8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) May 3, 2007

PMA Capital Corporation 

(Exact name of registrant as specified in its charter)

Pennsylvania	001-31706	23-2217932
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

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

Registrant’s telephone number, including area code:   (610) 397-5298

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

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On May 3, 2007, PMA Capital Corporation (the “Registrant”) issued a news release regarding its First Quarter 2007 results, a copy of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference. Additionally, the Registrant’s First Quarter 2007 Statistical Supplement is furnished as Exhibit 99.2 and is incorporated herein by reference.

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

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 99.1	PMA Capital Corporation News Release, dated May 3, 2007
Exhibit 99.2	PMA Capital Corporation First Quarter 2007 Statistical Supplement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PMA Capital Corporation
May 3, 2007	By:	/s/ William E. Hitselberger
	Name:		William E. Hitselberger
	Title:		Executive Vice President and Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.	Description
Exhibit 99.1	PMA Capital Corporation News Release, dated May 3, 2007
Exhibit 99.2	PMA Capital Corporation First Quarter 2007 Statistical Supplement

EX-99.1

Exhibit 99.1

380 Sentry Parkway Blue Bell, PA 19422
	PRESS RELEASE

For Release:	Immediate
Contact:	William E. Hitselberger (610) 397-5298

PMA Capital Announces Improved First Quarter 2007 Results

Blue Bell, PA, May 3, 2007 -- PMA Capital Corporation (NASDAQ: PMACA) today announced financial results for the first quarter of 2007. PMA Capital reported net income of $3.3 million, or 10 cents per diluted share, for the first quarter of 2007, compared to net income of $2.5 million, or 8 cents per diluted share, for the same period in 2006. Operating income, which the Company defines as net income excluding realized gains and losses, for the quarter increased to $3.6 million, or 11 cents per diluted share, compared to $1.3 million, or 4 cents per diluted share, in the first quarter of 2006.

“PMA Capital had a good start to 2007, and the results of strategic decisions we’ve made over the past two years have positively impacted our performance,” said Vincent T. Donnelly, President and Chief Executive Officer.

“The PMA Insurance Group’s pre-tax operating income increased to $11.7 million for the first quarter of 2007, compared to $8.1 million in the first quarter of 2006, as we have increased our premiums and service revenues while improving our loss and operating expense ratios,” Mr. Donnelly added. “Direct premiums written, excluding $18.4 million of production from our partnership with Midwest Insurance Companies, were $142.5 million, up 12% from the first quarter of 2006, and our new business written increased to $39.1 million from $30.0 million in the first quarter last year. Our workers’ compensation renewal retention rate increased to 86%, compared to 83% for the first quarter in 2006.”

Mr. Donnelly continued, “We were pleased with the Pennsylvania Insurance Department’s recent approval of a $37.5 million extraordinary dividend from our run-off reinsurance business. We believe this approval recognizes our continued success in reducing the insurance liabilities associated with our run-off business and allows us to further reduce the amount of capital committed to our Run-off Operations. We intend to continue to manage the run-off to achieve our strategic objectives.”

PMA Capital Corporation also announced that it has reached agreement to settle the securities class action, In re PMA Capital Corporation Securities Litigation (Civil Action No. 03-6121), pending in the U.S. District Court for the Eastern District of Pennsylvania. The settlement is subject to documentation and Court approval. The settlement agreement makes no admission of liability or wrongdoing by the Company or its officers and directors. The amounts necessary to fund this settlement will be paid by insurance carriers for the Company.

1

Net income for the quarter included the following after-tax net realized gains (losses) of:

	Three months ended
	March 31,
(in thousands)	2007			2006
Net realized gains (losses) after tax:
Sales of investments	$	(45	)	$	568
Change in fair value of debt derivative		279			614
Change in fair value of trading securities1		(514	)		-
Net realized gains (losses) after tax	$	(280	)	$	1,182

(1)   See Financial Condition section on page 4 for additional discussion.

Consolidated revenues for the first three months of 2007 were $112.9 million, compared to $112.0 million for the same period in 2006. Direct premiums written for the first quarter of 2007 increased $33.4 million, or 26%, to $160.8 million from the same period of 2006. Included in the increase in direct premiums written was $18.4 million related to our partnership with Midwest Insurance Companies (“Midwest”). Net premiums earned for the first quarter of 2007 were $95.0 million, compared to $91.7 million in the same period last year.

Segment Operating Results

Operating income, which we define as net income under accounting principles generally accepted in the United States (“GAAP”) excluding net realized investment gains and losses, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our insurance businesses because (i) net realized investment gains and losses are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments and (ii) in many instances, decisions to buy and sell securities are made at the holding company level, and such decisions result in net realized gains and losses that do not relate to the operations of the individual segments. Operating income does not replace net income as the GAAP measure of our consolidated results of operations.

The following is a reconciliation of our segment operating results and operating income to GAAP net income.

	Three months ended
	March 31,
(in thousands)	2007			2006
Pre-tax operating income (loss):
The PMA Insurance Group	$	11,723		$	8,141
Run-off Operations		(738	)		161
Corporate & Other		(5,309	)		(6,139	)
Pre-tax operating income		5,676			2,163
Income tax expense		2,050			864
Operating income		3,626			1,299
Realized gains (losses) after tax		(280	)		1,182
Net income	$	3,346		$	2,481

2

The PMA Insurance Group

The PMA Insurance Group reported pre-tax operating income of $11.7 million for the first quarter of 2007, compared to $8.1 million for the same period last year. The increase in the current quarter was due primarily to improved underwriting results and increased investment income.

