PMA CAPITAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - PMA CAPITAL CORPORATION FORM 8-K - PMA CAPITAL CORP	pma8k.htm
EX-99.1 - EXHIBIT 99.1 - PMA CAPITAL CORP	ex99-1.htm

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Third Quarter - 2009

Table of Contents
	Page
Consolidated Highlights:
Selected Financial Data - Third Quarter		1
Selected Financial Data - Year-to-date		2
Consolidated Statements of Operations - Per Share Data		3
Consolidated Statements of Operations - Third Quarter		5
Consolidated Statements of Operations - Year-to-date		6
Consolidated Balance Sheets		7
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Fronting Arrangements;
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group		8
Invested Assets and Net Investment Income; Debt		9

Segment Information:
Statements of Operations - Consolidating - Year-to-date		11 - 12
Statements of Operations - Consolidating - Third Quarter		13 - 14
Statements of Operations - PMA Insurance Group		15
Insurance Ratios - PMA Insurance Group		16
Components of Direct Premiums Written - PMA Insurance Group		17
Statements of Operations - Fee-based Business		18
Statements of Operations - Corporate & Other		19
Statements of Operations - Discontinued Operations		20

Operating Cash Flow Information:
Operating Cash Flows - Consolidated		21
Operating Cash Flows - PMA Insurance Group		22
Operating Cash Flows - Fee-based Business		23

Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool		24

Other Information:
Industry Ratings and Market Information		25

Legend:
NM - Not Meaningful

Operating income, which we define as GAAP net income (loss) excluding net realized investment gains and losses and the results from discontinued operations, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our businesses. Net realized investment activity is excluded because (i) net realized investment gains and losses are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments and (ii) in many instances, decisions to buy and sell securities are made at the holding company level, and such decisions result in net realized gains and losses that do not relate to the operations of the individual segments. Operating income does not replace net income (loss) as the GAAP measure of our consolidated results of operations. See pages 1 and 2 for reconciliations of operating results by segment to GAAP net income (loss).

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)

	3rd			4th			1st			2nd			3rd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			3rd
	2008			2008			2009			2009			2009			Quarter

Direct Premiums Written	$	148,193		$	129,713		$	161,965		$	108,994		$	161,965			9.3	%

Net Premiums Written	$	123,995		$	97,313		$	117,978		$	80,302		$	119,259			-3.8	%

Revenues:
Net premiums earned	$	97,974		$	103,727		$	104,930		$	106,949		$	102,428			4.5	%
Claims service revenues		15,696			16,785			15,684			16,835			17,112			9.0	%
Commission income		2,637			2,835			3,463			2,117			2,747			4.2	%
Net investment income		8,870			8,724			8,457			9,561			9,522			7.4	%
Net realized investment gains (losses)		(7,929	)		259			749			(472	)		795		NM
Other revenues		125			356			176			190			259		NM
Total revenues	$	117,373		$	132,686		$	133,459		$	135,180		$	132,863			13.2	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	13,325		$	8,428		$	15,187		$	9,965		$	13,616			2.2	%
Fee-based Business		1,929			1,889			2,013			1,525			1,574			-18.4	%
Corporate & Other		(5,319	)		(4,897	)		(5,000	)		(5,167	)		(4,768	)		10.4	%
Pre-tax operating income		9,935			5,420			12,200			6,323			10,422			4.9	%
Income tax expense		3,530			1,854			4,384			2,249			3,690			4.5	%
After-tax operating income		6,405			3,566			7,816			4,074			6,732			5.1	%
Net realized investment gains (losses) after tax		(5,154	)		168			487			(307	)		517		NM
Income from continuing operations		1,251			3,734			8,303			3,767			7,249		NM
Loss from discontinued operations after tax		(2,310	)		(7,840	)		(86	)		(1,165	)		(40	)		98.3	%
Net income (loss)	$	(1,059	)	$	(4,106	)	$	8,217		$	2,602		$	7,209		NM

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.20		$	0.11		$	0.24		$	0.13		$	0.21			5.0	%
Realized gains (losses) after tax		(0.16	)		0.01			0.02			(0.01	)		0.01		NM
Income from continuing operations		0.04			0.12			0.26			0.12			0.22		NM
Loss from discontinued operations after tax		(0.07	)		(0.25	)		-			(0.04	)		-		NM
Net income (loss)	$	(0.03	)	$	(0.13	)	$	0.26		$	0.08		$	0.22		NM

Capitalization:
Debt	$	129,380		$	129,380		$	129,380		$	129,380		$	129,380			0.0	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		380,107			365,547			374,007			377,505			384,958			1.3	%
Total capitalization excluding FAS 115 unrealized gain (loss)		509,487			494,927			503,387			506,885			514,338			1.0	%
FAS 115 unrealized gain (loss)		(22,113	)		(20,891	)		(22,737	)		(8,507	)		14,214		NM
Total capitalization including FAS 115 unrealized gain (loss)	$	487,374		$	474,036		$	480,650		$	498,378		$	528,552			8.4	%

Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	11.89		$	11.44		$	11.61		$	11.71		$	11.94			0.4	%
Including FAS 115 unrealized gain (loss)	$	11.20		$	10.78		$	10.91		$	11.45		$	12.38			10.5	%

Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		25.4	%		26.1	%		25.7	%		25.5	%		25.2	%		-0.8	%
Including FAS 115 unrealized gain (loss)		26.5	%		27.3	%		26.9	%		26.0	%		24.5	%		-7.5	%

