EX-99.2 3 ex99-2.htm EXHIBIT 99-2 Exhibit 99-2
Exhibit 99.2
 
PMA Capital Corporation      
Statistical Supplement      
Second Quarter - 2005      
            
Table of Contents       
       
 Page  
Consolidated Highlights:
           
           
           
           
           
           
           
           
               
Segment Information:
              
     
     
           
           
           
           
 
              
Operating Cash Flow Information:
              
           
           
           
               
Statutory Financial Information:
              
           
               
Other Information:
              
           
               
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 pages 1 and 2 for reconciliations of  operating results by segment to GAAP net income (loss).       
             
 
 
Selected Financial Data              
(Dollar Amounts in Thousands, Except Per Share Data)              
                            
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 2nd
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 Quarter
  
                            
Net Premiums Written by Segment:
                           
PMA Insurance Group
  
$
81,962
  
$
97,637
  
$
62,910
  
$
105,474
  
$
82,103
    
0.2
%
Run-off Operations
   
(78,864
)
  
(13,884
)
  
(5,974
)
  
4,929
   
1,504
   
NM
  
Corporate & Other
    
(225
)
  
(186
)
  
(264
)
  
(194
)
  
(220
)
  
2.2
%
Net premiums written
  
$
2,873
  
$
83,567
  
$
56,672
  
$
110,209
  
$
83,387
    
NM
  
                                       
Major Components of Net Income (Loss):
                                     
Pre-tax operating income (loss) by segment:
                                      
PMA Insurance Group
  
$
2,809
  
$
3,537
  
$
261
  
$
6,612
  
$
4,941
    
75.9
%
Run-off Operations 
    
624
   
(2,115
)
  
(1,946
)
  
(29,646
)
  
1,133
   
81.6
%
Corporate & Other
    
(5,506
)
  
(4,982
)
  
(5,423
)
  
(6,167
)
  
(5,721
)
  
-3.9
%
Pre-tax operating income (loss)
    
(2,073
)
  
(3,560
)
  
(7,108
)
  
(29,201
)
  
353
   
NM
  
Net realized investment gains (losses)
    
2,248
   
3,515
   
(7,870
)
  
2,983
   
(265
)
  
NM
  
Pre-tax income (loss)
    
175
   
(45
)
  
(14,978
)
  
(26,218
)
  
88
   
-49.7
%
Income tax expense (benefit)
    
111
   
29
   
(4,665
)
  
(5,667
)
  
71
   
-36.0
%
Net income (loss)
  
$
64
  
$
(74
)
$
(10,313
)
$
(20,551
)
$
17
    
-73.4
%
After-tax operating income (loss)
  
$
(1,397
)
$
(2,359
)
$
(5,198
)
$
(22,490
)
$
189
    
NM
  
                                       
Diluted Earnings (Loss) Per Share:
                                      
Net income (loss)
  
$
-
  
$
-
  
$
(0.33
)
$
(0.65
)
$
-
    
NM
  
Less the impact of:
                                      
Realized gains (losses) after tax
    
0.04
   
0.08
   
(0.16
)
  
0.06
   
(0.01
)
  
NM
  
After-tax operating income (loss)
  
$
(0.04
)
$
(0.08
)
$
(0.17
)
$
(0.71
)
$
0.01
    
NM
  
                                       
Capitalization:
                                      
Debt
  
$
187,566
  
$
187,566
  
$
214,467
  
$
211,769
  
$
211,853
    
12.9
%
Shareholders' equity excluding FAS 115
unrealized gain
    
443,634
   
442,797
   
431,828
   
412,349
   
412,330
   
-7.1
%
Total capitalization excluding FAS 115 unrealized
gain
    
631,200
   
630,363
   
646,295
   
624,118
   
624,183
   
-1.1
%
FAS 115 unrealized gain
    
29
   
15,350
   
13,623
   
1,539
   
17,266
   
NM
  
Total capitalization including FAS 115 unrealized gain
  
$
631,229
  
$
645,713
  
$
659,918
  
$
625,657
  
$
641,449
    
1.6
%
                                       
Book Value Per Share:
                                      
Excluding FAS 115 unrealized gain
  
$
14.00
  
$
13.98
  
$
13.63
  
$
12.95
  
$
12.93
    
-7.6
%
Including FAS 115 unrealized gain
  
$
14.00
  
$
14.46
  
$
14.06
  
$
13.00
  
$
13.47
    
-3.8
%
                                       
Debt to Total Capital:
                                      
Excluding FAS 115 unrealized gain
    
29.7
%
  
29.8
%
  
33.2
%
  
33.9
%
  
33.9
%
  
14.1
%
Including FAS 115 unrealized gain
    
29.7
%
  
29.0
%
  
32.5
%
  
33.8
%
  
33.0
%
  
11.1
%
                                       
Interest Coverage:
                                      
Income before interest and income taxes
                                      
to interest expense
    
1.06
   
0.98
   
NM
   
NM
   
1.02
   
-3.5
%
                                       
Operating income before interest and income
                                     
taxes to interest expense
    
0.30
   
NM
   
NM
   
NM
   
1.09
   
263.3
%
1
 

Selected Financial Data        
(Dollar Amounts in Thousands, Except Per Share Data)        
                
   
Six
 
Six
 
 % Change
 
   
Months
 
Months
 
 Six
 
   
2005
  
2004
  
 Months
  
                
Net Premiums Written by Segment:
                    