Direct premiums written for the first three months increased to $160.9 million, compared to $127.6 million for the same period a year ago. We wrote $57.5 million of new business in the first quarter of 2007, compared to $30.0 million for the same period in 2006. Included in direct premiums written and new business for the first quarter of 2007 was $18.4 million of California workers’ compensation business written under our partnership with Midwest. Our renewal retention rate on existing workers’ compensation accounts increased to 86% for the first quarter of 2007, compared to 83% for the same period in 2006.

Net premiums written increased to $125.9 million in the first quarter of 2007, compared to $113.4 million during the same period a year ago. The increase in net premiums in the first quarter of 2007 was less than the increase in direct premiums due primarily to our cession of the California workers’ compensation premiums written under our partnership with Midwest.

The combined ratio on a GAAP basis was 98.2% for the first three months of 2007, compared to 100.9% for the same period last year. The improvement in the combined ratio for the first quarter of 2007 was primarily the result of an improved operating expense ratio, and to a lesser extent, a lower loss and LAE ratio. Given the seasonality of our business, our first quarter combined ratios have historically been lower than the subsequent quarters’ and full year ratios.

The improved loss and LAE ratio is primarily due to a lower current accident year loss and LAE ratio and improved loss experience on certain of our captive accounts business in the first quarter of 2007, compared to the same period in 2006. While our underwriting criteria remained consistent in 2007, our current accident year loss and LAE ratio benefited from changes in workers’ compensation products selected by our insureds. Pricing changes coupled with payroll inflation for rate sensitive workers’ compensation were slightly below overall estimated loss trends. We estimated our medical cost inflation to be 8% in the first quarter of 2007, compared to our first quarter 2006 estimate of 9%. We expect that medical cost inflation will remain a significant component of our overall loss experience.

The improved operating expense ratio in the first quarter of 2007, compared to the prior year quarter, reflected lower loss based state assessments in the first quarter of 2007. Fees earned under our partnership with Midwest reduced our first quarter 2007 acquisition expense ratio by one half of a percentage point.

Revenues from our third party administrator (“TPA”) business, which are included in other revenues, were $7.7 million for the first quarter of 2007, up from $7.1 million in the first quarter of 2006.

Net investment income increased to $9.7 million in the first quarter of 2007, compared to $8.6 million in the prior year quarter. The improvement was due to higher yields of approximately 30 basis points on an average invested asset base that increased 6%.

Run-off Operations

Our Run-off Operations, consisting of our former reinsurance and excess and surplus lines businesses, had a pre-tax operating loss of $738,000 for the three months ended March 31, 2007, compared to pre-

3

tax operating income of $161,000 for the same period last year. During the first quarter of 2007, the Run-off Operations’ insurance liabilities decreased by $29.2 million, or 6%. Net investment income and operating expenses continue to decline as we run-off this business. Net investment income decreased by $2.2 million to $1.0 million in the first quarter of 2007, compared to the same period last year, due to a reduction in average invested assets of approximately $190 million, or 50%. Operating expenses in the first quarter of 2007 were reduced by $1.0 million due to a reduction in the allowance for uncollectible reinsurance.

Corporate and Other

The Corporate and Other segment, which includes primarily corporate expenses, including debt service, recorded a pre-tax operating loss of $5.3 million for the first three months of 2007, compared to a loss of $6.1 million for the same period a year ago. The improvement for the first quarter of 2007 was primarily due to lower interest expense. The lower interest expense resulted from a lower level of debt outstanding in the first quarter of 2007, compared to the first quarter in 2006.

Financial Condition

Total assets were $2.7 billion as of March 31, 2007 and December 31, 2006. Shareholders’ equity was $423.8 million as of March 31, 2007, compared with $419.1 million as of December 31, 2006. Book value per share was $12.99 as of March 31, 2007, compared to $12.83 at year end 2006. The increases in shareholders’ equity and book value per share were primarily due to net income and an increase in the unrealized position on our invested asset portfolio. During 2007, the net unrealized holding position on our available for sale asset portfolio increased by $1.0 million, or three cents per share, due to a decline in market interest rates. As of March 31, 2007, we had $22.0 million in cash and short-term investments at the holding company and its non-regulated subsidiaries.

During the first quarter, we early adopted Statement of Financial Accounting Standards No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS 159”). SFAS 159 allows entities to choose to measure eligible assets and liabilities at fair value, and requires subsequent changes in the fair value of such items to be recorded in net income. Upon adoption of SFAS 159, we reclassified all of the fixed income securities in our Run-off Operations’ investment portfolio from available for sale to trading. Although our adoption of this standard had no impact on book value, it may result in future volatility in net income as changes in fair value will be recorded through realized gains and losses rather than other comprehensive income. Included in net income for the first quarter were after-tax losses of $514,000 for changes in the fair value on these trading securities.

4

The components of our debt as of March 31, 2007 were as follows:

(dollar amounts in thousands)	Amount			Maturity
6.50% Convertible Debt 1	$	19,326			2022
Derivative component of 6.50% Convertible Debt		2,686
4.25% Convertible Debt 2		455			2022
8.50% Senior Notes		54,900			2018
Junior subordinated debt		43,816			2033
Surplus Notes		10,000			2035
Unamortized debt discount		(361	)
Total long-term debt	$	130,822

(1)   Holders, at their option, may require us to repurchase all or a portion of their debentures on June 30, 2009 at 114% of the principal amount. This debt may be converted at any time, at the holder’s option, at a current price of $16.368 per share.

(2)   This debt may be converted at any time, at the holder’s option, at a current price of $16.368 per share.

