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: There have been countless attempts to summarize all that was 2020 and I won't add to those efforts here.
Suffice it to say, 2020 was a year we are all glad to put behind us.
However, it was not one we should hurry to forget.
For all the challenges 2020 brought, it ought to be defined instead by our response to those challenges and our determination in taking the steps needed to accomplish our objectives.
The organizational and strategic changes we have made, beginning in 2019 and throughout 2020, we've had a meaningful impact on our operations, and-or having a positive effect on our performance.
You'll hear some of the details of those improvements momentarily.
And one obvious impact of those efforts has been to our top line.
Our topline contracted in 2020 as we took a hard look at some of the businesses we'd written in recent years.
However, this does not mean we don't intend to grow.
We do intend to grow.
We just want to make sure we're doing it profitably.
The recent dip in our top line is a result of that strategy.
Though the loss environment is challenging at this stage of the cycle, we're not hunkering down to weather the storm, rather we are taking a moment to consult the map before moving through it.
For the fourth quarter, we reported non-GAAP operating income of $3.3 million or $0.06 per share.
This reflects higher equity in earnings of unconsolidated subsidiaries and the meaningful quarter-over-quarter improvement in our underwriting results.
While we have more to do before we say we're satisfied with our results, this quarter served as evidence that the changes we've made over the past year and a half are having a strong beneficial impact to our operating performance.
For the full year, we reported a non-GAAP operating loss of $27.7 million, attributable to the pre-tax net underwriting loss of $45.7 million, associated with the tail policy issued to a large national healthcare account and a pre-tax $10 million IBNR reserve related to the pandemic, both of which were recorded in the second quarter.
For the fourth quarter, our consolidated net loss ratio was 74.9%, a significant quarter over quarter decrease primarily due to the effects of the large national healthcare account in the year ago quarter.
But most importantly, also reflected our reunderwriting and rate strengthening efforts over the last 12 months.
For the year, the net loss ratio was 83.4%, a 5.6 percentage point decrease primarily due to favorable reserve development and a reduction to the current accident year net loss ratio, driven by improvements made in our Specialty P&C segment.
However, this improvement was largely masked by the second quarter tail policy and pandemic IBNR reserve.
Our consolidated underwriting expense ratios for the quarter and for the year of 30.9% and 30% respectively were relatively unaffected by our contracting topline revenue from our reunderwriting efforts, which demonstrates that the strategic initiatives to improve our underlying expense structure have taken hold.
For the year, the expense ratio, also reflected one-time expenses related to restructuring, as well as transaction related costs associated with our planned acquisition of NORCAL, partially offset by reduced travel related expenses due to the pandemic.
From an investment perspective, our consolidated net investment result increased quarter-over-quarter to $26.3 million, driven by $10.1 million of income from our unconsolidated subsidiaries.
We invest in various LPs and LLCs and the results of those investments are typically reported to us on a 1/4 lag, accordingly, the earnings from unconsolidated subsidiaries in the current quarter represent the recovery in value of our LPs and LLCs in the third quarter.
Consolidated net investment income was $16.1 million in the quarter, down from the year ago period primarily due to a decrease in our allocation to equities and lower yields from our short-term investments and corporate debt securities, given the actions taken by the Federal Reserve to reduce interest rates in response to COVID-19.
Net investment income was also lower for the year due to these same factors.
The Specialty Property & Casualty segment continues to execute a comprehensive business strategy to address our operating and underwriting results.
Although we recorded an underwriting loss in the quarter and year, we continue to be encouraged with the improvement in both the expense and net loss ratios, exclusive of the underwriting loss associated with the large national healthcare account in both 2019 and 2020.
As a result of the aggressive restructuring reunderwriting and expense reductions executed throughout 2019 and 2020, we are confident that we have established a strong foundation for the future and positive momentum.
As expected, gross premiums written contracted in the quarter and full-year, reflecting our reunderwriting and rate strengthening efforts in the competitive environment across our operating territories.
However, our gross premiums written were relatively consistent year-over-year in our Medical Technology Liability business.
In addition, gross premiums written in the quarter reflected renewal timing differences of $4.6 million dollars in our Specialty business, and the non-renewal of a $2.8 million dollar policy in our Standard Physicians business.
We will continue to focus on underwriting discipline and achievement of our long-term profit objectives, managing the segment's topline is necessary to improve our bottom line.
Premium retention improved to percent quarter-over-quarter, driven largely by improvement in our specialty business.
Retention for the full year was 79% and reflects the reunderwriting in specialty and rate strengthening efforts and standard positions over the past 12 months.
Premium retention results in our Small Business Unit and Medical Technology Liability business were relatively consistent with historical trends.
