EX-99.2 3 ex99-2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
 

PMA Capital Corporation
Statistical Supplement
Second Quarter - 2006
                   
Table of Contents
             
Page
Consolidated Highlights:
      
Selected Financial Data - Second Quarter
    
Selected Financial Data - Year-to-date
    
Consolidated Statements of Operations - Per Share Data
    
Consolidated Statements of Operations - Second Quarter
    
Consolidated Statements of Operations - Year-to-date
    
Consolidated Balance Sheets
    
Invested Assets and Net Investment Income; Debt
    
                   
Segment Information:
      
Statements of Operations - Consolidating - Year-to-date
-
Statements of Operations - Consolidating - Second Quarter
-
Statements of Operations - PMA Insurance Group
    
Insurance Ratios - PMA Insurance Group
    
Statements of Operations - Run-off Operations
    
Statements of Operations - Corporate & Other
    
 
                  
Operating Cash Flow Information:
      
Operating Cash Flows - Consolidated
    
Operating Cash Flows - PMA Insurance Group
    
Operating Cash Flows - Run-off Operations
    
                   
Statutory Financial Information:
      
Statutory Surplus; Statutory Financial Information - PMA Pool
    
                   
Other Information:
      
Industry Ratings and Market Information
    
                   
Legend:
      
NM - Not Meaningful
      
                   
 
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).
 
 
Selected Financial Data  
  
(Dollar Amounts in Thousands, Except Per Share Data)  
  
                            
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 2nd
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 Quarter
  
                            
Net Premiums Written by Segment:
                                      
PMA Insurance Group
  
$
82,103
  
$
116,877
  
$
71,339
  
$
113,390
  
$
85,639
    
4.3
%
Run-off Operations
   
1,504
   
789
   
3,028
   
606
   
527
   
-65.0
%
Corporate & Other
    
(220
)
  
(195
)
  
(209
)
  
(168
)
  
(213
)
  
3.2
%
Net premiums written
  
$
83,387
  
$
117,471
  
$
74,158
  
$
113,828
  
$
85,953
    
3.1
%
                                       
Major Components of Net Income (Loss):
                                     
Pre-tax operating income (loss) by segment:
                                      
PMA Insurance Group
  
$
4,941
  
$
6,600
  
$
3,867
  
$
8,141
  
$
6,671
    
35.0
%
Run-off Operations 
    
1,133
   
(258
)
  
1,838
   
161
   
428
   
-62.2
%
Corporate & Other
    
(5,721
)
  
(5,609
)
  
(6,722
)
  
(6,139
)
  
(6,128
)
  
-7.1
%
Pre-tax operating income (loss)
    
353
   
733
   
(1,017
)
  
2,163
   
971
   
NM
  
Net realized investment gains (losses)
    
(265
)
  
483
   
(1,084
)
  
1,818
   
(1,978
)
  
NM
  
Pre-tax income (loss)
    
88
   
1,216
   
(2,101
)
  
3,981
   
(1,007
)
  
NM
  
Income tax expense (benefit)
    
71
   
476
   
(875
)
  
1,500
   
(245
)
  
NM
  
Net income (loss)
  
$
17
  
$
740
  
$
(1,226
)
$
2,481
  
$
(762
)
  
NM
  
After-tax operating income (loss)
  
$
189
  
$
426
  
$
(521
)
$
1,299
  
$
524
    
NM
  
                                       
Diluted Earnings (Loss) Per Share:
                                      
Net income (loss)
  
$
-
  
$
0.02
  
$
(0.04
)
$
0.08
  
$
(0.02
)
  
NM
  
Less the impact of:
                                      
Realized gains (losses) after tax
    
(0.01
)
  
0.01
   
(0.02
)
  
0.04
   
(0.04
)
  
NM
  
After-tax operating income (loss)
  
$
0.01
  
$
0.01
  
$
(0.02
)
$
0.04
  
$
0.02
    
100.0
%
                                       
Capitalization:
                                      
Debt
  
$
208,586
  
$
216,808
  
$
196,181
  
$
189,181
  
$
148,303
    
-28.9
%
Shareholders' equity excluding FAS 115 unrealized gain (loss)
    
412,330
   
413,513
   
409,019
   
413,516
   
417,064
   
1.1
%
Total capitalization excluding FAS 115 unrealized gain (loss)
    
620,916
   
630,321
   
605,200
   
602,697
   
565,367
   
-8.9
%
FAS 115 unrealized gain (loss)
    
17,266
   
1,151
   
(2,796
)
  
(13,941
)
  
(18,733
)
  
NM
  
Total capitalization including FAS 115 unrealized gain (loss)
  
$
638,182
  
$
631,472
  
$
602,404
  
$
588,756
  
$
546,634
    
-14.3
%
                                       
Book Value Per Share:
                                      
Excluding FAS 115 unrealized gain (loss)
  
$
12.93
  
$
12.94
  
$
12.79
  
$
12.83
  
$
12.79
    
-1.1
%
Including FAS 115 unrealized gain (loss)
  
$
13.47
  
$
12.98
  
$
12.70
  
$
12.39
  
$
12.21
    
-9.4
%
                                       
Debt to Total Capital:
                                      
Excluding FAS 115 unrealized gain (loss)
    
33.6
%
  
34.4
%
  
32.4
%
  
31.4
%
  
26.2
%
  
-22.0
%
Including FAS 115 unrealized gain (loss)
    
32.7
%
  
34.3
%
  
32.6
%
  
32.1
%
  
27.1
%
  
-17.1
%
                                       
Interest Coverage:
                                      
