EX-99.2 3 ex99-2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2

 
 

PMA Capital Corporation  
Statistical Supplement  
First Quarter - 2005  
        
Table of Contents  
   
 Page
  
Consolidated Highlights:
       
Selected Financial Data
    
1
  
Consolidated Statements of Operations - Per Share Data
    
2
  
Consolidated Statements of Operations
    
3
  
Consolidated Balance Sheets
    
4
  
Invested Assets and Net Investment Income; Debt
    
5
  
         
Segment Information:
        
Statements of Operations - Consolidating
    
7 - 8
  
Statements of Operations - PMA Insurance Group
    
9
  
Insurance Ratios - PMA Insurance Group
    
10
  
Statements of Operations - Run-off Operations
    
11
  
Statements of Operations - Corporate & Other
    
12
  
 
        
Operating Cash Flow Information:
        
Operating Cash Flows - Consolidated
    
13
  
Operating Cash Flows - PMA Insurance Group
    
14
  
Operating Cash Flows - Run-off Operations
    
15
  
         
Statutory Financial Information:
        
Statutory Surplus; Statutory Financial Information - PMA Pool
    
16
  
         
Other Information:
        
Industry Ratings and Market Information
    
17
  
         
Legend:
        
NM - Not Meaningful
        
NA - Not Applicable
        
         
         
Note: Operating income (loss), which we define as GAAP net income (loss) excluding net realized investment gains and losses, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our business segments. Accordingly, we report operating income (loss) by segment in the disclosures required under SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information." Our management and Board of Directors use operating income (loss) as the measure of financial performance for our business segments 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 (loss) does not replace net income (loss) as the GAAP measure of our consolidated results of operations. See page 1 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)  
                            
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 1st
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
 Quarter
 
                            
Net Premiums Written by Segment:
 
 
 
 
 
 
 
 
 
 
 
  
 
PMA Insurance Group
 
$
135,286
 
$
81,962
 
$
97,637
 
$
62,910
 
$
105,474
 
 
-22.0
%
Run-off Operations
 
 
23,362
 
 
(78,864
)
 
(13,884
)
 
(5,974
)
 
4,929
 
 
-78.9
%
Corporate & Other
 
 
(150
)
 
(225
)
 
(186
)
 
(264
)
 
(194
)
 
-29.3
%
Net premiums written
 
$
158,498
 
$
2,873
 
$
83,567
 
$
56,672
 
$
110,209
 
 
-30.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Major Components of Net Income (Loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income (loss) by segment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMA Insurance Group
 
$
6,559
 
$
2,809
 
$
3,537
 
$
261
 
$
6,612
 
 
0.8
%
Run-off Operations 
 
 
8,946
 
 
624
 
 
(2,115
)
 
(1,946
)
 
(29,646
)
 
NM
 
Corporate & Other
 
 
(5,312
)
 
(5,506
)
 
(4,982
)
 
(5,423
)
 
(6,167
)
 
-16.1
%
Pre-tax operating income (loss)
 
 
10,193
 
 
(2,073
)
 
(3,560
)
 
(7,108
)
 
(29,201
)
 
NM
 
Net realized investment gains (losses)
 
 
8,600
 
 
2,248
 
 
3,515
 
 
(7,870
)
 
2,983
 
 
-65.3
%
Pre-tax income (loss)
 
 
18,793
 
 
175
 
 
(45
)
 
(14,978
)
 
(26,218
)
 
NM
 
Income tax expense (benefit)
 
 
6,640
 
 
111
 
 
29
 
 
(4,665
)
 
(5,667
)
 
NM
 
Net income (loss)
 
$
12,153
 
$
64
 
$
(74
)
$
(10,313
)
$
(20,551
)
 
NM
 
After-tax operating income (loss)
 
$
6,563
 
$
(1,397
)
$
(2,359
)
$
(5,198
)
$
(22,490
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted Earnings (Loss) Per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
0.35
 
$
-
 
$
-
 
$
(0.33
)
$
(0.65
)
 
NM
 
Less the impact of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains (losses) after tax
 
 
0.15
 
 
0.04
 
 
0.08
 
 
(0.16
)
 
0.06
 
 
-60.0
%
After-tax operating income (loss)
 
$
0.20
 
$
(0.04
)
$
(0.08
)
$
(0.17
)
$
(0.71
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt
 