In addition to higher premium retention in the quarter, we achieved renewal price increases of 8% in the segment, driven by price increases in both our Standard Physician and Specialty business of 10%.
For the full year, we achieved renewal price increases of 9% attributable to increases in the Specialty and Standard Physicians business of 15% and 11% respectively.
In addition to the pricing increases in specialty, we also significantly strengthened rate adequacy through our improvement of product structure terms and conditions.
New business writings were $5.3 million in the quarter compared to 4.6 million in the fourth quarter of 2019, driven by our Medical Technology Liability business.
Year-end new business writings were $23 million, compared to $43 million in 2019 which reflects careful risk selection, disciplined underwriting evaluation, and the impact of slower submission activity due to market disruptions from the pandemic.
The current accident year net loss ratio decreased 6.3 percentage points year-over-year, exclusive of the impact of the large national healthcare account in 2019 and 2020 and posting of the COVID IBNR reserve in the second quarter.
This decrease primarily reflects the improvement from our reunderwriting efforts that began in the third quarter of 2019.
Both in the quarter and full year, we continued to observe a significant reduction in our claims frequency as compared to the same periods of 2019, some of which is likely associated with the pandemic.
We have remained cautious in recognizing these favorable frequency trends in our current accident year loss pick due to the long tail nature of our lines of business and the uncertainty brought on by COVID-19.
Just a brief update on COVID-19 business impact during the year.
We established a pre-tax $10 million IBNR reserve in the second quarter related to reported incidents.
As of year-end 2020, we have not seen the emergence of additional suits from the incidents reported.
Five suits have been filed as of year-end 2020.
Therefore, after careful review of the pandemic related claim activity, no additional IBNR reserves been booked since the second quarter.
There have been minimal changes in premium deferrals or discounts since the third quarter.
Despite the challenges of the current loss environment, we recognized net favorable development of $6.8 million and $27.5 million in the fourth quarter and full year respectively.
This result is a significant improvement from the comparable periods of 2019.
The Specialty Property & Casualty segment reported expense ratios of 23.8% and 23% in the fourth quarter and full year respectively.
Incremental improvements of 1.4 and 1.1 percentage points as compared to the same periods of 2019.
This result was achieved despite lower net earned premiums and $4 million of one-time charges during the year related to restructuring.
As a result of organizational structure enhancements, office consolidations and reductions in staff, we achieved expense savings of approximately $12 million in 2020.
The current reinsurance market continues to firm as a result of social inflation and severity claim trends, via successful October renewal of our reinsurance treaty and mitigated potential significant cost increases by increasing our retention from $1 million to $2 million for -- [Technical Issues] liability and Medical Technology Liability businesses.
I'll conclude with a brief update on the NORCAL transaction.
As disclosed in our release, last week the California Department of Insurance completed its review of NORCAL conversion documents.
And NORCAL will now begin soliciting policyholders to vote on the plan to convert from a mutual company to a stock company.
As part of their process, policyholders will have the option to take their ownership share of the company in the form of NORCAL stock which ProAssurance will offer to buy through our tender offer.
We expect materials to be mailed to eligible policyholders by the end of February.
This is an important step toward closing the transaction, which remains subject to a number of prerequisites as detailed in our prior disclosures.
Assuming all of these prerequisites are met, we now expect to close the transaction in the second quarter of 2021.
We remain excited about the combination of the companies and the strategic value presented by this transaction and are excited to work with NORCAL toward the next phase of this process.
We look forward to continued progress on our business plan in 2021.
Congratulations to you and your team for getting us this far in the process.
Now, I'd like to pivot to the results from the Workers' Compensation Insurance and Segregated Portfolio Cell Reinsurance segments.
Kevin, what can you tell us about the quarter and year?
The Workers' Compensation Insurance segment produced income of $6 million and a combined ratio of 97.8% for 2020, including income of $2.1 million and a combined ratio of 96.3% for the fourth quarter.
During the quarter and full year, the segment booked $47 million and $247 million of gross premiums written respectively, representing decreases of 13.6% and 11.4% compared to the same periods in 2019.
Renewal pricing in 2020 decreased 4% for both the quarter and full-year, reflecting the continued competitive pressures in our underwriting territories despite COVID-19 and the associated economic conditions.
Premium renewal retention was 82% for the 2020 quarter and 84% for the year, both improvements compared to 76% and 83% for the same periods in 2019.
As we continue to see stronger premium retention and lower new business during the pandemic.
New business writings decreased quarter over quarter to point $4.4 million dollars in 2020, compared to $5.5 million in 2019.
And for the full year were $27.4 million in 2020 compared to $30.8 million in 2019.