PMA Insurance Group
  
$
187,577
  
$
217,248
    
-13.7
%
Run-off Operations 
    
6,433
   
(55,502
)
  
NM
  
Corporate & Other
    
(414
)
  
(375
)
  
-10.4
%
Net premiums written
  
$
193,596
  
$
161,371
    
20.0
%
                     
Major Components of Net Income (Loss):
                    
Pre-tax operating income (loss) by segment:
                    
PMA Insurance Group
  
$
11,553
  
$
9,368
    
23.3
%
Run-off Operations
   
(28,513
)
  
9,570
   
NM
  
Corporate & Other
    
(11,888
)
  
(10,818
)
  
-9.9
%
Pre-tax operating income (loss)
    
(28,848
)
  
8,120
   
NM
  
Net realized investment gains
    
2,718
   
10,848
   
-74.9
%
Pre-tax income (loss)
    
(26,130
)
  
18,968
   
NM
  
Income tax expense (benefit)
    
(5,596
)
  
6,751
   
NM
  
Net income (loss)
  
$
(20,534
)
$
12,217
    
NM
  
After-tax operating income (loss)
  
$
(22,301
)
$
5,166
    
NM
  
                     
Diluted Earnings (Loss) Per Share:
                    
Net income (loss)
  
$
(0.65
)
$
0.36
    
NM
  
Less the impact of:
                    
Realized gains after tax
   
0.06
   
0.19
   
-68.4
%
After-tax operating income (loss)
  
$
(0.71
)
$
0.17
    
NM
  

 
2
 

Consolidated Statements of Operations - Per Share Data                
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
  
                                
Diluted Earnings (Loss) Per Share:
                                            
                                             
Net income (loss)
  
$
-
  
$
-
  
$
(0.33
)
$
(0.65
)
$
-
  
$
(0.65
)
$
0.36
  
                                             
Pre-tax operating income (loss)
  
$
(0.07
)
$
(0.11
)
$
(0.23
)
$
(0.93
)
$
0.01
  
$
(0.91
)
$
0.27
  
                                             
After-tax operating income (loss)
  
$
(0.04
)
$
(0.08
)
$
(0.17
)
$
(0.71
)
$
0.01
  
$
(0.71
)
$
0.17
  
                                             
Diluted weighted average common
                                            
shares outstanding
    
31,741,827
   
31,350,825
   
31,350,825
   
31,393,684
   
32,015,127
   
31,559,468
   
36,798,188
 
                                             
                                             
Dividends declared:
                                            
Class A Common stock
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
                                             
Actual common shares issued
                                            
and outstanding
    
31,692,351
   
31,681,751
   
31,676,851
   
31,835,136
   
31,885,541
   
31,885,541
   
31,692,351
 
                                             
                                             
Class A Common Stock prices:
                                            
High
  
$
9.13
  
$
9.16
  
$
10.85
  
$
10.65
  
$
9.00
  
$
10.65
  
$
9.13
  
Low
  
$
6.01
  
$
5.70
  
$
6.74
  
$
7.05
  
$
5.91
  
$
5.91
  
$
4.78
  
Close
  
$
9.00
  
$
7.55
  
$
10.35
  
$
8.00
  
$
8.83
  
$
8.83
  
$
9.00
  
                                             
 
 
3
 

This Page Intentionally Left Blank
 
 
 

Consolidated Statements of Operations              
(In Thousands)              
                            
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 2nd
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 Quarter
  
                            
Gross Premiums Written
  
$
24,449
  
$
100,013
  
$
69,940
  
$
121,313
  
$
95,069
    
288.8
%
                                       
Net Premiums Written
  
$
2,873
  
$
83,567
  
$
56,672
  
$
110,209
  
$
83,387
    
NM
  
                                       
Revenues:
                                      
Net premiums earned
  
$
118,348
  
$
104,210
  
$
89,758
  
$
87,723
  
$
88,720
    
-25.0
%
Net investment income
    
14,807
   
13,238
   
12,142
   
11,712
   
12,542
   
-15.3
%
Net realized investment gains (losses)
    
2,248
   
3,515
   
(7,870
)
  
2,983
   
(265
)
  
NM
  
Other revenues
    
5,872
   
5,881
   
12,125
   
6,192
   
4,939
   
-15.9
%
Total revenues
    
141,275
   
126,844
   
106,155
   
108,610
   
105,936
   
-25.0
%
                                       
Expenses:
                                      
Losses and loss adjustment expenses
    
87,471
   
80,706
   
70,189
   
93,988
   
63,261
   
-27.7
%
Acquisition expenses
    
24,968
   
24,087
   
18,935
   
18,671
   
17,983
   
-28.0
%
Operating expenses
    
24,755
   
18,318
   
20,735
   
17,698
   
18,802
   
-24.0
%
Dividends to policyholders
    
946
   
805
   
1,819
   
502
   
1,762
   
86.3
%
Interest expense
    
2,960
   
2,973
   
3,482
   
3,969
   
4,040
   
36.5
%
Loss on debt exchange
    
-
   
-
   
5,973
   
-
   
-
   
NM
  
Total losses and expenses
    
141,100
   
126,889
   
121,133
   
134,828
   
105,848
   
-25.0
%
                                       
Pre-tax income (loss)
    
175
   
(45
)
  
(14,978
)
  
(26,218
)
  
88
   
-49.7
%
                                       
Income tax expense (benefit):
                                      
Current
    
64
   
(117
)
  
(272
)
  
-
   
-
   
NM
  
Deferred
    
47
   
146
   
(4,393
)
  