$
187,566
 
$
187,566
 
$
187,566
 
$
214,467
 
$
211,769
 
 
12.9
%
Shareholders' equity excluding
FAS 115 unrealized gain
 
 
445,273
 
 
443,634
 
 
442,797
 
 
431,828
 
 
412,349
 
 
-7.4
%
Total capitalization excluding
FAS 115 unrealized gain
 
 
632,839
 
 
631,200
 
 
630,363
 
 
646,295
 
 
624,118
 
 
-1.4
%
FAS 115 unrealized gain
 
 
40,818
 
 
29
 
 
15,350
 
 
13,623
 
 
1,539
 
 
-96.2
%
Total capitalization including FAS 115 unrealized gain
 
$
673,657
 
$
631,229
 
$
645,713
 
$
659,918
 
$
625,657
 
 
-7.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book Value Per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excluding FAS 115 unrealized gain
 
$
14.21
 
$
14.00
 
$
13.98
 
$
13.63
 
$
12.95
 
 
-8.9
%
Including FAS 115 unrealized gain
 
$
15.51
 
$
14.00
 
$
14.46
 
$
14.06
 
$
13.00
 
 
-16.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt to Total Capital:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excluding FAS 115 unrealized gain
 
 
29.6
%
 
29.7
%
 
29.8
%
 
33.2
%
 
33.9
%
 
14.5
%
Including FAS 115 unrealized gain
 
 
27.8
%
 
29.7
%
 
29.0
%
 
32.5
%
 
33.8
%
 
21.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Coverage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before interest and income taxes to interest expense
 
 
7.39
 
 
1.06
 
 
0.98
 
 
NM
 
 
NM
 
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income before interest and income taxes to interest expense
    
4.47
   
0.30
   
NM
   
NM
   
NM
   
NM
  
                                       
 
1
 

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
                       
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
  
                       
Diluted Earnings (Loss) Per Share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
0.35
 
$
-
 
$
-
 
$
(0.33
)
$
(0.65
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income (loss)
 
$
0.30
 
$
(0.07
)
$
(0.11
)
$
(0.23
)
$
(0.93
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After-tax operating income (loss)
 
$
0.20
 
$
(0.04
)
$
(0.08
)
$
(0.17
)
$
(0.71
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted weighted average common
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
shares outstanding
 
 
36,644,561
 
 
31,741,827
 
 
31,350,825
 
 
31,350,825
 
 
31,561,069
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A Common stock
 
$
-
 
$
-
 
$
-
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual common shares issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and outstanding
 
 
31,334,403
 
 
31,692,351
 
 
31,681,751
 
 
31,676,851
 
 
31,835,136
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A Common Stock prices:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
High
 
$
7.08
 
$
9.13
 
$
9.16
 
$
10.85
 
$
10.65
 
Low
 
$
4.70
 
$
6.01
 
$
5.70
 
$
6.74
 
$
7.05
 
Close
  
$
6.07
  
$
9.00
  
$
7.55
  
$
10.35
  
$
8.00
  
                                 
 
 
2
 

PMA Capital Corporation  
Consolidated Statements of Operations  
(In Thousands)  
                            
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 1st
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
 Quarter
  
                            
Gross Premiums Written
 
$
157,860
 
$
24,449
 
$
100,013
 
$
69,940
 
$
121,313
 
 
-23.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Premiums Written
 
$
158,498
 
$
2,873
 
$
83,567
 
$
56,672
 
$
110,209
 
 
-30.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
206,269
 
$
118,348
 
$
104,210
 
$
89,758
 
$
87,723
 
 
-57.5
%
Net investment income
 
 
16,758
 
 
14,807
 
 
13,238
 
 
12,142
 
 
11,712
 
 
-30.1
%
Net realized investment gains (losses)
 
 
8,600
 
 
2,248
 
 
3,515
 
 
(7,870
)
 
2,983
 
 
-65.3
%
Other revenues
 
 
5,738
 
 
4,680
 
 
4,505
 
 
11,018
 
 
4,954
 
 
-13.7
%
Total revenues
 
 
237,365
 
 
140,083
 
 
125,468
 
 
105,048
 
 
107,372
 
 
-54.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
 
142,190
 
 
87,471
 
 
80,706
 
 
70,189
 
 
93,988
 
 
-33.9
%
Acquisition expenses
 
 
47,235
 
 
24,968
 
 
24,087
 
 
18,935
 
 
18,671
 
 
-60.5
%
Operating expenses
 
 
24,779
 
 
23,563
 
 
16,942
 
 
19,628
 
 
16,460
 
 
-33.6
%
Dividends to policyholders
 
 
1,429
 
 
946
 
 
805
 
 
1,819
 
 
502
 
 
-64.9
%
Interest expense
 
 
2,939
 
 
2,960
 
 
2,973
 
 
3,482
 
 
3,969
 
 
35.0
%
Loss on debt exchange
 
 
-
 
 
-
 
 
-
 
 
5,973
 
 
-
 
 
NM
 
Total losses and expenses
 
 
218,572
 
 
139,908
 
 
125,513
 
 
120,026
 
 
133,590
 
 
-38.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax income (loss)
 