Income before interest and income taxes
                                      
to interest expense
    
1.02
   
1.30
   
0.47
   
2.03
   
0.73
   
-28.4
%
                                       
Operating income before interest and income taxes
                                      
to interest expense
    
1.09
   
1.18
   
0.75
   
1.56
   
1.26
   
15.6
%
 
1

 
Selected Financial Data  
  
(Dollar Amounts in Thousands, Except Per Share Data)  
  
                
   
Six
 
Six
 
 % Change
 
   
Months
 
Months
 
 Six
 
   
2006
  
2005
  
 Months
  
                
Net Premiums Written by Segment:
                    
PMA Insurance Group
  
$
199,029
  
$
187,577
    
6.1
%
Run-off Operations
   
1,133
   
6,433
   
-82.4
%
Corporate & Other
    
(381
)
  
(414
)
  
8.0
%
Net premiums written
  
$
199,781
  
$
193,596
    
3.2
%
                     
Major Components of Net Income (Loss):
                    
Pre-tax operating income (loss) by segment:
                    
PMA Insurance Group
  
$
14,812
  
$
11,553
    
28.2
%
Run-off Operations
   
589
   
(28,513
)
  
NM
  
Corporate & Other
    
(12,267
)
  
(11,888
)
  
-3.2
%
Pre-tax operating income (loss)
    
3,134
   
(28,848
)
  
NM
  
Net realized investment gains (losses)
    
(160
)
  
2,718
   
NM
  
Pre-tax income (loss)
    
2,974
   
(26,130
)
  
NM
  
Income tax expense (benefit)
    
1,255
   
(5,596
)
  
NM
  
Net income (loss)
  
$
1,719
  
$
(20,534
)
  
NM
  
After-tax operating income (loss)
  
$
1,823
  
$
(22,301
)
  
NM
  
                     
Diluted Earnings (Loss) Per Share:
                    
Net income (loss)
  
$
0.05
  
$
(0.65
)
  
NM
  
Less the impact of:
                    
Realized gains (losses) after tax
   
(0.01
)
  
0.06
   
NM
  
After-tax operating income (loss)
  
$
0.06
  
$
(0.71
)
  
NM
  
 
2

 
Consolidated Statements of Operations - Per Share Data  
  
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
  
                                
Diluted Earnings (Loss) Per Share:
                                            
                                             
Net income (loss)
  
$
-
  
$
0.02
  
$
(0.04
)
$
0.08
  
$
(0.02
)
$
0.05
  
$
(0.65
)
                                             
Pre-tax operating income (loss)
  
$
0.01
  
$
0.02
  
$
(0.03
)
$
0.07
  
$
0.03
  
$
0.10
  
$
(0.91
)
                                             
After-tax operating income (loss)
  
$
0.01
  
$
0.01
  
$
(0.02
)
$
0.04
  
$
0.02
  
$
0.06
  
$
(0.71
)
                                             
Diluted weighted average common
                                            
shares outstanding
    
32,015,127
   
32,244,295
   
31,833,384
   
32,405,934
   
32,132,618
   
32,540,905
   
31,559,468
 
                                             
                                             
Dividends declared:
                                            
Class A Common stock
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
                                             
Actual common shares issued
                                            
and outstanding
    
31,885,541
   
31,956,983
   
31,983,283
   
32,239,288
   
32,613,234
   
32,613,234
   
31,885,541
 
                                             
                                             
Class A Common Stock prices:
                                            
High
  
$
9.00
  
$
9.50
  
$
9.73
  
$
10.43
  
$
10.49
  
$
10.49
  
$
10.65
  
Low
  
$
5.91
  
$
7.83
  
$
7.99
  
$
8.68
  
$
9.24
  
$
8.68
  
$
5.91
  
Close
  
$
8.83
  
$
8.78
  
$
9.13
  
$
10.18
  
$
10.30
  
$
10.30
  
$
8.83
  
 
3


 
 
4

 
Consolidated Statements of Operations  
  
(In Thousands)  
  
                            
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 % Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 2nd
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 Quarter
  
                            
Gross Premiums Written
  
$
95,069
  
$
130,106
  
$
87,240
  
$
133,967
  
$
100,075
    
5.3
%
                                       
Net Premiums Written
  
$
83,387
  
$
117,471
  
$
74,158
  
$
113,828
  
$
85,953
    
3.1
%
                                       
Revenues:
                                      
Net premiums earned
  
$
88,720
  
$
92,223
  
$
99,364
  
$
91,659
  
$
94,922
    
7.0
%
Net investment income
    
12,542
   
12,648
   
11,761
   
11,400
   
11,058
   
-11.8
%
Net realized investment gains (losses)
    
(265
)
  
483
   
(1,084
)
  
1,818
   
(1,978
)
  
NM
  
Other revenues
    
4,939
   
6,209
   
6,946
   
7,104
   
7,286
   
47.5
%
Total revenues
    
105,936
   
111,563
   
116,987
   
111,981
   
111,288
   
5.1
%
                                       
Expenses:
                                      
Losses and loss adjustment expenses
    
63,261
   
68,112
   
69,713
   
65,393
   
66,379
   
4.9
%
Acquisition expenses
    
17,983
   
19,691
   
19,536
   
17,325
   
19,552
   
8.7
%
Operating expenses
    
18,802
   
17,872
   
23,499
   
19,987
   
21,580
   
14.8
%
Dividends to policyholders
    
1,762
   
567
   
2,343
   
1,422
   
1,011
   
-42.6
%
Interest expense
    
4,040
   
4,105
   
3,997
   
3,873
   
3,773
   
-6.6
%
Total losses and expenses
    
105,848
   
110,347
   
119,088
   
108,000
   
112,295
   
6.1
%
                                       
Pre-tax income (loss)
    