As of March 31, 2007, our total outstanding debt was $130.8 million, compared to $131.2 million at December 31, 2006. The decrease was primarily due to the decline in the fair value of the derivative component of our 6.50% Convertible Debt.

The PMA Insurance Group had statutory capital and surplus of $327.4 million as of March 31, 2007, compared to $321.2 million as of December 31, 2006. The PMA Insurance Group has the ability to pay $26.5 million in dividends during 2007 without the prior approval of the Pennsylvania Insurance Department. The statutory capital and surplus of PMACIC, PMA Capital Corporation’s wholly-owned run-off reinsurance subsidiary, was $117.1 million as of March 31, 2007, compared to $121.6 million as of December 31, 2006. Subsequent to March 31, 2007, PMACIC’s statutory capital and surplus was reduced by $37.5 million as a result of its payment of the extraordinary dividend to PMA Capital.

5

Conference Call with Investors

As a reminder, we will hold a conference call with investors beginning at 8:30 a.m. Eastern Time on Friday, May 4^th to review our first quarter 2007 results. The conference call will be available via a live webcast over the Internet at www.pmacapital.com. To access the webcast, enter the Investor Information section, click on News Releases and then click on the microphone icon. Please note that by accessing the conference call via the Internet, you will be in a listen-only mode. The call-in numbers and passcodes for the conference call are as follows:

Live Call	Replay
800-901-5231(Domestic)	888-286-8010(Domestic)
617-786-2961(International)	617-801-6888(International)
Passcode 77454976	Passcode 28117554

A replay of the conference call will be available over the Internet or by dialing the call-in number for the replay and using the passcode. The replay will be available from approximately 10:30 a.m. Eastern Time on Friday, May 4^th until 11:59 p.m. Eastern Time on Monday, June 4^th.

Quarterly Statistical Supplement

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

PMA Capital Corporation

380 Sentry Parkway

Blue Bell, PA 19422

Attention: Investor Relations

Alternatively, you may make a request by telephone (610-397-5298) or by e-mail to InvestorRelations@pmacapital.com. We have also furnished a copy of this news release and the Statistical Supplement to the SEC on a Form 8-K dated Thursday, May 3, 2007. A copy of the Form 8-K is available on the SEC’s website at www.sec.gov.

6

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

The statements contained in this press release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

These forward-looking statements may include estimates, assumptions or projections and are based on currently available financial, competitive and economic data and the Company’s current operating plans. Although the Company’s management believes that its expectations are reasonable, there can be no assurance that the Company’s actual results will not differ materially from those expected. The factors that could cause actual results to differ materially from those in the forward-looking statements, include, but are not limited to:

·   our ability to effect an efficient withdrawal from the reinsurance business, including the commutation of reinsurance business with certain large ceding companies, without incurring any significant additional liabilities;

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

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

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

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

·   adequacy and collectibility of reinsurance that we purchased;

·   adequacy of reserves for claim liabilities;

·   whether state or federal asbestos liability legislation is enacted and the impact of such legislation on us;

·   regulatory changes in risk-based capital or other regulatory standards that affect the cost of, or demand for, our products or otherwise affect our ability to conduct business, including any future action with respect to our business taken by the Pennsylvania Insurance Department or any other state insurance department;

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

·   the outcome of any litigation against us;

·   competitive conditions that may affect the level of rate adequacy related to the amount of risk undertaken and that may influence the sustainability of adequate rate changes;

·   ability to implement and maintain rate increases;

·   the effect of changes in workers’ compensation statutes and their administration, which may affect the rates that we can charge and the manner in which we administer claims;

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

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

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

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

·   uncertainties related to possible terrorist activities or international hostilities and whether TRIEA is extended beyond its December 31, 2007 termination date; and

·   other factors or uncertainties disclosed from time to time in our filings with the Securities and Exchange Commission.

You should not place undue reliance on any forward-looking statements in this press release. Forward-looking statements are not generally required to be publicly revised as circumstances change and we do not intend to update the forward-looking statements in this press release to reflect circumstances after the date hereof or to reflect the occurrence of unanticipated events.

7

PMA Capital Corporation

Selected Financial Data

(Unaudited)

	Three months ended March 31,
(dollars in thousands)	2007			2006
Direct premiums written:
The PMA Insurance Group	$	160,931		$	127,573
Run-off Operations		-			-
Corporate and Other		(156	)		(168	)
Consolidated direct premiums written	$	160,775		$	127,405
Net premiums written:
The PMA Insurance Group	$	125,893		$	113,390
Run-off Operations		1,495			606
Corporate and Other		(156	)		(168	)
Consolidated net premiums written	$	127,232		$	113,828
Revenues:
Net premiums earned:
The PMA Insurance Group	$	93,995		$	91,221
Run-off Operations		1,193			606
Corporate and Other		(156	)		(168	)
Consolidated net premiums earned		95,032			91,659
Net investment income		10,525			11,400
Realized gains (losses)		(430	)		1,818
Other revenues		7,787			7,104
Consolidated revenues	$	112,914		$	111,981
Components of net income:
Pre-tax operating income (loss) (1):
The PMA Insurance Group	$	11,723		$	8,141
Run-off Operations		(738	)		161
Corporate and Other		(5,309	)		(6,139	)
Pre-tax operating income		5,676			2,163
Income tax expense		2,050			864
Operating income		3,626			1,299
Realized gains (losses) after tax		(280	)		1,182
Net income	$	3,346		$	2,481
Weighted average common shares outstanding:
Basic		32,498,433			31,894,366
Diluted		32,900,397			32,405,934

(1)   Operating income, which is GAAP net income excluding net realized investment gains and losses, is the financial performance measure used by our management and our Board of Directors to evaluate and assess the results of our insurance businesses because (i) net realized investment gains and losses are unpredictable and not necessarily indicative of current operating fundamentals or future performance and (ii) in many instances, decisions to buy and sell securities are made at the holding company level, and such decisions result in net realized gains and losses that do not relate to the operations of the individual segments. Operating income does not replace net income as the GAAP measure of our consolidated results of operations.

