EX-99.2 3 ex99-2.htm EXHIBIT 99.2
Exhibit 99.2
 
 
PMA Logo
 
Statistical Supplement
Fourth Quarter
2005
 

 
PMA Capital Corporation
Statistical Supplement
Fourth Quarter - 2005
                   
Table of Contents
             
Page
Consolidated Highlights:
      
Selected Financial Data - Fourth Quarter
    
1
Selected Financial Data - Year-to-date
    
2
Consolidated Statements of Operations - Per Share Data
    
3
Consolidated Statements of Operations - Fourth 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 - Full Year
9
-
10
Statements of Operations - Consolidating - Fourth 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)  
                            
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 4th
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 Quarter
  
                            
Net Premiums Written by Segment:
                                      
PMA Insurance Group
  
$
62,910
  
$
105,474
  
$
82,103
  
$
116,877
  
$
71,339
    
13.4
%
Run-off Operations
   
(5,974
)
  
4,929
   
1,504
   
789
   
3,028
   
NM
  
Corporate & Other
    
(264
)
  
(194
)
  
(220
)
  
(195
)
  
(209
)
  
20.8
%
Net premiums written
  
$
56,672
  
$
110,209
  
$
83,387
  
$
117,471
  
$
74,158
    
30.9
%
                                       
Major Components of Net Income (Loss):
                                     
Pre-tax operating income (loss) by segment:
                                      
PMA Insurance Group
  
$
261
  
$
6,612
  
$
4,941
  
$
6,600
  
$
3,867
    
NM
  
Run-off Operations 
    
(1,946
)
  
(29,646
)
  
1,133
   
(258
)
  
1,838
   
NM
  
Corporate & Other
    
(5,423
)
  
(6,167
)
  
(5,721
)
  
(5,609
)
  
(6,722
)
  
-24.0
%
Pre-tax operating income (loss)
    
(7,108
)
  
(29,201
)
  
353
   
733
   
(1,017
)
  
85.7
%
Net realized investment gains (losses)
    
(7,870
)
  
2,983
   
(265
)
  
483
   
(1,084
)
  
86.2
%
Pre-tax income (loss)
    
(14,978
)
  
(26,218
)
  
88
   
1,216
   
(2,101
)
  
86.0
%
Income tax expense (benefit)
    
(4,665
)
  
(5,667
)
  
71
   
476
   
(875
)
  
81.2
%
Net income (loss)
  
$
(10,313
)
$
(20,551
)
$
17
  
$
740
  
$
(1,226
)
  
88.1
%
After-tax operating income (loss)
  
$
(5,198
)
$
(22,490
)
$
189
  
$
426
  
$
(521
)
  
90.0
%
                                       
Diluted Earnings (Loss) Per Share:
                                      
Net income (loss)
  
$
(0.33
)
$
(0.65
)
$
-
  
$
0.02
  
$
(0.04
)
  
87.9
%
Less the impact of:
                                      
Realized gains (losses) after tax
    
(0.16
)
  
0.06
   
(0.01
)
  
0.01
   
(0.02
)
  
87.5
%
After-tax operating income (loss)
  
$
(0.17
)
$
(0.71
)
$
0.01
  
$
0.01
  
$
(0.02
)
  
88.2
%
                                       
Capitalization:
                                      
Debt
  
$
210,784
  
$
208,294
  
$
208,586
  
$
216,808
  
$
196,181
    
-6.9
%
Shareholders' equity excluding FAS 115 unrealized gain (loss)
    
431,828
   
412,349
   
412,330
   
413,513
   
409,019
   
-5.3
%
Total capitalization excluding FAS 115 unrealized gain (loss)
    
642,612
   
620,643
   
620,916
   
630,321
   
605,200
   
-5.8
%
FAS 115 unrealized gain (loss)
    
13,623
   
1,539
   
17,266
   
1,151
   
(2,796
)
  
NM
  
Total capitalization including FAS 115 unrealized gain (loss)
  
$
656,235
  
$
622,182
  
$
638,182
  
$
631,472
  
$
602,404
    
-8.2
%
                                       
Book Value Per Share:
                                      
Excluding FAS 115 unrealized gain (loss)
  
$
13.63
  
$
12.95
  
$
12.93
  
$
12.94
  
$
12.79
    
-6.2
%
Including FAS 115 unrealized gain (loss)
  
$
14.06
  
$
13.00
  
$
13.47
  
$
12.98
  
$
12.70
    
-9.7
%
                                       
Debt to Total Capital:
                                      
Excluding FAS 115 unrealized gain (loss)
    
32.8
%
  
33.6
%
  
33.6
%
  
34.4
%
  
32.4
%
  
-1.2
%
Including FAS 115 unrealized gain (loss)
    
32.1
%
  
33.5
%
  
32.7
%
  
34.3
%
  
32.6
%
  
1.6
%
                                       
Interest Coverage:
                                      
Income before interest and income taxes
                                      
to interest expense
    
NM
   
NM
   
1.02
   
1.30
 
 
0.47
    
NM
  
                                       
Operating income before interest and income taxes
                                      
to interest expense
    
NM
   
NM
   
1.09
   
1.18
 
 
0.75
    
NM
  
1
 

PMA Capital Corporation  
Selected Financial Data  
(Dollar Amounts in Thousands, Except Per Share Data)  
                
   
Twelve
 
Twelve
 
 % Change
 
   
Months
 
Months
 
 Twelve
 
   
2005
  
2004
  
 Months
  
                
Net Premiums Written by Segment:
                    