88
   
1,216
   
(2,101
)
  
3,981
   
(1,007
)
  
NM
  
                                       
Income tax expense (benefit):
                                      
Current
    
-
   
-
   
-
   
-
   
-
   
NM
  
Deferred
    
71
   
476
   
(875
)
  
1,500
   
(245
)
  
NM
  
                                       
Total income tax expense (benefit)
    
71
   
476
   
(875
)
  
1,500
   
(245
)
  
NM
  
                                       
Net income (loss)
  
$
17
  
$
740
  
$
(1,226
)
$
2,481
  
$
(762
)
  
NM
  
                                       
Pre-tax operating income (loss)
  
$
353
  
$
733
  
$
(1,017
)
$
2,163
  
$
971
    
NM
  
                                       
After-tax operating income (loss)
  
$
189
  
$
426
  
$
(521
)
$
1,299
  
$
524
    
NM
  
 
5

 
Consolidated Statements of Operations  
  
(In Thousands)  
  
                
   
Six
  
Six
  
 % Change
  
   
Months
  
Months
  
 Six
 
   
2006
  
2005
  
 Months
  
                
Gross Premiums Written
  
$
234,042
  
$
216,382
    
8.2
%
                     
Net Premiums Written
  
$
199,781
  
$
193,596
    
3.2
%
                     
Revenues:
                    
Net premiums earned
  
$
186,581
  
$
176,443
    
5.7
%
Net investment income
    
22,458
   
24,254
   
-7.4
%
Net realized investment gains (losses)
    
(160
)
  
2,718
   
NM
  
Other revenues
    
14,390
   
11,131
   
29.3
%
Total revenues
    
223,269
   
214,546
   
4.1
%
                     
Expenses:
                    
Losses and loss adjustment expenses
    
131,772
   
157,249
   
-16.2
%
Acquisition expenses
    
36,877
   
36,654
   
0.6
%
Operating expenses
    
41,567
   
36,500
   
13.9
%
Dividends to policyholders
    
2,433
   
2,264
   
7.5
%
Interest expense
    
7,646
   
8,009
   
-4.5
%
Total losses and expenses
    
220,295
   
240,676
   
-8.5
%
                     
Pre-tax income (loss)
    
2,974
   
(26,130
)
  
NM
  
                     
Income tax expense (benefit):
                    
Current
    
-
   
-
   
NM
  
Deferred
    
1,255
   
(5,596
)
  
NM
  
                     
Total income tax expense (benefit)
    
1,255
   
(5,596
)
  
NM
  
                     
Net income (loss)
  
$
1,719
  
$
(20,534
)
  
NM
  
                     
Pre-tax operating income (loss)
  
$
3,134
  
$
(28,848
)
  
NM
  
                     
After-tax operating income (loss)
  
$
1,823
  
$
(22,301
)
  
NM
  
 
6

 
Consolidated Balance Sheets
  
(In Thousands)
  
                       
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
   
2005
  
2005
  
2005
  
2006
  
2006
  
                       
Assets:
                                
Investments in fixed maturities available for sale
  
$
1,256,169
  
$
1,184,301
  
$
1,049,254
  
$
994,972
  
$
913,376
  
Short-term investments
    
61,058
   
67,636
   
57,997
   
63,641
   
70,994
 
Short-term investments, loaned securities collateral
    
90,114
   
63,751
   
-
   
9,991
   
4,771
 
Total investments
    
1,407,341
   
1,315,688
   
1,107,251
   
1,068,604
   
989,141
 
                                 
Cash
    
30,464
   
43,282
   
30,239
   
13,667
   
26,004
 
Accrued investment income
    
14,147
   
13,703
   
11,528
   
11,395
   
9,312
 
Premiums receivable
    
183,713
   
212,847
   
197,582
   
209,354
   
205,825
 
Reinsurance receivables
    
1,129,857
   
1,115,953
   
1,094,674
   
1,086,830
   
1,071,332
 
Deferred income taxes
    
90,301
   
98,568
   
103,656
   
107,908
   
110,452
 
Deferred acquisition costs
    
34,655
   
39,432
   
34,236
   
39,308
   
37,336
 
Funds held by reinsureds
    
150,078
   
153,064
   
146,374
   
148,512
   
151,873
 
Other assets
    
169,028
   
167,192
   
162,505
   
179,061
   
171,713
 
Total assets
  
$
3,209,584
  
$
3,159,729
  
$
2,888,045
  
$
2,864,639
  
$
2,772,988
  
                                 
Liabilities:
                                
Unpaid losses and loss adjustment expenses
  
$
2,005,386
  
$
1,966,907
  
$
1,820,043
  
$
1,776,822
  
$
1,727,369
  
Unearned premiums
    
175,025
   
199,153
   
173,432
   
199,129
   
189,140
 
Debt
    
208,586
   
216,808
   
196,181
   
189,181
   
148,303
 
Accounts payable, accrued expenses
                                
and other liabilities
    
191,309
   
198,441
   
209,654
   
205,114
   
220,350
 
Funds held under reinsurance treaties
    
105,572
   
96,067
   
78,058
   
79,815
   
79,966
 
Dividends to policyholders
    
3,992
   
3,931
   
4,452
   
4,998
   
4,725
 
Payable under securities loan agreements
    
90,118
   
63,758
   
2
   
10,005
   
4,804
 
Total liabilities
    
2,779,988
   
2,745,065
   
2,481,822
   
2,465,064
   
2,374,657
 
                                 
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
   
110,042
   
110,552
 
Retained earnings
    
188,532
   
188,409
   
187,265
   
185,393
   
180,626
 
Accumulated other comprehensive income (loss)
    