(5,667
)
  
71
   
51.1
%
                                       
Total income tax expense (benefit)
    
111
   
29
   
(4,665
)
  
(5,667
)
  
71
   
-36.0
%
                                       
Net income (loss)
  
$
64
  
$
(74
)
$
(10,313
)
$
(20,551
)
$
17
    
-73.4
%
                                       
Pre-tax operating income (loss)
  
$
(2,073
)
$
(3,560
)
$
(7,108
)
$
(29,201
)
$
353
    
NM
  
                                       
After-tax operating income (loss)
  
$
(1,397
)
$
(2,359
)
$
(5,198
)
$
(22,490
)
$
189
    
NM
  
 
 
5
 
Consolidated Statements of Operations        
(In Thousands)        
                
   
Six
  
Six
  
 % Change
  
   
Months
  
Months
  
 Six
 
   
2005
  
2004
  
 Months
  
                
Gross Premiums Written
  
$
216,382
  
$
182,309
    
18.7
%
                     
Net Premiums Written
  
$
193,596
  
$
161,371
    
20.0
%
                     
Revenues:
                    
Net premiums earned
  
$
176,443
  
$
324,617
    
-45.6
%
Net investment income
    
24,254
   
31,565
   
-23.2
%
Net realized investment gains
    
2,718
   
10,848
   
-74.9
%
Other revenues
    
11,131
   
12,695
   
-12.3
%
Total revenues
    
214,546
   
379,725
   
-43.5
%
                     
Expenses:
                    
Losses and loss adjustment expenses
    
157,249
   
229,661
   
-31.5
%
Acquisition expenses
    
36,654
   
72,203
   
-49.2
%
Operating expenses
    
36,500
   
50,619
   
-27.9
%
Dividends to policyholders
    
2,264
   
2,375
   
-4.7
%
Interest expense
    
8,009
   
5,899
   
35.8
%
Total losses and expenses
    
240,676
   
360,757
   
-33.3
%
                     
Pre-tax income (loss)
    
(26,130
)
  
18,968
   
NM
  
                     
Income tax expense (benefit):
                    
Current
    
-
   
389
   
NM
  
Deferred
    
(5,596
)
  
6,362
   
NM
  
                     
Total income tax expense (benefit)
    
(5,596
)
  
6,751
   
NM
  
                     
Net income (loss)
  
$
(20,534
)
$
12,217
    
NM
  
                     
Pre-tax operating income (loss)
  
$
(28,848
)
$
8,120
    
NM
  
                     
After-tax operating income (loss)
  
$
(22,301
)
$
5,166
    
NM
  
 
6
 

Consolidated Balance Sheets           
(In Thousands)           
                       
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
   
2004
  
2004
  
2004
  
2005
  
2005
  
                       
Assets:
                                
Investments in fixed maturities available for sale
  
$
1,469,027
  
$
1,381,788
  
$
1,304,086
  
$
1,283,406
  
$
1,256,169
  
Short-term investments
    
88,664
   
98,761
   
123,746
   
60,325
   
61,058
 
Short-term investments, loaned securities collateral
    
129,999
   
96,606
   
-
   
102,620
   
90,114
 
Total investments
    
1,687,690
   
1,577,155
   
1,427,832
   
1,446,351
   
1,407,341
 
                                 
Cash
    
66,100
   
48,046
   
35,537
   
49,921
   
30,464
 
Accrued investment income
    
17,913
   
16,407
   
15,517
   
15,188
   
14,147
 
Premiums receivable
    
249,112
   
219,111
   
197,831
   
208,748
   
183,713
 
Reinsurance receivables
    
1,210,765
   
1,170,004
   
1,142,552
   
1,129,507
   
1,129,857
 
Deferred income taxes
    
88,250
   
80,541
   
86,501
   
98,714
   
90,301
 
Deferred acquisition costs
    
41,321
   
37,800
   
31,426
   
35,138
   
34,655
 
Funds held by reinsureds
    
107,804
   
134,978
   
142,064
   
146,674
   
150,078
 
Other assets
    
248,578
   
219,536
   
174,725
   
167,200
   
169,028
 
Total assets
  
$
3,717,533
  
$
3,503,578
  
$
3,253,985
  
$
3,297,441
  
$
3,209,584
  
                                 
Liabilities:
                                
Unpaid losses and loss adjustment expenses
  
$
2,292,281
  
$
2,179,900
  
$
2,111,598
  
$
2,077,599
  
$
2,005,386
  
Unearned premiums
    
216,155
   
193,221
   
158,489
   
177,415
   
175,025
 
Debt
    
187,566
   
187,566
   
214,467
   
211,769
   
211,853
 
Accounts payable, accrued expenses
                                
and other liabilities
    
277,457
   
254,467
   
196,744
   
196,875
   
188,042
 
Funds held under reinsurance treaties
    
162,293
   
127,239
   
121,234
   
112,712
   
105,572
 
Dividends to policyholders
    
8,121
   
6,424
   
5,977
   
4,580
   
3,992
 
Payable under securities loan agreements
    
129,997
   
96,614
   
25
   
102,603
   
90,118
 
Total liabilities
    
3,273,870
   
3,045,431
   
2,808,534
   
2,883,553
   
2,779,988
 
                                 
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
    
223,442
   
223,519
   
213,313
   
189,787
   
189,109
 
Accumulated other comprehensive income (loss)
    
(13,160
)
  
885
   
(1,959
)
  
(14,116
)
  
