ex99-2.htm

PMA Capital Corporation
Statistical Supplement
Second Quarter - 2007

Table of Contents
		Page
*Consolidated Highlights:*
Selected Financial Data - Second Quarter		1
Selected Financial Data - Year-to-date		2
Consolidated Statements of Operations - Per Share Data		3
Consolidated Statements of Operations - Second Quarter		5
Consolidated Statements of Operations - Year-to-date		6
Consolidated Balance Sheets		7
Invested Assets and Net Investment Income; Debt; Balance Sheet Impact of Commutations - Run-off Operations		8

*Segment Information:*
Statements of Operations - Consolidating - Year-to-date		9 - 10
Statements of Operations - Consolidating - Second Quarter		11- 12
Statements of Operations - PMA Insurance Group		13
Insurance Ratios - PMA Insurance Group		14
Statements of Operations - Run-off Operations		15
Statements of Operations - Corporate & Other		16

*Operating Cash Flow Information:*
Operating Cash Flows - Consolidated		17
Operating Cash Flows - PMA Insurance Group		18
Operating Cash Flows - Run-off Operations		19

*Statutory Financial Information:*
Statutory Surplus; Statutory Financial Information - PMA Pool		20

*Other Information:*
Industry Ratings and Market Information		21

*Legend:*
NM - Not Meaningful


	Note: Operating income (loss), which we define as GAAP net income (loss) excluding net realized investment gains
	and losses, is the financial performance measure used by our management and Board of Directors to evaluate and
	assess the results of our business segments because (i) net realized investment gains and losses are unpredictable and
	not necessarily indicative of current operating fundamentals or future performance of the business segments and (ii) in
	many instances, decisions to buy and sell securities are made at the holding company level, and such decisions result
	in net realized gains and losses that do not relate to the operations of the individual segments. Operating income (loss)
	does not replace net income (loss) as the GAAP measure of our consolidated results of operations. See pages 1 and 2 for
	reconciliations of operating results by segment to GAAP net income (loss).

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)

	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2006			2006			2006			2007			2007			Quarter

Gross Premiums Written by Segment:
PMA Insurance Group	$	99,328		$	133,903		$	89,484		$	164,720		$	115,418			16.2	%
Run-off Operations		960			526			102			1,507			1,994		NM
Corporate & Other		(213	)		(158	)		(157	)		(156	)		(160	)		24.9	%
Gross premiums written	$	100,075		$	134,271		$	89,429		$	166,071		$	117,252			17.2	%

Net Premiums Written by Segment:
PMA Insurance Group	$	85,639		$	107,795		$	66,873		$	125,893		$	81,816			-4.5	%
Run-off Operations		527			701			309			1,495			1,994		NM
Corporate & Other		(213	)		(158	)		(157	)		(156	)		(160	)		24.9	%
Net premiums written	$	85,953		$	108,338		$	67,025		$	127,232		$	83,650			-2.7	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	6,671		$	8,351		$	5,721		$	11,723		$	8,400			25.9	%
Run-off Operations		428			174			485			(738	)		(707	)	NM
Corporate & Other		(6,128	)		(5,016	)		(5,282	)		(5,309	)		(5,129	)		16.3	%
Pre-tax operating income		971			3,509			924			5,676			2,564		NM
Net realized investment losses		(1,978	)		(799	)		(26	)		(430	)		(1,754	)		11.3	%
Pre-tax income (loss)		(1,007	)		2,710			898			5,246			810		NM
Income tax expense (benefit)		(245	)		1,209			67			1,900			319		NM
Net income (loss)	$	(762	)	$	1,501		$	831		$	3,346		$	491		NM
After-tax operating income	$	524		$	2,020		$	848		$	3,626		$	1,631		NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	(0.02	)	$	0.05		$	0.03		$	0.10		$	0.01		NM
Less the impact of:
Realized losses after tax		(0.04	)		(0.01	)		-			(0.01	)		(0.04	)		0.0	%
After-tax operating income	$	0.02		$	0.06		$	0.03		$	0.11		$	0.05		NM