1,377
   
(14,861
)
  
(22,684
)
  
(33,358
)
  
(37,630
)
Treasury stock, at cost
    
(40,734
)
  
(39,305
)
  
(38,779
)
  
(33,592
)
  
(26,307
)
Total shareholders' equity
    
429,596
   
414,664
   
406,223
   
399,575
   
398,331
 
Total liabilities and shareholders' equity
  
$
3,209,584
  
$
3,159,729
  
$
2,888,045
  
$
2,864,639
  
$
2,772,988
  
 
7

 
Invested Assets and Net Investment Income  
  
(Dollars in Thousands)  
  
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
   
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
   
2005
  
2005
  
2005
  
2006
  
2006
  
 2006
  
2005
  
                                
Total Investments & Cash
                                            
As reported
  
$
1,437,805
  
$
1,358,970
  
$
1,137,490
  
$
1,082,271
  
$
1,015,145
  
$
1,015,145
  
$
1,437,805
  
Less:
                                            
Securities lending activity
    
90,118
   
63,758
   
2
   
10,005
   
4,804
   
4,804
   
90,118
 
Unrealized gain (loss)
    
26,563
   
1,771
   
(4,302
)
  
(21,448
)
  
(28,820
)
  
(28,820
)
  
26,563
 
Total adjusted investments & cash
  
$
1,321,124
  
$
1,293,441
  
$
1,141,790
  
$
1,093,714
  
$
1,039,161
  
$
1,039,161
  
$
1,321,124
  
                                             
Net Investment Income
                                            
As reported
  
$
12,542
  
$
12,648
  
$
11,761
  
$
11,400
  
$
11,058
  
$
22,458
  
$
24,254
  
Funds held:
                                            
Assumed
   
129
   
535
   
545
   
335
   
537
   
872
   
316
 
Ceded
   
(1,871
)
  
(1,694
)
  
(1,897
)
  
(1,519
)
  
(1,643
)
  
(3,162
)
  
(4,308
)
Total funds held
    
(1,742
)
  
(1,159
)
  
(1,352
)
  
(1,184
)
  
(1,106
)
  
(2,290
)
  
(3,992
)
                                             
Total adjusted investment income
  
$
14,284
  
$
13,807
  
$
13,113
  
$
12,584
  
$
12,164
  
$
24,748
  
$
28,246
  
                                             
Yield
                                            
As reported
    
3.42
%
  
3.62
%
  
3.77
%
  
4.11
%
  
4.22
%
  
4.17
%
  
3.31
%
Investment portfolio
    
4.21
%
  
4.22
%
  
4.31
%
  
4.50
%
  
4.56
%
  
4.53
%
  
4.08
%
                                             
Duration (in years)
    
3.9
   
3.7
   
3.7
   
3.7
   
3.5
   
3.5
   
3.9
 

PMA Capital Corporation
  
Debt
  
(Dollars in Thousands)
  
               
               
       Amount      
       Outstanding  
Maturity
  
 
6.50% convertible debt 
  
$
32,165
 
20221
  
 
Derivative component of 6.50% convertible debt
    
4,953
     
 
4.25% convertible debt 
    
655
 
20222
  
 
8.50% senior notes
    
57,500
 
2018
  
 
Junior subordinated debt 3
    
43,816
 
2033
  
 
Surplus notes 4
    
10,000
 
2035
  
 
Unamortized debt discount
    
(786
 )     
 
Total long-term debt
  
$
148,303
     
               
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 $29.7 million principal amount and $15.891 per share for $2.5 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 junior subordinated debt is 9.39% as of June 30, 2006.
4
Interest rate on surplus notes is 9.63% as of June 30, 2006.
 
8

 
Statements of Operations - Consolidating
  
Six Months Ended June 30, 2006
  
(In Thousands)
  
                   
   
PMA
             
   
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
  
$
233,065
  
$
(381
)
$
1,358
  
$
234,042
  
                           
Net Premiums Written
  
$
199,029
  
$
(381
)
$
1,133
  
$
199,781
  
                           
Revenues:
                          
Net premiums earned
  
$
186,024
  
$
(381
)
$
938
  
$
186,581
  
Net investment income
    
17,312
   
(463
)
  
5,609
   
22,458
 
Other revenues
    
14,239
   
151
   
-
   
14,390
 
Operating revenues
    
217,575
   
(693
)
  
6,547
   
223,429
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
132,201
   
-
   
(429
)
  
131,772
 
Acquisition expenses
    
37,142
   
-
   
(265
)
  
36,877
 
Operating expenses
    
30,518
   
4,397
   
6,652
   
41,567
 
Dividends to policyholders
    
2,433
   
-
   
-
   
2,433
 
Total losses and expenses
    
202,294
   
4,397
   
5,958
   
212,649
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
15,281
   
(5,090
)
  
589
   
10,780
 
                           
Interest expense
    
469
   
7,177
   
-
   
7,646
 
                           
Pre-tax operating income (loss)
  
$
14,812
  
$
(12,267
)
$
589
    
3,134
 
                           
Net realized investment losses
                      
(160
)
                           
Pre-tax income
                    
$
2,974
  
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
9

 
Statements of Operations - Consolidating
  
Six Months Ended June 30, 2005
  
(In Thousands)
  
                   
   
PMA
             
   
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
 
                   
Gross Premiums Written
  
$
209,952
  
$
(414
)
$
6,844
  
$
216,382
  
                           
Net Premiums Written
  
$
187,577
  
$
(414
)
$
6,433
  
$
193,596
  
                           
Revenues:
                          