 
18,793
 
 
175
 
 
(45
)
 
(14,978
)
 
(26,218
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
325
 
 
64
 
 
(117
)
 
(272
)
 
-
 
 
-100.0
%
Deferred
 
 
6,315
 
 
47
 
 
146
 
 
(4,393
)
 
(5,667
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total income tax expense (benefit)
 
 
6,640
 
 
111
 
 
29
 
 
(4,665
)
 
(5,667
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
12,153
 
$
64
 
$
(74
)
$
(10,313
)
$
(20,551
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income (loss)
 
$
10,193
 
$
(2,073
)
$
(3,560
)
$
(7,108
)
$
(29,201
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After-tax operating income (loss)
  
$
6,563
  
$
(1,397
)
$
(2,359
)
$
(5,198
)
$
(22,490
)
  
NM
   
                                       
                                       
 
 
3
 

PMA Capital Corporation
Consolidated Balance Sheets
(In Thousands)
                       
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2004
 
2004
 
2004
 
2004
2005
  
                       
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments in fixed maturities available for sale
 
$
1,825,076
 
$
1,469,027
 
$
1,381,788
 
$
1,304,086
 
$
1,283,406
 
Short-term investments
 
 
98,385
 
 
88,664
 
 
98,761
 
 
123,746
 
 
60,325
 
Short-term investments, loaned securities collateral
 
 
112,689
 
 
129,999
 
 
96,606
 
 
-
 
 
102,620
 
Total investments
 
 
2,036,150
 
 
1,687,690
 
 
1,577,155
 
 
1,427,832
 
 
1,446,351
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
 
22,311
 
 
66,100
 
 
48,046
 
 
35,537
 
 
49,921
 
Accrued investment income
 
 
22,820
 
 
17,913
 
 
16,407
 
 
15,517
 
 
15,188
 
Premiums receivable
 
 
316,771
 
 
249,112
 
 
219,111
 
 
197,831
 
 
208,748
 
Reinsurance receivables
 
 
1,145,314
 
 
1,210,765
 
 
1,170,004
 
 
1,142,552
 
 
1,129,507
 
Deferred income taxes
 
 
65,114
 
 
88,250
 
 
80,541
 
 
86,501
 
 
98,714
 
Deferred acquisition costs
 
 
71,631
 
 
41,321
 
 
37,800
 
 
31,426
 
 
35,138
 
Funds held by reinsureds
 
 
119,640
 
 
107,804
 
 
134,978
 
 
142,064
 
 
146,674
 
Other assets
 
 
231,600
 
 
248,578
 
 
219,536
 
 
174,725
 
 
167,200
 
Total assets
 
$
4,031,351
 
$
3,717,533
 
$
3,503,578
 
$
3,253,985
 
$
3,297,441
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid losses and loss adjustment expenses
 
$
2,438,509
 
$
2,292,281
 
$
2,179,900
 
$
2,111,598
 
$
2,077,599
 
Unearned premiums
 
 
332,391
 
 
216,155
 
 
193,221
 
 
158,489
 
 
177,415
 
Debt
 
 
187,566
 
 
187,566
 
 
187,566
 
 
214,467
 
 
211,769
 
Accounts payable, accrued expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
and other liabilities
 
 
282,422
 
 
277,457
 
 
254,467
 
 
196,744
 
 
196,875
 
Funds held under reinsurance treaties
 
 
183,406
 
 
162,293
 
 
127,239
 
 
121,234
 
 
112,712
 
Dividends to policyholders
 
 
8,292
 
 
8,121
 
 
6,424
 
 
5,977
 
 
4,580
 
Payable under securities loan agreements
 
 
112,674
 
 
129,997
 
 
96,614
 
 
25
 
 
102,603
 
Total liabilities
 
 
3,545,260
 
 
3,273,870
 
 
3,045,431
 
 
2,808,534
 
 
2,883,553
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A Common stock
 
  
171,090
   
171,090
   
171,090
   
171,090
   
171,090
 
Additional paid-in capital
    
109,331
   
109,331
   
109,331
   
109,331
   
109,331
 
Retained earnings
    
228,268
   
223,442
   
223,519
   
213,313
   
189,787
 
Accumulated other comprehensive income (loss)
    