8

PMA Capital Corporation

GAAP Consolidated Balance Sheets

(Unaudited)

	March 31,			December 31,
(in thousands, except per share data)	2007			2006
Assets:
Investments:
Fixed maturities available for sale	$	735,048		$	871,951
Fixed maturities trading		122,669			-
Short-term investments		93,385			86,448
Total investments		951,102			958,399
Cash		9,924			14,105
Accrued investment income		5,407			9,351
Premiums receivable		257,445			207,771
Reinsurance receivables		1,042,478			1,039,979
Deferred income taxes		97,565			100,019
Deferred acquisition costs		41,726			36,239
Funds held by reinsureds		132,926			130,214
Other assets		189,432			170,330
Total assets	$	2,728,005		$	2,666,407
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,620,952		$	1,634,865
Unearned premiums		249,689			202,973
Debt		130,822			131,211
Accounts payable, accrued expenses
and other liabilities		234,901			210,740
Funds held under reinsurance treaties		63,348			63,075
Dividends to policyholders		4,483			4,450
Total liabilities		2,304,195			2,247,314
Shareholders' Equity:
Class A Common Stock		171,090			171,090
Additional paid-in capital		110,527			109,922
Retained earnings		183,611			184,216
Accumulated other comprehensive loss		(15,675	)		(20,624	)
Treasury stock, at cost		(25,743	)		(25,511	)
Total shareholders' equity		423,810			419,093
Total liabilities and shareholders' equity	$	2,728,005		$	2,666,407
Shareholders' equity per share	$	12.99		$	12.83

9

PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Three months ended March 31,
(in thousands, except per share data)	2007			2006
Gross premiums written	$	166,071		$	133,967
Net premiums written	$	127,232		$	113,828
Revenues:
Net premiums earned	$	95,032		$	91,659
Net investment income		10,525			11,400
Net realized investment gains (losses)		(430	)		1,818
Other revenues		7,787			7,104
Total revenues		112,914			111,981
Expenses:
Losses and loss adjustment expenses		67,026			65,393
Acquisition expenses		19,138			17,325
Operating expenses		17,066			19,987
Dividends to policyholders		1,622			1,422
Interest expense		2,816			3,873
Total losses and expenses		107,668			108,000
Pre-tax income		5,246			3,981
Income tax expense:
Current		-			-
Deferred		1,900			1,500
Total income tax expense		1,900			1,500
Net income	$	3,346		$	2,481
Net income per share:
Basic	$	0.10		$	0.08
Diluted	$	0.10		$	0.08

10 

EX-99.2

Exhibit 99.2

Statistical Supplement

First Quarter

2007

PMA Capital Corporation
Statistical Supplement
First Quarter - 2007
Table of Contents
Page
Consolidated Highlights:
Selected Financial Data			1
Consolidated Statements of Operations - Per Share Data			2
Consolidated Statements of Operations			3
Consolidated Balance Sheets			4
Invested Assets and Net Investment Income; Debt			5
Segment Information:
Statements of Operations - Consolidating	6	-	7
Statements of Operations - PMA Insurance Group			8
Insurance Ratios - PMA Insurance Group			9
Statements of Operations - Run-off Operations			10
Statements of Operations - Corporate & Other			11
Operating Cash Flow Information:
Operating Cash Flows - Consolidated			12
Operating Cash Flows - PMA Insurance Group			13
Operating Cash Flows - Run-off Operations			14
Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool			15
Other Information:
Industry Ratings and Market Information			16
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 page 1 for

a reconciliation of operating results by segment to GAAP net income (loss).

