You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: In the third quarter, we continued to see improvement in our underlying operations, as the beneficial results from our reunderwriting and restructuring efforts begin to manifest this lower recurring operating expenses and improved loss experience in each of our operating segments.
As onetime incurred charges related to these efforts are put behind us, we anticipate a continued favorable trajectory into the fourth quarter and into 2021.
Aside from our regular operating results, we continue to learn more about the COVID-19 virus as each day passes, and we gain insight into the impact it has on our business and those of our customers.
There is still much to learn about the disease.
While we have seen some favorable claims trends that are likely the result of the pandemic, we've remained cautious in recognizing these trends in our results, given the uncertainty surrounding the length and severity of the pandemics.
Unfortunately, the continued market volatility caused by COVID-19 and sustained depression of our stock price has overshadowed the improvements we've made this year.
I'll let Dana expand on the goodwill impairment charge we announced in yesterday's release, but I want to note that the charge has no effect on our liquidity or our statutory entities and is strictly an accounting transaction.
As I mentioned in yesterday's release, I remain confident that our solid foundation and the strategic initiatives we have undertaken in the past 16 months will reward our customers, shareholders and employees in the quarters and years to come.
I'll start with the goodwill impairment charge recognized in the quarter as it had the largest impact to our net results.
We routinely review our goodwill for potential impairment annually on October 1.
Because of continued market volatility caused by COVID-19 and the sustained depression of our stock price, we performed interim quantitative impairment tests in the third quarter.
More detail is available in our filed Form 10-Q.
But to summarize, we determined that while no impairment was necessary for our workers' compensation or segregated portfolio sale reinsurance reporting units, a full impairment of goodwill was indicated for the specialty P&C reporting unit.
Consequently, we recorded a noncash pre-tax goodwill impairment charge of $161.1 million, which drove a net loss in the third quarter of approximately $150 million, or $2.78 per share.
Importantly, we reported non-GAAP operating income of $2.6 million in the third quarter, or $0.05 per share.
This excludes the effects of certain items, primarily the goodwill impairment and realized investment gains.
This result reflects lower consolidated net premium earned, largely offset by lower current accident year net losses and loss adjustment expenses and lower operating expenses.
Each of these components will be discussed in more detail in the segment-specific portions of our call, but I think it's important to note here that they are all primarily related to the intentional restructuring and reunderwriting efforts completed over the past year.
Consolidated net investment income decreased quarter-over-quarter to $16.9 million.
This was primarily attributable to our lower allocation to equity securities, coupled with lower yields on our short-term investments and corporate debt securities, given actions taken by the Federal Reserve to reduce interest rates in response to COVID-19.
However, we reported $4.9 million in income from our unconsolidated subsidiaries.
We invest in various LPs and LLCs, and the results of those investments are typically reported on a one quarter lag.
Accordingly, the earnings from unconsolidated subsidiaries in the current quarter represents the recovery and value of our LPs and LLCs in the second quarter of 2020.
For the third quarter, our consolidated current accident year net loss ratio was 80.7%, a decrease of 1.6 percentage points quarter-over-quarter as the early results of our strategic underwriting efforts of the past year are beginning to manifest in our specialty P&C business.
The decrease was also driven by continued favorable loss trends in our workers' compensation business.
Each of our segments contributed to the $11.5 million of net favorable development we recognized in the third quarter.
While lower than the year ago period, we want to emphasize that we continue to exercise caution, given the current loss environment.
Our consolidated underwriting expense ratio was 30.5% in the quarter, an increase of 1.8 percentage points from the year-ago period.
The increase is attributable in part to lower earned premiums, but what is most important to know is that expenses in the current quarter included $3.2 million in onetime charges associated with the restructuring that resulted in 78 position elimination through a combination of early retirement, job eliminations, reassignments and promotions that spanned our entire organization.
This restructuring is expected to result in annual savings of approximately $7.4 million in addition to other expense saving initiatives earlier this year.
The takeaway is that we have taken specific and permanent action to improve our underlying expense structure without sacrificing excellence in service.
More details about the restructuring will be provided in Mike's and Kevin's remarks later.