29,894
   
(13,160
)
  
885
   
(1,959
)
  
(14,116
)
Notes receivable from officers
    
(66
)
  
(59
)
  
-
   
-
   
-
 
Treasury stock, at cost
    
(52,426
)
  
(45,261
)
  
(45,474
)
  
(45,573
)
  
(41,752
)
Unearned restricted stock compensation
    
-
   
(1,720
)
  
(1,204
)
  
(751
)
  
(452
)
Total shareholders' equity
    
486,091
   
443,663
   
458,147
   
445,451
   
413,888
 
Total liabilities and shareholders' equity
  
$
4,031,351
  
$
3,717,533
  
$
3,503,578
  
$
3,253,985
  
$
3,297,441
  
                                 
 
 
4
 

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollars in Thousands)
                       
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
  
                       
Total Investments & Cash
 
 
 
 
 
 
 
 
 
 
 
As reported
 
$
2,058,461
 
$
1,753,790
 
$
1,625,201
 
$
1,463,369
 
$
1,496,272
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities lending activity
 
 
112,674
 
 
129,997
 
 
96,614
 
 
25
 
 
102,603
 
Unrealized gain
 
 
62,797
 
 
45
 
 
23,615
 
 
20,958
 
 
2,368
 
Total adjusted investments & cash
 
$
1,882,990
 
$
1,623,748
 
$
1,504,972
 
$
1,442,386
 
$
1,391,301
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Investment Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported
 
$
16,758
 
$
14,807
 
$
13,238
 
$
12,142
 
$
11,712
 
Funds held:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed
 
 
(13
)
 
109
 
 
73
 
 
846
 
 
187
 
Ceded
 
 
(2,222
)
 
(3,962
)
 
(2,140
)
 
(1,394
)
 
(2,125
)
Total funds held
 
 
(2,235
)
 
(3,853
)
 
(2,067
)
 
(548
)
 
(1,938
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total adjusted investment income
 
$
18,993
 
$
18,660
 
$
15,305
 
$
12,690
 
$
13,650
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As reported
 
 
3.27
%
 
3.11
%
 
3.13
%
 
3.15
%
 
3.17
%
Investment portfolio
 
 
3.93
%
 
4.10
%
 
3.91
%
 
3.44
%
 
3.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Duration (in years)
    
3.7
   
3.4
   
3.6
   
3.6
   
3.8
 
 

PMA Capital Corporation
Debt
(Dollars in Thousands)
               
               
       
Amount
     
       
Outstanding
  
Maturity
  
6.50% convertible debt 
 
 
 
 
$
99,140
 
 
20221
 
Derivative component of 6.50% convertible debt
 
 
 
 
 
10,658
 
 
 
 
4.25% convertible debt 
 
 
 
 
 
655
 
 
20222
 
8.50% senior notes
 
 
 
 
 
57,500
 
 
2018
 
Trust preferred debt 3
 
 
 
 
 
43,816
 
 
2033
 
Total long-term debt
 
 
 
 
$
211,769
 
 
 
 
 
                    
 
1
Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on June 30, 2009 at 114% of the principal amount. This debt may be converted at any time, at the holder's option, at a current price of $16.368 per share for $84.1 million principal amount and $15.891 per share for $15.0 million principal amount.
2
 Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 2006, 2008, 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.
3
 Weighted average interest rate on trust preferred debt is 7.03% as of March 31, 2005.
 
 
5
 
 
 
This Page Intentionally Left Blank
 
 
 
 
6
 

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended March 31, 2005
(In Thousands)
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
 
$
116,272
 
$
(194
)
$
5,235
 
$
121,313
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Premiums Written
 
$
105,474
 
$
(194
)
$
4,929
 
$
110,209
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
84,700
 
$
(194
)
$
3,217
 
$
87,723
 
Net investment income
 
 
7,541
 
 
271
 
 
3,900
 
 
11,712
 
Other revenues
 
 
4,727
 
 
227
 
 
-
 
 
4,954
 
Operating revenues
 
 
96,968
 
 
304
 
 
7,117
 
 
104,389
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
 
62,218
 
 
-
 
 
31,770
 
 
93,988
 
Acquisition expenses
 
 
16,767
 
 
-
 
 
1,904
 
 
18,671
 
Operating expenses
 
 
10,869
 
 
2,502
 
 
3,089
 
 
16,460
 
Dividends to policyholders
 
 
502
 
 
-
 
 
-
 
 
502
 
Total losses and expenses
 
 
90,356
 
 
2,502
 
 
36,763
 
 
129,621
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
and interest expense
 