Interest Coverage:
Income from continuing operations before interest
and income taxes to interest expense		1.73			3.12			6.17			3.36			5.63		NM

Operating income from continuing operations before
interest and income taxes to interest expense		4.63			3.03			5.87			3.55			5.30			14.5	%

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)

	Nine			Nine			% Change
	Months			Months			Nine
	2009			2008			Months

Direct Premiums Written	$	432,924		$	387,716			11.7	%

Net Premiums Written	$	317,539		$	316,924			0.2	%

Revenues:
Net premiums earned	$	314,307		$	286,490			9.7	%
Claims service revenues		49,631			40,585			22.3	%
Commission income		8,327			9,549			-12.8	%
Net investment income		27,540			27,345			0.7	%
Net realized investment gains (losses)		1,072			(4,983	)	NM
Other revenues		625			2,485			-74.8	%
Total revenues	$	401,502		$	361,471			11.1	%

Major Components of Net Income:
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	38,768		$	38,285			1.3	%
Fee-based Business		5,112			5,316			-3.8	%
Corporate & Other		(14,935	)		(15,754	)		5.2	%
Pre-tax operating income		28,945			27,847			3.9	%
Income tax expense		10,323			9,876			4.5	%
After-tax operating income		18,622			17,971			3.6	%
Net realized investment gains (losses) after tax		697			(3,239	)	NM
Income from continuing operations		19,319			14,732			31.1	%
Loss from discontinued operations after tax		(1,291	)		(4,937	)		73.9	%
Net income	$	18,028		$	9,795			84.1	%

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.58		$	0.56			3.6	%
Realized gains (losses) after tax		0.02			(0.10	)	NM
Income from continuing operations		0.60			0.46			30.4	%
Loss from discontinued operations after tax		(0.04	)		(0.15	)		73.3	%
Net income	$	0.56		$	0.31			80.6	%

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

	3rd			4th			1st		2nd			3rd		Nine			Nine
	Quarter			Quarter			Quarter		Quarter			Quarter		Months			Months
	2008			2008			2009		2009			2009		2009			2008

Diluted Earnings (Loss) Per Share:

Pre-tax operating income	$	0.31		$	0.17		$	0.38	$	0.20		$	0.32	$	0.90		$	0.87

After-tax operating income	$	0.20		$	0.11		$	0.24	$	0.13		$	0.21	$	0.58		$	0.56

Income from continuing operations	$	0.04		$	0.12		$	0.26	$	0.12		$	0.22	$	0.60		$	0.46

Loss from discontinued operations after tax		(0.07	)		(0.25	)		-		(0.04	)		-		(0.04	)		(0.15	)

Net income (loss)	$	(0.03	)	$	(0.13	)	$	0.26	$	0.08		$	0.22	$	0.56		$	0.31

Diluted weighted average common
shares outstanding		32,200,554			31,968,555			32,020,346		32,231,391			32,244,469		32,166,223			32,102,465


Dividends declared:
Class A Common Stock	$	-		$	-		$	-	$	-		$	-	$	-		$	-

Actual common shares issued
and outstanding		31,965,806			31,965,806			32,211,133		32,238,944			32,241,620		32,241,620			31,965,806


Class A Common Stock prices:
High	$	12.00		$	9.47		$	7.20	$	5.35		$	6.33	$	7.20		$	12.00
Low	$	8.00		$	3.46		$	3.50	$	3.70		$	4.27	$	3.50		$	7.45
Close	$	8.82		$	7.08		$	4.17	$	4.55		$	5.69	$	5.69		$	8.82














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PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			3rd
	2008			2008			2009			2009			2009			Quarter

Gross Premiums Written	$	151,498		$	132,217		$	164,070		$	113,424		$	164,339			8.5	%

Net Premiums Written	$	123,995		$	97,313		$	117,978		$	80,302		$	119,259			-3.8	%

Revenues:
Net premiums earned	$	97,974		$	103,727		$	104,930		$	106,949		$	102,428			4.5	%
Claims service revenues		15,696			16,785			15,684			16,835			17,112			9.0	%
Commission income		2,637			2,835			3,463			2,117			2,747			4.2	%
Net investment income		8,870			8,724			8,457			9,561			9,522			7.4	%
Net realized investment gains (losses)		(7,929	)		259			749			(472	)		795		NM
Other revenues		125			356			176			190			259		NM
Total revenues		117,373			132,686			133,459			135,180			132,863			13.2	%

Expenses:
Losses and loss adjustment expenses		68,660			70,671			75,775			73,494			70,158			2.2	%
Acquisition expenses		15,898			16,521			17,198			19,508			16,046			0.9	%
Operating expenses		26,906			34,379			24,385			31,540			30,235			12.4	%
Dividends to policyholders		1,169			2,762			646			2,311			2,786		NM
Interest expense		2,734			2,674			2,506			2,476			2,421			-11.4	%
Total losses and expenses		115,367			127,007			120,510			129,329			121,646			5.4	%

Pre-tax income		2,006			5,679			12,949			5,851			11,217		NM

Income tax expense (benefit):
Current		765			(211	)		244			265			220			-71.2	%
Deferred		(10	)		2,156			4,402			1,819			3,748		NM