Capitalization:
Debt	$	148,303		$	131,561		$	131,211		$	130,822		$	144,629			-2.5	%
Shareholders' equity excluding FAS 115 unrealized loss		417,064			418,372			425,132			424,894			420,150			0.7	%
Total capitalization excluding FAS 115 unrealized loss		565,367			549,933			556,343			555,716			564,779			-0.1	%
FAS 115 unrealized loss		(18,733	)		(6,169	)		(6,039	)		(1,084	)		(9,179	)		51.0	%
Total capitalization including FAS 115 unrealized loss	$	546,634		$	543,764		$	550,304		$	554,632		$	555,600			1.6	%

Book Value Per Share:
Excluding FAS 115 unrealized loss	$	12.79		$	12.82		$	13.02		$	13.02		$	13.06			2.1	%
Including FAS 115 unrealized loss	$	12.21		$	12.63		$	12.83		$	12.99		$	12.78			4.7	%

Debt to Total Capital:
Excluding FAS 115 unrealized loss		26.2	%		23.9	%		23.6	%		23.5	%		25.6	%		-2.3	%
Including FAS 115 unrealized loss		27.1	%		24.2	%		23.8	%		23.6	%		26.0	%		-4.1	%

Interest Coverage:
Income before interest and income taxes
to interest expense		0.73			1.89			1.32			2.86			1.28			75.3	%

Operating income before interest and income taxes to interest expense		1.26			2.15			1.33			3.02			1.90			50.8	%

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)

	Six			Six			% Change
	Months			Months			Six
	2007			2006			Months

Gross Premiums Written by Segment:
PMA Insurance Group	$	280,138		$	233,065			20.2	%
Run-off Operations		3,501			1,358		NM
Corporate & Other		(316	)		(381	)		17.1	%
Gross premiums written	$	283,323		$	234,042			21.1	%

Net Premiums Written by Segment:
PMA Insurance Group	$	207,709		$	199,029			4.4	%
Run-off Operations		3,489			1,133		NM
Corporate & Other		(316	)		(381	)		17.1	%
Net premiums written	$	210,882		$	199,781			5.6	%

Major Components of Net Income:
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	20,123		$	14,812			35.9	%
Run-off Operations		(1,445	)		589		NM
Corporate & Other		(10,438	)		(12,267	)		14.9	%
Pre-tax operating income		8,240			3,134		NM
Net realized investment losses		(2,184	)		(160	)	NM
Pre-tax income		6,056			2,974		NM
Income tax expense		2,219			1,255			76.8	%
Net income	$	3,837		$	1,719		NM
After-tax operating income	$	5,257		$	1,823		NM

Diluted Earnings Per Share:
Net income	$	0.12		$	0.05		NM
Less the impact of:
Realized losses after tax		(0.04	)		(0.01	)	NM
After-tax operating income	$	0.16		$	0.06		NM

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

	2nd			3rd		4th		1st		2nd		Six		Six
	Quarter			Quarter		Quarter		Quarter		Quarter		Months		Months
	2006			2006		2006		2007		2007		2007		2006

Diluted Earnings (Loss) Per Share:

Net income (loss)	$	(0.02	)	$	0.05	$	0.03	$	0.10	$	0.01	$	0.12	$	0.05

Pre-tax operating income	$	0.03		$	0.11	$	0.03	$	0.17	$	0.08	$	0.25	$	0.10

After-tax operating income	$	0.02		$	0.06	$	0.03	$	0.11	$	0.05	$	0.16	$	0.06

Diluted weighted average common
shares outstanding		32,132,618			32,922,643		32,916,423		32,900,397		32,838,046		32,872,801		32,540,905


Dividends declared:
Class A Common Stock	$	-		$	-	$	-	$	-	$	-	$	-	$	-

Actual common shares
issued and outstanding		32,613,234			32,646,689		32,659,194		32,630,669		32,163,072		32,163,072		32,613,234


Class A Common Stock prices:
High	$	10.49		$	10.75	$	10.15	$	9.77	$	11.40	$	11.40	$	10.49
Low	$	9.24		$	8.60	$	8.60	$	8.40	$	9.12	$	8.40	$	8.68
Close	$	10.30		$	8.82	$	9.22	$	9.39	$	10.69	$	10.69	$	10.30

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2006			2006			2006			2007			2007			Quarter

Gross Premiums Written	$	100,075		$	134,271		$	89,429		$	166,071		$	117,252			17.2	%