 
6,612
 
 
(2,198
)
 
(29,646
)
 
(25,232
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
-
 
 
3,969
 
 
-
 
 
3,969
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income (loss)
 
$
6,612
 
$
(6,167
)
$
(29,646
)
 
(29,201
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
 
2,983
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax loss
                    
$
(26,218
)
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
 
7
 

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended March 31, 2004
(In Thousands)
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
 
$
146,486
 
$
(150
)
$
11,524
 
$
157,860
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Premiums Written
 
$
135,286
 
$
(150
)
$
23,362
 
$
158,498
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
131,650
 
$
(150
)
$
74,769
 
$
206,269
 
Net investment income
 
 
8,028
 
 
344
 
 
8,386
 
 
16,758
 
Other revenues
 
 
5,735
 
 
3
 
 
-
 
 
5,738
 
Operating revenues
 
 
145,413
 
 
197
 
 
83,155
 
 
228,765
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
 
98,831
 
 
-
 
 
43,359
 
 
142,190
 
Acquisition expenses
 
 
23,032
 
 
-
 
 
24,203
 
 
47,235
 
Operating expenses
 
 
15,562
 
 
2,570
 
 
6,647
 
 
24,779
 
Dividends to policyholders
 
 
1,429
 
 
-
 
 
-
 
 
1,429
 
Total losses and expenses
 
 
138,854
 
 
2,570
 
 
74,209
 
 
215,633
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
and interest expense
 
 
6,559
 
 
(2,373
)
 
8,946
 
 
13,132
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
-
 
 
2,939
 
 
-
 
 
2,939
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income (loss)
 
$
6,559
 
$
(5,312
)
$
8,946
 
 
10,193
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized investment gains
 
 
 
 
 
 
 
 
 
 
 
8,600
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax income
                    
$
18,793
  
                           
                           
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
 
8
 

PMA Capital Corporation  
Statements of Operations - PMA Insurance Group  
(Dollar Amounts in Thousands)  
                            
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 1st
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
 Quarter
  
                            
Gross Premiums Written
 
$
146,486
 
$
94,400
 
$
109,788
 
$
72,380
 
$
116,272
 
 
-20.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Premiums Written
 
$
135,286
 
$
81,962
 
$
97,637
 
$
62,910
 
$
105,474
 
 
-22.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
131,650
 
$
118,288
 
$
103,032
 
$
89,373
 
$
84,700
 
 
-35.7
%
Net investment income
 
 
8,028
 
 
8,364
 
 
8,083
 
 
6,509
 
 
7,541
 
 
-6.1
%
Other revenues
 
 
5,735
 
 
4,389
 
 
4,480
 
 
4,404
 
 
4,727
 
 
-17.6
%
Total revenues
 
 
145,413
 
 
131,041
 
 
115,595
 
 
100,286
 
 
96,968
 
 
-33.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
 
98,831
 
 
88,072
 
 
77,994
 
 
66,284
 
 
62,218
 
 
-37.0
%
Acquisition expenses
 
 
23,032
 
 
22,620
 
 
21,876
 
 
18,550
 
 
16,767
 
 
-27.2
%
Operating expenses
 
 
15,562
 
 
16,594
 
 
11,383
 
 
13,372
 
 
10,869
 
 
-30.2
%
Dividends to policyholders
 
 
1,429
 
 
946
 
 
805
 
 
1,819
 
 
502
 
 
-64.9
%
Total losses and expenses
 
 
138,854
 
 
128,232
 
 
112,058
 
 
100,025
 
 
90,356
 
 
-34.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income
 
$
6,559
  
$
2,809
  
$
3,537
  
$
261
  
$
6,612
    
0.8
%
                                       
                                       
 
 
9
 
PMA Capital Corporation  
Insurance Ratios - PMA Insurance Group  
                            
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1st
Quarter
2004
2nd
Quarter
2004
3rd
Quarter
2004
4th
Quarter
2004
 1st
Quarter
2005
 Point Chg.
1st Quarter
Better (Worse)
                            
Ratios - GAAP Basis:
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Loss and LAE ratio
 