Total income tax expense		755			1,945			4,646			2,084			3,968		NM

Income from continuing operations		1,251			3,734			8,303			3,767			7,249		NM

Loss from discontinued operations after tax		(2,310	)		(7,840	)		(86	)		(1,165	)		(40	)		98.3	%

Net income (loss)	$	(1,059	)	$	(4,106	)	$	8,217		$	2,602		$	7,209		NM

Pre-tax operating income from continuing operations	$	9,935		$	5,420		$	12,200		$	6,323		$	10,422			4.9	%

After-tax operating income from continuing operations	$	6,405		$	3,566		$	7,816		$	4,074		$	6,732			5.1	%

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)

	Nine			Nine			% Change
	Months			Months			Nine
	2009			2008			Months

Gross Premiums Written	$	441,833		$	396,698			11.4	%

Net Premiums Written	$	317,539		$	316,924			0.2	%

Revenues:
Net premiums earned	$	314,307		$	286,490			9.7	%
Claims service revenues		49,631			40,585			22.3	%
Commission income		8,327			9,549			-12.8	%
Net investment income		27,540			27,345			0.7	%
Net realized investment gains (losses)		1,072			(4,983	)	NM
Other revenues		625			2,485			-74.8	%
Total revenues		401,502			361,471			11.1	%

Expenses:
Losses and loss adjustment expenses		219,427			200,154			9.6	%
Acquisition expenses		52,752			50,114			5.3	%
Operating expenses		86,160			76,586			12.5	%
Dividends to policyholders		5,743			3,544			62.0	%
Interest expense		7,403			8,209			-9.8	%
Total losses and expenses		371,485			338,607			9.7	%

Pre-tax income		30,017			22,864			31.3	%

Income tax expense:
Current		729			916			-20.4	%
Deferred		9,969			7,216			38.2	%

Total income tax expense		10,698			8,132			31.6	%

Income from continuing operations		19,319			14,732			31.1	%

Loss from discontinued operations after tax		(1,291	)		(4,937	)		73.9	%

Net income	$	18,028		$	9,795			84.1	%

Pre-tax operating income from continuing operations	$	28,945		$	27,847			3.9	%

After-tax operating income from continuing operations	$	18,622		$	17,971			3.6	%

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2008			2009			2009			2009

Assets:
Investments in fixed maturities available for sale	$	701,738		$	719,048		$	714,202		$	737,606		$	817,089
Short-term investments		89,766			45,066			58,273			38,103			62,004
Other investments		8,247			8,127			13,832			21,073			22,669
Total investments		799,751			772,241			786,307			796,782			901,762

Cash		12,502			10,501			11,767			10,163			13,887
Accrued investment income		6,104			6,513			6,500			7,221			6,918
Premiums receivable		226,709			235,893			257,380			236,663			246,871
Reinsurance receivables		824,512			826,126			830,962			855,161			807,245
Prepaid reinsurance premiums		23,051			29,579			41,314			37,271			40,883
Deferred income taxes, net		131,132			138,514			135,496			126,397			110,358
Deferred acquisition costs		43,317			40,938			44,857			39,364			42,583
Funds held by reinsureds		49,292			51,754			54,166			54,312			56,623
Intangible assets		30,518			30,348			29,668			30,165			29,961
Other assets		142,672			116,646			119,361			123,460			126,015
Assets of discontinued operations		309,607			243,663			235,265			208,272			192,431
Total assets	$	2,599,167		$	2,502,716		$	2,553,043		$	2,525,231		$	2,575,537

Liabilities:
Unpaid losses and loss adjustment expenses	$	1,247,069		$	1,242,258		$	1,256,435		$	1,271,089		$	1,259,940
Unearned premiums		247,302			247,415			272,200			241,508			261,952
Debt		129,380			129,380			129,380			129,380			129,380
Accounts payable, accrued expenses
and other liabilities		247,196			216,266			219,189			222,359			250,304
Reinsurance funds held and balances payable		34,185			44,177			59,074			53,327			52,914
Dividends to policyholders		5,150			6,862			7,224			6,022			6,177
Liabilities of discontinued operations		330,891			271,702			258,271			232,548			215,698
Total liabilities		2,241,173			2,158,060			2,201,773			2,156,233			2,176,365

Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		112,427			112,921			111,953			112,264			112,349
Retained earnings		144,286			140,184			143,291			145,500			152,670
Accumulated other comprehensive loss		(40,149	)		(49,876	)		(51,497	)		(36,814	)		(13,947	)
Treasury stock, at cost		(29,660	)		(29,663	)		(23,567	)		(23,042	)		(22,990	)
Total shareholders' equity		357,994			344,656			351,270			368,998			399,172
Total liabilities and shareholders' equity	$	2,599,167		$	2,502,716		$	2,553,043		$	2,525,231		$	2,575,537

PMA Capital Corporation
Assets and Liabilities of Discontinued Operations
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2008			2009			2009			2009

Assets
Investments	$	160,240		$	146,033		$	137,317		$	110,736		$	100,296
Cash		692			1,371			85			1,271			494
Reinsurance receivables		134,133			94,956			93,120			89,361			81,887
Other assets		14,542			1,303			4,743			6,904			9,754
Assets of discontinued operations	$	309,607		$	243,663		$	235,265		$	208,272		$	192,431

