. Ingram also said, "CAPAssurance will be able to
speak the language of physicians and hospitals. We expect everyone to benefit
from that joint experience."

Just as patient safety tops the list of any hospital administrator's
priorities, so too is it a core value of CAPAssurance. That is why the
CAPAssurance program offers the assistance of seasoned risk managers to work
with hospital staff professionals to prevent claims from ever occurring.

"CAPAssurance provides the perfect solution to California hospitals. Combining
the national financial resources of ProAssurance with the local knowledge of
CAP makes this a compelling choice for small to mid-sized facilities,"
concluded Starnes.

With the establishment of CAPAssurance, we are entering into a prospective
business arrangement that we anticipate will allow ProAssurance to grow the
premium that we already write in California. We are not acquiring or
committing to acquire a material amount of assets or a book of business under
this arrangement. As this is prospective for both parties, neither we, nor
CAP, can predict with any certainty, how much business we will write as a
result of this joint effort.

About ProAssurance
ProAssurance Corporation is an industry-leading specialty insurance company
with extensive expertise in medical professional liability, products liability
for life sciences, and the medical technology industry and legal professional
liability. ProAssurance is recognized as one of the top performing insurance
companies in America by virtue of our inclusion in the Ward's 50 for the past
six years and is consistently ranked as a top performing property casualty
insurer in Moody's Yearly Statistical Handbook. ProAssurance is rated "A"
(Strong) by Fitch Ratings; ProAssurance Group is rated "A" (Excellent) by A.M.
Best. For more information, visit

About the Cooperative of American Physicians, Inc.
The Cooperative of American Physicians, Inc. was established in 1975 by a
group of California physicians to manage the escalating cost of medical
professional liability coverage. Two years later, CAP formed the Mutual
Protection Trust, which today provides protection to nearly 12,000 of
California's finest physicians and which has earned an "A+" (Superior) rating
from A.M. Best since 2006. CAP also offers medical professional liability
protection to physicians practicing in large groups through the Cooperative of
American Physicians Insurance Company, Inc., a Risk Retention Group. CAPIC-RRG
is rated "A-" (Excellent) by A.M. Best. Based in Los Angeles, CAP also has
offices in San Diego, Orange County, Sacramento, and Palo Alto. For more
information, visit 

Caution Regarding Forward-Looking Statements
Statements in this news release that are not historical fact or that convey
our view of future business, events or trends are specifically identified as
forward-looking statements. Forward-looking statements are based upon our
estimates and anticipation of future events and highlight certain risks and
uncertainties that could cause actual results to vary materially from expected
results. We expressly claims the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, for any forward-looking statements in this news
release. Forward-looking statements represent our outlook only as of the date
of this news release. Except as required by law or regulation, ProAssurance
does not undertake and specifically declines any obligation to publicly
release the result of any revisions that may be made to any forward-looking
statements to reflect events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or unanticipated

Forward-looking statements are generally identified by words such as, but not
limited to, "anticipate," "believe," "estimate," "expect," "hope," "hopeful,"
"intend," "may," "optimistic," "potential," "preliminary," "project,"
"should," "will," and other analogous expressions. When we address topics such
as liquidity and capital requirements, the value of our investments, return on
equity, financial ratios, net income, premiums, losses and loss reserves,
premium rates and retention of current business, competition and market
conditions, the expansion of product lines, the development or acquisition of
business in new geographical areas, the availability of acceptable
reinsurance, actions by regulators and rating agencies, court actions,
legislative actions, payment or performance of obligations under indebtedness,
payment of dividends, and other similar matters, we are making forward-looking

The following important factors are among those that could affect the actual
outcome of other future events:

  ochanges in general economic conditions;
  oour ability to maintain dividend payments;
  oregulatory, legislative and judicial actions or decisions that could
    affect our business plans or operations; the enactment or repeal of tort
  oformation or dissolution of state-sponsored medical professional liability
    insurance entities that could remove or add sizable groups of physicians
    from or to the private insurance market;
  othe impact of deflation or inflation;
  ochanges in the interest rate environment;
  ochanges in U.S. laws or government regulations regarding financial markets
    or market activity that may affect the U.S. economy and our business;
  ochanges in the ability of the U.S. government to meet its obligations that
    may affect the U.S. economy and our business;
  operformance of financial markets affecting the fair value of our
    investments or making it difficult to determine the value of those
  ochanges in accounting policies and practices that may be adopted by
    regulatory agencies and the Financial Accounting Standards Board, the
    Securities and Exchange Commission, or the Public Company Accounting
    Oversight Board;
  ochanges in laws or government regulations affecting medical professional
    liability insurance or the financial community;
  othe effects of changes in the healthcare delivery system, including, but
    not limited, to the Patient Protection and Affordable Care Act;
  oconsolidation of healthcare providers and entities that are more likely to
    self insure and not purchase medical professional liability insurance;
  ouncertainties inherent in the estimate of loss and loss adjustment expense
    reserves and reinsurance;
  ochanges in the availability, cost, quality, or collectability of
  othe results of litigation, including pre- or post-trial motions, trials
    and/or appeals we may undertake;
  oallegation of bad faith which may arise from the handling of any
    particular claim, including failure to settle;
  oloss of independent agents;
  ochanges in our organization, compensation and benefit plans;
  oour ability to retain and recruit senior management;
  oassessments from guaranty funds;
  oour ability to achieve continued growth through expansion into other
    states or through acquisitions or business combinations;
  ochanges to the ratings assigned by rating agencies to ProAssurance's
    insurance subsidiaries, individually or as a group;
  oprovisions in our charter documents, Delaware law and state insurance law
    may impede attempts to replace or remove management or may impede a
  ostate insurance restrictions may prohibit assets held by our insurance
    subsidiaries, including cash and investment securities, from being used
    for general corporate purposes;
  otaxing authorities can take exception to our tax positions and cause us to
    incur significant amounts of legal and accounting costs and, if our
    defense is not successful, additional tax costs, including interest and
  oinsurance market conditions may alter the effectiveness of our current
    business strategy and impact our revenues;
  oexpected benefits from completed and proposed partnership ventures and
    acquisitions may not be achieved or may be delayed longer than expected
    due to business disruption; loss of customers, employees and key agents,
    increased operating costs or inability to achieve cost savings; and
    assumption of greater than expected liabilities among other reasons.

Additional risk factors that may cause outcomes that differ from
ProAssurance's expectations or projections are described in various documents
filed by ProAssurance Corporation with the Securities and Exchange Commission,
such as current reports on Form 8-K, and regular reports on Forms 10-Q and
10-K, particularly in "Item 1A, Risk Factors.

SOURCE ProAssurance Corporation

Contact: Frank B. O'Neil, Sr. Vice President, Corporate Communications &
Investor Relations, 800.282.6242, 205.877.4461,; Mary
Crystal, Director, Corporate Communications, 800.252.7706, 213.473.8734,
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