8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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) November 3, 2005

PMA Capital Corporation

___________________________

(Exact name of Registrant as specified in its charter)

Pennsylvania	000-22761	22-2217932
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

380 Sentry Parkway Blue Bell, Pennsylvania	19422
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 665-5046

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On November 3, 2005, the registrant issued a news release regarding its Third Quarter 2005 results, a copy of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference and the registrant’s Third Quarter 2005 Statistical Supplement is furnished as Exhibit 99.2 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01.  Financial Statements and Exhibits.

(c)	Exhibits.
	Exhibit 99.1	PMA Capital Corporation News Release, dated November 3, 2005
	Exhibit 99.2	PMA Capital Corporation Third Quarter 2005 Statistical Supplement

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, thereunto duly authorized.

	PMA Capital Corporation
November 3, 2005	By:	/s/ William E. Hitselberger
	Name:	William E. Hitselberger
	Title:	Executive Vice President and Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.	Description
Exhibit 99.1	PMA Capital Corporation News Release, dated November 3, 2005
Exhibit 99.2	PMA Capital Corporation Third Quarter 2005 Statistical Supplement

EX-99.1

380 Sentry Parkway Blue Bell, PA 19422-0754
		PRESS RELEASE
For Release: Contact:	Immediate William Hitselberger (215) 665-5046

PMA Capital Announces Third Quarter 2005 Results

Blue Bell, PA, November 3, 2005 -- PMA Capital Corporation (NASDAQ: PMACA) today reported net income of $740,000, or two cents per diluted share, for the third quarter of 2005, compared to a net loss of $74,000 for the same period of 2004. For the nine months ended September 30, 2005, the Company had a net loss of $19.8 million, or 63 cents per share, compared to net income of $12.1 million, or 38 cents per diluted share, for the same period last year. The net loss for the first nine months of 2005 included the first quarter after-tax charge of $23 million ($30 million pre-tax), or 73 cents per share, for prior year loss development at the Company’s Run-off Operations.

Vincent T. Donnelly, President and Chief Executive Officer commented, “During the third quarter, we continued to make progress towards achieving our financial and operating objectives. Pre-tax operating income for The PMA Insurance Group was $6.6 million for the third quarter compared to $3.5 million for the same period last year. We are pleased with the continued increase in new business written at The PMA Insurance Group, which increased to $90.0 million in the first nine months of 2005 from $36.5 million in the first nine months last year, while direct written premiums were up over 22% for the third quarter of 2005, compared to the same period last year.”

“We also continue to be diligent in managing our operating expenses, which have decreased by $14.6 million year-to-date, compared to the same period in 2004. We recently announced that we have decided to ‘freeze’ our defined benefit pension plans and replace the ongoing benefits from these plans with a defined contribution plan. We believe that this change, while it will create a fourth quarter non-cash charge of approximately $700,000, will reduce operating expenses in 2006 and beyond by approximately $1 million annually.”

“We believe our positive momentum will continue into the fourth quarter. Although we continue to see pricing pressure in our marketing territories, we believe that pricing will remain positive for 2005,” Mr. Donnelly said.

“During the third quarter we retired a portion of our convertible debt and extended the overall maturity of our existing debt, providing a stronger, more flexible capital base,” Mr. Donnelly continued. “As of September 30, we had purchased $4.5 million principal amount of these bonds, and through yesterday, we have purchased $23.2 million principal amount in the open market and now own 23% of the convertible

debt.  We financed these purchases through the issuance of $10 million in surplus notes by The PMA Insurance Group, and also directly purchased of a portion of these bonds at our run-off company.”

"At the Run-off Operations, we experienced no adverse reserve development in the third quarter of 2005 and we are encouraged by our progress in reducing our run-off liabilities," Mr. Donnelly concluded.

Included in net income for the third quarter and net loss for the first nine months of 2005 were after-tax net realized investment gains of $314,000, or one cent per diluted share, and $2.1 million, or six cents per share. For the three and nine months ended September 30, 2004, we had after-tax net realized investment gains of $2.3 million, or eight cents per diluted share, and $9.3 million, or 26 cents per diluted share. After-tax net realized investment gains for the third quarter and first nine months of 2005 were reduced by $1.9 million and $425,000 due to the increase in the fair value of the derivative component of our 6.50% Convertible Debt.

Consolidated revenues for the third quarter of 2005 were $111.6 million, compared to $126.8 million for the same period a year ago. For the first nine months of 2005, revenues were $326.1 million, compared to $506.6 million for the same period in 2004. The decreases in revenues for the quarter and year-to-date periods were primarily due to lower net premiums earned at The PMA Insurance Group and lower earned premiums resulting from the run-off of our reinsurance business. During the three months ended September 30, 2005 we had a 22% increase in direct written premiums at The PMA Insurance Group compared to the same period of 2004. Although direct premiums written in the first half of 2005 were significantly lower than in the same period last year, by September 30, 2005 year-to-date direct written premiums were even compared to the same period last year. We believe the positive momentum achieved during the second and third quarters will continue, and now expect a 4% increase in direct premiums written for the full year compared to 2004.

Segment Operating Results

Operating income (loss), which we define as net income (loss) under accounting principles generally accepted in the United States of America (GAAP) 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 insurance businesses 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.

2

A reconciliation of our segment operating results as discussed below to GAAP net income (loss) is provided below.

	Three months ended						Nine months ended
	September 30,						September 30,
(in thousands)	2005			2004			2005			2004
Pre-tax operating income (loss):
The PMA Insurance Group	$	6,600		$	3,537		$	18,153		$	12,905
Run-off Operations		(258	)		(2,115	)		(28,771	)		7,455
Corporate & Other		(5,609	)		(4,982	)		(17,497	)		(15,800	)
Net realized investment gains		483			3,515			3,201			14,363
Pre-tax income (loss)		1,216			(45	)		(24,914	)		18,923
Income tax expense (benefit)		476			29			(5,120	)		6,780
Net income (loss)	$	740		$	(74	)	$	(19,794	)	$	12,143

The PMA Insurance Group

The PMA Insurance Group reported pre-tax operating income of $6.6 million and $18.2 million for the third quarter and first nine months of 2005, compared to $3.5 million and $12.9 million for the same periods last year.

Direct premiums written were $122.3 million for the third quarter of 2005, compared with $100.1 million for the third quarter of 2004. Direct premiums written were $321.5 million for the first nine months of 2005, compared with $321.3 million for the comparable period last year. We wrote $40.2 million and $90.0 million of new business in the third quarter and first nine months of 2005, up from $10.3 million and $36.5 million for the same periods last year. Our renewal retention rate on existing workers’ compensation accounts was 83% in the third quarter of 2005, compared to 64% for the third quarter of 2004 and 74% for the first nine months of 2005, compared to 62% for same period of 2004. Net premiums written were $116.9 million for the third quarter of 2005, compared with $97.6 million for the third quarter of 2004. Net premiums written were $304.5 million for the first nine months of 2005, compared with $314.9 million for the same period last year. During the first nine months of 2005, we recorded $11.8 million less assumed premiums, primarily related to involuntary market business, compared to the same period of 2004, which reduced our net premiums written. The PMA Insurance Group continues to obtain price increases in most commercial lines of business, with average workers’ compensation rate increases of approximately 5% to date in 2005.