1,377
 
Notes receivable from officers
    
(59
)
  
-
   
-
   
-
   
-
 
Treasury stock, at cost
    
(45,261
)
  
(45,474
)
  
(45,573
)
  
(41,752
)
  
(40,734
)
Unearned restricted stock compensation
    
(1,720
)
  
(1,204
)
  
(751
)
  
(452
)
  
(577
)
Total shareholders' equity
    
443,663
   
458,147
   
445,451
   
413,888
   
429,596
 
Total liabilities and shareholders' equity
  
$
3,717,533
  
$
3,503,578
  
$
3,253,985
  
$
3,297,441
  
$
3,209,584
  
 
7
 
Invested Assets and Net Investment Income                
(Dollars in Thousands)                
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
   
2004
  
2004
  
2004
  
2005
  
2005
  
 2005
  
2004
  
                                
Total Investments & Cash
                                            
As reported
  
$
1,753,790
  
$
1,625,201
  
$
1,463,369
  
$
1,496,272
  
$
1,437,805
  
$
1,437,805
  
$
1,753,790
  
Less:
                                            
Securities lending activity
    
129,997
   
96,614
   
25
   
102,603
   
90,118
   
90,118
   
129,997
 
Unrealized gain
    
45
   
23,615
   
20,958
   
2,368
   
26,563
   
26,563
   
45
 
Total adjusted investments & cash
  
$
1,623,748
  
$
1,504,972
  
$
1,442,386
  
$
1,391,301
  
$
1,321,124
  
$
1,321,124
  
$
1,623,748
  
                                             
Net Investment Income
                                            
As reported
  
$
14,807
  
$
13,238
  
$
12,142
  
$
11,712
  
$
12,542
  
$
24,254
  
$
31,565
  
Funds held:
                                            
Assumed
   
109
   
73
   
846
   
187
   
129
   
316
   
96
 
Ceded
   
(3,962
)
  
(2,140
)
  
(1,394
)
  
(2,125
)
  
(1,134
)
  
(3,259
)
  
(6,184
)
Total funds held
    
(3,853
)
  
(2,067
)
  
(548
)
  
(1,938
)
  
(1,005
)
  
(2,943
)
  
(6,088
)
                                             
Total adjusted investment income
  
$
18,660
  
$
15,305
  
$
12,690
  
$
13,650
  
$
13,547
  
$
27,197
  
$
37,653
  
                                             
Yield
                                            
As reported
    
3.11
%
  
3.13
%
  
3.15
%
  
3.17
%
  
3.42
%
  
3.31
%
  
3.24
%
Investment portfolio
    
4.10
%
  
3.91
%
  
3.44
%
  
3.85
%
  
4.00
%
  
3.93
%
  
4.02
%
                                             
Duration (in years)
    
3.4
   
3.6
   
3.6
   
3.8
   
3.9
   
3.9
   
3.4
 
 
 

PMA Capital Corporation     
Debt     
(Dollars in Thousands)     
           
   
Amount
     
   
Outstanding
  
Maturity
  
6.50% convertible debt 
  
$
99,140
    
20221
  
Derivative component of 6.50% convertible debt
    
10,742
       
4.25% convertible debt 
    
655
   
20222
  
8.50% senior notes
    
57,500
   
2018
  
Trust preferred debt 3
    
43,816
   
2033
  
Total long-term debt
  
$
211,853
        
               
 
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 7.47% as of June 30, 2005.                
 
 
PMA Capital Corporation       
Balance Sheet Impact of Commutations - Run-off Operations       
(Dollars in Thousands)       
               
   
2nd Quarter 2005    
  
Liabilities
  
Assumed
 
Ceded
 
Total
  
Unpaid loss and loss adjustment expenses
  
$
(1,200
)
$
-
  
$
(1,200
)
                     
 
    
Six Months 2005       
  
Liabilities
    
Assumed
 
 
Ceded
 
 
Total
  
Unpaid loss and loss adjustment expenses
  
$
(5,393
)
$
-
  
$
(5,393
)
 
8
 

Statements of Operations - Consolidating         
Six Months Ended June 30, 2005         
(In Thousands)         
                   
   
PMA
             
   
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
  
$
209,952
  
$
(414
)
$
6,844
  
$
216,382
  
                           
Net Premiums Written
  
$
187,577
  
$
(414
)
$
6,433
  
$
193,596
  
                           
Revenues:
                          
Net premiums earned
  
$
170,241
  
$
(414
)
$
6,616
  
$
176,443
  
Net investment income
    
15,257
   
528
   
8,469
   
24,254
 
Other revenues
    
10,871
   
260
   
-
   
11,131
 
Operating revenues
    
196,369
   
374
   
15,085
   
211,828
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
123,549
   
-
   
33,700
   
157,249
 
Acquisition expenses
    
34,021
   
-
   
2,633
   
36,654
 
Operating expenses
    
24,982
   
4,253
   
7,265
   
36,500
 
Dividends to policyholders
    
2,264
   
-
   
-
   
2,264
 
Total losses and expenses
    
184,816
   
4,253
   
43,598
   
232,667
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
11,553
   
(3,879
)
  
(28,513
)
  
(20,839
)
                           
Interest expense
    
-
   
8,009
   
-
   
8,009
 
                           
Pre-tax operating income (loss)
  
$
11,553
  
$
(11,888
)
$
(28,513
)
  
(28,848
)
                           
Net realized investment gains
                      
2,718
 
                           
Pre-tax loss
                    
$
(26,130
)
                           
                           
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.        
 