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	1st			2nd			3rd			4th			1st			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			1st
	2006			2006			2006			2006			2007			Quarter
Gross Premiums Written by Segment:
PMA Insurance Group	$	133,737		$	99,328		$	133,903		$	89,484		$	164,720			23.2	%
Run-off Operations		398			960			526			102			1,507			NM
Corporate & Other		(168	)		(213	)		(158	)		(157	)		(156	)		7.1	%
Gross premiums written	$	133,967		$	100,075		$	134,271		$	89,429		$	166,071			24.0	%
Net Premiums Written by Segment:
PMA Insurance Group	$	113,390		$	85,639		$	107,795		$	66,873		$	125,893			11.0	%
Run-off Operations		606			527			701			309			1,495			NM
Corporate & Other		(168	)		(213	)		(158	)		(157	)		(156	)		7.1	%
Net premiums written	$	113,828		$	85,953		$	108,338		$	67,025		$	127,232			11.8	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	8,141		$	6,671		$	8,351		$	5,721		$	11,723			44.0	%
Run-off Operations		161			428			174			485			(738	)		NM
Corporate & Other		(6,139	)		(6,128	)		(5,016	)		(5,282	)		(5,309	)		13.5	%
Pre-tax operating income		2,163			971			3,509			924			5,676			NM
Net realized investment gains (losses)		1,818			(1,978	)		(799	)		(26	)		(430	)		NM
Pre-tax income (loss)		3,981			(1,007	)		2,710			898			5,246			31.8	%
Income tax expense (benefit)		1,500			(245	)		1,209			67			1,900			26.7	%
Net income (loss)	$	2,481		$	(762	)	$	1,501		$	831		$	3,346			34.9	%
After-tax operating income	$	1,299		$	524		$	2,020		$	848		$	3,626			NM
Diluted Earnings (Loss) Per Share:
Net income (loss)	$	0.08		$	(0.02	)	$	0.05		$	0.03		$	0.10			25.0	%
Less the impact of:
Realized gains (losses) after tax		0.04			(0.04	)		(0.01	)		-			(0.01	)		NM
After-tax operating income	$	0.04		$	0.02		$	0.06		$	0.03		$	0.11			NM
Capitalization:
Debt	$	189,181		$	148,303		$	131,561		$	131,211		$	130,822			-30.8	%
Shareholders' equity excluding FAS 115 unrealized loss		413,516			417,064			418,372			425,132			424,894			2.8	%
Total capitalization excluding FAS 115 unrealized loss		602,697			565,367			549,933			556,343			555,716			-7.8	%
FAS 115 unrealized loss		(13,941	)		(18,733	)		(6,169	)		(6,039	)		(1,084	)		92.2	%
Total capitalization including FAS 115 unrealized loss	$	588,756		$	546,634		$	543,764		$	550,304		$	554,632			-5.8	%
Book Value Per Share:
Excluding FAS 115 unrealized loss	$	12.83		$	12.79		$	12.82		$	13.02		$	13.02			1.5	%
Including FAS 115 unrealized loss	$	12.39		$	12.21		$	12.63		$	12.83		$	12.99			4.8	%
Debt to Total Capital:
Excluding FAS 115 unrealized loss		31.4	%		26.2	%		23.9	%		23.6	%		23.5	%		-25.2	%
Including FAS 115 unrealized loss		32.1	%		27.1	%		24.2	%		23.8	%		23.6	%		-26.5	%
Interest Coverage:
Income before interest and income taxes
to interest expense		2.03			0.73			1.89			1.32			2.86			40.9	%
Operating income before interest and income taxes
to interest expense		1.56			1.26			2.15			1.33			3.02			93.6	%

1

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
	1st		2nd			3rd		4th		1st
	Quarter		Quarter			Quarter		Quarter		Quarter
	2006		2006			2006		2006		2007
Diluted Earnings (Loss) Per Share:
Net income (loss)	$	0.08	$	(0.02	)	$	0.05	$	0.03	$	0.10
Pre-tax operating income	$	0.07	$	0.03		$	0.11	$	0.03	$	0.17
After-tax operating income	$	0.04	$	0.02		$	0.06	$	0.03	$	0.11
Diluted weighted average common
shares outstanding		32,405,934		32,132,618			32,922,643		32,916,423		32,900,397
Dividends declared:
Class A Common Stock	$	-	$	-		$	-	$	-	$	-
Actual common shares issued
and outstanding		32,239,288		32,613,234			32,646,689		32,659,194		32,630,669
Class A Common Stock prices:
High	$	10.43	$	10.49		$	10.75	$	10.15	$	9.77
Low	$	8.68	$	9.24		$	8.60	$	8.60	$	8.40
Close	$	10.18	$	10.30		$	8.82	$	9.22	$	9.39

2

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	1st		2nd			3rd			4th			1st			% Change
	Quarter		Quarter			Quarter			Quarter			Quarter			1st
	2006		2006			2006			2006			2007			Quarter
Gross Premiums Written	$	133,967	$	100,075		$	134,271		$	89,429		$	166,071			24.0	%
Net Premiums Written	$	113,828	$	85,953		$	108,338		$	67,025		$	127,232			11.8	%
Revenues:
Net premiums earned	$	91,659	$	94,922		$	95,284		$	88,316		$	95,032			3.7	%
Net investment income		11,400		11,058			10,747			10,333			10,525			-7.7	%
Net realized investment gains (losses)		1,818		(1,978	)		(799	)		(26	)		(430	)		NM
Other revenues		7,104		7,286			6,624			7,107			7,787			9.6	%
Total revenues		111,981		111,288			111,856			105,730			112,914			0.8	%
Expenses:
Losses and loss adjustment expenses		65,393		66,379			66,754			60,695			67,026			2.5	%
Acquisition expenses		17,325		19,552			19,811			17,825			19,138			10.5	%
Operating expenses		19,987		21,580			18,953			22,966			17,066			-14.6	%
Dividends to policyholders		1,422		1,011			589			510			1,622			14.1	%
Interest expense		3,873		3,773			3,039			2,836			2,816			-27.3	%
Total losses and expenses		108,000		112,295			109,146			104,832			107,668			-0.3	%
Pre-tax income (loss)		3,981		(1,007	)		2,710			898			5,246			31.8	%
Income tax expense (benefit):
Current		-		-			-			-			-			NM
Deferred		1,500		(245	)		1,209			67			1,900			26.7	%
Total income tax expense (benefit)		1,500		(245	)		1,209			67			1,900			26.7	%
Net income (loss)	$	2,481	$	(762	)	$	1,501		$	831		$	3,346			34.9	%
Pre-tax operating income	$	2,163	$	971		$	3,509		$	924		$	5,676			NM
After-tax operating income	$	1,299	$	524		$	2,020		$	848		$	3,626			NM