The combined ratio on a GAAP basis in 2005 was 103.3% for the third quarter and 103.6% for the first nine months, compared to 105.5% and 104.5% for the same periods last year. The improvement in the combined ratio for the third quarter, compared to the same period last year, primarily reflects an improved loss and LAE ratio. The improvement in the combined ratio for the first nine months of 2005, compared to the same period of 2004, primarily reflects an improved loss and LAE ratio which was partially offset by an increase in the acquisition expense ratio.

The improved loss and LAE ratio primarily reflects a lower current accident year loss and LAE ratio in 2005, compared to 2004. Price increases and payroll inflation have offset an increase in overall loss trends in workers' compensation. We estimate our medical cost inflation, which is a significant component of loss costs, for 2005 to be approximately 11%. The loss ratio has also benefited from our continued emphasis on managed care initiatives and a change in the geographic mix of our business. In addition, losses from hurricanes were $500,000 during the three and nine month periods ended September 30, 2005, compared to $1.0 million for the comparable periods of 2004.

3

Net investment income was up slightly to $8.2 million for the third quarter of 2005, compared to the same period of 2004. For the first nine months of 2005, net investment income decreased by $1.1 million, to $23.4 million compared to the same period of 2004, primarily due to lower yields on a lower invested asset base.

Run-off Operations

Run-off Operations includes the results of our former reinsurance and excess and surplus lines businesses. The Run-off Operations had pre-tax operating losses of $258,000 and $28.8 million for the three and nine months ended September 30, 2005, compared to a pre-tax operating loss of $2.1 million and pre-tax operating income of $7.5 million for the same periods last year. Results for the first nine months of 2005 included the first quarter charge of $30 million for prior year loss development. Pre-tax operating income for the nine months ended September 30, 2004 included a $5.2 million charge for the reinsurance agreement covering potential adverse loss development. Net premiums earned, losses and LAE, and acquisition and operating expenses decreased significantly in the first nine months of 2005, compared to 2004, due to our exit from the reinsurance business.

Corporate and Other

The Corporate and Other segment primarily includes corporate expenses, including debt service. Corporate and Other recorded pre-tax operating losses of $5.6 million and $17.5 million for the three and nine months ended September 30, 2005, compared to $5.0 million and $15.8 million for the same periods last year, reflecting higher interest expense, partially offset by lower operating expenses. Interest expense for the three and nine months ended September 30, 2005 increased by $1.1 million and $3.2 million over the comparable periods last year, due to a higher average amount of debt outstanding and higher interest rates on our convertible debt.

Financial Condition

Total assets were $3.2 billion as of September 30, 2005, compared to $3.3 billion at December 31, 2004. Shareholders’ equity was $414.7 million as of September 30, 2005, compared with $445.5 million as of December 31, 2004. Book value per share was $12.98 as of September 30, 2005, compared to $14.06 at year-end 2004. The decreases in shareholders’ equity and book value per share are primarily due to the net loss and a decrease in the unrealized holding gains on our invested asset portfolio. Net unrealized holding gains were $1.2 million, or four cents per share, as of September 30, 2005, compared to $13.6 million, or 43 cents per share, at year-end 2004, mainly due to higher market interest rates. At September 30, 2005, we had $19.1 million in cash and short-term investments at the holding company and its non-regulated subsidiaries.

As of September 30, 2005, our total outstanding debt had increased to $216.8 million, compared to $210.8 million at December 31, 2004, primarily due to the issuance of $10 million of Floating Rate Surplus Notes due 2035 (“Surplus Notes”) by one of our insurance subsidiaries. This increase was partially offset by the open market purchase of $4.5 million principal amount of our 6.50% Convertible Debt with proceeds from the Surplus Notes. Subsequent to September 30, 2005, we used the remaining proceeds from the issuance of the Surplus Notes as well as a portion of PMA Capital Insurance Company’s, our run-off company, assets to purchase an additional $18.7 million principal amount of our 6.50% Convertible Debt. We paid $25.2 million for these bond purchases, exclusive of accrued interest.

4

The components of our debt as of September 30, 2005 were as follows:

(dollar amounts in thousands)	Amount			Maturity
6.50% Convertible Debt	$	94,640			2022	1
Derivative component of 6.50% Convertible Debt		13,117
4.25% Convertible Debt2		655			2022
8.50% Senior Notes		57,500			2018
Trust preferred debt		43,816			2033
Surplus Notes		10,000			2035
Unamortized debt discount		(2,920	)
Total long-term debt	$	216,808

(1) Holders, 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 $10.5 million principal amount.

(2) We retired $270,000 of this debt through open market purchases in the first nine months of 2005. This debt may be converted at any time, at the holder's option, at a current price of $16.368 per share.

The PMA Insurance Group had statutory surplus of $311.8 million at September 30, 2005, including $10.0 million related to the issuance of Surplus Notes in September 2005, compared to $300.0 million at December 31, 2004. The PMA Insurance Group has the ability to pay $23.5 million in dividends during 2005 without the prior approval of the Pennsylvania Insurance Department. The statutory surplus of PMA Capital Insurance Company, PMA Capital Corporation’s directly held reinsurance subsidiary, was $210.7 million at September 30, 2005, compared to $224.5 million at December 31, 2004.

Quiet Period

During the quarter, PMA Capital corporate representatives may reiterate the guidance provided in this release both publicly and in meetings with investors, analysts, the media and others. Beginning upon the close of business on January 16, 2006 until such time as PMA Capital releases its fourth quarter earnings release PMA Capital will observe a “quiet period.” From and after commencement of the quiet period, the guidance contained in this release should be considered historical, speaking as of prior to the quiet period only and not subject to update by PMA Capital. During the quiet period, our spokespersons will not comment on our financial results or expectations other than through a press release or other publicly available document.

5

Conference Call with Investors

As a reminder, we will hold a conference call with investors beginning at 8:30 a.m. Eastern Time on Friday, November 4^th to review our third quarter 2005 results. The conference call will be available via a live webcast over the Internet at www.pmacapital.com. To access the webcast, enter the Investor Information section, click on News Releases and then click on the microphone icon. Please note that by accessing the conference call via the Internet, you will be in a listen-only mode. The call-in numbers and passcodes for the conference call are as follows:

Live Call	Replay
800-265-0241(Domestic)	888-286-8010(Domestic)
617-847-8704(International)	617-801-6888 (International)
Passcode 35594834	Passcode 21160028

A replay of the conference call will be available over the Internet or by dialing the call-in number for the replay and using the passcode. The replay will be available from approximately 12:00 p.m. Eastern Time on Friday, November 4^th until 11:59 p.m. Eastern Time on December 2^nd.

Quarterly Statistical Supplement

Our Third Quarter Statistical Supplement, which provides more detailed historical information about us, is available on our website. Please see the Investor Information section of our website at www.pmacapital.com . You may also obtain a copy of this supplement by sending your request to:

PMA Capital Corporation

1735 Market Street

Philadelphia, PA 19103

Attention: Investor Relations

Alternatively, you may submit your request by telephone (215-665-5046) or by e-mail to InvestorRelations@pmacapital.com. We have also furnished a copy of this news release and the Statistical Supplement to the SEC under cover of Form 8-K dated November 3, 2005. A copy of the Form 8-K is available on the SEC’s website at www.sec.gov.