PMA Insurance Group
  
$
375,793
  
$
377,795
    
-0.5
%
Run-off Operations 
    
10,250
   
(75,360
)
  
NM
  
Corporate & Other
    
(818
)
  
(825
)
  
0.8
%
Net premiums written
  
$
385,225
  
$
301,610
    
27.7
%
                     
Major Components of Net Income (Loss):
                    
Pre-tax operating income (loss) by segment:
                    
PMA Insurance Group
  
$
22,020
  
$
13,166
    
67.2
%
Run-off Operations
   
(26,933
)
  
5,509
   
NM
  
Corporate & Other
    
(24,219
)
  
(21,223
)
  
-14.1
%
Pre-tax operating loss
    
(29,132
)
  
(2,548
)
  
NM
  
Net realized investment gains
    
2,117
   
6,493
   
-67.4
%
Pre-tax income (loss)
    
(27,015
)
  
3,945
   
NM
  
Income tax expense (benefit)
    
(5,995
)
  
2,115
   
NM
  
Net income (loss)
  
$
(21,020
)
$
1,830
    
NM
  
After-tax operating loss
  
$
(22,396
)
$
(2,391
)
  
NM
  
                     
Diluted Earnings (Loss) Per Share:
                    
Net income (loss)
  
$
(0.66
)
$
0.06
    
NM
  
Less the impact of:
                    
Realized gains after tax
   
0.05
   
0.14
   
-64.3
%
After-tax operating loss
  
$
(0.71
)
$
(0.08
)
  
NM
  
 
 
2

PMA Capital Corporation  
Consolidated Statements of Operations - Per Share Data  
                                
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
  
                                
Diluted Earnings (Loss) Per Share:
                                            
                                             
Net income (loss)
  
$
(0.33
)
$
(0.65
)
$
-
  
$
0.02
  
$
(0.04
)
$
(0.66
)
$
0.06
  
                                             
Pre-tax operating income (loss)
  
$
(0.23
)
$
(0.93
)
$
0.01
  
$
0.02
  
$
(0.03
)
$
(0.92
)
$
(0.08
)
                                             
After-tax operating income (loss)
  
$
(0.17
)
$
(0.71
)
$
0.01
  
$
0.01
  
$
(0.02
)
$
(0.71
)
$
(0.08
)
                                             
Diluted weighted average common
                                            
shares outstanding
    
31,350,825
   
31,393,684
   
32,015,127
   
32,244,295
   
31,833,384
   
31,682,648
   
31,729,061
 
                                             
                                             
Dividends declared:
                                            
Class A Common stock
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
                                             
Actual common shares issued
                                            
and outstanding
    
31,676,851
   
31,835,136
   
31,885,541
   
31,956,983
   
31,983,283
   
31,983,283
   
31,676,851
 
                                              
                                             
Class A Common Stock prices:
                                            
High
  
$
10.85
  
$
10.65
  
$
9.00
  
$
9.50
  
$
9.73
  
$
10.65
  
$
10.85
  
Low
  
$
6.74
  
$
7.05
  
$
5.91
  
$
7.83
  
$
7.99
  
$
5.91
  
$
4.70
  
Close
  
$
10.35
  
$
8.00
  
$
8.83
  
$
8.78
  
$
9.13
  
$
9.13
  
$
10.35
  
 
 
3
 
 
This Page Intentionally Left Blank
 
 
 
4
 

PMA Capital Corporation  
Consolidated Statements of Operations  
(In Thousands)  
                            
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 4th
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 Quarter
  
                            
Gross Premiums Written
  
$
69,940
  
$
121,313
  
$
95,069
  
$
130,106
  
$
87,240
    
24.7
%
                                       
Net Premiums Written
  
$
56,672
  
$
110,209
  
$
83,387
  
$
117,471
  
$
74,158
    
30.9
%
                                       
Revenues:
                                      
Net premiums earned
  
$
89,758
  
$
87,723
  
$
88,720
  
$
92,223
  
$
99,364
    
10.7
%
Net investment income
    
12,142
   
11,712
   
12,542
   
12,648
   
11,761
   
-3.1
%
Net realized investment gains (losses)
    
(7,870
)
  
2,983
   
(265
)
  
483
   
(1,084
)
  
86.2
%
Other revenues
    
12,125
   
6,192
   
4,939
   
6,209
   
6,946
   
-42.7
%
Total revenues
    
106,155
   
108,610
   
105,936
   
111,563
   
116,987
   
10.2
%
                                       
Expenses:
                                      
Losses and loss adjustment expenses
    
70,189
   
93,988
   
63,261
   
68,112
   
69,713
   
-0.7
%
Acquisition expenses
    
18,935
   
18,671
   
17,983
   
19,691
   
19,536
   
3.2
%
Operating expenses
    
20,735
   
17,698
   
18,802
   
17,872
   
23,499
   
13.3
%
Dividends to policyholders
    
1,819
   
502
   
1,762
   
567
   
2,343
   
28.8
%
Interest expense
    
3,482
   
3,969
   
4,040
   
4,105
   
3,997
   
14.8
%
Loss on debt exchange
    
5,973
   
-
   
-
   
-
   
-
   
NM
  
Total losses and expenses
    
121,133
   
134,828
   
105,848
   
110,347
   
119,088
   
-1.7
%
                                       
Pre-tax income (loss)
    
(14,978
)
  
(26,218
)
  
88
   
1,216
   
(2,101
)
  
86.0
%
                                       
Income tax expense (benefit):
                                      
Current
    
(272
)
  