3

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2006			2006			2006			2007
Assets:
Investments in fixed maturities available for sale	$	994,972		$	913,376		$	904,074		$	871,951		$	735,048
Investments in fixed maturities trading		-			-			-			-			122,669
Short-term investments		63,641			70,994			59,227			86,448			93,385
Short-term investments, loaned securities collateral		9,991			4,771			-			-			-
Total investments		1,068,604			989,141			963,301			958,399			951,102
Cash		13,667			26,004			30,387			14,105			9,924
Accrued investment income		11,395			9,312			10,993			9,351			5,407
Premiums receivable		209,354			205,825			218,126			207,771			257,445
Reinsurance receivables		1,086,830			1,071,332			1,069,153			1,039,979			1,042,478
Deferred income taxes, net		107,908			110,452			102,986			100,019			97,565
Deferred acquisition costs		39,308			37,336			40,384			36,239			41,726
Funds held by reinsureds		148,512			151,873			133,222			130,214			132,926
Other assets		179,061			171,713			184,904			170,330			189,432
Total assets	$	2,864,639		$	2,772,988		$	2,753,456		$	2,666,407		$	2,728,005
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,776,822		$	1,727,369		$	1,690,483		$	1,634,865		$	1,620,952
Unearned premiums		199,129			189,140			217,506			202,973			249,689
Debt		189,181			148,303			131,561			131,211			130,822
Accounts payable, accrued expenses
and other liabilities		205,114			220,350			219,146			210,740			234,901
Funds held under reinsurance treaties		79,815			79,966			77,813			63,075			63,348
Dividends to policyholders		4,998			4,725			4,744			4,450			4,483
Payable under securities loan agreements		10,005			4,804			-			-			-
Total liabilities		2,465,064			2,374,657			2,341,253			2,247,314			2,304,195
Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		110,042			110,552			111,116			109,922			110,527
Retained earnings		185,393			180,626			181,719			184,216			183,611
Accumulated other comprehensive loss		(33,358	)		(37,630	)		(26,010	)		(20,624	)		(15,675	)
Treasury stock, at cost		(33,592	)		(26,307	)		(25,712	)		(25,511	)		(25,743	)
Total shareholders' equity		399,575			398,331			412,203			419,093			423,810
Total liabilities and shareholders' equity	$	2,864,639		$	2,772,988		$	2,753,456		$	2,666,407		$	2,728,005

4

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2006			2006			2006			2007
Total Investments & Cash
As reported	$	1,082,271		$	1,015,145		$	993,688		$	972,504		$	961,026
Less:
Securities lending activity		10,005			4,804			-			-			-
Unrealized loss		(21,448	)		(28,820	)		(9,490	)		(9,291	)		(1,668	)
Unrealized loss and accrued income - trading		-			-			-			-			(5,858	)
Total adjusted investments & cash	$	1,093,714		$	1,039,161		$	1,003,178		$	981,795		$	968,552
Net Investment Income
As reported	$	11,400		$	11,058		$	10,747		$	10,333		$	10,525
Funds held:
Assumed		335			537			185			160			246
Ceded		(1,519	)		(1,643	)		(1,482	)		(1,374	)		(1,560	)
Total funds held		(1,184	)		(1,106	)		(1,297	)		(1,214	)		(1,314	)
Total adjusted investment income	$	12,584		$	12,164		$	12,044		$	11,547		$	11,839
Yield
As reported		4.11	%		4.22	%		4.28	%		4.20	%		4.35	%
Investment portfolio		4.50	%		4.56	%		4.72	%		4.65	%		4.86	%
Duration (in years)		3.7			3.5			3.4			3.3			3.3
PMA Capital Corporation
Debt
(Dollar Amounts in Thousands)
	Amount
	Outstanding			Maturity
6.50% convertible debt	$	19,326			20221
Derivative component of 6.50% convertible debt		2,686
4.25% convertible debt		455			20222
8.50% senior notes		54,900			2018
Junior subordinated debt 3		43,816			2033
Surplus notes 4		10,000			2035
Unamortized debt discount		(361	)
Total long-term debt	$	130,822

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.
2	Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 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 9.48% as of March 31, 2007.
4	Interest rate on surplus notes is 9.86% as of March 31, 2007.

5

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended March 31, 2007
(Dollar Amounts in Thousands)
	PMA
	Insurance		Corporate			Run-off
	Group		& Other1			Operations			Consolidated
Gross Premiums Written	$	164,720	$	(156	)	$	1,507		$	166,071
Net Premiums Written	$	125,893	$	(156	)	$	1,495		$	127,232
Revenues:
Net premiums earned	$	93,995	$	(156	)	$	1,193		$	95,032
Net investment income		9,704		(179	)		1,000			10,525
Other revenues		7,680		107			-			7,787
Operating revenues		111,379		(228	)		2,193			113,344
Losses and Expenses:
Losses and loss adjustment expenses		65,919		-			1,107			67,026
Acquisition expenses		18,779		-			359			19,138
Operating expenses		13,087		2,514			1,465			17,066
Dividends to policyholders		1,622		-			-			1,622
Total losses and expenses		99,407		2,514			2,931			104,852
Operating income (loss) before income taxes
and interest expense		11,972		(2,742	)		(738	)		8,492
Interest expense		249		2,567			-			2,816
Pre-tax operating income (loss)	$	11,723	$	(5,309	)	$	(738	)		5,676
Net realized investment losses										(430	)
Pre-tax income									$	5,246

¹ Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.