Net Premiums Written	$	85,953		$	108,338		$	67,025		$	127,232		$	83,650			-2.7	%

Revenues:
Net premiums earned	$	94,922		$	95,284		$	88,316		$	95,032		$	97,531			2.7	%
Net investment income		11,058			10,747			10,333			10,525			11,125			0.6	%
Net realized investment losses		(1,978	)		(799	)		(26	)		(430	)		(1,754	)		11.3	%
Other revenues		7,286			6,624			7,107			7,787			7,614			4.5	%
Total revenues		111,288			111,856			105,730			112,914			114,516			2.9	%

Expenses:
Losses and loss adjustment expenses		66,379			66,754			60,695			67,026			68,150			2.7	%
Acquisition expenses		19,552			19,811			17,825			19,138			19,013			-2.8	%
Operating expenses		21,580			18,953			22,966			17,066			21,653			0.3	%
Dividends to policyholders		1,011			589			510			1,622			2,047		NM
Interest expense		3,773			3,039			2,836			2,816			2,843			-24.6	%
Total losses and expenses		112,295			109,146			104,832			107,668			113,706			1.3	%

Pre-tax income (loss)		(1,007	)		2,710			898			5,246			810		NM

Income tax expense (benefit):
Current		-			-			-			-			200		NM
Deferred		(245	)		1,209			67			1,900			119		NM

Total income tax expense (benefit)		(245	)		1,209			67			1,900			319		NM

Net income (loss)	$	(762	)	$	1,501		$	831		$	3,346		$	491		NM

Pre-tax operating income	$	971		$	3,509		$	924		$	5,676		$	2,564		NM

After-tax operating income	$	524		$	2,020		$	848		$	3,626		$	1,631		NM

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)

	Six			Six			% Change
	Months			Months			Six
	2007			2006			Months

Gross Premiums Written	$	283,323		$	234,042			21.1	%

Net Premiums Written	$	210,882		$	199,781			5.6	%

Revenues:
Net premiums earned	$	192,563		$	186,581			3.2	%
Net investment income		21,650			22,458			-3.6	%
Net realized investment losses		(2,184	)		(160	)	NM
Other revenues		15,401			14,390			7.0	%
Total revenues		227,430			223,269			1.9	%

Expenses:
Losses and loss adjustment expenses		135,176			131,772			2.6	%
Acquisition expenses		38,151			36,877			3.5	%
Operating expenses		38,719			41,567			-6.9	%
Dividends to policyholders		3,669			2,433			50.8	%
Interest expense		5,659			7,646			-26.0	%
Total losses and expenses		221,374			220,295			0.5	%

Pre-tax income		6,056			2,974		NM

Income tax expense:
Current		200			-		NM
Deferred		2,019			1,255			60.9	%

Total income tax expense		2,219			1,255			76.8	%

Net income	$	3,837		$	1,719		NM

Pre-tax operating income	$	8,240		$	3,134		NM

After-tax operating income	$	5,257		$	1,823		NM

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)


	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2006			2006			2007			2007

Assets:
Investments in fixed maturities available for sale	$	913,376		$	904,074		$	871,951		$	735,048		$	733,083
Investments in fixed maturities trading		-			-			-			122,669			84,714
Short-term investments		70,994			59,227			86,448			93,385			100,788
Short-term investments, loaned securities collateral		4,771			-			-			-			-
Total investments		989,141			963,301			958,399			951,102			918,585

Cash		26,004			30,387			14,105			9,924			8,494
Accrued investment income		9,312			10,993			9,351			5,407			5,469
Premiums receivable		205,825			218,126			207,771			257,445			253,215
Reinsurance receivables		1,071,332			1,069,153			1,039,979			1,042,478			1,051,269
Prepaid reinsurance premiums		4,851			20,618			26,730			41,410			42,435
Deferred income taxes, net		110,452			102,986			100,019			97,565			101,696
Deferred acquisition costs		37,336			40,384			36,239			41,726			37,889
Funds held by reinsureds		151,873			133,222			130,214			132,926			102,519
Other assets		166,862			164,286			143,600			148,022			157,416
Total assets	$	2,772,988		$	2,753,456		$	2,666,407		$	2,728,005		$	2,678,987