Net premiums earned
  
$
170,241
  
$
(414
)
$
6,616
  
$
176,443
  
Net investment income
    
15,257
   
528
   
8,469
   
24,254
 
Other revenues
    
10,871
   
260
   
-
   
11,131
 
Operating revenues
    
196,369
   
374
   
15,085
   
211,828
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
123,549
   
-
   
33,700
   
157,249
 
Acquisition expenses
    
34,021
   
-
   
2,633
   
36,654
 
Operating expenses
    
24,982
   
4,253
   
7,265
   
36,500
 
Dividends to policyholders
    
2,264
   
-
   
-
   
2,264
 
Total losses and expenses
    
184,816
   
4,253
   
43,598
   
232,667
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
11,553
   
(3,879
)
  
(28,513
)
  
(20,839
)
                           
Interest expense
    
-
   
8,009
   
-
   
8,009
 
                           
Pre-tax operating income (loss)
  
$
11,553
  
$
(11,888
)
$
(28,513
)
  
(28,848
)
                           
Net realized investment gains
                      
2,718
 
                           
Pre-tax loss
                    
$
(26,130
)
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
10

 
Statements of Operations - Consolidating
  
Three Months Ended June 30, 2006
  
(In Thousands)
  
                   
   
PMA
             
   
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
  
                   
Gross Premiums Written
  
$
99,328
  
$
(213
)
$
960
  
$
100,075
  
                           
Net Premiums Written
  
$
85,639
  
$
(213
)
$
527
  
$
85,953
  
                           
Revenues:
                          
Net premiums earned
  
$
94,803
  
$
(213
)
$
332
  
$
94,922
  
Net investment income
    
8,753
   
(103
)
  
2,408
   
11,058
 
Other revenues
    
7,165
   
121
   
-
   
7,286
 
Operating revenues
    
110,721
   
(195
)
  
2,740
   
113,266
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
67,682
   
-
   
(1,303
)
  
66,379
 
Acquisition expenses
    
18,923
   
-
   
629
   
19,552
 
Operating expenses
    
16,193
   
2,401
   
2,986
   
21,580
 
Dividends to policyholders
    
1,011
   
-
   
-
   
1,011
 
Total losses and expenses
    
103,809
   
2,401
   
2,312
   
108,522
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
6,912
   
(2,596
)
  
428
   
4,744
 
                           
Interest expense
    
241
   
3,532
   
-
   
3,773
 
                           
Pre-tax operating income (loss)
  
$
6,671
  
$
(6,128
)
$
428
    
971
 
                           
Net realized investment losses
                      
(1,978
)
                           
Pre-tax loss
                    
$
(1,007
)
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
11

 
Statements of Operations - Consolidating
  
Three Months Ended June 30, 2005
  
(In Thousands)
  
                   
   
PMA
             
   
Insurance
 
Corporate
 
Run-off
 
 
 
 
 
Group
 
& Other1
 
Operations
 
Consolidated
  
                   
Gross Premiums Written
  
$
93,680
  
$
(220
)
$
1,609
  
$
95,069
  
                           
Net Premiums Written
  
$
82,103
  
$
(220
)
$
1,504
  
$
83,387
  
                           
Revenues:
                          
Net premiums earned
  
$
85,541
  
$
(220
)
$
3,399
  
$
88,720
  
Net investment income
    
7,716
   
257
   
4,569
   
12,542
 
Other revenues
    
4,906
   
33
   
-
   
4,939
 
Operating revenues
    
98,163
   
70
   
7,968
   
106,201
 
                           
Losses and Expenses:
                          
Losses and loss adjustment expenses
    
61,331
   
-
   
1,930
   
63,261
 
Acquisition expenses
    
17,254
   
-
   
729
   
17,983
 
Operating expenses
    
12,875
   
1,751
   
4,176
   
18,802
 
Dividends to policyholders
    
1,762
   
-
   
-
   
1,762
 
Total losses and expenses
    
93,222
   
1,751
   
6,835
   
101,808
 
                           
Operating income (loss) before income taxes
                          
and interest expense
    
4,941
   
(1,681
)
  
1,133
   
4,393
 
                           
Interest expense
    
-
   
4,040
   
-
   
4,040
 
                           
Pre-tax operating income (loss)
  
$
4,941
  
$
(5,721
)
$
1,133
    
353
 
                           
Net realized investment losses
                      
(265
)
                           
Pre-tax income
                    
$
88
  
 
1
Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.
 
12

 
Statements of Operations - PMA Insurance Group    
  
(Dollar Amounts in Thousands)    
  
                                         
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 2nd
 
Six
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
  
$
93,680
  
$
129,163
  
$
82,490
  
$
133,737
  
$
99,328
  
$
233,065
  
$
209,952
    
6.0
%
  
11.0
%
                                                         
Net Premiums Written
  
$
82,103
  
$
116,877
  
$
71,339
  
$
113,390
  
$
85,639
  
$
199,029
  
$
187,577
    
4.3
%
  
6.1
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
85,541
  
$
92,214
  
$
96,187
  
$
91,221
  
$
94,803
  
$
186,024
  
$
170,241
    
10.8
%
  
9.3
%
Net investment income
    
7,716
   
8,160
   
8,328
   
8,559
   
8,753
   
17,312
   
15,257
   
13.4
%
  
13.5
%
Other revenues
    
4,906
   
6,172
   
6,837
   
7,074
   
7,165
   
14,239
   
10,871
   
46.0
%
  
31.0
%
Total revenues
    
98,163
   
106,546
   
111,352
   
106,854
   
110,721
   
217,575
   
196,369
   
12.8
%
  
10.8
%
                                                         
Losses and Expenses:
                                                        