9
 
Statements of Operations - Consolidating           
Six Months Ended June 30, 2004           
(In Thousands)           
                       
       
PMA
             
       
Insurance
 
Corporate
 
Run-off
     
       
Group
 
& Other1
  
Operations
 
Consolidated
 
                       
Gross Premiums Written
        
$
240,886
  
$
(375
)
$
(58,202
)
$
182,309
  
                                 
Net Premiums Written
        
$
217,248
  
$
(375
)
$
(55,502
)
$
161,371
  
                                 
Revenues:
                                
Net premiums earned
        
$
249,938
  
$
(375
)
$
75,054
  
$
324,617
  
Net investment income
          
16,392
   
617
   
14,556
   
31,565
 
Other revenues
          
12,401
   
294
   
-
   
12,695
 
Operating revenues
          
278,731
   
536
   
89,610
   
368,877
 
                                 
Losses and Expenses:
                                
Losses and loss adjustment expenses
          
186,903
   
-
   
42,758
   
229,661
 
Acquisition expenses
          
45,652
   
-
   
26,551
   
72,203
 
Operating expenses
          
34,433
   
5,455
   
10,731
   
50,619
 
Dividends to policyholders
          
2,375
   
-
   
-
   
2,375
 
Total losses and expenses
          
269,363
   
5,455
   
80,040
   
354,858
 
                                 
Operating income (loss) before income taxes
                                
and interest expense
          
9,368
   
(4,919
)
  
9,570
   
14,019
 
                                 
Interest expense
          
-
   
5,899
   
-
   
5,899
 
                                 
Pre-tax operating income (loss)
        
$
9,368
  
$
(10,818
)
$
9,570
    
8,120
 
                                 
Net realized investment gains
                            
10,848
 
                                 
Pre-tax income
                          
$
18,968
  
                                 
                                 
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.             
 
10
 
Statements of Operations - Consolidating         
Three Months Ended June 30, 2005         
(In Thousands)         
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
  
$
93,680
  
$
(220
)
$
1,609
  
$
95,069
  
 
                          
Net Premiums Written
  
$
82,103
  
$
(220
)
$
1,504
  
$
83,387
  
                           
Revenues:
                          
Net premiums earned
  
$
85,541
  
$
(220
)
$
3,399
  
$
88,720
  
Net investment income
    
7,716
   
257
   
4,569
   
12,542
 
Other revenues
    
4,906
   
33
   
-
   
4,939
 
Operating revenues
    
98,163
   
70
   
7,968
   
106,201
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
61,331
   
-
   
1,930
   
63,261
 
Acquisition expenses
    
17,254
   
-
   
729
   
17,983
 
Operating expenses
    
12,875
   
1,751
   
4,176
   
18,802
 
Dividends to policyholders
    
1,762
   
-
   
-
   
1,762
 
Total losses and expenses
    
93,222
   
1,751
   
6,835
   
101,808
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
4,941
   
(1,681
)
  
1,133
   
4,393
 
                           
Interest expense
    
-
   
4,040
   
-
   
4,040
 
                           
Pre-tax operating income (loss)
  
$
4,941
  
$
(5,721
)
$
1,133
    
353
 
                           
Net realized investment losses
                      
(265
)
                           
Pre-tax income
                    
$
88
  
                           
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.        
 
11
 
Statements of Operations - Consolidating         
Three Months Ended June 30, 2004         
(In Thousands)         
                   
   
PMA
             
   
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
  
$
94,400
  
$
(225
)
$
(69,726
)
$
24,449
  
                           
Net Premiums Written
  
$
81,962
  
$
(225
)
$
(78,864
)
$
2,873
  
                           
Revenues:
                          
Net premiums earned
  
$
118,288
  
$
(225
)
$
285
  
$
118,348
  
Net investment income
    
8,364
   
273
   
6,170
   
14,807
 
Other revenues
    
5,581
   
291
   
-
   
5,872
 
Operating revenues
    
132,233
   
339
   
6,455
   
139,027
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
88,072
   
-
   
(601
)
  
87,471
 
Acquisition expenses
    
22,620
   
-
   
2,348
   
24,968
 
Operating expenses
    
17,786
   
2,885
   
4,084
   
24,755
 
Dividends to policyholders
    
946
   
-
   
-
   
946
 
Total losses and expenses
    
129,424
   
2,885
   
5,831
   
138,140
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
2,809
   
(2,546
)
  
624
   
887
 
                           
Interest expense
    
-
   
2,960
   
-
   
2,960
 
                           
Pre-tax operating income (loss)
  
$
2,809
  
$
(5,506
)
$
624
    
(2,073
)
                           
Net realized investment gains
                      
2,248
 
                           
Pre-tax income
                    
$
175
  
                           
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.        
 