This leads us to a consolidated combined ratio of 105.3% for the third quarter.
In summary, we continue to see incremental improvements in our operating results as the strategic initiatives of the past 16 months gained traction.
We also anticipate expenses will normalize for the remainder of the year, furthering the gains we've seen to date.
Now, I'd like to ask Mike to start our segment-specific portion of the call with the specialty P&C segment.
The specialty P&C segment recorded a third quarter loss of $12.5 million.
Now, while we're not satisfied with the result, it does reflect an improvement from the first and second quarters of 2020.
And there are a number of encouraging aspects of the quarter, which I'll expand upon throughout my comments.
Gross premiums written were $158.3 million, a decrease of 4.1% percent quarter-over-quarter, reflecting our reunderwriting efforts in healthcare professional liability and timing differences in the regular renewal cycle of 24-month policies.
Notably, within our specialty book, we have reduced gross premiums written in our Senior care line by almost 82% quarter-over-quarter.
Further, the timing differences related to the 24-month policies in our standard physician line contributed $3.9 million to the reduction.
We have begun the process of converting all 24-month policies to 12-month policies, which we anticipate will be completed early in the second quarter of 2021.
As we've discussed in recent quarters, the reunderwriting efforts began in the third quarter last year following the new executive hires in our healthcare professional liability underwriting operation during the previous quarter.
As of the end of the third quarter 2020, these targeted reunderwriting efforts in our HCPL business are substantially complete.
We expect to benefit from the reunderwriting efforts in future quarters.
We continue to focus on underwriting discipline and achievement of our long-term profit objectives, shrinking the segment's top line, if necessary, to improve our bottom line.
In relation to these strategic underwriting efforts, premium retention in the segment was 81% for the quarter, driven largely by a 55% retention in our specialty lines primarily related to the Senior care line of business and includes a nonrenewal of a $5.6 million policy in that line during the quarter.
In our Standard Physician line, retention was 85%, lower by two percentage points quarter-over-quarter, reflecting our state-specific pricing adjustments in challenging venues and competitive market conditions.
However, we continue to deliver strong premium retention results in our medical technology liability business and small business units, which were 85% and 92%, respectively.
The segment's lower premium retention was largely offset by renewal premium increases of 14% in specialty and 10% in Standard Physician.
In addition to the rate increases in specialty, we have also significantly strengthened rate adequacy through our improvement of product structure, terms and conditions.
New business writings in the segment were $8.7 million in the quarter compared to $9 million a year ago.
This result reflects careful risk selection, disciplined underwriting evaluation; and, to a lesser degree, the impact of slower submission activity due to market disruptions from COVID-19.
New business writings in our medical technology liability business increased to $2 million compared to $1.3 million in the third quarter last year as demand for pandemic-related products in the medical technology space continues to rise.
The current accident year net loss ratio was 89.8% in the quarter, a 4.7 percentage point improvement from the year-ago period, attributable to underwriting efforts and price strengthening.
Furthermore, the current accident year net loss ratio for the first nine months of 2020, excluding the large national healthcare account tail policy and the $10 million COVID reserve, is approximately 6.5 percentage points lower than the full-year ratio for 2019.
In the quarter, we continued to observe a significant reduction in our claims frequency as compared to the same quarter in 2019, likely associated with COVID-19.
However, we remain cautious in recognizing these favorable frequency trends in our current accident year reserves due to the possibility of delays in reporting and uncertainty surrounding the length and severity of the pandemic.
We have not booked any additional IBNR reserves related to the pandemic during the quarter after carefully reviewing virus-related claim activity.
Despite the current loss environment, we recognized net favorable prior-year development of $2.9 million, of which $2.5 million is attributable to our medical technology liability line.
As previously stated, we remain conservative in our views of prior-year loss development as a result of the current loss environment.
The specialty P&C segment reported an expense ratio of 23.8% in the quarter, essentially flat from the same quarter last year.
The expense ratio reflects improvements in our expense model made during the past year, offset by related onetime restructuring expenses of $1.8 million and lower net earned premium.
This restructuring is expected to result in annual savings of $3.6 million in addition to other expense savings measures we've disclosed previously.