Liabilities
Unpaid losses and loss adjustment expenses	$	281,386		$	247,442		$	235,568		$	206,743		$	193,051
Other liabilities		49,505			24,260			22,703			25,805			22,647
Liabilities of discontinued operations	$	330,891		$	271,702		$	258,271		$	232,548		$	215,698




PMA Capital Corporation
Selected Balance Sheet Items - Fronting Arrangements
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2008			2009			2009			2009

Assets
Premiums receivable	$	8,087		$	25,796		$	38,833		$	36,670		$	33,337
Reinsurance receivables		44,668			47,280			50,175			53,675			58,107
Prepaid reinsurance premiums		5,020			16,048			24,884			23,072			20,346
Deferred acquisition costs		79			748			1,269			1,081			902
Other assets		6,315			6,723			6,818			7,269			6,684

Liabilities
Unpaid losses and loss adjustment expenses	$	46,301		$	49,494		$	53,087		$	57,367		$	62,642
Unearned premiums		5,845			19,667			29,430			26,866			23,512
Reinsurance funds held and balances payable		6,126			20,965			31,237			26,951			23,138
Other liabilities		7,459			10,116			11,392			12,081			12,620




PMA Capital Corporation
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2008			2009			2009			2009

Balance Sheet
Balance, beginning of period	$	38,739		$	43,317		$	40,938		$	44,857		$	39,364

Policy acquisition costs deferred		20,501			14,170			21,136			14,036			19,312
Amortization of policy acquisition costs		(15,923	)		(16,549	)		(17,217	)		(19,529	)		(16,093	)
Net change		4,578			(2,379	)		3,919			(5,493	)		3,219

Balance, end of period	$	43,317		$	40,938		$	44,857		$	39,364		$	42,583

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2009			2009			2009			2009			2008

Total Investments & Cash
As reported	$	812,253		$	782,742		$	798,074		$	806,945		$	915,649		$	915,649		$	812,253
Less:
Unrealized gain (loss) on
fixed maturities available for sale		(33,148	)		(30,758	)		(33,799	)		(13,563	)		19,501			19,501			(33,148	)
Unrealized gain (loss) on other investments		(872	)		(1,382	)		(1,181	)		475			2,367			2,367			(872	)
Total adjusted investments & cash	$	846,273		$	814,882		$	833,054		$	820,033		$	893,781		$	893,781		$	846,273

Net Investment Income
As reported	$	8,870		$	8,724		$	8,457		$	9,561		$	9,522		$	27,540		$	27,345
Less:
Interest on funds held		(616	)		(479	)		(288	)		(511	)		(463	)		(1,262	)		(1,680	)
Total adjusted investment income	$	9,486		$	9,203		$	8,745		$	10,072		$	9,985		$	28,802		$	29,025

Yield
As reported		4.37	%		4.38	%		4.28	%		4.77	%		4.42	%		4.45	%		4.45	%
Investment portfolio		4.55	%		4.43	%		4.25	%		4.87	%		4.66	%		4.57	%		4.68	%

Duration (in years)		3.6			3.2			3.5			4.3			4.2			4.2			3.6

PMA Capital Corporation

Debt

(Dollar Amounts in Thousands)

	Amount
	Outstanding		Maturity
Junior subordinated debt 1	$	64,435		2033 - 2037
8.50% senior notes		54,900		2018
Surplus notes 2		10,000		2035
4.25% convertible debt		45	2022 3
Total long-term debt	$	129,380

1	Weighted average interest rate on junior subordinated debt is 4.34% as of September 30, 2009.
2	Interest rate on surplus notes is 4.98% as of September 30, 2009.
3	Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 2010, 2012 and 2017. This debt may be converted at any time, at the holder's option, at a current price of $16.368 per share.













This Page Intentionally Left Blank

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2009
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	442,281	$	-	$	(448	)	$	441,833

Net Premiums Written	$	317,987	$	-	$	(448	)	$	317,539

Revenues:
Net premiums earned	$	314,755	$	-	$	(448	)	$	314,307
Claims service revenues		-		50,515		(884	)		49,631
Commission income		-		8,384		(57	)		8,327
Net investment income		27,383		329		(172	)		27,540
Other revenues		-		573		52			625
Total operating revenues		342,138		59,801		(1,509	)		400,430

Losses and Expenses:
Losses and loss adjustment expenses		219,427		-		-			219,427
Acquisition expenses		52,839		-		(87	)		52,752
Operating expenses		24,923		54,689		6,548			86,160
Dividends to policyholders		5,743		-		-			5,743
Total losses and expenses		302,932		54,689		6,461			364,082

Operating income (loss) before income taxes
and interest expense		39,206		5,112		(7,970	)		36,348

Interest expense		438		-		6,965			7,403

Pre-tax operating income (loss)	$	38,768	$	5,112	$	(14,935	)		28,945

Net realized investment gains									1,072

Pre-tax income								$	30,017


1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2008
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	397,069	$	-	$	(371	)	$	396,698

Net Premiums Written	$	317,295	$	-	$	(371	)	$	316,924

Revenues:
Net premiums earned	$	286,861	$	-	$	(371	)	$	286,490
Claims service revenues		-		41,272		(687	)		40,585
Commission income		-		9,587		(38	)		9,549
Net investment income		26,818		397		130			27,345
Other revenues		2,120		275		90			2,485
Total operating revenues		315,799		51,531		(876	)		366,454

