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.

Background

Prior to November 2003, two distinct revenue

segments- PMA Re and PMA Insurance Group

November 2003- PMA Re incurs material reserve

charge, resulting in a downgrade to its ratings
and also those of PMA Insurance Group (B++).
As a consequence, PMA Re is put into run-off

2004- PMACA “unstacks” PMA Insurance Group

(via stock dividend) and restructures convertible
debt, extending put date from 2006 to 2009.
Best rating for PMA Insurance Group restored to
“A-” in November 2004

PMA Insurance Group enters 2005 with rating

restored and revitalized business platform

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 of about $315 million

Also provides TPA (claims and risk control) services to

non-insurance and larger account customers

Run-off Operations:

Formerly wrote US based reinsurance and surplus lines

business

Statutory capital level of about $130 million, after payment

of dividend in May (RBC level of 350%)

Extraordinary dividend of $73.5 million received in May

2006 from Run-off operations

Highlights

New management team November 2003

2005 Focus:

Profitable, measured growth at PMA Insurance Group

Protect statutory capital at run-off operation

Position Company for 2006 and beyond

2005 Results

Statutory capital at run-off protected, which permitted

payment of $73.5 million extraordinary dividend

Franchise at PMA Insurance Group revitalized for 2006

Highlights

2006 Focus:

Profitable, measured growth at Primary Insurance

Operations, with a growth rate that will outpace

expense increases

Continue client retention and incremental expansion at

TPA, we believe there are opportunities for continued
growth for us in this space

Continue to reduce size of run-off balance sheet to

enhance possibility of further capital withdrawal

Utilize excess capital to reduce balance sheet leverage

of consolidated operation

Leadership

Management team is experienced, stable

and focused

Focus on Board governance (8 of 13

Board members are new since January
2003)

Significant financial and industry

expertise at the Board level

($ Millions, except per share)	3 Mos. 3/06	3 Mos. 3/05
Net premiums written	$113.8	$110.2
Net premiums earned	91.7	87.7
Net income (loss)	2.5	(20.6)
Diluted earnings per share	.08	(.65)

Consolidated First Quarter Results

Improved retention and increased new business at PMA

Insurance Group:

Workers’ compensation retention ratio increased from 62%

QTD March 2005 to 83% QTD March 2006

New business increased to $30 million in quarter ended

March 31, 2006, up 25% from first quarter 2005

No adjustment required to carried reserves in 1Q 2006

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 à Consistent operating returns

The PMA Insurance Group - Workers’ Compensation

Estimated Undiscounted Accident Year Net Loss and LAE
Ratio (Measured at December 2005- 2003 adjusted for
retro premium)

Restore competitive advantage

in workers’ compensation line

Long-term strategy of Insurance Group is to write workers

compensation business at a combined ratio of 100% through
underwriting cycle

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 18% 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 for workers’ compensation have

been keeping pace with overall loss trends

Diversification among classes of business

Loss containment ranges in loss sensitive

business (about 45% of 2005 business) reduce
risk to Company

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	3 Mos. 3/06	3 Mos. 3/05
Net premiums written	$113.4	$105.5
Net premiums earned	91.2	84.7
Pre-tax operating income	8.1	6.6

First Quarter Results

New business written $30.0 million, up 25%

from first quarter 2005

Retention ratio of 83%, up 21 points from first

quarter 2005

TPA Operations

Third–Party Administrator (TPA) producing fee based revenues

2005 fee revenues of $23.8 million, including managed care

Broad service capabilities:

Claims administration/TPA

Managed care

Disability management

Risk control

Solid portfolio of loss and LAE reduction tools that are shared with Insurance

Operations

Three year client retention of over 90%

CAGR in Revenues of 17% since 2000

$millions	3/31/06	12/31/05

Shareholders' Equity ( Including SFAS #115)	$399.6	$406.2

Shareholders' Equity ( Excluding SFAS #115)	$413.5	$409.0

Debt*	$189.2	$196.2

Debt to Capital ( Including SFAS #115)	32.1%	32.6%

* From 1/1 to 3/31, $5.4 million par of debt,

($6 million in value) retired through open market

purchases.

Capitalization

$millions		3/31/06

Convertible Debt
Par, Matures 2022¹		$ 68.0
Derivative Element		11.0

Monthly Notes, Matures 2018		57.5
Other		0.7
Trust Preferred and Surplus Notes, Mature 2033-35		53.8
Unamortized discount		(1.8)
Total		$189.2

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

$millions	Mar 2006	Dec 2005
Statutory Capital*	$203.3	$204.9
Unassigned Surplus	$9.7	$11.4

* Reduced by $73.5 million extraordinary

dividend paid May 2006

Statutory 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 March 31, 2006)

Protection to surplus in this event would be

$70 million

$30 million of protection used in first quarter

2005, no net reserve adjustments since first
quarter 2005

2006 Plan

Focus points:

Continued execution of run-off plan

Work with cedants to expedite commutations

Continued staff reductions, commensurate

with reduced claims volume

Return capital to parent as soon as

permissible ($73.5 million extraordinary
dividend paid in May 2006)

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:

12/31/05: 38 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	3 Mos. 3/06	3 Mos. 3/05
Net premiums written	$0.6	$4.9
Net premiums earned	0.6	3.2
Pre-tax operating income (loss)	0.2	(29.6)

Run-off Operations

First Quarter GAAP Results

First quarter 2005 adverse development in two

lines of business: construction defects and
pro-rata professional liability

Statutory capital substantially protected by

reinsurance cover

Total = $1,080 million

(excludes cash and gross up for securities lending)

March 31, 2006

Asset Type

Conservative

investment posture

No derivatives

No equity exposure

Pre-tax net

unrealized loss of

$21 million at March

31, 2006

Outside professional managers

High-Quality, Liquid

Investment Portfolio

Total = $1,017 million

(excludes short-term investments and

gross up for securities lending)

March 31, 2006

Asset Quality

99% Investment

Grade bonds

AA+ average credit

quality

75% AAA Rated or

Government bonds

Duration - 3.9 years

(3.7 yrs including
cash & short-term)

Current portfolio

yield 4.7%

High-Quality, Liquid

Investment Portfolio

# Table shows pro forma impact of receipt

of $73.5 million dividend distributed May 2006

from Run-off Operations

$0.00

$2.28

($2.28)#

$0.00

Pro Forma dividend impact

$12.39

($3.48)

$4.36

$11.51

Pro Forma for Dividend

$12.39

($5.76)

$6.64

$11.51

Pre-dividend book value

Consolidated

Corporate

and Other

Run-Off

Operations

PMA

Insurance
Group

PMA Capital Book Value

Summary

Execution of a three-pronged plan:

Maintain and prudently grow workers’ compensation

operation

Continued opportunistic growth of TPA business

Reduce run-off exposures and redeploy capital currently

invested in run-off operations

3/31/2006 Book value $12.39 per share, compared to a

current stock price (April 30) of $9.78

Expecting profitable growth in workers’ compensation in

2006

Execution of three-pronged plan should enhance our

ability to deliver reasonable returns