 
75.1
%
 
74.5
%
 
75.7
%
 
74.2
%
 
73.5
%
 
1.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expense ratio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition expenses
 
 
17.5
%
 
19.1
%
 
21.2
%
 
20.8
%
 
19.8
%
 
(2.3
)
Operating expenses 1
 
 
9.2
%
 
11.2
%
 
7.8
%
 
11.5
%
 
9.5
%
 
(0.3
)
Total expense ratio
 
 
26.7
%
 
30.3
%
 
29.0
%
 
32.3
%
 
29.3
%
 
(2.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholders' dividend ratio
 
 
1.1
%
 
0.8
%
 
0.8
%
 
2.0
%
 
0.6
%
 
0.5
 
Combined ratio
 
 
102.9
%
 
105.6
%
 
105.5
%
 
108.5
%
 
103.4
%
 
(0.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income ratio
 
 
-6.1
%
 
-7.1
%
 
-7.8
%
 
-7.3
%
 
-8.9
%
 
2.8
 
Operating ratio
    
96.8
%
  
98.5
%
  
97.7
%
  
101.2
%
  
94.5
%
  
2.3
 
                                       
                                       
 

1
The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $12.1 million, $13.2 million, $8.1 million, $10.3 million and $8.0 million for the first, second, third and fourth quarters of 2004 and the first quarter of 2005, respectively.
 
 
10
 

PMA Capital Corporation  
Statements of Operations - Run-off Operations  
(Dollar Amounts in Thousands)  
                            
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 1st
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
 Quarter
  
                            
Gross Premiums Written
 
$
11,524
 
$
(69,726
)
$
(9,589
)
$
(2,176
)
$
5,235
 
 
-54.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Premiums Written
 
$
23,362
 
$
(78,864
)
$
(13,884
)
$
(5,974
)
$
4,929
 
 
-78.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
74,769
 
$
285
 
$
1,364
 
$
649
 
$
3,217
 
 
-95.7
%
Net investment income
 
 
8,386
 
 
6,170
 
 
4,884
 
 
5,215
 
 
3,900
 
 
-53.5
%
Total revenues
 
 
83,155
 
 
6,455
 
 
6,248
 
 
5,864
 
 
7,117
 
 
-91.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
 
43,359
 
 
(601
)
 
2,712
 
 
3,905
 
 
31,770
 
 
-26.7
%
Acquisition expenses
 
 
24,203
 
 
2,348
 
 
2,211
 
 
385
 
 
1,904
 
 
-92.1
%
Operating expenses
 
 
6,647
 
 
4,084
 
 
3,440
 
 
3,520
 
 
3,089
 
 
-53.5
%
Total losses and expenses
 
 
74,209
 
 
5,831
 
 
8,363
 
 
7,810
 
 
36,763
 
 
-50.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating income (loss)
  
$
8,946
  
$
624
  
$
(2,115
)
$
(1,946
)
$
(29,646
)
  
NM
  
                                       
 
 
11
 

PMA Capital Corporation  
Statements of Operations - Corporate & Other  
(Dollar Amounts in Thousands)  
                            
   
1st
 
2nd
 
3rd
 
4th
 
1st
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 1st
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
 Quarter
  
                            
Gross Premiums Written
 
$
(150
)
$
(225
)
$
(186
)
$
(264
)
$
(194
)
 
-29.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Premiums Written
 
$
(150
)
$
(225
)
$
(186
)
$
(264
)
$
(194
)
 
-29.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
(150
)
$
(225
)
$
(186
)
$
(264
)
$
(194
)
 
-29.3
%
Net investment income
 
 
344
 
 
273
 
 
271
 
 
418
 
 
271
 
 
-21.2
%
Other revenues
 
 
3
 
 
291
 
 
25
 
 
6,614
 
 
227
 
 
NM
Total revenues
 
 
197
 
 
339
 
 
110
 
 
6,768
 
 
304
 
 
54.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
 
2,570
 
 
2,885
 
 
2,119
 
 
2,736
 
 
2,502
 
 
-2.6
%
Total losses and expenses
 
 
2,570
 
 
2,885
 
 
2,119
 
 
2,736
 
 
2,502
 
 
-2.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss) before income taxes, interest expense, and loss on debt exchange
 
 
(2,373
)
 
(2,546
)
 
(2,009
)
 
4,032
 
 
(2,198
)
 