Losses and loss adjustment expenses
    
61,331
   
67,995
   
68,732
   
64,519
   
67,682
   
132,201
   
123,549
   
10.4
%
  
7.0
%
Acquisition expenses
    
17,254
   
18,279
   
18,998
   
18,219
   
18,923
   
37,142
   
34,021
   
9.7
%
  
9.2
%
Operating expenses
    
12,875
   
13,100
   
17,191
   
14,325
   
16,193
   
30,518
   
24,982
   
25.8
%
  
22.2
%
Dividends to policyholders
    
1,762
   
567
   
2,343
   
1,422
   
1,011
   
2,433
   
2,264
   
-42.6
%
  
7.5
%
Total losses and expenses
    
93,222
   
99,941
   
107,264
   
98,485
   
103,809
   
202,294
   
184,816
   
11.4
%
  
9.5
%
                                                         
Operating income before income taxes
                                                        
and interest expense
    
4,941
   
6,605
   
4,088
   
8,369
   
6,912
   
15,281
   
11,553
   
39.9
%
  
32.3
%
                                                         
Interest expense
    
-
   
5
   
221
   
228
   
241
   
469
   
-
   
NM
    
NM
  
                                                         
Pre-tax operating income
 
$
4,941
  
$
6,600
  
$
3,867
  
$
8,141
  
$
6,671
  
$
14,812
  
$
11,553
    
35.0
%
  
28.2
%
                                                         
 
13

 
Insurance Ratios - PMA Insurance Group    
  
                                         
 
 
2nd
Quarter
2005
 
3rd
Quarter
2005
 
4th
Quarter
2005
 
1st
Quarter
2006
 
2nd
Quarter
2006
 
 Six
Months
2006
 
Six
Months
2005
 
 Point Chg.
2nd Quarter
Better (Worse)
 
Point Chg.
Six Months
Better (Worse)
  
                                         
Ratios - GAAP Basis:
                                                        
                                                         
                                                         
Loss and LAE ratio
    
71.7
%
  
73.7
%
  
71.5
%
  
70.7
%
  
71.4
%
  
71.1
%
  
72.6
%
  
0.3
   
1.5
 
                                                         
Expense ratio:
                                                        
Acquisition expenses
    
20.2
%
  
19.8
%
  
19.8
%
  
20.0
%
  
20.0
%
  
20.0
%
  
20.0
%
  
0.2
   
-
 
Operating expenses 1
    
10.3
%
  
9.2
%
  
12.5
%
  
9.8
%
  
10.4
%
  
10.1
%
  
9.9
%
  
(0.1
)
  
(0.2
)
Total expense ratio
    
30.5
%
  
29.0
%
  
32.3
%
  
29.8
%
  
30.4
%
  
30.1
%
  
29.9
%
  
0.1
   
(0.2
)
                                                         
Policyholders' dividend ratio
    
2.1
%
  
0.6
%
  
2.4
%
  
1.6
%
  
1.1
%
  
1.3
%
  
1.3
%
  
1.0
   
-
 
Combined ratio
    
104.3
%
  
103.3
%
  
106.2
%
  
102.1
%
  
102.9
%
  
102.5
%
  
103.8
%
  
1.4
   
1.3
 
                                                         
Net investment income ratio
    
-9.0
%
  
-8.8
%
  
-8.7
%
  
-9.4
%
  
-9.2
%
  
-9.3
%
  
-9.0
%
  
0.2
   
0.3
 
Operating ratio
    
95.3
%
  
94.5
%
  
97.5
%
  
92.7
%
  
93.7
%
  
93.2
%
  
94.8
%
  
1.6
   
1.6
 
                                                         
 
1
 The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $8.9 million, $8.4 million, $12.1 million, $8.9 million and $10.0 million for the second, third and fourth quarters of 2005 and the first and second quarters of 2006, respectively.
 
                                          
 
14

 
Statements of Operations - Run-off Operations    
  
(Dollar Amounts in Thousands)    
  
                                         
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 2nd
 
Six
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
 
 Quarter
 
Months
  
                                         
Gross Premiums Written
 
$
1,609
  
$
1,138
  
$
4,959
  
$
398
  
$
960
  
$
1,358
  
$
6,844
    
-40.3
%
  
-80.2
%
                                                         
Net Premiums Written
 
$
1,504
  
$
789
  
$
3,028
  
$
606
  
$
527
  
$
1,133
  
$
6,433
    
-65.0
%
  
-82.4
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
3,399
  
$
204
  
$
3,386
  
$
606
  
$
332
  
$
938
  
$
6,616
    
-90.2
%
  
-85.8
%
Net investment income
    
4,569
   
4,217
   
3,652
   
3,201
   
2,408
   
5,609
   
8,469
   
-47.3
%
  
-33.8
%
Total revenues
    
7,968
   
4,421
   
7,038
   
3,807
   
2,740
   
6,547
   
15,085
   
-65.6
%
  
-56.6
%
                                                         
Losses and Expenses:
                                                        
Losses and loss adjustment expenses
    
1,930
   
117
   
981
   
874
   
(1,303
)
  
(429
)
  
33,700
   
NM
    
NM
  
Acquisition expenses
    
729
   
1,412
   
538
   
(894
)
  
629
   
(265
)
  