-
   
-
   
-
   
-
   
NM
  
Deferred
    
(4,393
)
  
(5,667
)
  
71
   
476
   
(875
)
  
80.1
%
                                       
Total income tax expense (benefit)
    
(4,665
)
  
(5,667
)
  
71
   
476
   
(875
)
  
81.2
%
                                       
Net income (loss)
  
$
(10,313
)
$
(20,551
)
$
17
  
$
740
  
$
(1,226
)
  
88.1
%
                                       
Pre-tax operating income (loss)
  
$
(7,108
)
$
(29,201
)
$
353
  
$
733
  
$
(1,017
)
  
85.7
%
                                       
After-tax operating income (loss)
  
$
(5,198
)
$
(22,490
)
$
189
  
$
426
  
$
(521
)
  
90.0
%
 
 
5

PMA Capital Corporation  
Consolidated Statements of Operations  
(In Thousands)  
                
   
Twelve
  
Twelve
  
 % Change
  
   
Months
  
Months
  
 Twelve
 
   
2005
  
2004
  
 Months
  
                
Gross Premiums Written
  
$
433,728
  
$
352,262
    
23.1
%
                     
Net Premiums Written
  
$
385,225
  
$
301,610
    
27.7
%
                     
Revenues:
                    
Net premiums earned
  
$
368,030
  
$
518,585
    
-29.0
%
Net investment income
    
48,663
   
56,945
   
-14.5
%
Net realized investment gains
    
2,117
   
6,493
   
-67.4
%
Other revenues
    
24,286
   
30,701
   
-20.9
%
Total revenues
    
443,096
   
612,724
   
-27.7
%
                     
Expenses:
                    
Losses and loss adjustment expenses
    
295,074
   
380,556
   
-22.5
%
Acquisition expenses
    
75,881
   
115,225
   
-34.1
%
Operating expenses
    
77,871
   
89,672
   
-13.2
%
Dividends to policyholders
    
5,174
   
4,999
   
3.5
%
Interest expense
    
16,111
   
12,354
   
30.4
%
Loss on debt exchange
    
-
   
5,973
   
NM
  
Total losses and expenses
    
470,111
   
608,779
   
-22.8
%
                     
Pre-tax income (loss)
    
(27,015
)
  
3,945
   
NM
  
                     
Income tax expense (benefit):
                    
Deferred
    
(5,995
)
  
2,115
   
NM
  
                     
Total income tax expense (benefit)
    
(5,995
)
  
2,115
   
NM
  
                     
Net income (loss)
  
$
(21,020
)
$
1,830
    
NM
  
                     
Pre-tax operating loss
  
$
(29,132
)
$
(2,548
)
  
NM
  
                     
After-tax operating loss
  
$
(22,396
)
$
(2,391
)
  
NM
  
 
 
6

PMA Capital Corporation
Consolidated Balance Sheets
(In Thousands)
                       
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
   
2004
  
2005
  
2005
  
2005
  
2005
  
                       
Assets:
                                
Investments in fixed maturities available for sale
  
$
1,304,086
  
$
1,283,406
  
$
1,256,169
  
$
1,184,301
  
$
1,049,254
  
Short-term investments
    
123,746
   
60,325
   
61,058
   
67,636
   
57,997
 
Short-term investments, loaned securities collateral
    
-
   
102,620
   
90,114
   
63,751
   
-
 
Total investments
    
1,427,832
   
1,446,351
   
1,407,341
   
1,315,688
   
1,107,251
 
                                 
Cash
    
35,537
   
49,921
   
30,464
   
43,282
   
30,239
 
Accrued investment income
    
15,517
   
15,188
   
14,147
   
13,703
   
11,528
 
Premiums receivable
    
197,831
   
208,748
   
183,713
   
212,847
   
197,582
 
Reinsurance receivables
    
1,142,552
   
1,129,507
   
1,129,857
   
1,115,953
   
1,094,674
 
Deferred income taxes
    
86,501
   
98,714
   
90,301
   
98,568
   
103,656
 
Deferred acquisition costs
    
31,426
   
35,138
   
34,655
   
39,432
   
34,236
 
Funds held by reinsureds
    
142,064
   
146,674
   
150,078
   
153,064
   
146,374
 
Other assets
    
171,042
   
167,200
   
169,028
   
167,192
   
162,505
 
Total assets
  
$
3,250,302
  
$
3,297,441
  
$
3,209,584
  
$
3,159,729
  
$
2,888,045
  
                                 
Liabilities:
                                
Unpaid losses and loss adjustment expenses
  
$
2,111,598
  
$
2,077,599
  
$
2,005,386
  
$
1,966,907
  
$
1,820,043
  
Unearned premiums
    
158,489
   
177,415
   
175,025
   
199,153
   
173,432
 
Debt
    
210,784
   
208,294
   
208,586
   
216,808
   
196,181
 
Accounts payable, accrued expenses
                                
and other liabilities
    
196,744
   
200,350
   
191,309
   
198,441
   
209,654
 
Funds held under reinsurance treaties
    
121,234
   
112,712
   
105,572
   
96,067
   
78,058
 
Dividends to policyholders
    
5,977
   
4,580
   
3,992
   
3,931
   
4,452
 
Payable under securities loan agreements
    
25
   
102,603
   
90,118
   
63,758
   
2
 
Total liabilities
    
2,804,851
   
2,883,553
   
2,779,988
   
2,745,065
   
2,481,822
 
                                 
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
    
213,313
   
189,787
   
189,109
   
188,834
   
187,538
 
Accumulated other comprehensive income (loss)
    