6

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

The statements contained in this press release, including those made by individuals authorized to speak on behalf of PMA Capital Corporation (“we”, “our” or the “Company”) 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:

· 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 additional liabilities;

· adverse property and casualty loss development for events that we insured in prior years, including unforeseen increases in medical costs and changing judicial interpretations of available coverage for certain insured losses;

· our ability to have sufficient cash at the holding company to meet our debt service and other obligations, including any restrictions such as those imposed by the Pennsylvania Insurance Department on receiving dividends from our insurance subsidiaries in an amount sufficient to meet such obligations;

· our ability to increase the amount of new and renewal business written by The PMA Insurance Group at adequate prices;

· any future lowering or loss of one or more of our financial strength and debt ratings, and the adverse impact that any such downgrade may have on our ability to compete and to raise capital, and our liquidity and financial condition;

· adequacy and collectibility of reinsurance that we purchased;

· adequacy of reserves for claim liabilities;

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

· regulatory 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;

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

· the outcome of any litigation against us, including the outcome of the purported class action lawsuits;

· 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;

· ability to implement and maintain rate increases;

· 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;

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

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

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

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

· uncertainties related to possible terrorist activities or international hostilities and whether TRIA is extended beyond its December 31, 2005 termination date; and

· other factors or uncertainties disclosed from time to time in our filings 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.

7

PMA Capital Corporation

Selected Financial Data

(Unaudited)

	Three months ended September 30,
(dollars in thousands)	2005			2004
Direct premiums written:
The PMA Insurance Group	$	122,346		$	100,050
Run-off Operations		-			(9	)
Corporate and Other		(195	)		(186	)
Consolidated direct premiums written	$	122,151		$	99,855
Net premiums written:
The PMA Insurance Group	$	116,877		$	97,637
Run-off Operations		789			(13,884	)
Corporate and Other		(195	)		(186	)
Consolidated net premiums written	$	117,471		$	83,567
Revenues:
Net premiums earned:
The PMA Insurance Group	$	92,214		$	103,032
Run-off Operations		204			1,364
Corporate and Other		(195	)		(186	)
Consolidated net premiums earned		92,223			104,210
Net investment income		12,648			13,238
Realized gains		483			3,515
Other revenues		6,209			5,881
Consolidated revenues	$	111,563		$	126,844
Components of net income (loss):
Pre-tax operating income (loss) (1):
The PMA Insurance Group	$	6,600		$	3,537
Run-off Operations		(258	)		(2,115	)
Corporate and Other		(5,609	)		(4,982	)
Realized gains		483			3,515
Pre-tax income (loss)		1,216			(45	)
Income tax expense		476			29
Net income (loss)	$	740		$	(74	)
Weighted average common shares outstanding:
Basic		31,774,255			31,350,825
Diluted		32,244,295			31,350,825

(1) Operating income (loss), which is GAAP net income (loss) excluding net realized investment gains and losses, is the financial performance measure used by our management and our Board of Directors to evaluate and assess the results of our insurance businesses because (i) net realized investment gains (losses) are unpredictable and not necessarily indicative of current operating fundamentals or future performance 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 (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.

8

PMA Capital Corporation

Selected Financial Data

(Unaudited)

	Nine Months ended September 30,
(dollars in thousands)	2005			2004
Direct premiums written:
The PMA Insurance Group	$	321,540		$	321,344
Run-off Operations		213			(56	)
Corporate and Other		(609	)		(561	)
Consolidated direct premiums written	$	321,144		$	320,727
Net premiums written:
The PMA Insurance Group	$	304,454		$	314,885
Run-off Operations		7,222			(69,386	)
Corporate and Other		(609	)		(561	)
Consolidated net premiums written	$	311,067		$	244,938
Revenues:
Net premiums earned:
The PMA Insurance Group	$	262,455		$	352,970
Run-off Operations		6,820			76,418
Corporate and Other		(609	)		(561	)
Consolidated net premiums earned		268,666			428,827
Net investment income		36,902			44,803
Realized gains		3,201			14,363
Other revenues		17,340			18,576
Consolidated revenues	$	326,109		$	506,569
Components of net income (loss):
Pre-tax operating income (loss) (1):
The PMA Insurance Group	$	18,153		$	12,905
Run-off Operations		(28,771	)		7,455
Corporate and Other		(17,497	)		(15,800	)
Realized gains		3,201			14,363
Pre-tax income (loss)		(24,914	)		18,923
Income tax expense (benefit)		(5,120	)		6,780
Net income (loss)	$	(19,794	)	$	12,143
Weighted average common shares outstanding:
Basic		31,631,850			31,342,854
Diluted		31,631,850			36,903,965

(1) Operating income (loss), which is GAAP net income (loss) excluding net realized investment gains and losses, is the financial performance measure used by our management and our Board of Directors to evaluate and assess the results of our insurance businesses because (i) net realized investment gains (losses) are unpredictable and not necessarily indicative of current operating fundamentals or future performance 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 (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.

9

PMA Capital Corporation

GAAP Consolidated Balance Sheets

(Unaudited)

	September 30,			December 31,
(in thousands, except per share data)	2005			2004
Assets:
Investments:
Fixed maturities available for sale	$	1,184,301		$	1,304,086
Short-term investments		67,636			123,746
Short-term investments, loaned securities collateral		63,751			-
Total investments		1,315,688			1,427,832
Cash		43,282			35,537
Accrued investment income		13,703			15,517
Premiums receivable		212,847			197,831
Reinsurance receivables		1,115,953			1,142,552
Deferred income taxes		98,568			86,501
Deferred acquisition costs		39,432			31,426
Funds held by reinsureds		153,064			142,064
Other assets		167,192			171,042
Total assets	$	3,159,729		$	3,250,302
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,966,907		$	2,111,598
Unearned premiums		199,153			158,489
Debt		216,808			210,784
Accounts payable, accrued expenses
and other liabilities		198,441			196,744
Funds held under reinsurance treaties		96,067			121,234
Dividends to policyholders		3,931			5,977
Payable under securities loan agreements		63,758			25
Total liabilities		2,745,065			2,804,851
Shareholders' Equity:
Class A Common stock		171,090			171,090
Additional paid-in capital		109,331			109,331
Retained earnings		188,834			213,313
Accumulated other comprehensive loss		(14,861	)		(1,959	)
Treasury stock, at cost		(39,305	)		(45,573	)
Unearned restricted stock compensation		(425	)		(751	)
Total shareholders' equity		414,664			445,451
Total liabilities and shareholders' equity	$	3,159,729		$	3,250,302
Shareholders' equity per share	$	12.98		$	14.06