As a result of our prior organizational structure enhancements, restructuring field offices and staff reductions, we anticipate quarterly run rate expense savings of $3 million in the segment, or $12 million annually.
We continue to build an operating model that positions us well to be successful throughout the various insurance and economic cycles.
I'll conclude with a brief update on the NORCAL transaction.
We continue to proceed through the regulatory and integration planning process.
However, once we receive preliminary regulatory approval of NORCAL's proposed plan of conversion, there will be a 60- to 90-day solicitation period before the deal can close, and we anticipate the deal will close in the first quarter of 2021.
The NORCAL group, its employees, agents and customers represent an exciting expansion in the standard physician marketplace.
Upon completion of the transaction, approximately 75% of our healthcare professional liability business will be written in the Standard Physician's line, a marketplace in which we have deep expertise and a successful history of profitability.
We remain excited about the combination of the companies and our future together, and we'll continue to work together with the NORCAL team to complete this transaction.
The workers' compensation insurance segment produced income of $1.5 million and a combined ratio of 97.4% for the third quarter of 2020.
During the quarter, the segment booked $63 million of gross premiums written, a decrease of 10% quarter-over-quarter.
Renewal price decreases were 3% for the quarter, representative of the continued competitive pressures in our underwriting territories despite COVID-19 and the associated economic conditions.
Premium renewal retention was 86% for the 2020 quarter compared to 84% in 2019 as we continued to see stronger premium retention each month during the pandemic.
New business writings decreased quarter-over-quarter to $7.4 million in 2020 compared to $11.3 million in 2019.
Audit premium for the third quarter of 2020 resulted in return premium to policyholders of $1.6 million compared to additional premium to the company of $1.8 million for 2019, a quarter-over-quarter decrease attributable to the economic impact of COVID-19 on policyholder payrolls.
We continue to expect downward pressure in future quarters on direct and net written premium resulting from changes in payroll estimates.
The calendar year net loss ratio decreased 3.2 percentage points to 62.2% in the third quarter due to a decrease in the current accident year loss ratio and higher prior-year net favorable reserve development of $2 million in 2020 compared to $1.4 million in 2019.
The reduction in the 2020 accident year loss ratio from 70.4% at June 30, 2020 to 69.2% at September 30, 2020 was driven by our recognition of favorable claim trends in the 2020 accident year, which I'll describe in more detail momentarily.
As this reduction was fully recognized in the current quarter, the result is a third quarter current accident year loss ratio of 66.9%.
The 2020 accident year loss ratio of 69.2% at September compares to 68.2% for the same period in 2019 and reflects the impact of renewal rate decreases and negative audit premium, partially offset by the favorable claim trends in 2020.
We've seen a 36.5% decrease in reported claim frequency during the pandemic with only $1.3 million of gross undeveloped incurred losses from the currently reported 447 COVID claims.
However, management remains cautious in its evaluation of the 2020 accident year loss ratio, considering the many uncertainties surrounding the pandemic.
Our claims professionals remain highly effective while working remotely, closing 47% of 2019 and prior claims during 2020, consistent with historical claim closing rates.
Legislative attempts to broaden coverage for workers' compensation claims seem to have lost traction in certain states as their economies attempt to remain open and legislators focused on elections recently.
We can only conjecture that a second wave, or the continuation of increased reported cases, may revive efforts in this regard.
Turning now to expenses.
The underwriting expense ratio in the quarter was 35.2% compared to 30.1% in 2019, reflecting the decrease in net premiums earned and a onetime severance charge of $923,000 related to our restructuring, which I will describe in more detail shortly.
Underwriting and operating expenses were $15 million for the third quarter of 2020, essentially flat from 2019 despite the included severance charge.
Turning to the Segregated Portfolio Cell Reinsurance segment, income was approximately $1.2 million for the quarter, which represents our share of the net underwriting profit and investment results of the captive programs in which we participate.
Premium and loss trends in the SPC Reinsurance segment were consistent with those in workers' compensation.
We renewed all the alternative market programs available for renewal during the current quarter and year-to-date.
I will wrap up by discussing recent restructuring initiatives in our workers' compensation business.