Losses and Expenses:
Losses and loss adjustment expenses		200,154		-		-			200,154
Acquisition expenses		50,152		-		(38	)		50,114
Operating expenses		23,071		46,215		7,300			76,586
Dividends to policyholders		3,544		-		-			3,544
Total losses and expenses		276,921		46,215		7,262			330,398

Operating income (loss) before income taxes
and interest expense		38,878		5,316		(8,138	)		36,056

Interest expense		593		-		7,616			8,209

Pre-tax operating income (loss)	$	38,285	$	5,316	$	(15,754	)		27,847

Net realized investment losses									(4,983	)

Pre-tax income								$	22,864

1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended September 30, 2009
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	164,497	$	-	$	(158	)	$	164,339

Net Premiums Written	$	119,417	$	-	$	(158	)	$	119,259

Revenues:
Net premiums earned	$	102,586	$	-	$	(158	)	$	102,428
Claims service revenues		-		17,398		(286	)		17,112
Commission income		-		2,777		(30	)		2,747
Net investment income		9,415		142		(35	)		9,522
Other revenues		-		236		23			259
Total operating revenues		112,001		20,553		(486	)		132,068

Losses and Expenses:
Losses and loss adjustment expenses		70,158		-		-			70,158
Acquisition expenses		16,093		-		(47	)		16,046
Operating expenses		9,213		18,979		2,043			30,235
Dividends to policyholders		2,786		-		-			2,786
Total losses and expenses		98,250		18,979		1,996			119,225

Operating income (loss) before income taxes
and interest expense		13,751		1,574		(2,482	)		12,843

Interest expense		135		-		2,286			2,421

Pre-tax operating income (loss)	$	13,616	$	1,574	$	(4,768	)		10,422

Net realized investment gains									795

Pre-tax income								$	11,217

1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended September 30, 2008
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	151,620	$	-	$	(122	)	$	151,498

Net Premiums Written	$	124,117	$	-	$	(122	)	$	123,995

Revenues:
Net premiums earned	$	98,096	$	-	$	(122	)	$	97,974
Claims service revenues		-		15,951		(255	)		15,696
Commission income		-		2,662		(25	)		2,637
Net investment income		8,776		118		(24	)		8,870
Other revenues		-		91		34			125
Total operating revenues		106,872		18,822		(392	)		125,302

Losses and Expenses:
Losses and loss adjustment expenses		68,660		-		-			68,660
Acquisition expenses		15,923		-		(25	)		15,898
Operating expenses		7,604		16,893		2,409			26,906
Dividends to policyholders		1,169		-		-			1,169
Total losses and expenses		93,356		16,893		2,384			112,633

Operating income (loss) before income taxes
and interest expense		13,516		1,929		(2,776	)		12,669

Interest expense		191		-		2,543			2,734

Pre-tax operating income (loss)	$	13,325	$	1,929	$	(5,319	)		9,935

Net realized investment losses									(7,929	)

Pre-tax income								$	2,006

1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

PMA Capital Corporation
Statements of Operations - PMA Insurance Group
(Dollar Amounts in Thousands)

	3rd		4th		1st		2nd		3rd		Nine		Nine		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		3rd			Nine
	2008		2008		2009		2009		2009		2009		2008		Quarter			Months

Gross Premiums Written	$	151,620	$	132,340	$	164,218	$	113,566	$	164,497	$	442,281	$	397,069		8.5	%		11.4	%

Net Premiums Written	$	124,117	$	97,436	$	118,126	$	80,444	$	119,417	$	317,987	$	317,295		-3.8	%		0.2	%

Revenues:
Net premiums earned	$	98,096	$	103,850	$	105,078	$	107,091	$	102,586	$	314,755	$	286,861		4.6	%		9.7	%
Net investment income		8,776		8,613		8,466		9,502		9,415		27,383		26,818		7.3	%		2.1	%
Other revenues		-		18		-		-		-		-		2,120	NM			NM
Total operating revenues		106,872		112,481		113,544		116,593		112,001		342,138		315,799		4.8	%		8.3	%

Losses and Expenses:
Losses and loss adjustment expenses		68,660		70,671		75,775		73,494		70,158		219,427		200,154		2.2	%		9.6	%
Acquisition expenses		15,923		16,549		17,217		19,529		16,093		52,839		50,152		1.1	%		5.4	%
Operating expenses		7,604		13,875		4,559		11,151		9,213		24,923		23,071		21.2	%		8.0	%
Dividends to policyholders		1,169		2,762		646		2,311		2,786		5,743		3,544	NM				62.0	%
Total losses and expenses		93,356		103,857		98,197		106,485		98,250		302,932		276,921		5.2	%		9.4	%

Operating income before income taxes
and interest expense		13,516		8,624		15,347		10,108		13,751		39,206		38,878		1.7	%		0.8	%

Interest expense		191		196		160		143		135		438		593		-29.3	%		-26.1	%

Pre-tax operating income	$	13,325	$	8,428	$	15,187	$	9,965	$	13,616	$	38,768	$	38,285		2.2	%		1.3	%

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group

	3rd			4th			1st			2nd			3rd			Nine			Nine			Point Chg.			Point Chg.
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			3rd Quarter			Nine Months
	2008			2008			2009			2009			2009			2009			2008			Better (Worse)			Better (Worse)

Ratios - GAAP Basis:


Loss and LAE ratio		70.0	%		68.1	%		72.1	%		68.6	%		68.4	%		69.7	%		69.8	%		1.6			0.1