Audit premium for the fourth quarter of 2020 resulted in additional premium to the company of approximately $700,000 compared to $2.2 million for 2019, and for the year, was additional premium of $700,000 compared to $5.7 million in 2019.
The decreases in audit premium reflects the economic impact of COVID-19 on policyholder payrolls.
We continue to expect downward pressure in future quarters on premium resulting from changes in payroll estimates.
The calendar year net loss ratio increased in both the fourth quarter and for the year, reflecting the continuation of soft market conditions and workers' compensation and resulting renewal rate decreases, and additionally, the reduction in audit premium and lower net favorable reserve development, partially offset by favorable 2020 accident year claim results.
The 2020 accident year loss ratio was 69% for the year, compared to 68.4% in 2019.
Net favorable loss reserve development for the quarter was $2 million in 2020 compared to $4.4 million dollars in 2019, and for the full year was $7 million versus $7.8 million in 2019.
We continue to reserve for all claims as if injured workers were receiving medical treatment as they would have prior to the pandemic.
Reported claim frequency for non-COVID claims decreased 35% during the pandemic, with only $2.2 million of gross undeveloped incurred losses at the end of 2020 from the currently reported 1,375 COVID claims.
Further, through the end of January 2021, we closed 87% of the 2020 reported COVID claims received to date, indicative of the shorter tailed nature of workers' compensation insurance compared to healthcare professional liability.
However, management remains cautious in it's evaluation of the 2020 accident year loss ratio considering the many uncertainties surrounding the pandemic.
Our claims professionals' continue to function effectively while working remotely, closing 61% of 2019 and prior claims during 2020, consistent with historical claim closing rates.
Many legislative enactment or proposals to broaden coverage for workers' compensation claims, expired at December 31.
However, new legislative sessions that commenced in January may revive efforts in this regard.
Turning to expenses, the underwriting expense ratio in the quarter was 32.7% compared to 29.8% in 2019 reflecting the decrease in net premiums earned.
The underwriting expense ratio decreased 2.5 percentage points from the third quarter of 2020 due to our restructuring efforts discussed on our November earnings call, and to a lesser extent, the associated one-time expense of $900,000 included in the third quarter.
For the 2020 year, the expense ratio was 32.9% compared to 30.4% in 2019.
Turning now to the Segregated Portfolio Cell Reinsurance segment, we reported income of $1.6 million for the quarter and$4.4 million dollars for all of 2020.
Premium trends in the SPC Reinsurance segment were largely consistent with those in the Workers' Compensation Insurance segment.
We renewed all of the alternative market programs that were available for renewal during the current quarter and for the year and wrote one new program in 2020.
The SPC resegment recorded favorable development of $9 million in the fourth quarter of 2020 compared to $2.3 million in 2019, and for the full year was $16.6 million dollars versus $10.1 million in 2019.
As of December 31, 2020, we had 1,090 reported COVID claims for this segment with $1 million of gross undeveloped incurred losses.
Turning to our Lloyd's Syndicates segment now, I would like to ask Ned to take us through the results from the Syndicates and some of the developments in the quarter.
As expected, we saw a natural catastrophe losses in the fourth quarter related to hurricanes Laura and Sally and the wind storms that swept through the Midwest in August.
Our participation in the results of Syndicate 1729 and 6131 let us to record a loss of just under $1 million in the quarter.
The fourth quarter loss, combined with our reduce participation in Syndicate 1729 for the 2020 underwriting year, contributed to overall lower income of approximately $2.1 million for the year.
Losses on these storms and other natural catastrophes in the last three months of 2020 lead us to expect the segment loss in our first quarter of approximately $2.5 million.
Regarding the developments Ken mentioned, It's been a year of change for us at Lloyd's and the fourth quarter proved to be no exception.
For the 2021 underwriting year, we have further reduced our participation in Syndicate 1729 from 29% to 5%.
Additionally, we reduced our participation in Syndicate 6131 from 100% to 50% for the 2021 underwriting year.
Due to the quarter lag, these changes will be reflected in our results beginning in the second quarter of 2021.
Our decision to further reduce our participation in the syndicates is driven by our desire to support and grow our core insurance operations, and to reduce volatility in our underlying performance.
Duncan Dale, and his team at Dale Underwriting Partners have been and will continue to be valued partners to ProAssurance.
And it is a testament to the quality of their work that the syndicates were able to secure participating capital to replace our own without difficulty.
Before we open the call to questions, I'll note that the meaningful improvements we've made in the past 12 months go a long way toward our goals of operational excellence and sustainable profitability.

user
q4 non-gaap operating earnings per share $0.06.

assistant