6

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended March 31, 2006
(Dollar Amounts in Thousands)
	PMA
	Insurance		Corporate			Run-off
	Group		& Other1			Operations			Consolidated
Gross Premiums Written	$	133,737	$	(168	)	$	398		$	133,967
Net Premiums Written	$	113,390	$	(168	)	$	606		$	113,828
Revenues:
Net premiums earned	$	91,221	$	(168	)	$	606		$	91,659
Net investment income		8,559		(360	)		3,201			11,400
Other revenues		7,074		30			-			7,104
Operating revenues		106,854		(498	)		3,807			110,163
Losses and Expenses:
Losses and loss adjustment expenses		64,519		-			874			65,393
Acquisition expenses		18,219		-			(894	)		17,325
Operating expenses		14,325		1,996			3,666			19,987
Dividends to policyholders		1,422		-			-			1,422
Total losses and expenses		98,485		1,996			3,646			104,127
Operating income (loss) before income taxes
and interest expense		8,369		(2,494	)		161			6,036
Interest expense		228		3,645			-			3,873
Pre-tax operating income (loss)	$	8,141	$	(6,139	)	$	161			2,163
Net realized investment gains										1,818
Pre-tax income									$	3,981

¹ Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.

7

PMA Capital Corporation
Statements of Operations - PMA Insurance Group
(Dollar Amounts in Thousands)
	1st		2nd		3rd		4th		1st		% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		1st
	2006		2006		2006		2006		2007		Quarter
Gross Premiums Written	$	133,737	$	99,328	$	133,903	$	89,484	$	164,720		23.2	%
Net Premiums Written	$	113,390	$	85,639	$	107,795	$	66,873	$	125,893		11.0	%
Revenues:
Net premiums earned	$	91,221	$	94,803	$	94,696	$	87,379	$	93,995		3.0	%
Net investment income		8,559		8,753		8,998		9,190		9,704		13.4	%
Other revenues		7,074		7,165		6,573		7,065		7,680		8.6	%
Total revenues		106,854		110,721		110,267		103,634		111,379		4.2	%
Losses and Expenses:
Losses and loss adjustment expenses		64,519		67,682		68,255		61,841		65,919		2.2	%
Acquisition expenses		18,219		18,923		19,098		17,486		18,779		3.1	%
Operating expenses		14,325		16,193		13,720		17,821		13,087		-8.6	%
Dividends to policyholders		1,422		1,011		589		510		1,622		14.1	%
Total losses and expenses		98,485		103,809		101,662		97,658		99,407		0.9	%
Operating income before income taxes
and interest expense		8,369		6,912		8,605		5,976		11,972		43.1	%
Interest expense		228		241		254		255		249		9.2	%
Pre-tax operating income	$	8,141	$	6,671	$	8,351	$	5,721	$	11,723		44.0	%

8

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
	1st Quarter 2006			2nd Quarter 2006			3rd Quarter 2006			4th Quarter 2006			1st Quarter 2007			Point Chg. 1st Quarter Better (Worse)
Ratios - GAAP Basis:
Loss and LAE ratio		70.7	%		71.4	%		72.1	%		70.8	%		70.1	%		0.6
Expense ratio:
Acquisition expenses		20.0	%		20.0	%		20.2	%		20.0	%		20.0	%		-
Operating expenses 1		8.6	%2		10.0	%2		8.1	%2		12.9	%2		6.4	%		2.2
Total expense ratio		28.6	%		30.0	%		28.3	%		32.9	%		26.4	%		2.2
Policyholders' dividend ratio		1.6	%		1.1	%		0.6	%		0.6	%		1.7	%		(0.1	)
Combined ratio		100.9	%2		102.5	%2		101.0	%2		104.3	%2		98.2	%		2.7
Net investment income ratio		-9.4	%		-9.2	%		-9.5	%		-10.5	%		-10.3	%		0.9
Operating ratio		91.5	%		93.3	%		91.5	%		93.8	%		87.9	%		3.6

1	The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $7.9 million, $9.5 million, $7.7 million, $11.3 million and $6.0 million for the first, second, third and fourth quarters of 2006 and the first quarter of 2007, respectively.
2	Certain reclassifications between insurance-related and non-insurance related expenses of prior period amounts have been made to conform to the current year presentation. These reclassifications had no impact on the previously reported full year 2006 ratios.

9

PMA Capital Corporation
Statements of Operations - Run-off Operations
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			1st
	2006			2006			2006			2006			2007			Quarter
Gross Premiums Written	$	398		$	960		$	526		$	102		$	1,507			NM
Net Premiums Written	$	606		$	527		$	701		$	309		$	1,495			NM
Revenues:
Net premiums earned	$	606		$	332		$	746		$	1,094		$	1,193			96.9	%
Net investment income		3,201			2,408			1,695			1,392			1,000			-68.8	%
Total revenues		3,807			2,740			2,441			2,486			2,193			-42.4	%
Losses and Expenses:
Losses and loss adjustment expenses		874			(1,303	)		(1,501	)		(1,146	)		1,107			26.7	%
Acquisition expenses		(894	)		629			713			339			359			NM
Operating expenses		3,666			2,986			3,055			2,808			1,465			-60.0	%
Total losses and expenses		3,646			2,312			2,267			2,001			2,931			-19.6	%
Pre-tax operating income (loss)	$	161		$	428		$	174		$	485		$	(738	)		NM