10

PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Three months ended September 30,
(in thousands, except per share data)	2005		2004
Gross premiums written	$	130,106	$	100,013
Net premiums written	$	117,471	$	83,567
Revenues:
Net premiums earned	$	92,223	$	104,210
Net investment income		12,648		13,238
Net realized investment gains		483		3,515
Other revenues		6,209		5,881
Total revenues		111,563		126,844
Expenses:
Losses and loss adjustment expenses		68,112		80,706
Acquisition expenses		19,691		24,087
Operating expenses		17,872		18,318
Dividends to policyholders		567		805
Interest expense		4,105		2,973
Total losses and expenses		110,347		126,889
Pre-tax income (loss)		1,216		(45	)
Income tax expense (benefit):
Current		-		(117	)
Deferred		476		146
Total income tax expense		476		29
Net income (loss)	$	740	$	(74	)
Net income per share:
Basic	$	.02	$	.00
Diluted	$	.02	$	.00

11

PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Nine Months ended September 30,
(in thousands, except per share data)	2005			2004
Gross premiums written	$	346,488		$	282,322
Net premiums written	$	311,067		$	244,938
Revenues:
Net premiums earned	$	268,666		$	428,827
Net investment income		36,902			44,803
Net realized investment gains		3,201			14,363
Other revenues		17,340			18,576
Total revenues		326,109			506,569
Expenses:
Losses and loss adjustment expenses		225,361			310,367
Acquisition expenses		56,345			96,290
Operating expenses		54,372			68,937
Dividends to policyholders		2,831			3,180
Interest expense		12,114			8,872
Total losses and expenses		351,023			487,646
Pre-tax income (loss)		(24,914	)		18,923
Income tax expense (benefit):
Current		-			272
Deferred		(5,120	)		6,508
Total income tax expense (benefit)		(5,120	)		6,780
Net income (loss)	$	(19,794	)	$	12,143
Net income (loss) per share:
Basic	$	(0.63	)	$	0.39
Diluted	$	(0.63	)	$	0.38

12

EX-99.2

PMA Capital Corporation
Statistical Supplement
Third Quarter - 2005
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
Invested Assets and Net Investment Income; Debt; Balance Sheet Impact of Commutations - Run-off Operations	8
Segment Information:
Statements of Operations - Consolidating - Year-to-date	9-10
Statements of Operations - Consolidating - Third Quarter	11-12
Statements of Operations - PMA Insurance Group	13
Insurance Ratios - PMA Insurance Group	14
Statements of Operations - Run-off Operations	15
Statements of Operations - Corporate & Other	16
Operating Cash Flow Information:
Operating Cash Flows - Consolidated	17
Operating Cash Flows - PMA Insurance Group	18
Operating Cash Flows - Run-off Operations	19
Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool	20
Other Information:
Industry Ratings and Market Information	21
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 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).

      

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
	2004			2004			2005			2005			2005			Quarter
Net Premiums Written by Segment:
PMA Insurance Group	$	97,637		$	62,910		$	105,474		$	82,103		$	116,877			19.7	%
Run-off Operations		(13,884	)		(5,974	)		4,929			1,504			789			NM
Corporate & Other		(186	)		(264	)		(194	)		(220	)		(195	)		-4.8	%
Net premiums written	$	83,567		$	56,672		$	110,209		$	83,387		$	117,471			40.6	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	3,537		$	261		$	6,612		$	4,941		$	6,600			86.6	%
Run-off Operations		(2,115	)		(1,946	)		(29,646	)		1,133			(258	)		87.8	%
Corporate & Other		(4,982	)		(5,423	)		(6,167	)		(5,721	)		(5,609	)		-12.6	%
Pre-tax operating income (loss)		(3,560	)		(7,108	)		(29,201	)		353			733			NM
Net realized investment gains (losses)		3,515			(7,870	)		2,983			(265	)		483			-86.3	%
Pre-tax income (loss)		(45	)		(14,978	)		(26,218	)		88			1,216			NM
Income tax expense (benefit)		29			(4,665	)		(5,667	)		71			476			NM
Net income (loss)	$	(74	)	$	(10,313	)	$	(20,551	)	$	17		$	740			NM
After-tax operating income (loss)	$	(2,359	)	$	(5,198	)	$	(22,490	)	$	189		$	426			NM
Diluted Earnings (Loss) Per Share:
Net income (loss)	$	-		$	(0.33	)	$	(0.65	)	$	-		$	0.02			NM
Less the impact of:
Realized gains (losses) after tax		0.08			(0.16	)		0.06			(0.01	)		0.01			-87.5	%
After-tax operating income (loss)	$	(0.08	)	$	(0.17	)	$	(0.71	)	$	0.01		$	0.01			NM
Capitalization:
Debt	$	187,566		$	210,784		$	208,294		$	208,586		$	216,808			15.6	%
Shareholders' equity excluding FAS 115 unrealized gain		442,797			431,828			412,349			412,330			413,513			-6.6	%
Total capitalization excluding FAS 115 unrealized gain		630,363			642,612			620,643			620,916			630,321			0.0	%
FAS 115 unrealized gain		15,350			13,623			1,539			17,266			1,151			-92.5	%
Total capitalization including FAS 115 unrealized gain	$	645,713		$	656,235		$	622,182		$	638,182		$	631,472			-2.2	%
Book Value Per Share:
Excluding FAS 115 unrealized gain	$	13.98		$	13.63		$	12.95		$	12.93		$	12.94			-7.4	%
Including FAS 115 unrealized gain	$	14.46		$	14.06		$	13.00		$	13.47		$	12.98			-10.3	%
Debt to Total Capital:
Excluding FAS 115 unrealized gain		29.8	%		32.8	%		33.6	%		33.6	%		34.4	%		15.4	%
Including FAS 115 unrealized gain		29.0	%		32.1	%		33.5	%		32.7	%		34.3	%		18.3	%
Interest Coverage:
Income before interest and income taxes
to interest expense		0.98			NM			NM			1.02			1.30			32.7	%
Operating income before interest and income
taxes to interest expense		NM			NM			NM			1.09			1.18			NM

1

PMA Capital Corporation             

Selected Financial Data             

(Dollar Amounts in Thousands, Except Per Share Data)     

	Nine			Nine			% Change
	Months			Months			Nine
	2005			2004			Months
Net Premiums Written by Segment:
PMA Insurance Group	$	304,454		$	314,885			-3.3	%
Run-off Operations		7,222			(69,386	)		NM
Corporate & Other		(609	)		(561	)		-8.6	%
Net premiums written	$	311,067		$	244,938			27.0	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	18,153		$	12,905			40.7	%
Run-off Operations		(28,771	)		7,455			NM
Corporate & Other		(17,497	)		(15,800	)		-10.7	%
Pre-tax operating income (loss)		(28,115	)		4,560			NM
Net realized investment gains		3,201			14,363			-77.7	%
Pre-tax income (loss)		(24,914	)		18,923			NM
Income tax expense (benefit)		(5,120	)		6,780			NM
Net income (loss)	$	(19,794	)	$	12,143			NM
After-tax operating income (loss)	$	(21,875	)	$	2,807			NM
Diluted Earnings (Loss) Per Share:
Net income (loss)	$	(0.63	)	$	0.38			NM
Less the impact of:
Realized gains after tax		0.06			0.26			-76.9	%
After-tax operating income (loss)	$	(0.69	)	$	0.12			NM