12
 
Statements of Operations - PMA Insurance Group                     
(Dollar Amounts in Thousands)                     
                                         
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 2nd
 
Six
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
  
$
94,400
  
$
109,788
  
$
72,380
  
$
116,272
  
$
93,680
  
$
209,952
  
$
240,886
    
-0.8
%
  
-12.8
%
                                                         
Net Premiums Written
  
$
81,962
  
$
97,637
  
$
62,910
  
$
105,474
  
$
82,103
  
$
187,577
  
$
217,248
    
0.2
%
  
-13.7
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
118,288
  
$
103,032
  
$
89,373
  
$
84,700
  
$
85,541
  
$
170,241
  
$
249,938
    
-27.7
%
  
-31.9
%
Net investment income
    
8,364
   
8,083
   
6,509
   
7,541
   
7,716
   
15,257
   
16,392
   
-7.7
%
  
-6.9
%
Other revenues
    
5,581
   
5,856
   
5,511
   
5,965
   
4,906
   
10,871
   
12,401
   
-12.1
%
  
-12.3
%
Total revenues
    
132,233
   
116,971
   
101,393
   
98,206
   
98,163
   
196,369
   
278,731
   
-25.8
%
  
-29.5
%
                                                         
Losses and Expenses:
                                                        
Losses and loss adjustment expenses
    
88,072
   
77,994
   
66,284
   
62,218
   
61,331
   
123,549
   
186,903
   
-30.4
%
  
-33.9
%
Acquisition expenses
    
22,620
   
21,876
   
18,550
   
16,767
   
17,254
   
34,021
   
45,652
   
-23.7
%
  
-25.5
%
Operating expenses
    
17,786
   
12,759
   
14,479
   
12,107
   
12,875
   
24,982
   
34,433
   
-27.6
%
  
-27.4
%
Dividends to policyholders
    
946
   
805
   
1,819
   
502
   
1,762
   
2,264
   
2,375
   
86.3
%
  
-4.7
%
Total losses and expenses
    
129,424
   
113,434
   
101,132
   
91,594
   
93,222
   
184,816
   
269,363
   
-28.0
%
  
-31.4
%
                                                         
Pre-tax operating income
 
$
2,809
  
$
3,537
  
$
261
  
$
6,612
  
$
4,941
  
$
11,553
  
$
9,368
    
75.9
%
  
23.3
%
                                                         
                                                         
 
13
 

Insurance Ratios - PMA Insurance Group                     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2nd
Quarter
2004
 
3rd
Quarter
2004
 
4th
Quarter
2004
 
1st
Quarter
2005
 
2nd
Quarter
2005
 
Six
Months
2005
 
Six
Months
2004
 
Point Chg.
2nd Quarter  
Better (Worse)
 
Point Chg.
Six Months
Better (Worse)
  
                                         
Ratios - GAAP Basis:
                                        
                                         
Loss and LAE ratio
    
74.5
%
  
75.7
%
  
74.2
%
  
73.5
%
  
71.7
%
  
72.6
%
  
74.8
%
  
2.8
   
2.2
 
                                                         
Expense ratio:
                                                        
Acquisition expenses
    
19.1
%
  
21.2
%
  
20.8
%
  
19.8
%
  
20.2
%
  
20.0
%
  
18.3
%
  
(1.1
)
  
(1.7
)
Operating expenses 1
    
11.2
%
  
7.8
%
  
11.5
%
  
9.5
%
  
10.3
%
  
9.9
%
  
10.1
%
  
0.9
   
0.2
 
Total expense ratio
    
30.3
%
  
29.0
%
  
32.3
%
  
29.3
%
  
30.5
%
  
29.9
%
  
28.4
%
  
(0.2
)
  
(1.5
)
                                                         
Policyholders' dividend ratio
    
0.8
%
  
0.8
%
  
2.0
%
  
0.6
%
  
2.1
%
  
1.3
%
  
1.0
%
  
(1.3
)
  
(0.3
)
Combined ratio
    
105.6
%
  
105.5
%
  
108.5
%
  
103.4
%
  
104.3
%
  
103.8
%
  
104.2
%
  
1.3
   
0.4
 
                                                         
Net investment income ratio
    
-7.1
%
  
-7.8
%
  
-7.3
%
  
-8.9
%
  
-9.0
%
  
-9.0
%
  
-6.6
%
  
1.9
   
2.4
 
Operating ratio
    
98.5
%
  
97.7
%
  
101.2
%
  
94.5
%
  
95.3
%
  
94.8
%
  
97.6
%
  
3.2
   
2.8
 
                                                         
1 The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $13.2 million, $8.1 million, $10.3 million, $8.0 million and $8.9 million for the second, third and fourth quarters of 2004 and the first and second quarters of 2005, respectively.                       
    
 
 
14
 

Statements of Operations - Run-off Operations                     
(Dollar Amounts in Thousands)                     
                                         
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 % Change
 
%
Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 2nd
 
Six
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
 
$
(69,726
)
$
(9,589
)
$
(2,176
)
$
5,235
  
$
1,609
  
$
6,844
  
$
(58,202
)
  
NM
    
NM
  
                                                         
Net Premiums Written
 
$
(78,864
)
$
(13,884
)
$
(5,974
)
$
4,929
  
$
1,504
  
$
6,433
  
$
(55,502
)
  
NM
    
NM
  
                                                         
Revenues:
                                                        
Net premiums earned
  
$
285
  
$
1,364
  
$
649
  
$
3,217
  
$
3,399
  
$
6,616
  
$
75,054
    
NM
    
-91.2
%
Net investment income
    
6,170
   
4,884
   
5,215
   
3,900
   
4,569
   
8,469
   
14,556
   
-25.9
%
  
-41.8
%
Total revenues
    
6,455
   
6,248
   
5,864
   
7,117
   
7,968
   
15,085
   
89,610
   
23.4
%
  
-83.2
%
                                                         
Losses and Expenses:
                                                        
Losses and loss adjustment expenses
    
(601
)
  