Expense ratio:
Acquisition expenses		16.2	%		15.9	%		16.4	%		18.2	%		15.7	%		16.8	%		17.5	%		0.5			0.7
Operating expenses		7.8	%		13.3	%		4.4	%		10.4	%		9.0	%		7.9	%		8.0	%		(1.2	)		0.1
Total expense ratio		24.0	%		29.2	%		20.8	%		28.6	%		24.7	%		24.7	%		25.5	%		(0.7	)		0.8

Policyholders' dividend ratio		1.2	%		2.7	%		0.6	%		2.2	%		2.7	%		1.8	%		1.2	%		(1.5	)		(0.6	)
Combined ratio		95.2	%		100.0	%		93.5	%		99.4	%		95.8	%		96.2	%		96.5	%		(0.6	)		0.3

Net investment income ratio		-8.9	%		-8.3	%		-8.1	%		-8.9	%		-9.2	%		-8.7	%		-9.3	%		0.3			(0.6	)
Operating ratio		86.3	%		91.7	%		85.4	%		90.5	%		86.6	%		87.5	%		87.2	%		(0.3	)		(0.3	)

PMA Capital Corporation
Components of Direct Premiums Written - PMA Insurance Group
(Dollar Amounts in Thousands)


	1st			2nd			3rd			4th			Nine			Twelve
	Quarter			Quarter			Quarter			Quarter			Months			Months
	2007			2007			2007			2007			2007			2007

Direct premium production	$	143,389		$	96,316		$	137,144		$	83,103		$	376,849		$	459,952
Fronting premiums		18,401			14,936			13,707			12,796			47,044			59,840
Premium adjustments		(859	)		(134	)		(4,149	)		(4,327	)		(5,142	)		(9,469	)
Direct premiums written	$	160,931		$	111,118		$	146,702		$	91,572		$	418,751		$	510,323


	1st			2nd			3rd			4th			Nine			Twelve
	Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2008			2008			2008			2008

Direct premium production	$	146,608		$	96,736		$	150,547		$	112,296		$	393,891		$	506,187
Fronting premiums		8,143			2,113			2,776			21,800			13,032			34,832
Premium adjustments		(14,198	)		370			(5,008	)		(4,261	)		(18,836	)		(23,097	)
Direct premiums written	$	140,553		$	99,219		$	148,315		$	129,835		$	388,087		$	517,922


	1st			2nd			3rd						Nine
	Quarter			Quarter			Quarter						Months
	2009			2009			2009						2009

Direct premium production	$	147,367		$	102,212		$	154,754					$	404,333
Fronting premiums		19,622			9,677			10,890						40,189
Premium adjustments		(4,876	)		(2,753	)		(3,521	)					(11,150	)
Direct premiums written	$	162,113		$	109,136		$	162,123					$	433,372

PMA Capital Corporation
Statements of Operations - Fee-based Business
(Dollar Amounts in Thousands)

	3rd		4th		1st		2nd		3rd		Nine		Nine		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		3rd			Nine
	2008		2008		2009		2009		2009		2009		2008		Quarter			Months

Revenues:
Claims service revenues	$	15,951	$	17,029	$	15,995	$	17,122	$	17,398	$	50,515	$	41,272		9.1	%		22.4	%
Commission income		2,662		2,848		3,475		2,132		2,777		8,384		9,587		4.3	%		-12.5	%
Net investment income		118		143		86		101		142		329		397		20.3	%		-17.1	%
Other revenues		91		59		170		167		236		573		275	NM			NM
Total operating revenues		18,822		20,079		19,726		19,522		20,553		59,801		51,531		9.2	%		16.0	%

Expenses:
Operating expenses		16,893		18,190		17,713		17,997		18,979		54,689		46,215		12.3	%		18.3	%
Total expenses		16,893		18,190		17,713		17,997		18,979		54,689		46,215		12.3	%		18.3	%

Pre-tax operating income	$	1,929	$	1,889	$	2,013	$	1,525	$	1,574	$	5,112	$	5,316		-18.4	%		-3.8	%

PMA Capital Corporation
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			3rd			Nine
	2008			2008			2009			2009			2009			2009			2008			Quarter			Months

Gross Premiums Written	$	(122	)	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(448	)	$	(371	)		-29.5	%		-20.8	%

Net Premiums Written	$	(122	)	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(448	)	$	(371	)		-29.5	%		-20.8	%

Revenues:
Net premiums earned	$	(122	)	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(448	)	$	(371	)		-29.5	%		-20.8	%
Claims service revenues		(255	)		(244	)		(311	)		(287	)		(286	)		(884	)		(687	)		-12.2	%		-28.7	%
Commission income		(25	)		(13	)		(12	)		(15	)		(30	)		(57	)		(38	)		-20.0	%		-50.0	%
Net investment income		(24	)		(32	)		(95	)		(42	)		(35	)		(172	)		130			-45.8	%	NM
Other revenues		34			279			6			23			23			52			90			-32.4	%		-42.2	%
Total operating revenues		(392	)		(133	)		(560	)		(463	)		(486	)		(1,509	)		(876	)		-24.0	%		-72.3	%