2

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
	3rd			4th			1st			2nd		3rd		Nine			Nine
	Quarter			Quarter			Quarter			Quarter		Quarter		Months			Months
	2004			2004			2005			2005		2005		2005			2004
Diluted Earnings (Loss) Per Share:
Net income (loss)	$	-		$	(0.33	)	$	(0.65	)	$	-	$	0.02	$	(0.63	)	$	0.38
Pre-tax operating income (loss)	$	(0.11	)	$	(0.23	)	$	(0.93	)	$	0.01	$	0.02	$	(0.89	)	$	0.20
After-tax operating income (loss)	$	(0.08	)	$	(0.17	)	$	(0.71	)	$	0.01	$	0.01	$	(0.69	)	$	0.12
Diluted weighted average common
shares outstanding		31,350,825			31,350,825			31,393,684			32,015,127		32,244,295		31,631,850			36,903,965
Dividends declared:
Class A Common stock	$	-		$	-		$	-		$	-	$	-	$	-		$	-
Actual common shares issued
and outstanding		31,681,751			31,676,851			31,835,136			31,885,541		31,956,983		31,956,983			31,681,751
Class A Common Stock prices:
High	$	9.16		$	10.85		$	10.65		$	9.00	$	9.50	$	10.65		$	9.16
Low	$	5.70		$	6.74		$	7.05		$	5.91	$	7.83	$	5.91		$	4.78
Close	$	7.55		$	10.35		$	8.00		$	8.83	$	8.78	$	8.78		$	7.55

3

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4

PMA Capital Corporation
Consolidated Statements of Operations
(In Thousands)
	3rd			4th			1st			2nd			3rd		% Change
	Quarter			Quarter			Quarter			Quarter			Quarter		3rd
	2004			2004			2005			2005			2005		Quarter
Gross Premiums Written	$	100,013		$	69,940		$	121,313		$	95,069		$	130,106		30.1	%
Net Premiums Written	$	83,567		$	56,672		$	110,209		$	83,387		$	117,471		40.6	%
Revenues:
Net premiums earned	$	104,210		$	89,758		$	87,723		$	88,720		$	92,223		-11.5	%
Net investment income		13,238			12,142			11,712			12,542			12,648		-4.5	%
Net realized investment gains (losses)		3,515			(7,870	)		2,983			(265	)		483		-86.3	%
Other revenues		5,881			12,125			6,192			4,939			6,209		5.6	%
Total revenues		126,844			106,155			108,610			105,936			111,563		-12.0	%
Expenses:
Losses and loss adjustment expenses		80,706			70,189			93,988			63,261			68,112		-15.6	%
Acquisition expenses		24,087			18,935			18,671			17,983			19,691		-18.3	%
Operating expenses		18,318			20,735			17,698			18,802			17,872		-2.4	%
Dividends to policyholders		805			1,819			502			1,762			567		-29.6	%
Interest expense		2,973			3,482			3,969			4,040			4,105		38.1	%
Loss on debt exchange		-			5,973			-			-			-		NM
Total losses and expenses		126,889			121,133			134,828			105,848			110,347		-13.0	%
Pre-tax income (loss)		(45	)		(14,978	)		(26,218	)		88			1,216		NM
Income tax expense (benefit):
Current		(117	)		(272	)		-			-			-		NM
Deferred		146			(4,393	)		(5,667	)		71			476		NM
Total income tax expense (benefit)		29			(4,665	)		(5,667	)		71			476		NM
Net income (loss)	$	(74	)	$	(10,313	)	$	(20,551	)	$	17		$	740		NM
Pre-tax operating income (loss)	$	(3,560	)	$	(7,108	)	$	(29,201	)	$	353		$	733		NM
After-tax operating income (loss)	$	(2,359	)	$	(5,198	)	$	(22,490	)	$	189		$	426		NM

5

PMA Capital Corporation
Consolidated Statements of Operations
(In Thousands)
	Nine			Nine		% Change
	Months			Months		Nine
	2005			2004		Months
Gross Premiums Written	$	346,488		$	282,322		22.7	%
Net Premiums Written	$	311,067		$	244,938		27.0	%
Revenues:
Net premiums earned	$	268,666		$	428,827		-37.3	%
Net investment income		36,902			44,803		-17.6	%
Net realized investment gains		3,201			14,363		-77.7	%
Other revenues		17,340			18,576		-6.7	%
Total revenues		326,109			506,569		-35.6	%
Expenses:
Losses and loss adjustment expenses		225,361			310,367		-27.4	%
Acquisition expenses		56,345			96,290		-41.5	%
Operating expenses		54,372			68,937		-21.1	%
Dividends to policyholders		2,831			3,180		-11.0	%
Interest expense		12,114			8,872		36.5	%
Total losses and expenses		351,023			487,646		-28.0	%
Pre-tax income (loss)		(24,914	)		18,923		NM
Income tax expense (benefit):
Current		-			272		NM
Deferred		(5,120	)		6,508		NM
Total income tax expense (benefit)		(5,120	)		6,780		NM
Net income (loss)	$	(19,794	)	$	12,143		NM
Pre-tax operating income (loss)	$	(28,115	)	$	4,560		NM
After-tax operating income (loss)	$	(21,875	)	$	2,807		NM

6

PMA Capital Corporation
Consolidated Balance Sheets
(In Thousands)
	3rd			4th			1st			2nd			3rd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2004			2004			2005			2005			2005
Assets:
Investments in fixed maturities available for sale	$	1,381,788		$	1,304,086		$	1,283,406		$	1,256,169		$	1,184,301
Short-term investments		98,761			123,746			60,325			61,058			67,636
Short-term investments, loaned securities collateral		96,606			-			102,620			90,114			63,751
Total investments		1,577,155			1,427,832			1,446,351			1,407,341			1,315,688
Cash		48,046			35,537			49,921			30,464			43,282
Accrued investment income		16,407			15,517			15,188			14,147			13,703
Premiums receivable		219,111			197,831			208,748			183,713			212,847
Reinsurance receivables		1,170,004			1,142,552			1,129,507			1,129,857			1,115,953
Deferred income taxes		80,541			86,501			98,714			90,301			98,568
Deferred acquisition costs		37,800			31,426			35,138			34,655			39,432
Funds held by reinsureds		134,978			142,064			146,674			150,078			153,064
Other assets		219,536			171,042			167,200			169,028			167,192
Total assets	$	3,503,578		$	3,250,302		$	3,297,441		$	3,209,584		$	3,159,729
Liabilities:
Unpaid losses and loss adjustment expenses	$	2,179,900		$	2,111,598		$	2,077,599		$	2,005,386		$	1,966,907
Unearned premiums		193,221			158,489			177,415			175,025			199,153
Debt		187,566			210,784			208,294			208,586			216,808
Accounts payable, accrued expenses
and other liabilities		254,467			196,744			200,350			191,309			198,441
Funds held under reinsurance treaties		127,239			121,234			112,712			105,572			96,067
Dividends to policyholders		6,424			5,977			4,580			3,992			3,931
Payable under securities loan agreements		96,614			25			102,603			90,118			63,758
Total liabilities		3,045,431			2,804,851			2,883,553			2,779,988			2,745,065
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		223,519			213,313			189,787			189,109			188,834
Accumulated other comprehensive income (loss)		885			(1,959	)		(14,116	)		1,377			(14,861	)
Treasury stock, at cost		(45,474	)		(45,573	)		(41,752	)		(40,734	)		(39,305	)
Unearned restricted stock compensation		(1,204	)		(751	)		(452	)		(577	)		(425	)
Total shareholders' equity		458,147			445,451			413,888			429,596			414,664
Total liabilities and shareholders' equity	$	3,503,578		$	3,250,302		$	3,297,441		$	3,209,584		$	3,159,729