10

PMA Capital Corporation
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			1st
	2006			2006			2006			2006			2007			Quarter
Gross Premiums Written	$	(168	)	$	(213	)	$	(158	)	$	(157	)	$	(156	)		7.1	%
Net Premiums Written	$	(168	)	$	(213	)	$	(158	)	$	(157	)	$	(156	)		7.1	%
Revenues:
Net premiums earned	$	(168	)	$	(213	)	$	(158	)	$	(157	)	$	(156	)		7.1	%
Net investment income		(360	)		(103	)		54			(249	)		(179	)		50.3	%
Other revenues		30			121			51			42			107			NM
Total revenues		(498	)		(195	)		(53	)		(364	)		(228	)		54.2	%
Losses and Expenses:
Operating expenses		1,996			2,401			2,178			2,337			2,514			26.0	%
Total losses and expenses		1,996			2,401			2,178			2,337			2,514			26.0	%
Operating loss before income taxes
and interest expense		(2,494	)		(2,596	)		(2,231	)		(2,701	)		(2,742	)		-9.9	%
Interest expense		3,645			3,532			2,785			2,581			2,567			-29.6	%
Pre-tax operating loss	$	(6,139	)	$	(6,128	)	$	(5,016	)	$	(5,282	)	$	(5,309	)		13.5	%

11

PMA Capital Corporation
Operating Cash Flows - Consolidated
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2006			2006			2006			2007
Receipts:
Premiums and other revenues collected	$	104,991		$	96,652		$	108,027		$	93,253		$	102,505
Investment income received		15,368			14,890			11,795			13,730			13,251
Total receipts		120,359			111,542			119,822			106,983			115,756
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		3,496			17,337			17,034			22,696			4,605
Losses and LAE paid - prior years		92,597			92,004			65,455			90,825			85,995
Total losses and LAE paid		96,093			109,341			82,489			113,521			90,600
Insurance operating expenses paid		46,203			39,618			26,899			30,327			38,826
Policyholders' dividends paid		246			397			451			812			499
Interest on corporate debt		4,791			2,965			3,470			2,461			3,082
Total disbursements		147,333			152,321			113,309			147,121			133,007
Net other		(12,368	)		7,406			(9,204	)		19,380			1,024
Net operating cash flows	$	(39,342	)	$	(33,373	)	$	(2,691	)	$	(20,758	)	$	(16,227	)

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PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th		1st
	Quarter			Quarter			Quarter			Quarter		Quarter
	2006			2006			2006			2006		2007
Receipts:
Premiums and other revenues collected	$	99,740		$	94,320		$	107,102		$	92,720	$	99,923
Investment income received		10,479			10,598			8,831			10,564		10,504
Total receipts		110,219			104,918			115,933			103,284		110,427
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		3,496			17,337			17,034			22,696		4,605
Losses and LAE paid - prior years		65,113			57,537			45,463			44,787		62,815
Total losses and LAE paid		68,609			74,874			62,497			67,483		67,420
Insurance operating expenses paid		42,110			35,129			24,446			26,521		35,766
Policyholders' dividends paid		246			397			451			812		499
Interest on corporate debt		224			227			246			255		252
Total disbursements		111,189			110,627			87,640			95,071		103,937
Net other		(6,376	)		1,955			(1,939	)		4,615		(4,189	)
Net operating cash flows	$	(7,346	)	$	(3,754	)	$	26,354		$	12,828	$	2,301

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PMA Capital Corporation
Operating Cash Flows - Run-off Operations
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2006			2006			2006			2007
Receipts:
Premiums collected	$	5,251		$	2,332		$	925		$	533		$	2,582
Investment income received		4,889			4,292			2,964			3,166			2,747
Total receipts		10,140			6,624			3,889			3,699			5,329
Disbursements:
Losses and LAE paid:
Losses and LAE paid - prior years		27,484			34,467			19,992			46,038			23,180
Total losses and LAE paid		27,484			34,467			19,992			46,038			23,180
Insurance operating expenses paid		4,093			4,489			2,453			3,806			3,060
Total disbursements		31,577			38,956			22,445			49,844			26,240
Net other		1,083			1,775			(5,500	)		8,071			(1,382	)
Net operating cash flows	$	(20,354	)	$	(30,557	)	$	(24,056	)	$	(38,074	)	$	(22,293	)

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PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)
	1st		2nd			3rd		4th		1st
	Quarter		Quarter			Quarter		Quarter		Quarter
	2006		2006			2006		2006		20071
PMA Pool 2	$	316,726	$	321,114		$	325,242	$	321,245	$	327,379 4
PMA Capital Insurance Company 3		203,261		125,989	5		123,428		121,566		117,098 4

PMA Capital Corporation
Statutory Financial Information - PMA Pool 2
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			1st
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2006			2006			2006			20071
Net Premiums Written:
Workers' Compensation	$	100,096		$	76,602		$	95,437		$	58,731		$	113,732
Other Commercial Lines		11,048			6,687			6,067			4,637			10,258
Total - PMA Pool	$	111,144		$	83,289		$	101,504		$	63,368		$	123,990
Statutory Ratios:
Loss and LAE ratio		71.5	%		72.5	%		72.1	%		71.3	%		71.2	%
Underwriting expense ratio		24.6	%		31.6	%		26.3	%		37.5	%		21.1	%
Policyholders' dividend ratio		0.9	%		0.1	%		0.5	%		0.6	%		0.6	%
Combined ratio		97.0	%		104.2	%		98.9	%		109.4	%		92.9	%
Operating ratio		88.4	%		96.0	%		90.5	%		99.8	%		83.3	%

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 (deficit) of $148.1 million and ($3.0) million for the PMA Pool and PMA Capital Insurance Company, respectively.
5	In May 2006, PMA Capital Insurance Company paid an extraordinary dividend in the amount of $73.5 million to its parent, PMA Capital Corporation.

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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	610.397.5083
New York, NY 10038	e-mail: bhitselberger@pmacapital.com
www.amstock.com
	Investor Relations
Phone Inquiries:	610.397.5298
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 5/2/2007):
	A.M. Best	Moody's
PMA Pool 1	A- (4th of 16)	Baa3 (10th 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.

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