(1,959
)
  
(14,116
)
  
1,377
   
(14,861
)
  
(22,684
)
Treasury stock, at cost
    
(45,573
)
  
(41,752
)
  
(40,734
)
  
(39,305
)
  
(38,779
)
Unearned restricted stock compensation
    
(751
)
  
(452
)
  
(577
)
  
(425
)
  
(273
)
Total shareholders' equity
    
445,451
   
413,888
   
429,596
   
414,664
   
406,223
 
Total liabilities and shareholders' equity
  
$
3,250,302
  
$
3,297,441
  
$
3,209,584
  
$
3,159,729
  
$
2,888,045
  
 
 
7
 

PMA Capital Corporation  
Invested Assets and Net Investment Income  
(Dollars in Thousands)  
                                
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
   
2004
  
2005
  
2005
  
2005
  
2005
  
 2005
  
2004
  
                                
Total Investments & Cash
                                            
As reported
  
$
1,463,369
  
$
1,496,272
  
$
1,437,805
  
$
1,358,970
  
$
1,137,490
  
$
1,137,490
  
$
1,463,369
  
Less:
                                            
Securities lending activity
    
25
   
102,603
   
90,118
   
63,758
   
2
   
2
   
25
 
Unrealized gain (loss)
    
20,958
   
2,368
   
26,563
   
1,771
   
(4,302
)
  
(4,302
)
  
20,958
 
Total adjusted investments & cash
  
$
1,442,386
  
$
1,391,301
  
$
1,321,124
  
$
1,293,441
  
$
1,141,790
  
$
1,141,790
  
$
1,442,386
  
                                             
Net Investment Income
                                            
As reported
  
$
12,142
  
$
11,712
  
$
12,542
  
$
12,648
  
$
11,761
  
$
48,663
  
$
56,945
  
Funds held:
                                            
Assumed
   
846
   
187
   
129
   
535
   
545
   
1,396
   
1,015
 
Ceded
   
(2,026
)
  
(2,437
)
  
(1,871
)
  
(1,694
)
  
(1,897
)
  
(7,899
)
  
(11,909
)
Total funds held
    
(1,180
)
  
(2,250
)
  
(1,742
)
  
(1,159
)
  
(1,352
)
  
(6,503
)
  
(10,894
)
                                             
Total adjusted investment income
  
$
13,322
  
$
13,962
  
$
14,284
  
$
13,807
  
$
13,113
  
$
55,166
  
$
67,839
  
                                             
Yield
                                            
As reported
    
3.15
%
  
3.17
%
  
3.42
%
  
3.62
%
  
3.77
%
  
3.53
%
  
3.18
%
Investment portfolio
    
3.62
%
  
3.94
%
  
4.21
%
  
4.22
%
  
4.31
%
  
4.19
%
  
4.02
%
                                             
Duration (in years)
    
3.6
   
3.8
   
3.9
   
3.7
   
3.7
   
3.7
   
3.6
 
 

PMA Capital Corporation
Debt
(Dollars in Thousands)
           
           
   
Amount
      
   
Outstanding
  
Maturity
  
6.50% convertible debt 
  
$
73,435
    
20221
  
Derivative component of 6.50% convertible debt
    
12,881
       
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
    
(2,106
)
      
Total long-term debt
  
$
196,181
        
 
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 $68.4 million principal amount and $15.891 per share for $5.0 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 8.53% as of December 31, 2005.
4
Interest rate on surplus notes is 8.76% as of December 31, 2005.
 

PMA Capital Corporation
Balance Sheet Impact of Commutations - Run-off Operations
(Dollars in Thousands)
               
   
4th Quarter 2005
Assets
  
Assumed
 
Ceded
 
Total
  
Funds held by reinsureds
  
$
(4,163
)
$
-
  
$
(4,163
)
                     
Liabilities
    
Assumed
 
 
Ceded
 
 
Total
  
Unpaid loss and loss adjustment expenses
  
$
(75,907
)
$
-
  
$
(75,907
)
Other liabilities
    
(3,347
)
  
-
   
(3,347
)
                     
 
  
 Twelve Months 2005
Assets
    
Assumed
 
 
Ceded
 
 
Total
  
Funds held by reinsureds
  
$
(4,163
)
$
-
  
$
(4,163
)
                     
Liabilities
    
Assumed
 
 
Ceded
 
 
Total
  
Unpaid loss and loss adjustment expenses
  
$
(85,384
)
$
-
  
$
(85,384
)
Funds held under reinsurance treaties
    
(219
)
  
-
   
(219
)
Other liabilities
    
(3,347
)
  
-
   
(3,347
)
 
 
8

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2005
(In Thousands)
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
Operations
  
Consolidated
 
                   
Gross Premiums Written
  
$
421,605
  
$
(818
)
$
12,941
  
$
433,728
  
                           
Net Premiums Written
  
$
375,793
  
$
(818
)
$
10,250
  
$
385,225
  
                           
Revenues:
                          
Net premiums earned
  
$
358,642
  
$
(818
)
$
10,206
  
$
368,030
  
Net investment income
    
31,745
   
580
   
16,338
   
48,663
 
Other revenues
    
23,880
   
406
   
-
   
24,286
 
Operating revenues
    
414,267
   
168
   
26,544
   
440,979
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
260,276
   
-
   
34,798
   
295,074
 
Acquisition expenses
    
71,298
   
-
   
4,583
   
75,881
 
Operating expenses
    
55,273
   
8,502
   
14,096
   
77,871
 
Dividends to policyholders
    
5,174
   
-
   
-
   
5,174
 
Total losses and expenses
    
392,021
   
8,502
   
53,477
   
454,000
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
22,246
   
(8,334
)
  