7

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollars in Thousands)
	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005			2005			2004
Total Investments & Cash
As reported	$	1,625,201		$	1,463,369		$	1,496,272		$	1,437,805		$	1,358,970		$	1,358,970		$	1,625,201
Less:
Securities lending activity		96,614			25			102,603			90,118			63,758			63,758			96,614
Unrealized gain		23,615			20,958			2,368			26,563			1,771			1,771			23,615
Total adjusted investments & cash	$	1,504,972		$	1,442,386		$	1,391,301		$	1,321,124		$	1,293,441		$	1,293,441		$	1,504,972
Net Investment Income
As reported	$	13,238		$	12,142		$	11,712		$	12,542		$	12,648		$	36,902		$	44,803
Funds held:
Assumed		73			846			187			129			535			851			169
Ceded		(2,536	)		(2,026	)		(2,437	)		(1,871	)		(1,694	)		(6,002	)		(9,883	)
Total funds held		(2,463	)		(1,180	)		(2,250	)		(1,742	)		(1,159	)		(5,151	)		(9,714	)
Total adjusted investment income	$	15,701		$	13,322		$	13,962		$	14,284		$	13,807		$	42,053		$	54,517
Yield
As reported		3.13	%		3.15	%		3.17	%		3.42	%		3.62	%		3.42	%		3.20	%
Investment portfolio		4.01	%		3.62	%		3.94	%		4.21	%		4.22	%		4.12	%		4.15	%
Duration (in years)		3.6			3.6			3.8			3.9			3.7			3.7			3.6

PMA Capital Corporation
Debt
(Dollars in Thousands)
	Amount
	Outstanding			Maturity
6.50% convertible debt	$	94,640			20221
Derivative component of 6.50% convertible debt		13,117
4.25% convertible debt		655			20222
8.50% senior notes		57,500			2018
Trust preferred debt 3		43,816			2033
Surplus notes 4		10,000			2035
Unamortized debt discount		(2,920	)
Total long-term debt	$	216,808

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 $10.5 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 8.0% as of September 30, 2005.
4	Interest rate on surplus notes is 8.51% as of September 30, 2005.

PMA Capital Corporation
Balance Sheet Impact of Commutations - Run-off Operations
(Dollars in Thousands)
	3rd Quarter 2005
Liabilities		Assumed			Ceded		Total
Unpaid loss and loss adjustment expenses	$	(4,475	)	$	-	$	(4,475	)
Funds held under reinsurance treaties		(219	)		-		(219	)
		Nine Months 2005
Liabilities		Assumed			Ceded		Total
Unpaid loss and loss adjustment expenses	$	(9,477	)	$	-	$	(9,477	)
Funds held under reinsurance treaties		(219	)		-		(219	)

8

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2005
(In Thousands)
	PMA
	Insurance		Corporate			Run-off
	Group		& Other1			Operations			Consolidated
Gross Premiums Written	$	339,115	$	(609	)	$	7,982		$	346,488
Net Premiums Written	$	304,454	$	(609	)	$	7,222		$	311,067
Revenues:
Net premiums earned	$	262,455	$	(609	)	$	6,820		$	268,666
Net investment income		23,417		799			12,686			36,902
Other revenues		17,043		297			-			17,340
Operating revenues		302,915		487			19,506			322,908
Losses and Expenses:
Losses and loss adjustment expenses		191,544		-			33,817			225,361
Acquisition expenses		52,300		-			4,045			56,345
Operating expenses		38,082		5,875			10,415			54,372
Dividends to policyholders		2,831		-			-			2,831
Total losses and expenses		284,757		5,875			48,277			338,909
Operating income (loss) before income taxes
and interest expense		18,158		(5,388	)		(28,771	)		(16,001	)
Interest expense		5		12,109			-			12,114
Pre-tax operating income (loss)	$	18,153	$	(17,497	)	$	(28,771	)		(28,115	)
Net realized investment gains										3,201
Pre-tax loss									$	(24,914	)
1  Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.

9

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2004
(In Thousands)
	PMA
	Insurance		Corporate			Run-off
	Group		& Other1			Operations			Consolidated
Gross Premiums Written	$	350,674	$	(561	)	$	(67,791	)	$	282,322
Net Premiums Written	$	314,885	$	(561	)	$	(69,386	)	$	244,938
Revenues:
Net premiums earned	$	352,970	$	(561	)	$	76,418		$	428,827
Net investment income		24,475		888			19,440			44,803
Other revenues		18,257		319			-			18,576
Operating revenues		395,702		646			95,858			492,206
Losses and Expenses:
Losses and loss adjustment expenses		264,897		-			45,470			310,367
Acquisition expenses		67,528		-			28,762			96,290
Operating expenses		47,192		7,574			14,171			68,937
Dividends to policyholders		3,180		-			-			3,180
Total losses and expenses		382,797		7,574			88,403			478,774
Operating income (loss) before income taxes
and interest expense		12,905		(6,928	)		7,455			13,432
Interest expense		-		8,872			-			8,872
Pre-tax operating income (loss)	$	12,905	$	(15,800	)	$	7,455			4,560
Net realized investment gains										14,363
Pre-tax income									$	18,923
1  Corporate & Other includes the effect of eliminating transactions between the various Insurance Operations.

10

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended September 30, 2005
(In Thousands)
	PMA
	Insurance		Corporate			Run-off
	Group		& Other1			Operations			Consolidated
Gross Premiums Written	$	129,163	$	(195	)	$	1,138		$	130,106
.
Net Premiums Written	$	116,877	$	(195	)	$	789		$	117,471
Revenues:
Net premiums earned	$	92,214	$	(195	)	$	204		$	92,223
Net investment income		8,160		271			4,217			12,648
Other revenues		6,172		37			-			6,209
Operating revenues		106,546		113			4,421			111,080
Losses and Expenses:
Losses and loss adjustment expenses		67,995		-			117			68,112
Acquisition expenses		18,279		-			1,412			19,691
Operating expenses		13,100		1,622			3,150			17,872
Dividends to policyholders		567		-			-			567
Total losses and expenses		99,941		1,622			4,679			106,242
Operating income (loss) before income taxes
and interest expense		6,605		(1,509	)		(258	)		4,838
Interest expense		5		4,100			-			4,105
Pre-tax operating income (loss)	$	6,600	$	(5,609	)	$	(258	)		733
Net realized investment gains										483
Pre-tax income									$	1,216
1  Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.