Liabilities:
Unpaid losses and loss adjustment expenses	$	1,727,369		$	1,690,483		$	1,634,865		$	1,620,952		$	1,563,324
Unearned premiums		189,140			217,506			202,973			249,689			235,356
Debt		148,303			131,561			131,211			130,822			144,629
Accounts payable, accrued expenses
and other liabilities		215,918			208,854			191,540			195,228			214,240
Reinsurance funds held and balances payable		84,398			88,105			82,275			103,021			106,288
Dividends to policyholders		4,725			4,744			4,450			4,483			4,179
Payable under securities loan agreements		4,804			-			-			-			-
Total liabilities		2,374,657			2,341,253			2,247,314			2,304,195			2,268,016

Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		110,552			111,116			109,922			110,527			110,318
Retained earnings		180,626			181,719			184,216			183,611			183,019
Accumulated other comprehensive loss		(37,630	)		(26,010	)		(20,624	)		(15,675	)		(23,569	)
Treasury stock, at cost		(26,307	)		(25,712	)		(25,511	)		(25,743	)		(29,887	)
Total shareholders' equity		398,331			412,203			419,093			423,810			410,971
Total liabilities and shareholders' equity	$	2,772,988		$	2,753,456		$	2,666,407		$	2,728,005		$	2,678,987

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2006			2006			2006			2007			2007			2007			2006

Total Investments & Cash
As reported	$	1,015,145		$	993,688		$	972,504		$	961,026		$	927,079		$	927,079		$	1,015,145
Less:
Securities lending activity		4,804			-			-			-			-			-			4,804
Unrealized loss		(28,820	)		(9,490	)		(9,291	)		(1,668	)		(14,121	)		(14,121	)		(28,820	)
Unrealized loss and accrued income - trading		-			-			-			(5,858	)		(5,282	)		(5,282	)		-
Total adjusted investments & cash	$	1,039,161		$	1,003,178		$	981,795		$	968,552		$	946,482		$	946,482		$	1,039,161

Net Investment Income
As reported	$	11,058		$	10,747		$	10,333		$	10,525		$	11,125		$	21,650		$	22,458
Funds held:
Assumed		537			185			160			246			212			458			872
Ceded		(1,643	)		(1,482	)		(1,374	)		(1,560	)		(931	)		(2,491	)		(3,162	)
Total funds held		(1,106	)		(1,297	)		(1,214	)		(1,314	)		(719	)		(2,033	)		(2,290	)

Total adjusted investment income	$	12,164		$	12,044		$	11,547		$	11,839		$	11,844		$	23,683		$	24,748

Yield
As reported		4.22	%		4.28	%		4.20	%		4.35	%		4.71	%		4.54	%		4.17	%
Investment portfolio		4.56	%		4.72	%		4.65	%		4.86	%		4.95	%		4.91	%		4.53	%

Duration (in years)		3.5			3.4			3.3			3.3			3.7			3.7			3.5

PMA Capital Corporation
Debt
(Dollar Amounts in Thousands)

	Amount
	Outstanding			Maturity
6.50% convertible debt	$	12,693			2022	¹
Derivative component of 6.50% convertible debt		2,356
4.25% convertible debt		455			2022	²
8.50% senior notes		54,900		2018
Junior subordinated debt³		64,435			2033 - 2037
Surplus notes ⁴		10,000		2035
Unamortized debt discount		(210	)
Total long-term debt	$	144,629

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.

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.

Weighted average interest rate on junior subordinated debt is 9.30% as of June 30, 2007.

⁴

Interest rate on surplus notes is 9.86% as of June 30, 2007.

PMA Capital Corporation
Statements of Operations - Consolidating
Six Months Ended June 30, 2007
(Dollar Amounts in Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	280,138	$	(316	)	$	3,501		$	283,323

Net Premiums Written	$	207,709	$	(316	)	$	3,489		$	210,882

Revenues:
Net premiums earned	$	191,169	$	(316	)	$	1,710		$	192,563
Net investment income		19,415		(222	)		2,457			21,650
Other revenues		15,262		139			-			15,401
Operating revenues		225,846		(399	)		4,167			229,614

Losses and Expenses:
Losses and loss adjustment expenses		133,884		-			1,292			135,176
Acquisition expenses		37,538		-			613			38,151
Operating expenses		30,132		4,880			3,707			38,719
Dividends to policyholders		3,669		-			-			3,669
Total losses and expenses		205,223		4,880			5,612			215,715