2,633
   
-13.7
%
  
NM
  
Operating expenses
    
4,176
   
3,150
   
3,681
   
3,666
   
2,986
   
6,652
   
7,265
   
-28.5
%
  
-8.4
%
Total losses and expenses
    
6,835
   
4,679
   
5,200
   
3,646
   
2,312
   
5,958
   
43,598
   
-66.2
%
  
-86.3
%
                                                         
Pre-tax operating income (loss)
  
$
1,133
  
$
(258
)
$
1,838
  
$
161
  
$
428
  
$
589
  
$
(28,513
)
  
-62.2
%
  
NM
  
 
 
15

 
Statements of Operations - Corporate & Other    
  
(Dollar Amounts in Thousands)    
  
                                         
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 % Change
 
% Change
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 2nd
 
Six
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
 
 Quarter
  
Months
  
                                         
Gross Premiums Written
 
$
(220
)
$
(195
)
$
(209
)
$
(168
)
$
(213
)
$
(381
)
$
(414
)
  
3.2
%
  
8.0
%
                                                         
Net Premiums Written
 
$
(220
)
$
(195
)
$
(209
)
$
(168
)
$
(213
)
$
(381
)
$
(414
)
  
3.2
%
  
8.0
%
                                                         
Revenues:
                                                        
Net premiums earned
  
$
(220
)
$
(195
)
$
(209
)
$
(168
)
$
(213
)
$
(381
)
$
(414
)
  
3.2
%
  
8.0
%
Net investment income
    
257
   
271
   
(219
)
  
(360
)
  
(103
)
  
(463
)
  
528
   
NM
    
NM
  
Other revenues
    
33
   
37
   
109
   
30
   
121
   
151
   
260
   
NM
    
-41.9
%
Total revenues
    
70
   
113
   
(319
)
  
(498
)
  
(195
)
  
(693
)
  
374
   
NM
    
NM
  
                                                         
Losses and Expenses:
                                                        
Operating expenses
    
1,751
   
1,622
   
2,627
   
1,996
   
2,401
   
4,397
   
4,253
   
37.1
%
  
3.4
%
Total losses and expenses
    
1,751
   
1,622
   
2,627
   
1,996
   
2,401
   
4,397
   
4,253
   
37.1
%
  
3.4
%
                                                         
Operating loss before income taxes
                                                        
and interest expense
    
(1,681
)
  
(1,509
)
  
(2,946
)
  
(2,494
)
  
(2,596
)
  
(5,090
)
  
(3,879
)
  
-54.4
%
  
-31.2
%
                                                         
Interest expense
    
4,040
   
4,100
   
3,776
   
3,645
   
3,532
   
7,177
   
8,009
   
-12.6
%
  
-10.4
%
                                                         
Pre-tax operating loss
  
$
(5,721
)
$
(5,609
)
$
(6,722
)
$
(6,139
)
$
(6,128
)
$
(12,267
)
$
(11,888
)
  
-7.1
%
  
-3.2
%
 
 
16

 
Operating Cash Flows - Consolidated  
  
(In Thousands)  
  
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
  
                                
Receipts:
                                            
Premiums and other revenues collected
  
$
108,706
  
$
90,858
  
$
98,661
  
$
104,991
  
$
96,652
  
$
201,643
  
$
205,381
  
Investment income received
    
14,656
   
15,942
   
16,393
   
15,368
   
14,890
   
30,258
   
29,470
 
Total receipts
    
123,362
   
106,800
   
115,054
   
120,359
   
111,542
   
231,901
   
234,851
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
14,240
   
16,593
   
20,720
   
3,496
   
17,337
   
20,833
   
18,052
 
Losses and LAE paid - prior years
    
134,182
   
86,329
   
174,212
   
92,597
   
92,004
   
184,601
   
246,494
 
Total losses and LAE paid
    
148,422
   
102,922
   
194,932
   
96,093
   
109,341
   
205,434
   
264,546
 
Insurance operating expenses paid
    
39,585
   
39,009
   
27,271
   
46,203
   
39,618
   
85,821
   
78,217
 
Policyholders' dividends paid
    
1,284
   
820
   
531
   
246
   
397
   
643
   
3,399
 
Interest on corporate debt
    
1,987
   
5,327
   
2,197
   
4,791
   
2,965
   
7,756
   
6,374
 
Total disbursements
    
191,278
   
148,078
   
224,931
   
147,333
   
152,321
   
299,654
   
352,536
 
                                             
Net other
    
1,046
   
3,564
   
(15,349
)
  
(12,368
)
  
7,406
   
(4,962
)
  
8,304
 
                                             
Net operating cash flows
  
$
(66,870
)
$
(37,714
)
$
(125,226
)
$
(39,342
)
$
(33,373
)
$
(72,715
)
$
(109,381
)
 
 
17

 
Operating Cash Flows - PMA Insurance Group  
  
(In Thousands)  
  
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
  
                                
Receipts:
                                            
Premiums and other revenues collected
  
$
100,170
  
$
91,212
  
$
97,910
  
$
99,740
  
$
94,320
  
$
194,060
  
$
193,318
  
Investment income received
    
9,682
   
10,262
   
10,606
   
10,479
   
10,598
   
21,077
   
19,086
 
Total receipts
    
109,852
   
101,474
   
108,516
   
110,219
   
104,918
   
215,137
   
212,404
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
14,233
   
16,584
   
20,720
   
3,496
   
17,337
   
20,833
   
18,043
 
Losses and LAE paid - prior years
    
69,276
   
55,520
   
43,853
   
65,113
   
57,537
   
122,650
   
142,275
 
Total Losses and LAE paid
    
83,509
   
72,104
   
64,573
   
68,609
   
74,874
   
143,483
   
160,318
 
Insurance operating expenses paid
    
36,988
   
33,988
   
23,305
   
42,110
   
35,129
   
77,239
   
71,226
 
Policyholders' dividends paid
    
1,284
   
820
   
531
   
246
   
397
   
643
   
3,399
 
Interest on corporate debt
    
-
   
-
   
80
   
224
   
227
   
451
   
-
 
Total disbursements
    
121,781
   
106,912
   
88,489
   
111,189
   
110,627
   
221,816
   
234,943
 
                                             
Net other
    
2,002
   
6,012
   
(18,742
)
  