7.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
2,939
 
 
2,960
 
 
2,973
 
 
3,482
 
 
3,969
 
 
35.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on debt exchange
 
 
-
 
 
-
 
 
-
 
 
5,973
 
 
-
 
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax operating loss
  
$
(5,312
)
$
(5,506
)
$
(4,982
)
$
(5,423
)
$
(6,167
)
  
-16.1
%
 
 
12
 

PMA Capital Corporation
Operating Cash Flows - Consolidated
(In Thousands)
                       
 
 
1st
 
2nd
 
3rd
 
4th
 
1st
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
                       
Receipts:
 
 
 
 
 
 
 
 
 
 
 
Premiums and other revenues collected
 
$
186,561
 
$
103,266
 
$
91,121
 
$
101,641
 
$
95,437
 
Investment income received
 
 
22,141
 
 
26,520
 
 
20,627
 
 
18,986
 
 
14,814
 
Total receipts
 
 
208,702
 
 
129,786
 
 
111,748
 
 
120,627
 
 
110,251
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disbursements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and LAE paid:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and LAE paid - current year
 
 
6,491
 
 
37,839
 
 
43,406
 
 
34,520
 
 
3,812
 
Losses and LAE paid - prior years
 
 
217,746
 
 
272,164
 
 
178,193
 
 
87,203
 
 
112,312
 
Total losses and LAE paid
 
 
224,237
 
 
310,003
 
 
221,599
 
 
121,723
 
 
116,124
 
Insurance operating expenses paid
 
 
73,845
 
 
54,695
 
 
43,228
 
 
27,716
 
 
37,394
 
Policyholders' dividends paid
 
 
1,573
 
 
873
 
 
2,145
 
 
765
 
 
2,115
 
Interest on corporate debt
 
 
3,686
 
 
1,856
 
 
3,694
 
 
2,371
 
 
4,387
 
Total disbursements
 
 
303,341
 
 
367,427
 
 
270,666
 
 
152,575
 
 
160,020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net other
 
 
(7,511
)
 
(22,894
)
 
6,997
 
 
(56,713
)
 
7,258
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating cash flows
  
$
(102,150
)
$
(260,535
)
$
(151,921
)
$
(88,661
)
$
(42,511
)
 
 
13
 

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(In Thousands)
                       
 
 
1st
 
2nd
 
3rd
 
4th
 
1st
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
 
                       
Receipts:
                      
Premiums and other revenues collected
  
$
128,216
  
$
123,944
  
$
97,543
  
$
111,150
  
$
91,910
  
Investment income received
    
10,246
   
9,869
   
9,574
   
9,851
   
9,404
 
Total receipts
    
138,462
   
133,813
   
107,117
   
121,001
   
101,314
 
                                 
Disbursements:
                                
Losses and LAE paid:
                                
Losses and LAE paid - current year
    
6,157
   
19,158
   
29,827
   
31,304
   
3,810
 
Losses and LAE paid - prior years
    
75,447
   
63,116
   
57,160
   
31,086
   
72,999
 
Losses and LAE
    
81,604
   
82,274
   
86,987
   
62,390
   
76,809
 
Insurance operating expenses paid
    
52,645
   
38,931
   
34,600
   
29,531
   
33,000
 
Policyholders' dividends paid
    
1,573
   
873
   
2,145
   
765
   
2,115
 
Total disbursements
    
135,822
   
122,078
   
123,732
   
92,686
   
111,924
 
                                 
Net other
    
(8,306
)
  
(8,535
)
  
8,102
   
(21,974
)
  
13,760
 
                                 
Net operating cash flows
  
$
(5,666
)
$
3,200
  
$
(8,513
)
$
6,341
  
$
3,150
  
 
 
14
 

PMA Capital Corporation
Operating Cash Flows - Run-off Operations
(In Thousands)
                       
 
 
1st
 
2nd
 
3rd
 
4th
 
1st
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2004
 
2004
 
2004
 
2004
 
2005
  
                       
Receipts:
                      
Premiums collected
  
$
58,345
  
$
(20,678
)
$
(6,422
)
$
(9,509
)
$
3,527
  
Investment income received
    
11,895
   
16,651
   
11,053
   
9,135
   
5,410
 
Total receipts
    
70,240
   
(4,027
)
  
4,631
   
(374
)
  
8,937
 
                                 
Disbursements:
                                
Losses and LAE paid:
                                
Losses and LAE paid - current year
    
334
   
18,681
   
13,579
   
3,216
   
2
 
Losses and LAE paid - prior years
    
142,299
   
209,048
   
121,033
   
56,117
   
39,313
 
Total losses and LAE paid
    
142,633
   
227,729
   
134,612
   
59,333
   
39,315
 
Insurance operating expenses paid
    
21,200
   
15,764
   
8,628
   
(1,815
)
  