Expenses:
Acquisition expenses		(25	)		(28	)		(19	)		(21	)		(47	)		(87	)		(38	)		-88.0	%	NM
Operating expenses		2,409			2,314			2,113			2,392			2,043			6,548			7,300			-15.2	%		-10.3	%
Total expenses		2,384			2,286			2,094			2,371			1,996			6,461			7,262			-16.3	%		-11.0	%

Operating loss before income taxes
and interest expense		(2,776	)		(2,419	)		(2,654	)		(2,834	)		(2,482	)		(7,970	)		(8,138	)		10.6	%		2.1	%

Interest expense		2,543			2,478			2,346			2,333			2,286			6,965			7,616			-10.1	%		-8.5	%

Pre-tax operating loss	$	(5,319	)	$	(4,897	)	$	(5,000	)	$	(5,167	)	$	(4,768	)	$	(14,935	)	$	(15,754	)		10.4	%		5.2	%

PMA Capital Corporation
Statements of Operations - Discontinued Operations
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			3rd			Nine
	2008			2008			2009			2009			2009			2009			2008			Quarter			Months

Gross Premiums Written	$	417		$	3		$	466		$	2,093		$	384		$	2,943		$	2,534			-7.9	%		16.1	%

Net Premiums Written	$	167		$	2		$	(87	)	$	1,798		$	360		$	2,071		$	2,379		NM				-12.9	%

Revenues:
Net premiums earned	$	517		$	145		$	617		$	1,673		$	(2	)	$	2,288		$	1,554		NM				47.2	%
Net investment income		(663	)		1,546			(878	)		(937	)		(1,066	)		(2,881	)		(986	)		-60.8	%	NM
Total operating revenues		(146	)		1,691			(261	)		736			(1,068	)		(593	)		568		NM			NM

Losses and Expenses:
Losses and loss adjustment expenses		10,201			4,226			129			1,910			(175	)		1,864			20,031		NM				-90.7	%
Acquisition expenses		(146	)		339			1,199			120			104			1,423			107		NM			NM
Operating expenses		2,054			2,228			2,577			2,397			2,101			7,075			6,788			2.3	%		4.2	%
Impairment charge / valuation adjustment		(8,594	)		8,722			(4,387	)		(2,172	)		(2,722	)		(9,281	)		(18,624	)		68.3	%		50.2	%
Total losses and expenses		3,515			15,515			(482	)		2,255			(692	)		1,081			8,302		NM				-87.0	%

Pre-tax operating income (loss) from discontinued operations		(3,661	)		(13,824	)		221			(1,519	)		(376	)		(1,674	)		(7,734	)		89.7	%		78.4	%

Income tax expense (benefit)		(1,281	)		(4,838	)		77			(530	)		(133	)		(586	)		(2,707	)		89.6	%		78.4	%

After-tax operating income (loss) from discontinued operations		(2,380	)		(8,986	)		144			(989	)		(243	)		(1,088	)		(5,027	)		89.8	%		78.4	%

Realized gains (losses) after tax		70			1,146			(230	)		(176	)		203			(203	)		90		NM			NM

Loss from discontinued operations	$	(2,310	)	$	(7,840	)	$	(86	)	$	(1,165	)	$	(40	)	$	(1,291	)	$	(4,937	)		98.3	%		73.9	%

Note: The net results from discontinued operations are reported as a separate line item below "Income from continuing operations" in the consolidated statements of operations.

PMA Capital Corporation
Operating Cash Flows - Consolidated
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2009			2009			2009			2009			2008

Receipts:
Premiums collected	$	112,274		$	96,678		$	109,089		$	96,214		$	105,816		$	311,119		$	300,379
Claims service, commissions and other revenues		22,643			16,251			22,276			18,203			21,658			62,137			52,920
Investment income received		9,688			9,172			9,789			9,164			10,124			29,077			29,729
Total receipts		144,605			122,101			141,154			123,581			137,598			402,333			383,028

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		25,618			30,952			5,265			18,874			25,500			49,639			47,684
Losses and LAE paid - prior years		46,851			41,207			61,152			63,486			6,931			131,569			163,066
Total losses and LAE paid		72,469			72,159			66,417			82,360			32,431			181,208			210,750
Operating expenses paid		43,785			37,866			46,907			41,332			43,129			131,368			132,120
Commissions and premiums paid		3,387			580			1,680			2,090			3,270			7,040			6,426
Policyholders' dividends paid		1,663			1,592			863			2,401			1,264			4,528			4,683
Interest on corporate debt		2,700			2,645			2,526			2,437			2,388			7,351			8,306
Total disbursements		124,004			114,842			118,393			130,620			82,482			331,495			362,285

Net other		(6,158	)		(691	)		(629	)		(1,459	)		4,976			2,888			285

Net operating cash flows from continuing operations		14,443			6,568			22,132			(8,498	)		60,092			73,726			21,028
Net operating cash flows from discontinued operations		(13,236	)		(20,948	)		(14,742	)		(25,656	)		(12,549	)		(52,947	)		(67,809	)
Net operating cash flows	$	1,207		$	(14,380	)	$	7,390		$	(34,154	)	$	47,543		$	20,779		$	(46,781	)

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2009			2009			2009			2009			2008

Receipts:
Premiums collected	$	112,274		$	96,678		$	109,089		$	96,214		$	105,816		$	311,119		$	300,379
Investment income received		9,570			9,029			9,703			9,062			9,985			28,750			29,332
Total receipts		121,844			105,707			118,792			105,276			115,801			339,869			329,711