Operating income (loss) before income taxes
and interest expense		20,623		(5,279	)		(1,445	)		13,899

Interest expense		500		5,159			-			5,659

Pre-tax operating income (loss)	$	20,123	$	(10,438	)	$	(1,445	)		8,240

Net realized investment losses										(2,184	)

Pre-tax income									$	6,056


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

PMA Capital Corporation
Statements of Operations - Consolidating
Six Months Ended June 30, 2006
(Dollar Amounts 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


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

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended June 30, 2007
(Dollar Amounts in Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	115,418	$	(160	)	$	1,994		$	117,252

Net Premiums Written	$	81,816	$	(160	)	$	1,994		$	83,650

Revenues:
Net premiums earned	$	97,174	$	(160	)	$	517		$	97,531
Net investment income		9,711		(43	)		1,457			11,125
Other revenues		7,582		32			-			7,614
Operating revenues		114,467		(171	)		1,974			116,270

Losses and Expenses:
Losses and loss adjustment expenses		67,965		-			185			68,150
Acquisition expenses		18,759		-			254			19,013
Operating expenses		17,045		2,366			2,242			21,653
Dividends to policyholders		2,047		-			-			2,047
Total losses and expenses		105,816		2,366			2,681			110,863

Operating income (loss) before income taxes
and interest expense		8,651		(2,537	)		(707	)		5,407

Interest expense		251		2,592			-			2,843

Pre-tax operating income (loss)	$	8,400	$	(5,129	)	$	(707	)		2,564

Net realized investment losses										(1,754	)

Pre-tax income									$	810


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

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended June 30, 2006
(Dollar Amounts 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	)


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

PMA Capital Corporation
Statements of Operations - PMA Insurance Group
(Dollar Amounts in Thousands)

	2nd Quarter 2006		3rd Quarter 2006		4th Quarter 2006		1st Quarter 2007		2nd Quarter 2007		Six Months 2007		Six Months 2006		% Change 2nd Quarter			% Change Six Months

Gross Premiums Written	$	99,328	$	133,903	$	89,484	$	164,720	$	115,418	$	280,138	$	233,065		16.2	%		20.2	%

Net Premiums Written	$	85,639	$	107,795	$	66,873	$	125,893	$	81,816	$	207,709	$	199,029		-4.5	%		4.4	%

Revenues:
Net premiums earned	$	94,803	$	94,696	$	87,379	$	93,995	$	97,174	$	191,169	$	186,024		2.5	%		2.8	%
Net investment income		8,753		8,998		9,190		9,704		9,711		19,415		17,312		10.9	%		12.1	%
Other revenues		7,165		6,573		7,065		7,680		7,582		15,262		14,239		5.8	%		7.2	%
Total revenues		110,721		110,267		103,634		111,379		114,467		225,846		217,575		3.4	%		3.8	%

Losses and Expenses:
Losses and loss adjustment expenses		67,682		68,255		61,841		65,919		67,965		133,884		132,201		0.4	%		1.3	%
Acquisition expenses		18,923		19,098		17,486		18,779		18,759		37,538		37,142		-0.9	%		1.1	%
Operating expenses		16,193		13,720		17,821		13,087		17,045		30,132		30,518		5.3	%		-1.3	%
Dividends to policyholders		1,011		589		510		1,622		2,047		3,669		2,433	NM				50.8	%
Total losses and expenses		103,809		101,662		97,658		99,407		105,816		205,223		202,294		1.9	%		1.4	%

Operating income before income taxes
and interest expense		6,912		8,605		5,976		11,972		8,651		20,623		15,281		25.2	%		35.0	%

Interest expense		241		254		255		249		251		500		469		4.1	%		6.6	%

Pre-tax operating income	$	6,671	$	8,351	$	5,721	$	11,723	$	8,400	$	20,123	$	14,812		25.9	%		35.9	%

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group

	2nd Quarter 2006			3rd Quarter 2006			4th Quarter 2006			1st Quarter 2007			2nd Quarter 2007			Six Months 2007			Six Months 2006			Point Chg. 2nd Quarter Better (Worse)			Point Chg. Six Months Better (Worse)