(26,933
)
  
(13,021
)
                           
Interest expense
    
226
   
15,885
   
-
   
16,111
 
                           
Pre-tax operating income (loss)
  
$
22,020
  
$
(24,219
)
$
(26,933
)
  
(29,132
)
                           
Net realized investment gains
                      
2,117
 
                           
Pre-tax loss
                    
$
(27,015
)
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
 
9

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2004
(In Thousands)
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
  
                   
Gross Premiums Written
  
$
423,054
  
$
(825
)
$
(69,967
)
$
352,262
  
                           
Net Premiums Written
  
$
377,795
  
$
(825
)
$
(75,360
)
$
301,610
  
                           
Revenues:
                          
Net premiums earned
  
$
442,343
  
$
(825
)
$
77,067
  
$
518,585
  
Net investment income
    
30,984
   
1,306
   
24,655
   
56,945
 
Other revenues
    
23,768
   
6,933
   
-
   
30,701
 
Operating revenues
    
497,095
   
7,414
   
101,722
   
606,231
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
331,181
   
-
   
49,375
   
380,556
 
Acquisition expenses
    
86,078
   
-
   
29,147
   
115,225
 
Operating expenses
    
61,671
   
10,310
   
17,691
   
89,672
 
Dividends to policyholders
    
4,999
   
-
   
-
   
4,999
 
Total losses and expenses
    
483,929
   
10,310
   
96,213
   
590,452
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
13,166
   
(2,896
)
  
5,509
   
15,779
 
                           
Interest expense
    
-
   
12,354
   
-
   
12,354
 
                           
Loss on debt exchange
    
-
   
5,973
   
-
   
5,973
 
                           
Pre-tax operating income (loss)
  
$
13,166
  
$
(21,223
)
$
5,509
    
(2,548
)
                           
Net realized investment gains
                      
6,493
 
                           
Pre-tax income
                    
$
3,945
  
 
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 December 31, 2005
(In Thousands)
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
Operations
Consolidated
  
                   
Gross Premiums Written
  
$
82,490
  
$
(209
)
$
4,959
  
$
87,240
  
                           
Net Premiums Written
  
$
71,339
  
$
(209
)
$
3,028
  
$
74,158
  
                           
Revenues:
                          
Net premiums earned
  
$
96,187
  
$
(209
)
$
3,386
  
$
99,364
  
Net investment income
    
8,328
   
(219
)
  
3,652
   
11,761
 
Other revenues
    
6,837
   
109
   
-
   
6,946
 
Operating revenues
    
111,352
   
(319
)
  
7,038
   
118,071
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
68,732
   
-
   
981
   
69,713
 
Acquisition expenses
    
18,998
   
-
   
538
   
19,536
 
Operating expenses
    
17,191
   
2,627
   
3,681
   
23,499
 
Dividends to policyholders
    
2,343
   
-
   
-
   
2,343
 
Total losses and expenses
    
107,264
   
2,627
   
5,200
   
115,091
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
4,088
   
(2,946
)
  
1,838
   
2,980
 
                           
Interest expense
    
221
   
3,776
   
-
   
3,997
 
                           
Pre-tax operating income (loss)
  
$
3,867
  
$
(6,722
)
$
1,838
    
(1,017
)
                           
Net realized investment losses
                      
(1,084
)
                           
Pre-tax loss
                    
$
(2,101
)
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
 
11

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2004
(In Thousands)
                   
   
PMA
 
 
 
 
 
 
 
 
 
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
Operations
Consolidated
  
                   
Gross Premiums Written
  
$
72,380
  
$
(264
)
$
(2,176
)
$
69,940
  
                           
Net Premiums Written
  
$
62,910
  
$
(264
)
$
(5,974
)
$
56,672
  
                           
Revenues:
                          
Net premiums earned
  
$
89,373
  
$
(264
)
$
649
  
$
89,758
  
Net investment income
    
6,509
   
418
   
5,215
   
12,142
 
Other revenues
    
5,511
   
6,614
   
-
   
12,125
 
Operating revenues
    
101,393
   
6,768
   
5,864
   
114,025
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
66,284
   
-
   
3,905
   
70,189
 
Acquisition expenses
    
18,550
   
-
   
385
   
18,935
 
Operating expenses
    
14,479
   
2,736
   
3,520
   
20,735
 
Dividends to policyholders
    
1,819
   
-
   
-
   
1,819
 
Total losses and expenses
    
101,132
   
2,736
   
7,810
   
111,678
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
261
   
4,032
   
(1,946
)
  
2,347
 
                           
Interest expense
    
-
   
3,482
   
-
   
3,482
 
                           
Loss on debt exchange
    
-
   
5,973
   
-
   
5,973
 
                           
Pre-tax operating income (loss)
  
$
261
  
$
(5,423
)
$
(1,946
)
  
(7,108
)
                           
Net realized investment losses
                      
(7,870
)
                           
Pre-tax loss
                    
$
(14,978
)
 
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)    
                                         
