SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


         Date of Report (Date of earliest event reported): June 18, 2004


                             PMA Capital Corporation
             (Exact name of registrant as specified in its charter)

        Pennsylvania                 000-22761               23-2217932
(State or other jurisdiction       (Commission              (IRS Employer
     of incorporation)               File Number)         Identification No.)


                       1735 Market Street, Suite 2800
                         Philadelphia, Pennsylvania                 19103-7590
                  (Address of principal executive offices)          (Zip Code)


               Registrant's telephone number, including area code:

                                 (215) 665-5046

                                 Not Applicable
          (Former name or former address, if changed since last report)






Item 5. Other Events and Regulation FD Disclosure.

         On June 18, 2004, we put into place an adverse development reinsurance
agreement to cover potential adverse development of the loss reserves of our
run-off operations. Our run-off operations consist of the results of our former
reinsurance and excess and surplus lines businesses. Although we believe the
reserves of our run-off operations are adequate, the agreement will provide
protection in the event that these loss reserves do not develop as currently
anticipated. This reinsurance has been placed with third party reinsurers and
provides for our transferring to the reinsurers $100 million of assets in
exchange for coverage for adverse development of up to $120 million over the
loss reserves. If development on the loss reserves exceeds $120 million, we will
be required to pay up to $35 million in additional premiums, at certain
contractually determined levels, for an additional $85 million of coverage.





CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

The statements contained in this report that are not historical facts are
forward-looking statements and are based on estimates, assumptions and
projections. Actual results may differ materially from those projected in the
forward-looking statements.

These forward-looking statements are based on currently available financial,
competitive and economic data and the Company's current operating plans based on
assumptions regarding future events. The Company's actual results could differ
materially from those expected by the Company's management. The factors that
could cause actual results to vary materially, some of which are described with
the forward-looking statements, include, but are not limited to:

|O|      our  ability to effect an  efficient  withdrawal  from the  reinsurance
         business,  including  the  commutation  of  reinsurance  business  with
         certain  large ceding  companies,  without  incurring  any  significant
         liabilities;

|O|      regulatory  or tax changes in  risk-based  capital or other  regulatory
         standards  that  affect the cost of, or demand  for,  our  products  or
         otherwise affect our ability to conduct business,  including any future
         action with respect to our business taken by the Pennsylvania Insurance
         Department or any other state insurance department;

|O|      The PMA Insurance  Group's  ability to have its A- A.M. Best  financial
         strength  rating restored and the effect of its B++ A.M. Best rating on
         its premium writings and profitability as well as the adverse impact of
         any potential future downgrade of its rating;

|O|      The  ability of the  Company  to have  sufficient  cash at the  holding
         company to meet its debt service and other  obligations,  including any
         restrictions  such as in our  letter  agreement  with the  Pennsylvania
         Insurance   Department  on  receiving   dividends  from  its  insurance
         subsidiaries in an amount sufficient to meet such obligations;


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|O|      the lowering or loss of one or more of the Company's debt ratings,  and
         the adverse  impact that any such  downgrade may have on our ability to
         raise capital and our liquidity and financial condition;

|O|      adequacy of reserves for claim liabilities;

|O|      adverse property and casualty loss development for events that we
         insured in prior years, including unforeseen increases in medical
         costs;

|O|      the impact of future results on the recoverability of our deferred tax
         asset;

|O|      adequacy and collectability of reinsurance that we purchased;

|O|      the outcome of any litigation against the Company, including the
         outcome of the purported class action lawsuits;

|O|      competitive  conditions  that may  affect  the  level of rate  adequacy
         related to the amount of risk  undertaken  and that may  influence  the
         sustainability of adequate rate changes;

|O|      ability to implement and maintain rate increases;

|O|      the effect of  changes  in  workers'  compensation  statutes  and their
         administration,  which may  affect the rates that we can charge and the
         manner in which we administer claims;

|O|      our ability to predict and effectively manage claims related to
         insurance and reinsurance policies;

|O|      the uncertain nature of damage theories and loss amounts and the
         development of additional facts related to the attack on the World
         Trade Center;

|O|      uncertainty as to the price and availability of reinsurance on business
         we intend to write in the future, including reinsurance for terrorist
         acts;

|O|      severity of natural disasters and other catastrophes, including the
         impact of future acts of terrorism, in connection with insurance and
         reinsurance policies;

|O|      changes in general economic conditions, including the performance of
         financial markets, interest rates and the level of unemployment;

|O|      uncertainties related to possible terrorist activities or international
         hostilities; and

|O|      other factors disclosed from time to time in our most recent Forms 10-K
         and 10-Q filed with the Securities and Exchange Commission.

You should not place undue reliance on any such forward-looking statements.
Unless otherwise stated, we disclaim any current intention to update
forward-looking information and to release publicly the results of any future
revisions we may make to forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.


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                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                       PMA Capital Corporation




Date: June 18, 2004                    By:  /s/ William E. Hitselberger
                                           ------------------------------------
                                             William E. Hitselberger
                                             Executive Vice President, Chief
                                             Financial Officer and Treasurer