(6,376
)
  
1,955
   
(4,421
)
  
15,762
 
                                             
Net operating cash flows
  
$
(9,927
)
$
574
  
$
1,285
  
$
(7,346
)
$
(3,754
)
$
(11,100
)
$
(6,777
)
 
 
18

Operating Cash Flows - Run-off Operations  
(In Thousands)  
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2005
 
2005
 
2005
 
2006
 
2006
 
 2006
 
2005
  
                                
Receipts:
                                            
Premiums collected
  
$
8,536
  
$
(354
)
$
751
  
$
5,251
  
$
2,332
  
$
7,583
  
$
12,063
  
Investment income received
    
4,974
   
5,680
   
5,787
   
4,889
   
4,292
   
9,181
   
10,384
 
Total receipts
    
13,510
   
5,326
   
6,538
   
10,140
   
6,624
   
16,764
   
22,447
 
                                             
Disbursements:
                                            
Losses and LAE paid:
                                            
Losses and LAE paid - current year
    
7
   
9
   
-
   
-
   
-
   
-
   
9
 
Losses and LAE paid - prior years
    
64,906
   
30,809
   
130,359
   
27,484
   
34,467
   
61,951
   
104,219
 
Total losses and LAE paid
    
64,913
   
30,818
   
130,359
   
27,484
   
34,467
   
61,951
   
104,228
 
Insurance operating expenses paid
    
2,597
   
5,021
   
3,966
   
4,093
   
4,489
   
8,582
   
6,991
 
Total disbursements
    
67,510
   
35,839
   
134,325
   
31,577
   
38,956
   
70,533
   
111,219
 
                                             
Net other
    
(4,890
)
  
(1,912
)
  
4,004
   
1,083
   
1,775
   
2,858
   
(4,964
)
                                             
Net operating cash flows
  
$
(58,890
)
$
(32,425
)
$
(123,783
)
$
(20,354
)
$
(30,557
)
$
(50,911
)
$
(93,736
)
 
 
19

Statutory Surplus
(In Thousands)
                       
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 
 
2005
 
2005
 
2005
 
2006
 
20061
  
                       
                       
PMA Pool 2
  
$
299,219
  
$
311,802
 5 
$
315,056
 5 
$
316,726
 5 
$
321,114
 4,5 
PMA Capital Insurance Company 3
    
215,348
   
210,663
   
204,920
   
203,261
   
125,989
 4,6 
 
PMA Capital Corporation  
  
Statutory Financial Information - PMA Pool 2  
  
(In Thousands)  
  
                                
   
2nd
 
3rd
 
4th
 
1st
 
2nd
 
 Six
 
Six
 
 
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
Quarter
 
 Months
 
Months
 
 
 
2005
 
2005
 
2005
 
2006
 
20061
 
 20061
 
2005
  
                                
Net Premiums Written:
                                            
Workers' Compensation & Integrated
                                            
Disability
  
$
70,944
  
$
101,435
  
$
63,086
  
$
100,096
  
$
76,602
  
$
176,698
  
$
165,681
  
Other Commercial Lines
    
10,998
   
13,487
   
4,723
   
11,048
   
6,687
   
17,735
   
21,785
 
Total - PMA Pool
  
$
81,942
  
$
114,922
  
$
67,809
  
$
111,144
  
$
83,289
  
$
194,433
  
$
187,466
  
                                             
Statutory Ratios:
                                            
Loss and LAE ratio
    
73.0
%
  
73.3
%
  
73.0
%
  
71.5
%
  
72.5
%
  
72.0
%
  
73.2
%
Underwriting expense ratio
    
30.2
%
  
25.1
%
  
32.5
%
  
24.6
%
  
31.6
%
  
27.6
%
  
27.4
%
Policyholders' dividend ratio
    
0.8
%
  
0.8
%
  
1.1
%
  
0.9
%
  
0.1
%
  
0.5
%
  
0.9
%
Combined ratio
    
104.0
%
  
99.2
%
  
106.6
%
  
97.0
%
  
104.2
%
  
100.1
%
  
101.5
%
Operating ratio
    
95.2
%
  
91.2
%
  
98.6
%
  
88.4
%
  
96.0
%
  
91.7
%
  
93.0
%
 
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 $141.8 million and $5.9 million for the PMA Pool and PMA Capital Insurance Company, respectively.
5
Includes $10 million related to surplus notes.
6
In May 2006, PMA Capital Insurance Company paid an extraordinary dividend in the amount of $73.5 million to its parent, PMA Capital Corporation.
 
20

Industry Ratings and Market Information
                 
Transfer Agent and Registrar:
    
Inquiries:
    
American Stock Transfer & Trust Company
 
 
William E. Hitselberger
Shareholder Relations
 
 
Chief Financial Officer
59 Maiden Lane – Plaza Level
 
 
215.665.5070
New York, NY 10038
 
 
e-mail: bhitselberger@pmacapital.com
www.amstock.com
 
 
 
 
 
 
 
 
 
 
 
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 8/02/2006):
                
                 
   
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