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 4th
 
Twelve
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
  
$
72,380
  
$
116,272
  
$
93,680
  
$
129,163
  
$
82,490
  
$
421,605
  
$
423,054
    
14.0
%
  
-0.3
%
                                                         
Net Premiums Written
  
$
62,910
  
$
105,474
  
$
82,103
  
$
116,877
  
$
71,339
  
$
375,793
  
$
377,795
    
13.4
%
  
-0.5
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
89,373
  
$
84,700
  
$
85,541
  
$
92,214
  
$
96,187
  
$
358,642
  
$
442,343
    
7.6
%
  
-18.9
%
Net investment income
    
6,509
   
7,541
   
7,716
   
8,160
   
8,328
   
31,745
   
30,984
   
27.9
%
  
2.5
%
Other revenues
    
5,511
   
5,965
   
4,906
   
6,172
   
6,837
   
23,880
   
23,768
   
24.1
%
  
0.5
%
Total revenues
    
101,393
   
98,206
   
98,163
   
106,546
   
111,352
   
414,267
   
497,095
   
9.8
%
  
-16.7
%
                                                         
Losses and Expenses:
                                                        
Losses and loss adjustment expenses
    
66,284
   
62,218
   
61,331
   
67,995
   
68,732
   
260,276
   
331,181
   
3.7
%
  
-21.4
%
Acquisition expenses
    
18,550
   
16,767
   
17,254
   
18,279
   
18,998
   
71,298
   
86,078
   
2.4
%
  
-17.2
%
Operating expenses
    
14,479
   
12,107
   
12,875
   
13,100
   
17,191
   
55,273
   
61,671
   
18.7
%
  
-10.4
%
Dividends to policyholders
    
1,819
   
502
   
1,762
   
567
   
2,343
   
5,174
   
4,999
   
28.8
%
  
3.5
%
Total losses and expenses
    
101,132
   
91,594
   
93,222
   
99,941
   
107,264
   
392,021
   
483,929
   
6.1
%
  
-19.0
%
                                                         
Operating income before income taxes
                                                        
and interest expense
    
261
   
6,612
   
4,941
   
6,605
   
4,088
   
22,246
   
13,166
   
NM
    
69.0
%
                                                         
Interest expense
    
-
   
-
   
-
   
5
   
221
   
226
   
-
   
NM
    
NM
  
                                                         
Pre-tax operating income
 
$
261
  
$
6,612
  
$
4,941
  
$
6,600
  
$
3,867
  
$
22,020
  
$
13,166
    
NM
    
67.2
%
 
 
13
 

PMA Capital Corporation    
Insurance Ratios - PMA Insurance Group    
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
   
4th Quarter 2004
 
1st Quarter 2005
 
2nd Quarter 2005
 
3rd Quarter 2005
 
4th Quarter 2005
 
 Twelve Months 2005
 
Twelve Months 2004
 
Point Chg.
4th Quarter
Better (Worse)
 
Point Chg.
Twelve Months
Better (Worse)
  
                                         
Ratios - GAAP Basis:
                                                        
                                                         
                                                         
Loss and LAE ratio
    
74.2
%
  
73.5
%
  
71.7
%
  
73.7
%
  
71.5
%
  
72.6
%
  
74.9
%
  
2.7
   
2.3
 
                                                         
Expense ratio:
                                                        
Acquisition expenses
    
20.8
%
  
19.8
%
  
20.2
%
  
19.8
%
  
19.8
%
  
19.9
%
  
19.5
%
  
1.0
   
(0.4
)
Operating expenses 1
    
11.5
%
  
9.5
%
  
10.3
%
  
9.2
%
  
12.5
%
  
10.4
%
  
9.9
%
  
(1.0
)
  
(0.5
)
Total expense ratio
    
32.3
%
  
29.3
%
  
30.5
%
  
29.0
%
  
32.3
%
  
30.3
%
  
29.4
%
  
-
   
(0.9
)
                                                         
Policyholders' dividend ratio
    
2.0
%
  
0.6
%
  
2.1
%
  
0.6
%
  
2.4
%
  
1.4
%
  
1.1
%
  
(0.4
)
  
(0.3
)
Combined ratio
    
108.5
%
  
103.4
%
  
104.3
%
  
103.3
%
  
106.2
%
  
104.3
%
  
105.4
%
  
2.3
   
1.1
 
                                                         
Net investment income ratio
    
-7.3
%
  
-8.9
%
  
-9.0
%
  
-8.8
%
  
-8.7
%
  
-8.9
%
  
-7.0
%
  
1.4
   
1.9
 
Operating ratio
    
101.2
%
  
94.5
%
  
95.3
%
  
94.5
%
  
97.5
%
  
95.4
%
  
98.4
%
  
3.7
   
3.0
 
 
1
The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $10.3 million, $8.0 million, $8.9 million, $8.4 million and $12.1 million for the fourth quarter of 2004 and the first, second, third and fourth quarters of 2005, respectively.
 
                                          
 
 
14

PMA Capital Corporation    
Statements of Operations - Run-off Operations    
(Dollar Amounts in Thousands)    
                                         
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 4th
 
Twelve
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
 
$
(2,176
)
$
5,235
  
$
1,609
  
$
1,138
  
$
4,959
  
$
12,941
  
$
(69,967
)
  
NM
    
NM
  
                                                         
Net Premiums Written
 
$
(5,974
)
$
4,929
  
$
1,504
  
$
789
  
$
3,028
  
$
10,250
  
$
(75,360
)
  
NM
    
NM
  
                                                         
Revenues:
                                                        
Net premiums earned
  
$
649
  
$
3,217
  
$
3,399
  
$
204
  
$
3,386
  
$
10,206
  
$
77,067
    
NM
    
-86.8
%
Net investment income
    
5,215
   
3,900
   
4,569
   
4,217
   
3,652
   
16,338
   
24,655
   
-30.0
%
  
-33.7
%
Total revenues
    
5,864
   
7,117
   
7,968
   
4,421
   
7,038
   
26,544
   
101,722
   
20.0
%
  
-73.9
%
                                                         
Losses and Expenses:
                                                        
