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PRA (ProAssurance) Degree of Operating Leverage : 1,684.36 (As of Mar. 2025)


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What is ProAssurance Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. ProAssurance's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1,684.36. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for ProAssurance's Degree of Operating Leverage or its related term are showing as below:

PRA's Degree of Operating Leverage is ranked worse than
100% of 340 companies
in the Insurance industry
Industry Median: 0.94 vs PRA: 1684.36

ProAssurance Degree of Operating Leverage Historical Data

The historical data trend for ProAssurance's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ProAssurance Degree of Operating Leverage Chart

ProAssurance Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -127.77 -8.58 -37.32 -81.99 3,229.62

ProAssurance Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -33.75 -6,295.29 -932.45 3,229.62 1,684.36

Competitive Comparison of ProAssurance's Degree of Operating Leverage

For the Insurance - Property & Casualty subindustry, ProAssurance's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ProAssurance's Degree of Operating Leverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, ProAssurance's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where ProAssurance's Degree of Operating Leverage falls into.


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ProAssurance Degree of Operating Leverage Calculation

ProAssurance's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 73.272 (Mar. 2025) / -2.139 (Mar. 2024) - 1 )/( 1114.533 (Mar. 2025) / 1138.36 (Mar. 2024) - 1 )
=-35.2553/-0.0209
=1,684.36***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


ProAssurance  (NYSE:PRA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


ProAssurance Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of ProAssurance's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


ProAssurance Business Description

Traded in Other Exchanges
N/A
Address
100 Brookwood Place, Birmingham, AL, USA, 35209
ProAssurance Corp is a holding company for property and casualty insurance companies. The company's wholly-owned insurance subsidiaries provide professional liability insurance for healthcare professionals and facilities, professional liability insurance for attorneys, and workers' compensation insurance. ProAssurance reports operating results in five segments: Specialty Property and Casualty, Workers' Compensation, Segregated Portfolio Cell Reinsurance, Lloyd's Syndicate, and Corporate. ProAssurance generates the vast majority of its revenue from its Specialty P&C activities, followed by Worker's Compensation.
Executives
Robert David Francis officer: Pres Healthcare Pro. Liability 4 PINE RIDGE LANE, MOUNTAIN BROOK AL 35213
Scott C Syphax director 100 BROOKWOOD PLACE, SUITE 300, BIRMINGHAM AL 35209
Fabiloa Cobarrubias director 100 BROOKWOOD PLACE, SUITE 300, BIRMINGHAM AL 35209
Noreen Dishart officer: Executive VP/Chief HR Officer 177 SALOLI WAY, LOUDON TN 37774
Frank Anthony Spinosa director PO BOX 72, SHELTER ISLAND NY 11964
Mcmahon John J Jr director 1927 1ST AVENUE NORTH, 5TH FLOOR, BIRMINGHAM AL 35203
Maye Head Frei director 2964 CHEROKEE ROAD, BIRMINGHAM AL 35223
Kevin Merrick Shook officer: President of a Subsidiary 25 RACE AVENUE, LANCASTER PA 17603
Dana S Hendricks officer: Chief Financial Officer 656 AYLESFORD LANE, FRANKLIN TN 37069
Magnus James Gorrie director PO BOX 10383, BIRMINGHAM AL 35202
Adkins Kedrick D Jr director 1173 COPPERWOOD DRIVE, BLOOMFIELD HILLS MI 48302
O Neil Frank B officer: Senior Vice-President, other: Assistant Secretary
Howard H Friedman officer: Chief Financial Officer, other: Secretary & Senior VP
William Stancil Starnes officer: Chief Executive Officer P O BOX 598512, BIRMINGHAM AL 35259-8512
Jeffrey Patton Lisenby officer: Vice-President, other: Corporate Secretary 100 BROOKWOOD PLACE, BIRMINGHAM AL 35209