11

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended September 30, 2004
(In Thousands)
	PMA
	Insurance		Corporate			Run-off
	Group		& Other1			Operations			Consolidated
Gross Premiums Written	$	109,788	$	(186	)	$	(9,589	)	$	100,013
.
Net Premiums Written	$	97,637	$	(186	)	$	(13,884	)	$	83,567
Revenues:
Net premiums earned	$	103,032	$	(186	)	$	1,364		$	104,210
Net investment income		8,083		271			4,884			13,238
Other revenues		5,856		25			-			5,881
Operating revenues		116,971		110			6,248			123,329
Losses and Expenses:
Losses and loss adjustment expenses		77,994		-			2,712			80,706
Acquisition expenses		21,876		-			2,211			24,087
Operating expenses		12,759		2,119			3,440			18,318
Dividends to policyholders		805		-			-			805
Total losses and expenses		113,434		2,119			8,363			123,916
Operating income (loss) before income taxes
and interest expense		3,537		(2,009	)		(2,115	)		(587	)
Interest expense		-		2,973			-			2,973
Pre-tax operating income (loss)	$	3,537	$	(4,982	)	$	(2,115	)		(3,560	)
Net realized investment gains										3,515
Pre-tax loss									$	(45	)
1  Corporate & Other includes the effect of eliminating transactions between the various Insurance Operations.

12

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
	2004		2004		2005		2005		2005		2005		2004		Quarter			Months
Gross Premiums Written	$	109,788	$	72,380	$	116,272	$	93,680	$	129,163	$	339,115	$	350,674		17.6	%		-3.3	%
Net Premiums Written	$	97,637	$	62,910	$	105,474	$	82,103	$	116,877	$	304,454	$	314,885		19.7	%		-3.3	%
Revenues:
Net premiums earned	$	103,032	$	89,373	$	84,700	$	85,541	$	92,214	$	262,455	$	352,970		-10.5	%		-25.6	%
Net investment income		8,083		6,509		7,541		7,716		8,160		23,417		24,475		1.0	%		-4.3	%
Other revenues		5,856		5,511		5,965		4,906		6,172		17,043		18,257		5.4	%		-6.6	%
Total revenues		116,971		101,393		98,206		98,163		106,546		302,915		395,702		-8.9	%		-23.4	%
Losses and Expenses:
Losses and loss adjustment expenses		77,994		66,284		62,218		61,331		67,995		191,544		264,897		-12.8	%		-27.7	%
Acquisition expenses		21,876		18,550		16,767		17,254		18,279		52,300		67,528		-16.4	%		-22.6	%
Operating expenses		12,759		14,479		12,107		12,875		13,100		38,082		47,192		2.7	%		-19.3	%
Dividends to policyholders		805		1,819		502		1,762		567		2,831		3,180		-29.6	%		-11.0	%
Total losses and expenses		113,434		101,132		91,594		93,222		99,941		284,757		382,797		-11.9	%		-25.6	%
Operating income before income taxes
and interest expense		3,537		261		6,612		4,941		6,605		18,158		12,905		86.7	%		40.7	%
Interest expense		-		-		-		-		5		5		-		NM			NM
Pre-tax operating income	$	3,537	$	261	$	6,612	$	4,941	$	6,600	$	18,153	$	12,905		86.6	%		40.7	%

13

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
	3rd Quarter 2004			4th Quarter 2004			1st Quarter 2005			2nd Quarter 2005			3rd Quarter 2005			Nine Months 2005			Nine Months 2004			Point Chg. 3rd Quarter Better (Worse)			Point Chg. Nine Months Better (Worse)
Ratios - GAAP Basis:
Loss and LAE ratio		75.7	%		74.2	%		73.5	%		71.7	%		73.7	%		73.0	%		75.0	%		2.0			2.0
Expense ratio:
Acquisition expenses		21.2	%		20.8	%		19.8	%		20.2	%		19.8	%		19.9	%		19.1	%		1.4			(0.8	)
Operating expenses 1		7.8	%		11.5	%		9.5	%		10.3	%		9.2	%		9.6	%		9.5	%		(1.4	)		(0.1	)
Total expense ratio		29.0	%		32.3	%		29.3	%		30.5	%		29.0	%		29.5	%		28.6	%		(0.0	)		(0.9	)
Policyholders' dividend ratio		0.8	%		2.0	%		0.6	%		2.1	%		0.6	%		1.1	%		0.9	%		0.2			(0.2	)
Combined ratio		105.5	%		108.5	%		103.4	%		104.3	%		103.3	%		103.6	%		104.5	%		2.2			0.9
Net investment income ratio		-7.8	%		-7.3	%		-8.9	%		-9.0	%		-8.8	%		-8.9	%		-6.9	%		1.0			2.0
Operating ratio		97.7	%		101.2	%		94.5	%		95.3	%		94.5	%		94.7	%		97.6	%		3.2			2.9

¹ The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $8.1 million, $10.3 million, $8.0 million, $8.9 million and $8.4 million for the third and fourth quarters of 2004 and the first, second and third quarters of 2005, respectively.

14

PMA Capital Corporation
Statements of Operations - Run-off Operations
(Dollar Amounts in Thousands)
	3rd			4th			1st			2nd		3rd			Nine			Nine			% Change			% Change
	Quarter			Quarter			Quarter			Quarter		Quarter			Months			Months			3rd			Nine
	2004			2004			2005			2005		2005			2005			2004			Quarter			Months
Gross Premiums Written	$	(9,589	)	$	(2,176	)	$	5,235		$	1,609	$	1,138		$	7,982		$	(67,791	)		NM			NM
Net Premiums Written	$	(13,884	)	$	(5,974	)	$	4,929		$	1,504	$	789		$	7,222		$	(69,386	)		NM			NM
Revenues:
Net premiums earned	$	1,364		$	649		$	3,217		$	3,399	$	204		$	6,820		$	76,418			-85.0	%		-91.1	%
Net investment income		4,884			5,215			3,900			4,569		4,217			12,686			19,440			-13.7	%		-34.7	%
Total revenues		6,248			5,864			7,117			7,968		4,421			19,506			95,858			-29.2	%		-79.7	%
Losses and Expenses:
Losses and loss adjustment expenses		2,712			3,905			31,770			1,930		117			33,817			45,470			-95.7	%		-25.6	%
Acquisition expenses		2,211			385			1,904			729		1,412			4,045			28,762			-36.1	%		-85.9	%
Operating expenses		3,440			3,520			3,089			4,176		3,150			10,415			14,171			-8.4	%		-26.5	%
Total losses and expenses		8,363			7,810			36,763			6,835		4,679			48,277			88,403			-44.1	%		-45.4	%
Pre-tax operating income (loss)	$	(2,115	)	$	(1,946	)	$	(29,646	)	$	1,133	$	(258	)	$	(28,771	)		7,455			87.8	%		NM

