ProAssurance Raises $13 Million Through Placement of Trust Preferred Securities

[ProAssurance via BizWire]

BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 29, 2004--ProAssurance
Corporation (NYSE:PRA) announced today that it has raised $13 million
through a privately placed offering of trust preferred securities.
The securities will mature in 30 years and will bear a floating
interest rate equal to LIBOR plus 3.85%. The interest rate will be
adjusted quarterly to reflect changes in LIBOR and can rise to no more
than 12.5%. The securities are callable at par by the Company any time
after five years from closing, and do not contain any early redemption
rights for holders of the securities.
The proceeds of the placement will be available for general
corporate purposes. Current plans call for the majority of the funds
to be used to ensure that the Company maintains adequate capital as
its professional liability insurance business grows in 2004.
ProAssurance's Chairman and Chief Executive Officer, A. Derrill Crowe,
M.D., said, "The opportunities we see in our business require that we
have the capital and flexibility to respond quickly. At this time, we
believe this is the most efficient, cost-effective means of acquiring
the amount of capital we need to support our current growth, without
burdening our Company with excess debt. We'll continue to evaluate our
need for additional capital as opportunities unfold during the year."
A wholly-owned, specially-created subsidiary of ProAssurance is
selling trust preferred securities to a pooling and securitization
entity, Dekania CDO II, Ltd., which will place the pooled securities
with institutional investors.

About ProAssurance Corporation

ProAssurance Corporation is a specialty insurer with almost $2.9
billion in assets and more than $740 million in gross written
premiums. As the nation's fourth largest writer of medical
professional liability insurance, ProAssurance's principal
professional liability subsidiaries, The Medical Assurance Company,
Inc., ProNational Insurance Company, and Red Mountain Casualty
Insurance Company, Inc., are recognized leaders in developing
solutions which serve the needs of the evolving health care industry.
ProAssurance is the tenth largest writer of personal auto coverage in
Michigan through its subsidiary, MEEMIC Insurance Company. A.M. Best
assigns a rating of "A-" (Excellent) to ProAssurance and its principal
subsidiaries; Standard & Poor's assigns the Company's principal
professional liability carriers a rating of "A-" ("Strong).

Caution Regarding Forward Looking Statements

This news release contains historical information as well as
forward-looking statements that are based upon ProAssurance's
estimates and anticipation of future events that are subject to
certain risks and uncertainties that could cause actual results to
vary materially from the expected results described in the
forward-looking statements. The words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "preliminary," "project,"
"should," "will," and similar expressions are intended to identify
these forward-looking statements. There are numerous important factors
that could cause actual results to differ materially from those in the
forward-looking statements. Thus, sentences and phrases that convey
the Company's view of future events and trends in the medical
professional liability insurance marketplace are expressly designated
as Forward Looking Statements. The principal risk factors that may
cause actual results to differ materially from those expressed in the
forward-looking statements are described in various documents filed by
ProAssurance Corporation with the Securities and Exchange Commission,
including Form 10K for the year ended December 31, 2003. In view of
the many uncertainties inherent in the forward-looking statements made
in this document, the inclusion of such information should not be
taken as representation by the Company or any other person that
ProAssurance's objectives or plans will be realized. ProAssurance
expressly disclaims any obligation to update or alter its forward
looking statements whether as a result of new information, future
events or otherwise, except as required by law.