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		25,618			30,952			5,265			18,874			25,500			49,639			47,684
Losses and LAE paid - prior years		46,851			41,207			61,152			63,486			6,931	1		131,569	1		163,066
Total losses and LAE paid		72,469			72,159			66,417			82,360			32,431			181,208			210,750
Operating expenses paid		26,531			23,391			30,060			27,192			24,079			81,331			87,741
Policyholders' dividends paid		1,663			1,592			863			2,401			1,264			4,528			4,683
Interest on corporate debt		192			185			194			144			139			477			623
Total disbursements		100,855			97,327			97,534			112,097			57,913			267,544			303,797

Net other		(6,659	)		(18,635	)		(1,205	)		501			(3,712	)		(4,416	)		893

Net operating cash flows	$	14,330		$	(10,255	)	$	20,053		$	(6,320	)	$	54,176		$	67,909		$	26,807

Reduced by $43.9 million received for a commutation with Houston Casualty Company.

PMA Capital Corporation
Operating Cash Flows - Fee-based Business
(Dollar Amounts in Thousands)

	3rd		4th		1st			2nd			3rd		Nine		Nine
	Quarter		Quarter		Quarter			Quarter			Quarter		Months		Months
	2008		2008		2009			2009			2009		2009		2008

Receipts:
Claims service, commissions and other revenues	$	22,643	$	16,251	$	22,276		$	18,203		$	21,658	$	62,137	$	52,920
Investment income received		118		143		86			102			139		327		397
Total receipts		22,761		16,394		22,362			18,305			21,797		62,464		53,317

Disbursements:
Operating expenses paid		17,254		14,475		16,847			14,140			19,050		50,037		44,379
Commissions and premiums paid		3,387		580		1,680			2,090			3,270		7,040		6,426
Total disbursements		20,641		15,055		18,527			16,230			22,320		57,077		50,805

Net other		970		3,850		(242	)		(3,644	)		4,453		567		(1,056	)

Net operating cash flows	$	3,090	$	5,189	$	3,593		$	(1,569	)	$	3,930	$	5,954	$	1,456

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)

	3rd		4th		1st		2nd			3rd
	Quarter		Quarter		Quarter		Quarter			Quarter
	2008		2008		2009		2009			2009 1


PMA Pool 2	$	336,368	$	332,915	$	337,495	$	373,654	3	$	385,111
PMA Capital Insurance Company		26,143		34,468		29,252		26,446			30,202

PMA Capital Corporation
Statutory Financial Information - PMA Pool 2
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2009			2009			20091			20091			2008

Net Premiums Written:
Workers' Compensation	$	107,446		$	87,722		$	101,891		$	72,181		$	102,329		$	276,401		$	282,462
Other Commercial Lines		8,692			8,154			13,487			8,403			8,965			30,855			28,576
Total - PMA Pool	$	116,138		$	95,876		$	115,378		$	80,584		$	111,294		$	307,256		$	311,038

Statutory Ratios:
Loss and LAE ratio		69.4	%		67.7	%		71.6	%		51.8	%		68.9	%		64.0	%		69.5	%
Underwriting expense ratio		22.1	%		26.9	%		21.1	%		30.7	%		22.0	%		23.9	%		24.1	%
Policyholders' dividend ratio		1.4	%		3.3	%		1.2	%		1.2	%		1.4	%		1.3	%		1.4	%
Combined ratio		92.9	%		97.9	%		93.9	%		83.7	%		92.3	%		89.2	%		95.0	%
Operating ratio		84.0	%		89.5	%		85.8	%		75.0	%		83.5	%		80.6	%		85.7	%

1	Estimated.
2	The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company.
3	The increase in statutory surplus during the second quarter of 2009 related primarily to statutory net income, which included a benefit from the commutation of a reinsurance agreement with an affiliated entity.

PMA Capital Corporation
Industry Ratings and Market Information

Transfer Agent and Registrar:				Inquiries:
American Stock Transfer & Trust Company				William E. Hitselberger
Shareholder Relations				Chief Financial Officer
59 Maiden Lane – Plaza Level				610.397.5083
New York, NY 10038				email: bhitselberger@pmacapital.com
www.amstock.com
				Investor Relations
Phone Inquiries:				610.397.5298
800.937.5449				email: investorrelations@pmacapital.com

Email Inquiries:				Company Website:
info@amstock.com				www.pmacapital.com


Securities Listing:
The Corporation's Class A Common Stock is listed
on the NASDAQ Stock Market®. It trades under
the stock symbol: PMACA.


Financial Strength Ratings (as of 11/2/2009):

	A.M. Best	Fitch	Moody's
PMA Pool 1	A- (4th of 16)	BBB+ (8th of 21)	Baa3 (10th of 21)
PMA Capital Insurance Company 2	C++ (9th of 16)	Not Rated	Not Rated

1 The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance
Insurance Company and Pennsylvania Manufacturers Indemnity Company.
2 In November 2003, we announced our decision to withdraw from the reinsurance business previously served by PMA
Capital Insurance Company. The reinsurance business is in run-off. On April 1, 2008, we announced that we executed
a definitive stock purchase agreement to sell our Run-off Operations to Armour Reinsurance Group Limited. The closing
of the sale and transfer of ownership are currently pending approval by the Pennsylvania Insurance Department.

Attached files

PMA CAPITAL CORP Reports

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