Losses and loss adjustment expenses
    
3,905
   
31,770
   
1,930
   
117
   
981
   
34,798
   
49,375
   
-74.9
%
  
-29.5
%
Acquisition expenses
    
385
   
1,904
   
729
   
1,412
   
538
   
4,583
   
29,147
   
39.7
%
  
-84.3
%
Operating expenses
    
3,520
   
3,089
   
4,176
   
3,150
   
3,681
   
14,096
   
17,691
   
4.6
%
  
-20.3
%
Total losses and expenses
    
7,810
   
36,763
   
6,835
   
4,679
   
5,200
   
53,477
   
96,213
   
-33.4
%
  
-44.4
%
                                                         
Pre-tax operating income (loss)
  
$
(1,946
)
$
(29,646
)
$
1,133
  
$
(258
)
$
1,838
  
$
(26,933
)
$
5,509
    
NM
    
NM
  
 
 
15

PMA Capital Corporation    
Statements of Operations - Corporate & Other    
(Dollar Amounts in Thousands)    
                                         
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 4th
 
Twelve
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
 
$
(264
)
$
(194
)
$
(220
)
$
(195
)
$
(209
)
$
(818
)
$
(825
)
  
20.8
%
  
0.8
%
                                                         
Net Premiums Written
 
$
(264
)
$
(194
)
$
(220
)
$
(195
)
$
(209
)
$
(818
)
$
(825
)
  
20.8
%
  
0.8
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
(264
)
$
(194
)
$
(220
)
$
(195
)
$
(209
)
$
(818
)
$
(825
)
  
20.8
%
  
0.8
%
Net investment income
    
418
   
271
   
257
   
271
   
(219
)
  
580
   
1,306
   
NM
    
-55.6
%
Other revenues
    
6,614
   
227
   
33
   
37
   
109
   
406
   
6,933
   
NM
    
NM
  
Total revenues
    
6,768
   
304
   
70
   
113
   
(319
)
  
168
   
7,414
   
NM
    
NM
  
                                                         
Losses and Expenses:
                                                        
Operating expenses
    
2,736
   
2,502
   
1,751
   
1,622
   
2,627
   
8,502
   
10,310
   
-4.0
%
  
-17.5
%
Total losses and expenses
    
2,736
   
2,502
   
1,751
   
1,622
   
2,627
   
8,502
   
10,310
   
-4.0
%
  
-17.5
%
                                                         
Operating income (loss) before income taxes,
                                                        
interest expense, and loss on debt exchange
    
4,032
   
(2,198
)
  
(1,681
)
  
(1,509
)
  
(2,946
)
  
(8,334
)
  
(2,896
)
  
NM
    
NM
  
                                                         
Interest expense
    
3,482
   
3,969
   
4,040
   
4,100
   
3,776
   
15,885
   
12,354
   
8.4
%
  
28.6
%
                                                         
Loss on debt exchange
    
5,973
   
-
   
-
   
-
   
-
   
-
   
5,973
   
NM
    
NM
  
                                                         
Pre-tax operating loss
  
$
(5,423
)
$
(6,167
)
$
(5,721
)
$
(5,609
)
$
(6,722
)
$
(24,219
)
$
(21,223
)
  
-24.0
%
  
-14.1
%
 
 
16

PMA Capital Corporation  
Operating Cash Flows - Consolidated  
(In Thousands)  
                                
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
  
                                
Receipts:
                                            
Premiums and other revenues collected
  
$
102,749
  
$
96,675
  
$
108,706
  
$
90,858
  
$
98,661
  
$
394,900
  
$
485,073
  
Investment income received
    
18,986
   
14,814
   
14,656
   
15,942
   
16,393
   
61,805
   
88,274
 
Total receipts
    
121,735
   
111,489
   
123,362
   
106,800
   
115,054
   
456,705
   
573,347
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
34,520
   
3,812
   
14,240
   
16,593
   
20,720
   
55,365
   
122,256
 
Losses and LAE paid - prior years
    
87,203
   
112,312
   
134,182
   
86,329
   
174,212
   
507,035
   
755,306
 
Total losses and LAE paid
    
121,723
   
116,124
   
148,422
   
102,922
   
194,932
   
562,400
   
877,562
 
Insurance operating expenses paid
    
28,824
   
38,632
   
39,585
   
39,009
   
27,271
   
144,497
   
201,968
 
Policyholders' dividends paid
    
765
   
2,115
   
1,284
   
820
   
531
   
4,750
   
5,356
 
Interest on corporate debt
    
2,371
   
4,387
   
1,987
   
5,327
   
2,197
   
13,898
   
11,607
 
Total disbursements
    
153,683
   
161,258
   
191,278
   
148,078
   
224,931
   
725,545
   
1,096,493
 
                                             
Net other
    
(56,713
)
  
7,258
   
1,046
   
3,564
   
(15,349
)
  
(3,481
)
  
(80,121
)
                                             
Net operating cash flows
  
$
(88,661
)
$
(42,511
)
$
(66,870
)
$
(37,714
)
$
(125,226
)
$
(272,321
)
$
(603,267
)
 
 
17

PMA Capital Corporation  
Operating Cash Flows - PMA Insurance Group  
(In Thousands)  
                                
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
  
                                
Receipts:
                                            