15

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
	2004			2004			2005			2005			2005			2005			2004			Quarter			Months
Gross Premiums Written	$	(186	)	$	(264	)	$	(194	)	$	(220	)	$	(195	)	$	(609	)	$	(561	)		-4.8	%		-8.6	%
Net Premiums Written	$	(186	)	$	(264	)	$	(194	)	$	(220	)	$	(195	)	$	(609	)	$	(561	)		-4.8	%		-8.6	%
Revenues:
Net premiums earned	$	(186	)	$	(264	)	$	(194	)	$	(220	)	$	(195	)	$	(609	)	$	(561	)		-4.8	%		-8.6	%
Net investment income		271			418			271			257			271			799			888			0.0	%		-10.0	%
Other revenues		25			6,614			227			33			37			297			319			48.0	%		-6.9	%
Total revenues		110			6,768			304			70			113			487			646			2.7	%		-24.6	%
Losses and Expenses:
Operating expenses		2,119			2,736			2,502			1,751			1,622			5,875			7,574			-23.5	%		-22.4	%
Total losses and expenses		2,119			2,736			2,502			1,751			1,622			5,875			7,574			-23.5	%		-22.4	%
Operating income (loss) before income taxes,
interest expense, and loss on debt exchange		(2,009	)		4,032			(2,198	)		(1,681	)		(1,509	)		(5,388	)		(6,928	)		24.9	%		22.2	%
Interest expense		2,973			3,482			3,969			4,040			4,100			12,109			8,872			37.9	%		36.5	%
Loss on debt exchange		-			5,973			-			-			-			-			-			NM			NM
Pre-tax operating loss	$	(4,982	)	$	(5,423	)	$	(6,167	)	$	(5,721	)	$	(5,609	)	$	(17,497	)		(15,800	)		-12.6	%		-10.7	%

16

PMA Capital Corporation
Operating Cash Flows - Consolidated
(In Thousands)
	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005			2005			2004
Receipts:
Premiums and other revenues collected	$	91,121		$	101,641		$	95,437		$	109,944		$	90,858		$	296,239		$	380,948
Investment income received		20,627			18,986			14,814			14,656			15,942			45,412			69,288
Total receipts		111,748			120,627			110,251			124,600			106,800			341,651			450,236
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		43,406			34,520			3,812			14,240			16,593			34,645			87,736
Losses and LAE paid - prior years		178,193			87,203			112,312			134,182			86,329			332,823			668,103
Total losses and LAE paid		221,599			121,723			116,124			148,422			102,922			367,468			755,839
Insurance operating expenses paid		43,228			27,716			37,394			40,823			39,009			117,226			171,768
Policyholders' dividends paid		2,145			765			2,115			1,284			820			4,219			4,591
Interest on corporate debt		3,694			2,371			4,387			1,987			5,327			11,701			9,236
Total disbursements		270,666			152,575			160,020			192,516			148,078			500,614			941,434
Net other		6,997			(56,713	)		7,258			1,046			3,564			11,868			(23,408	)
Net operating cash flows	$	(151,921	)	$	(88,661	)	$	(42,511	)	$	(66,870	)	$	(37,714	)	$	(147,095	)	$	(514,606	)

17

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(In Thousands)
	3rd			4th			1st		2nd			3rd		Nine			Nine
	Quarter			Quarter			Quarter		Quarter			Quarter		Months			Months
	2004			2004			2005		2005			2005		2005			2004
Receipts:
Premiums and other revenues collected	$	97,543		$	111,150		$	91,910	$	101,408		$	91,212	$	284,530		$	349,703
Investment income received		9,574			9,851			9,404		9,682			10,262		29,348			29,689
Total receipts		107,117			121,001			101,314		111,090			101,474		313,878			379,392
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		29,827			31,304			3,810		14,233			16,584		34,627			55,142
Losses and LAE paid - prior years		57,160			31,086			72,999		69,276			55,520		197,795			195,723
Losses and LAE		86,987			62,390			76,809		83,509			72,104		232,422			250,865
Insurance operating expenses paid		34,600			29,531			33,000		38,226			33,988		105,214			126,176
Policyholders' dividends paid		2,145			765			2,115		1,284			820		4,219			4,591
Total disbursements		123,732			92,686			111,924		123,019			106,912		341,855			381,632
Net other		8,102			(21,974	)		13,760		2,002			6,012		21,774			(8,739	)
Net operating cash flows	$	(8,513	)	$	6,341		$	3,150	$	(9,927	)	$	574	$	(6,203	)	$	(10,979	)

18

PMA Capital Corporation
Operating Cash Flows - Run-off Operations
(In Thousands)
	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005			2005			2004
Receipts:
Premiums collected	$	(6,422	)	$	(9,509	)	$	3,527		$	8,536		$	(354	)	$	11,709		$	31,245
Investment income received		11,053			9,135			5,410			4,974			5,680			16,064			39,599
Total receipts		4,631			(374	)		8,937			13,510			5,326			27,773			70,844
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		13,579			3,216			2			7			9			18			32,594
Losses and LAE paid - prior years		121,033			56,117			39,313			64,906			30,809			135,028			472,380
Total losses and LAE paid		134,612			59,333			39,315			64,913			30,818			135,046			504,974
Insurance operating expenses paid		8,628			(1,815	)		4,394			2,597			5,021			12,012			45,592
Total disbursements		143,240			57,518			43,709			67,510			35,839			147,058			550,566
Net other		282			(34,482	)		(74	)		(4,890	)		(1,912	)		(6,876	)		(11,169	)
Net operating cash flows	$	(138,327	)	$	(92,374	)	$	(34,846	)	$	(58,890	)	$	(32,425	)	$	(126,161	)	$	(490,891	)

19

PMA Capital Corporation
Statutory Surplus
(In Thousands)
	3rd		4th		1st		2nd		3rd
	Quarter		Quarter		Quarter		Quarter		Quarter
	2004		2004		2005		2005		20051
PMA Pool 2	$	294,587	$	300,034	$	298,686	$	299,219	$	311,802 4
PMA Capital Insurance Company 3		236,443		224,511		218,322		215,348		210,663 5

PMA Capital Corporation
Statutory Financial Information - PMA Pool 2
(In Thousands)
	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			20051			20051			2004
Net Premiums Written:
Workers Compensation & Integrated
Disability	$	88,814		$	54,556		$	94,737		$	70,944		$	101,435		$	267,116		$	251,768
Other Commercial Lines		8,962			3,700			10,787			10,998			13,487			35,272			29,152
Total - PMA Pool	$	97,776		$	58,256		$	105,524		$	81,942		$	114,922		$	302,388		$	280,920
Statutory Ratios:
Loss and LAE ratio		75.9	%		75.2	%		73.3	%		73.0	%		73.3	%		73.2	%		75.3	%
Underwriting expense ratio		29.5	%		37.5	%		25.2	%		30.2	%		25.1	%		26.5	%		30.7	%
Policyholders' dividend ratio		0.4	%		0.4	%		0.9	%		0.8	%		0.8	%		0.9	%		0.8	%
Combined ratio		105.8	%		113.1	%		99.4	%		104.0	%		99.2	%		100.6	%		106.8	%
Operating ratio		98.9	%		104.2	%		91.2	%		95.2	%		91.2	%		92.3	%		99.8	%

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 $132.5 million and $10 million related to surplus notes.
5	Includes unassigned surplus of $17.1 million.

20

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				215.665.5070
New York, NY 10038				e-mail:  bhitselberger@pmacapital.com
www.amstock.com
				Investor Relations
Phone Inquiries:				215.665.5046
800.937.5449				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 10/28/2005):
	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