Exhibit 99.1

Forward-looking
Statements

This presentation and our discussion contain
forward-looking information and statements
including, but not limited to, such matters as
business strategies, market trends, future financial
performance, and other matters which inherently
involve risks and uncertainties which could cause
actual results to differ from those projected or
implied in the forward-looking statements. Please
refer to the Company’s SEC filings including its
most recent Annual Report on Form 10-K for risk
factors which could cause actual performance to
differ from these forward-looking statements.

Business
Overview

Primary Insurance Operations:

The PMA Insurance Group

Solid presence in Atlantic Coast workers’ compensation market

Disciplined underwriting standards

Superior long-term client relationships

Statutory capital level at September 30, 2005 of about $310 million

Run-off Operations:

Formerly wrote US based reinsurance and surplus lines business

Statutory capital level at September 30, 2005 of about $210 million

Seeking to reduce exposures and protect statutory capital levels, with a
view towards reducing capital commitment in 2006

$80 million of commutations (10% of run-off reserves) closed in fourth
quarter 2005 should enhance RBC

Highlights

New management team November 2003

2005 Focus:

Profitable, measured growth at Primary
Insurance Operations

Protect statutory capital at run-off operation

Position Company for 2006 and beyond

2005 Results (not including fourth quarter
results)

Statutory capital at run-off protected, RBC
expected to grow in 2005

Franchise at PMAIG revitalized for 2006

Leadership

Management team is experienced, stable
and focused

Focus on Board governance (6 of 11 Board
members are new since January 2003)

Significant financial and industry expertise
at the Board level

($ millions, except per share)	3 Mos. 9/05	3 Mos. 9/04
Net premiums written	$117.5	$83.6
Net premiums earned	92.2	104.2
Net income (loss)	.8	NM
Operating earnings per share	.01	NM

Consolidated Third
Quarter Results

Improved retention and increased new business at PMA Insurance
Group:

Workers’ compensation retention ratio increased from 64% QTD
September 2004 to 83% QTD September 30, 2005

New business increased $40.2 million in third quarter to $90.0 million at
September 30, 2005 (this amount exceeds new business for full year
2004)

No adjustment required to carried reserves

($ millions, except per share)	9 Mos. 9/05	9 Mos. 9/04
Net premiums written	$311.1	$244.9
Net premiums earned	268.7	428.8
Net income (loss)	(19.8)	12.1
Operating earnings/(loss) per share	(.69)	.12

Consolidated Third Quarter
Year-to-Date Results

Results impacted by $30 million pre-tax ($23 million
after-tax) charge for reserve strengthening at run-off
operations in first quarter 2005, reduced 2005 operating
earnings per share by 73 cents

Pre-tax operating results improved at PMA Insurance Group,
largely as a result of better loss ratio

Business
Overview

Specializes in workers’ compensation and other
commercial lines

Focus on mid-size to large accounts

Commercial Markets

Risk Management Services

Groups

Reputation for excellent customer service and
execution

6% share of Pennsylvania workers’ compensation
market

Proven Platform

Disciplined underwriting - Consistent operating returns

The PMA Insurance Group - Workers’ Compensation
Estimated Undiscounted Accident Year Net Loss and LAE
Ratio (Measured at December 2004- 2003 adjusted for retro
premium)

Restore competitive advantage in
workers’ compensation line

Measured steps to improve expense ratio, while not
impacting service levels to customer

Approximately 5% of staff eliminated in January, 2005

Current headcount down about 16% from year-end 2003

2005 Targeted/Measured Revenue Growth

Restoration of rating provided measured growth opportunities in
2005

Claims Strategic Alliances assist in managing loss costs

medical network

bill review

catastrophic claims

Managing the Loss
and LAE Ratio

Price increases of 5% through 3Q2005

Diversification among classes of business

Loss containment increases occurring in loss
sensitive business (45% of total 2004 business)

Outcome focused claims philosophy

Full integration of nurse professionals into claims process

In-house counsel in select jurisdictions

Managing the Loss
and LAE Ratio

Strategic alliances:

First Health – preferred provider network

TMESYS –pharmacy benefit management
program

Corp. Systems – medical bill review

Paradigm – catastrophic claim management

$ millions	9 Mos. 9/05	9 Mos. 9/04
Net premiums written	$304.5	$314.9
Net premiums earned	262.5	353.0
Pre-tax operating income	18.2	12.9

Third Quarter
Year-to-Date Results

New business written $90.0 million

$ millions	9/30/05	12/31/04

Shareholders' Equity ( Including SFAS #115)	$414.7	$445.5
Shareholders' Equity ( Excluding SFAS #115)	$413.5	$431.8
Debt	$216.8*	$210.8
Debt to Capital ( Including SFAS #115)	34.3%	32.1%

* From 9/30 to 11/3, $18.7 million par of debt,

($20 million in value) retired through open market

purchases.

Capitalization

$ millions		9/30/05
Convertible Debt
Par, Matures 2022¹		$ 94.6
Derivative Element		13.1
Monthly Notes, Matures 2018		57.5
Other		0.7
Trust Preferred and Surplus Notes, Mature 2033-35		53.8
Unamortized discount		(2.9)
Total		$216.8

1) Holders may require us to repurchase this debt at 114% of principal amount on June 30, 2009

Debt Structure

Debt

Assuming put of convertible debt in 2009
and no refinancing:

PMA Capital will have $111 million in
outstanding debt

Debt/capital ratio should be around 20%; no
maturities until 2018

Interest costs after 2009 should be about
$9 million per year

Total = $1,251 million

(excludes cash and gross up for securities lending)

September 30, 2005

Asset Type

Conservative
investment posture

No derivatives

No equity exposure

Pre-tax net unrealized
gain of $2 million at
September 30, 2005

Outside professional
managers

High-Quality, Liquid
Investment Portfolio

Total = $1,183 million

(excludes short-term investments and
gross up for securities lending)

September 30, 2005

Asset Quality

99% Investment
Grade bonds

AA average credit
quality

62% AAA Rated or
Government bonds

Duration - 4.0
years (3.7 yrs
including cash &
short-term)

Current portfolio
yield 4.5%

High-Quality, Liquid
Investment Portfolio

$ millions	Sept 2005	Dec 2004
Statutory Capital	$210.6	$224.5
Unassigned Surplus	$17.1	$30.9
Statutory Earnings (Loss)	($9.0)	$40.8

Statutory Capital Highlights

PMA Capital Insurance Company

Run-off Operations

Adverse development cover substantially
protects statutory capital at Run-off
operations

Cover designed to protect against $105 million
of future adverse development ($75 million in
cover remaining at September 30, 2005)

Protection to surplus in this event would be $70
million

$30 million of protection used in first quarter
2005, no adjustments to reserves since first
quarter 2005

Exposure
Management

Focus points:

Reduce balance sheet leverage

Return capital to parent as soon as permissible

Work with cedants to expedite commutations

Expense
Management

Lease renegotiated October 2004:

Term reduced from 15 to 7 years

Space reduced approximately 75%

Annual savings approximately $1.5 million

Consistent, disciplined headcount reduction:

9/30/05: 43 FTE’s employed

12/31/04: 60 FTE’s employed

12/31/03: 165 FTE’s employed

Further reductions expected as business winds down

$millions	9 Mos. 9/05	9 Mos. 9/04
Net premiums written	$7.2	$(69.4)
Net premiums earned	6.8	76.4
Pre-tax operating income (loss)	(28.8)	7.5

Run-off Operations
Third Quarter Year-to-Date
Results

First quarter adverse development in two lines of business:
construction defects and pro-rata professional liability

Statutory capital substantially protected by reinsurance
cover

Recoveries will be recognized under GAAP as losses are
settled

$80 million in commutations effected in fourth quarter 2005

Summary

Execution of a three-pronged plan:

Maintain and prudently grow workers’ comp operation

More effective utilization of capital

Reduce run-off exposures

9/30/2005 Book value $12.98 per share, compared
to a current stock price of $9.10

Expecting profitable growth in workers’ comp in
2005

Execution of three-pronged plan should enhance
our ability to deliver reasonable returns