Premiums and other revenues collected
  
$
112,258
  
$
93,148
  
$
100,170
  
$
91,212
  
$
97,910
  
$
382,440
  
$
463,337
  
Investment income received
    
9,851
   
9,404
   
9,682
   
10,262
   
10,606
   
39,954
   
39,540
 
Total receipts
    
122,109
   
102,552
   
109,852
   
101,474
   
108,516
   
422,394
   
502,877
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
31,304
   
3,810
   
14,233
   
16,584
   
20,720
   
55,347
   
86,446
 
Losses and LAE paid - prior years
    
31,086
   
72,999
   
69,276
   
55,520
   
43,853
   
241,648
   
226,809
 
Losses and LAE
    
62,390
   
76,809
   
83,509
   
72,104
   
64,573
   
296,995
   
313,255
 
Insurance operating expenses paid
    
30,639
   
34,238
   
36,988
   
33,988
   
23,305
   
128,519
   
158,191
 
Policyholders' dividends paid
    
765
   
2,115
   
1,284
   
820
   
531
   
4,750
   
5,356
 
Total disbursements
    
93,794
   
113,162
   
121,781
   
106,912
   
88,409
   
430,264
   
476,802
 
                                             
Net other
    
(21,974
)
  
13,760
   
2,002
   
6,012
   
(18,822
)
  
2,952
   
(30,713
)
                                             
Net operating cash flows
  
$
6,341
  
$
3,150
  
$
(9,927
)
$
574
  
$
1,285
  
$
(4,918
)
$
(4,638
)
 
 
18
 

PMA Capital Corporation  
Operating Cash Flows - Run-off Operations  
(In Thousands)  
                                
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2005
 
2005
 
2005
 
2005
 
 2005
 
2004
  
                                
Receipts:
                                            
Premiums collected
  
$
(9,509
)
$
3,527
  
$
8,536
  
$
(354
)
$
751
  
$
12,460
  
$
21,736
  
Investment income received
    
9,135
   
5,410
   
4,974
   
5,680
   
5,787
   
21,851
   
48,734
 
Total receipts
    
(374
)
  
8,937
   
13,510
   
5,326
   
6,538
   
34,311
   
70,470
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
3,216
   
2
   
7
   
9
   
-
   
18
   
35,810
 
Losses and LAE paid - prior years
    
56,117
   
39,313
   
64,906
   
30,809
   
130,359
   
265,387
   
528,497
 
Total losses and LAE paid
    
59,333
   
39,315
   
64,913
   
30,818
   
130,359
   
265,405
   
564,307
 
Insurance operating expenses paid
    
(1,815
)
  
4,394
   
2,597
   
5,021
   
3,966
   
15,978
   
43,777
 
Total disbursements
    
57,518
   
43,709
   
67,510
   
35,839
   
134,325
   
281,383
   
608,084
 
                                             
Net other
    
(34,482
)
  
(74
)
  
(4,890
)
  
(1,912
)
  
4,004
   
(2,872
)
  
(45,651
)
                                             
Net operating cash flows
  
$
(92,374
)
$
(34,846
)
$
(58,890
)
$
(32,425
)
$
(123,783
)
$
(249,944
)
$
(583,265
)
 
 
19

PMA Capital Corporation
Statutory Surplus
(In Thousands)
                       
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
   
2004
  
2005
  
2005
  
2005
  
20051
  
                       
                       
PMA Pool 2
  
$
300,034
  
$
298,686
  
$
299,219
  
$
311,802
  5 
$
315,056
  4, 5 
PMA Capital Insurance Company 3
    
224,511
   
218,322
   
215,348
   
210,663
   
204,920
 4 
 

PMA Capital Corporation  
Statutory Financial Information - PMA Pool 2  
(In Thousands)  
                                
   
4th
 
1st
 
2nd
 
3rd
 
4th
 
 Twelve
 
Twelve
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2004
 
2005
 
2005
 
2005
 
20051
 
 20051
 
2004
  
                                
Net Premiums Written:
                                            
Workers Compensation & Integrated
                                            
Disability
  
$
54,556
  
$
94,737
  
$
70,944
  
$
101,435
  
$
63,086
  
$
330,202
  
$
306,324
  
Other Commercial Lines
    
3,700
   
10,787
   
10,998
   
13,487
   
4,723
   
39,995
   
32,852
 
Total - PMA Pool
  
$
58,256
  
$
105,524
  
$
81,942
  
$
114,922
  
$
67,809
  
$
370,197
  
$
339,176
  
                                             
Statutory Ratios:
                                            
Loss and LAE ratio
    
75.2
%
  
73.3
%
  
73.0
%
  
73.3
%
  
73.0
%
  
73.1
%
  
75.3
%
Underwriting expense ratio
    
37.5
%
  
25.2
%
  
30.2
%
  
25.1
%
  
32.5
%
  
27.6
%
  
31.9
%
Policyholders' dividend ratio
    
0.4
%
  
0.9
%
  
0.8
%
  
0.8
%
  
1.1
%
  
0.9
%
  
0.7
%
Combined ratio
    
113.1
%
  
99.4
%
  
104.0
%
  
99.2
%
  
106.6
%
  
101.6
%
  
107.9
%
Operating ratio
    
104.2
%
  
91.2
%
  
95.2
%
  
91.2
%
  
98.6
%
  
93.4
%
  
100.5
%
 
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 $135.8 million and $11.4 million for the PMA Pool and PMA Capital Insurance Company, respectively.
5
Includes $10 million related to surplus notes.
 
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 2/21/2006):
                
                 
   
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