4,394
 
Total disbursements
    
163,833
   
243,493
   
143,240
   
57,518
   
43,709
 
                                 
Net other
    
1,860
   
(13,311
)
  
282
   
(34,482
)
  
(74
)
                                 
Net operating cash flows
  
$
(91,733
)
$
(260,831
)
$
(138,327
)
$
(92,374
)
$
(34,846
)
 
 
15
 

PMA Capital Corporation
Statutory Surplus
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1st
 
 
2nd
 
3rd
 
4th
 
1st
 
 
 
 
 
Quarter
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
 
 
2004
 
 
2004
 
2004
 
2004
 
20051
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMA Pool 2
 
$
296,785
 
 
 
 
$
305,074
 
$
294,587
 
$
300,034
 
$
298,686
5 
 
 
 
PMA Capital Insurance Company 3
 
 
517,143
4 
 
 
 
 
236,247
 
 
236,443
 
 
224,511
 
 
218,322
5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PMA Capital Corporation
Statutory Financial Information - PMA Pool 2
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1st        
 
 
 
 
 
2nd
 
 
3rd
 
 
4th
 
 
1st
 
 
 
 
 
 
 
Quarter 
 
 
 
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
Quarter
 
 
 
 
 
 
 
2004
 
 
 
 
 
2004
 
 
2004
 
 
2004
 
 
20051
 
      
                                             
Net Premiums Written:
                                            
Workers Compensation & Integrated
                                            
Disability
  
$
106,190
        
$
56,764
  
$
88,814
  
$
54,556
  
$
94,737
        
Other Commercial Lines
    
11,915
         
8,275
   
8,962
   
3,700
   
10,787
       
Total - PMA Pool
  
$
118,105
        
$
65,039
  
$
97,776
  
$
58,256
  
$
105,524
        
                                             
Statutory Ratios:
                                            
Loss and LAE ratio
    
74.9
%
        
75.2
%
  
75.9
%
  
75.2
%
  
73.3
%
      
Underwriting expense ratio
    
27.1
%
        
39.0
%
  
29.5
%
  
37.5
%
  
25.2
%
      
Policyholders' dividend ratio
    
1.2
%
        
0.7
%
  
0.4
%
  
0.4
%
  
0.9
%
      
Combined ratio
    
103.2
%
        
114.9
%
  
105.8
%
  
113.1
%
  
99.4
%
      
Operating ratio
    
96.5
%
        
107.4
%
  
98.9
%
  
104.2
%
  
91.2
%
      
                                             
                                             
                                             
 

1
Estimated.
2
The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company.
3
In November 2003, we announced our decision to withdraw from the reinsurance business previously served by PMA Capital Insurance Company. The reinsurance business is currently in run-off.
4
Includes the statutory surplus of the PMA Pool.
5
Includes unassigned surplus of $129.4 million and $24.8 million for the PMA Pool and PMA Capital Insurance Company, respectively.

 
 
 
 
 
 
16
 

PMA Capital Corporation
Industry Ratings and Market Information
 
Transfer Agent and Registrar:
Certificate Transfers and Conversions:
The Bank of New York
Receive and Deliver Department - 11 W
P.O. Box 11002
Church Street Station
New York, NY 10286
 
Written Inquiries:
The Bank of New York
Shareholder Relations Department - 11 E
P.O. Box 11258
Church Street Station
New York, NY 10286
 
Phone Inquiries:
800.524.4458
 
Email Inquiries:
shareowner-svcs@bankofny.com
Securities Listing:
The Corporation's Class A Common Stock is listed
on the NASDAQ Stock MarketÒ. It trades under
the stock symbol: PMACA.
 
Inquiries:
William E. Hitselberger
Chief Financial Officer
215.665.5070
e-mail: bhitselberger@pmacapital.com
 
Investor Relations
215.665.5046
investorrelations@pmacapital.com
 
Company Website:
http://www.pmacapital.com
 
 
   
 
 

           
Financial Strength Ratings (as of 5/3/2005):
          
           
   
A.M. Best
  
Moody's
  
PMA Pool 1
    
A- (4th of 16
)
  
Ba1 (11th of 21
)
PMA Capital Insurance Company 2
    
B+ (6th of 16
)
  
B1 (14th of 21
)
 
 
 
               
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.
  
 
              
               
 
 
 
 
 
17