2,712
   
3,905
   
31,770
   
1,930
   
33,700
   
42,758
   
NM
    
-21.2
%
Acquisition expenses
    
2,348
   
2,211
   
385
   
1,904
   
729
   
2,633
   
26,551
   
-69.0
%
  
-90.1
%
Operating expenses
    
4,084
   
3,440
   
3,520
   
3,089
   
4,176
   
7,265
   
10,731
   
2.3
%
  
-32.3
%
Total losses and expenses
    
5,831
   
8,363
   
7,810
   
36,763
   
6,835
   
43,598
   
80,040
   
17.2
%
  
-45.5
%
                                                         
Pre-tax operating income (loss)
  
$
624
  
$
(2,115
)
$
(1,946
)
$
(29,646
)
$
1,133
  
$
(28,513
)
 $ 
9,570
   
81.6
%
  
NM
  
                                                         
 
 
 
15
 

Statements of Operations - Corporate & Other                     
(Dollar Amounts in Thousands)                     
                                         
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 % Change
 
%
Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 2nd
 
Six
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
 
$
(225
)
$
(186
)
$
(264
)
$
(194
)
$
(220
)
$
(414
)
$
(375
)
  
2.2
%
  
-10.4
%
                                                         
Net Premiums Written
 
$
(225
)
$
(186
)
$
(264
)
$
(194
)
$
(220
)
$
(414
)
$
(375
)
  
2.2
%
  
-10.4
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
(225
)
$
(186
)
$
(264
)
$
(194
)
$
(220
)
$
(414
)
$
(375
)
  
2.2
%
  
-10.4
%
Net investment income
    
273
   
271
   
418
   
271
   
257
   
528
   
617
   
-5.9
%
  
-14.4
%
Other revenues
    
291
   
25
   
6,614
   
227
   
33
   
260
   
294
   
-88.7
%
  
-11.6
%
Total revenues
    
339
   
110
   
6,768
   
304
   
70
   
374
   
536
   
-79.4
%
  
-30.2
%
                                                         
Losses and Expenses:
                                                        
Operating expenses
    
2,885
   
2,119
   
2,736
   
2,502
   
1,751
   
4,253
   
5,455
   
-39.3
%
  
-22.0
%
Total losses and expenses
    
2,885
   
2,119
   
2,736
   
2,502
   
1,751
   
4,253
   
5,455
   
-39.3
%
  
-22.0
%
                                                         
Operating income (loss) before income taxes,
                                                        
interest expense, and loss on debt exchange
    
(2,546
)
  
(2,009
)
  
4,032
   
(2,198
)
  
(1,681
)
  
(3,879
)
  
(4,919
)
  
34.0
%
  
21.1
%
                                                         
Interest expense
    
2,960
   
2,973
   
3,482
   
3,969
   
4,040
   
8,009
   
5,899
   
36.5
%
  
35.8
%
                                                         
Loss on debt exchange
    
-
   
-
   
5,973
   
-
   
-
   
-
   
-
   
NM
    
NM
  
                                                         
Pre-tax operating loss
  
$
(5,506
)
$
(4,982
)
$
(5,423
)
$
(6,167
)
$
(5,721
)
$
(11,888
)
 $
(10,818
)
  
-3.9
%
  
-9.9
%
                                                         
 
 
16
 

Operating Cash Flows - Consolidated                
(In Thousands)                
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
  
                                
Receipts:
                               
Premiums and other revenues collected
  
$
103,266
  
$
91,121
  
$
101,641
  
$
95,437
  
$
109,944
  
$
205,381
  
$
289,827
  
Investment income received
    
26,520
   
20,627
   
18,986
   
14,814
   
14,656
   
29,470
   
48,661
 
Total receipts
    
129,786
   
111,748
   
120,627
   
110,251
   
124,600
   
234,851
   
338,488
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
37,839
   
43,406
   
34,520
   
3,812
   
14,240
   
18,052
   
44,330
 
Losses and LAE paid - prior years
    
272,164
   
178,193
   
87,203
   
112,312
   
134,182
   
246,494
   
489,910
 
Total losses and LAE paid
    
310,003
   
221,599
   
121,723
   
116,124
   
148,422
   
264,546
   
534,240
 
Insurance operating expenses paid
    
54,695
   
43,228
   
27,716
   
37,394
   
40,823
   
78,217
   
128,540
 
Policyholders' dividends paid
    
873
   
2,145
   
765
   
2,115
   
1,284
   
3,399
   
2,446
 
Interest on corporate debt
    
1,856
   
3,694
   
2,371
   
4,387
   
1,987
   
6,374
   
5,542
 
Total disbursements
    
367,427
   
270,666
   
152,575
   
160,020
   
192,516
   
352,536
   
670,768
 
                                             
Net other
    
(22,894
)
  
6,997
   
(56,713
)
  
7,258
   
1,046
    
8,304
   
(30,405
)
                                             
Net operating cash flows
  
$
(260,535
)
$
(151,921
)
$
(88,661
)
$
(42,511
)
$
(66,870
)
$
(109,381
)
$
(362,685
)
                                             
 
 
 
 
17
 

Operating Cash Flows - PMA Insurance Group                
(In Thousands)                
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
  
                                
Receipts:
                               