COVID-19 continues to present challenges for all in the insurance marketplace.
Policyholders, agency partners and insurance carriers are conducting business in ways previously unimaginable, and in some cases representing a new normal.
Given these challenges, we have used the past seven months to thoroughly review the impacts of COVID and the external environment on our business, agency partners' operations, and valued customer base, with the ultimate goal of enhancing our service platform to meet the ever-changing needs of the marketplace and those presented most recently.
Our detailed strategic review led us to make permanent organizational adjustments to our business model.
We believe these structural enhancements will allow us to grow our business profitably while strengthening our industry-leading products and services.
These changes include repositioning from five regions to three for more effective and efficient management of the underwriting, risk management and claims processes, improving the consistent application of our business model while maintaining our local service teams.
We integrated small business and underwriting support functions into one unit for each with dedicated leadership, which will allow us better turnaround time on policy submissions while continuing our individual account underwriting philosophy that has been a resounding part of our success in workers' compensation.
Lastly, we realigned our previously stand-alone captive team into our regional structure to improve accountability, and we streamlined our marketing operations to extend more agency management responsibilities to the decision-makers in the underwriting process.
These changes resulted in some early retirements, job eliminations, reassignment and promotions.
Striving for continuous improvement and proactive enhancements to business models are imperative as circumstances, economic trends and changing insurance markets present themselves; and importantly, before the full operational and financial impacts are realized.
Consistent with our history of evolving to meet the demands of the changing environments in which we operate, these structural enhancements will strengthen our workers' compensation business further and were applauded by our agency partners and customers.
The restructuring implementation commenced September one and is expected to result in an annual savings of approximately $3 million in addition to other expense management measures.
Ned, before we get to your closing comments, I'd like to turn to the Lloyd's Syndicate segment for a moment.
Is there anything you want to tell us about the results from London?
And yes, there were several notable changes to our results at Lloyd's from the prior year quarter.
First, our results in the quarter were income of $3.7 million, one of the best quarters we've had since we invested in the syndicates.
Our combined ratio improved 10.5 percentage points to 89.6%, as both net losses and underwriting expenses were reduced by over 20%.
In addition, as a result of our reduced participation, in the third quarter we received a return of approximately $32 million from our funds at Lloyd's.
Lastly, Syndicate 6131 entered into a quota share reinsurance arrangement with an unaffiliated insurer, effectively reducing our net participation in the syndicate by half.
The agreement is effective July 1, 2020, so it will not be reflected in our results until the fourth quarter of 2020 due to the quarter lag.
We continue to work closely with Dale Underwriting Partners to monitor the global legislative situation pertaining to COVID.
Speaking of loss estimates, given the number of natural catastrophes that occurred during the quarter, I want to note that, to date, our exposure to these events has been within our cat expectations for the fourth quarter.
Before we open the call to questions, I want to reiterate that the changes we've implemented in the quarter and over the past 16 months have been important.
The changes are focused on both achieving our long-term profitability goals and enhancing the excellent products and services we provide to our customers.
As a company, we have always operated with the understanding that the long cycles inherent in our industry will challenge us in troughs and reward us in peaks.
Our role as a specialist is to be the absolute best possible choice for our customers regardless of the stage of the cycle in which we find ourselves.
To that end, I want to quantify our actions taken to date.
You heard in Dana's remarks and throughout the call about our initiatives in each of our segments and related onetime charges, but I think it would be helpful to consolidate that information for the big picture.
As a result of our strategic initiatives in 2020, we anticipate $17 million in annual expense savings.
This is on top of initiatives taken in 2019 that reduced annual costs by $5 million.
This brings us to estimated cumulative annual cost reductions of approximately $22 million since this leadership team was put in place over 16 months ago, which includes an overall reduction in our workforce of approximately 13%.
Thus far in 2020, we've recognized a little over $5 million in onetime charges primarily related to early retirements and job eliminations.
These changes, though painful, are necessary as we create the next iteration of ProAssurance and position the company for success.
As we head into the final quarter of 2020, I look forward to an exciting 2021.

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q3 non-gaap operating earnings per share $0.05.
q3 loss per share $2.78.

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