Premiums and other revenues collected
  
$
123,944
  
$
97,543
  
$
111,150
  
$
91,910
  
$
101,408
  
$
193,318
  
$
252,160
  
Investment income received
    
9,869
   
9,574
   
9,851
   
9,404
   
9,682
   
19,086
   
20,115
 
Total receipts
    
133,813
   
107,117
   
121,001
   
101,314
   
111,090
   
212,404
   
272,275
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
19,158
   
29,827
   
31,304
   
3,810
   
14,233
   
18,043
   
25,315
 
Losses and LAE paid - prior years
    
63,116
   
57,160
   
31,086
   
72,999
   
69,276
   
142,275
   
138,563
 
Losses and LAE
    
82,274
   
86,987
   
62,390
   
76,809
   
83,509
   
160,318
   
163,878
 
Insurance operating expenses paid
    
38,931
   
34,600
   
29,531
   
33,000
   
38,226
   
71,226
   
91,576
 
Policyholders' dividends paid
    
873
   
2,145
   
765
   
2,115
   
1,284
   
3,399
   
2,446
 
Total disbursements
    
122,078
   
123,732
   
92,686
   
111,924
   
123,019
   
234,943
   
257,900
 
                                             
Net other
    
(8,535
)
  
8,102
   
(21,974
)
  
13,760
   
2,002
   
15,762
   
(16,841
)
                                             
Net operating cash flows
  
$
3,200
  
$
(8,513
)
$
6,341
  
$
3,150
  
$
(9,927
)
$
(6,777
)
$
(2,466
)
                                             
 
18
    
Operating Cash Flows - Run-off Operations                
(In Thousands)                
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2004
 
2004
 
2005
 
2005
 
 2005
 
2004
  
                                
Receipts:
                               
Premiums collected
  
$
(20,678
)
$
(6,422
)
$
(9,509
)
$
3,527
  
$
8,536
  
$
12,063
  
$
37,667
  
Investment income received
    
16,651
   
11,053
   
9,135
   
5,410
   
4,974
   
10,384
   
28,546
 
Total receipts
    
(4,027
)
  
4,631
   
(374
)
  
8,937
   
13,510
   
22,447
   
66,213
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
18,681
   
13,579
   
3,216
   
2
   
7
   
9
   
19,015
 
Losses and LAE paid - prior years
    
209,048
   
121,033
   
56,117
   
39,313
   
64,906
   
104,219
   
351,347
 
Total losses and LAE paid
    
227,729
   
134,612
   
59,333
   
39,315
   
64,913
   
104,228
   
370,362
 
Insurance operating expenses paid
    
15,764
   
8,628
   
(1,815
)
  
4,394
   
2,597
   
6,991
   
36,964
 
Total disbursements
    
243,493
   
143,240
   
57,518
   
43,709
   
67,510
   
111,219
   
407,326
 
                                             
Net other
    
(13,311
)
  
282
   
(34,482
)
  
(74
)
  
(4,890
)
  
(4,964
)
  
(11,451
)
                                             
Net operating cash flows
  
$
(260,831
)
$
(138,327
)
$
(92,374
)
$
(34,846
)
$
(58,890
)
$
(93,736
)
$
(352,564
)
 
19
 

Statutory Surplus           
(In Thousands)           
                       
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
   
2004
  
2004
 
2004
 
2005
 
20051
  
                       
                       
PMA Pool 2
  
$
305,074
  
$
294,587
  
$
300,034
  
$
298,686
  
$
299,219
 4 
PMA Capital Insurance Company 3
    
236,247
   
236,443
   
224,511
   
218,322
   
215,348
4 

PMA Capital Corporation                
Statutory Financial Information - PMA Pool 2                
(In Thousands)                
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2004
 
2004
 
2005
 
20051
 
 20051
 
2004
  
                                
Net Premiums Written:
                                            
Workers Compensation & Integrated
                                            
Disability
  
$
56,764
  
$
88,814
  
$
54,556
  
$
94,737
  
$
70,944
  
$
165,681
  
$
162,954
  
Other Commercial Lines
    
8,275
   
8,962
   
3,700
   
10,787
   
10,998
   
21,785
   
20,190
 
Total - PMA Pool
  
$
65,039
  
$
97,776
  
$
58,256
  
$
105,524
  
$
81,942
  
$
187,466
  
$
183,144
  
                                             
Statutory Ratios:
                                            
Loss and LAE ratio
    
75.2
%
  
75.9
%
  
75.2
%
  
73.3
%
  
73.0
%
  
73.2
%
  
75.0
%
Underwriting expense ratio
    
39.0
%
  
29.5
%
  
37.5
%
  
25.2
%
  
30.2
%
  
27.4
%
  
31.4
%
Policyholders' dividend ratio
    
0.7
%
  
0.4
%
  
0.4
%
  
0.9
%
  
0.8
%
  
0.9
%
  
1.0
%
Combined ratio
    
114.9
%
  
105.8
%
  
113.1
%
  
99.4
%
  
104.0
%
  
101.5
%
  
107.4
%
Operating ratio
    
107.4
%
  
98.9
%
  
104.2
%
  
91.2
%
  
95.2
%
  
93.0
%
  
100.3
%
                                             
 
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 unassigned surplus of $129.9 million and $21.8 million for the PMA Pool and PMA Capital Insurance Company, respectively.               
 
20
 
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
 
 
 
215.665.5070
New York, NY 10038
 
 
 
e-mail: bhitselberger@pmacapital.com
www.amstock.com
            
 
 
 
 
 
 
 
 
 
Phone Inquiries:
 
 
 
Investor Relations
 
800.937.5449
 
 
 
215.665.5046
 
 
 
 
investorrelations@pmacapital.com
Email Inquiries:
 
 
 
 
 
 
 
 
info@amstock.com
 
 
 
Company Website:
 
 
 
 
 
 
 
 
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 7/29/2005):
                
                 
   
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.
               
 
21