Ratios - GAAP Basis:


Loss and LAE ratio		71.4	%		72.1	%		70.8	%		70.1	%		69.9	%		70.0	%		71.1	%		1.5			1.1

Expense ratio:
Acquisition expenses		20.0	%		20.2	%		20.0	%		20.0	%		19.3	%		19.6	%		20.0	%		0.7			0.4
Operating expenses¹		10.0	%²		8.1	%²		12.9	%²		6.4	%		10.3	%		8.4	%		9.3	%²		(0.3	)		0.9
Total expense ratio		30.0	%		28.3	%		32.9	%		26.4	%		29.6	%		28.0	%		29.3	%		0.4			1.3

Policyholders' dividend ratio		1.1	%		0.6	%		0.6	%		1.7	%		2.1	%		1.9	%		1.3	%		(1.0	)		(0.6	)
Combined ratio		102.5	%²		101.0	%²		104.3	%²		98.2	%		101.6	%		99.9	%		101.7	%²		0.9			1.8

Net investment income ratio		-9.2	%		-9.5	%		-10.5	%		-10.3	%		-10.0	%		-10.2	%		-9.3	%		0.8			0.9
Operating ratio		93.3	%		91.5	%		93.8	%		87.9	%		91.6	%		89.7	%		92.4	%		1.7			2.7

¹ The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $9.5 million, $7.7 million, $11.3 million, $6.0 million and $9.9 million for the second, third and fourth quarters of 2006 and the first and second quarters 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.

PMA Capital Corporation
Statements of Operations - Run-off Operations
(Dollar Amounts in Thousands)

	2nd Quarter 2006			3rd Quarter 2006			4th Quarter 2006			1st Quarter 2007			2nd Quarter 2007			Six Months 2007			Six Months 2006			% Change 2nd Quarter			% Change Six Months

Gross Premiums Written	$	960		$	526		$	102		$	1,507		$	1,994		$	3,501		$	1,358		NM			NM

Net Premiums Written	$	527		$	701		$	309		$	1,495		$	1,994		$	3,489		$	1,133		NM			NM

Revenues:
Net premiums earned	$	332		$	746		$	1,094		$	1,193		$	517		$	1,710		$	938			55.7	%		82.3	%
Net investment income		2,408			1,695			1,392			1,000			1,457			2,457			5,609			-39.5	%		-56.2	%
Total revenues		2,740			2,441			2,486			2,193			1,974			4,167			6,547			-28.0	%		-36.4	%

Losses and Expenses:
Losses and loss adjustment expenses		(1,303	)		(1,501	)		(1,146	)		1,107			185			1,292			(429	)	NM			NM
Acquisition expenses		629			713			339			359			254			613			(265	)		-59.6	%	NM
Operating expenses		2,986			3,055			2,808			1,465			2,242			3,707			6,652			-24.9	%		-44.3	%
Total losses and expenses		2,312			2,267			2,001			2,931			2,681			5,612			5,958			16.0	%		-5.8	%

Pre-tax operating income (loss)	$	428		$	174		$	485		$	(738	)	$	(707	)	$	(1,445	)	$	589		NM			NM

PMA Capital Corporation
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
	2006			2006			2006			2007			2007			2007			2006			Quarter			Months

Gross Premiums Written	$	(213	)	$	(158	)	$	(157	)	$	(156	)	$	(160	)	$	(316	)	$	(381	)		24.9	%		17.1	%

Net Premiums Written	$	(213	)	$	(158	)	$	(157	)	$	(156	)	$	(160	)	$	(316	)	$	(381	)		24.9	%		17.1	%

Revenues:
Net premiums earned	$	(213	)	$	(158	)	$	(157	)	$	(156	)	$	(160	)	$	(316	)	$	(381	)		24.9	%		17.1	%
Net investment income		(103	)		54			(249	)		(179	)		(43	)		(222	)		(463	)		58.3	%		52.1	%
Other revenues		121			51			42			107			32			139			151			-73.6	%		-7.9	%
Total revenues		(195	)		(53	)		(364	)		(228	)		(171	)		(399	)		(693	)		12.3	%		42.4	%

Losses and Expenses:
Operating expenses		2,401			2,178			2,337			2,514			2,366			4,880			4,397			-1.5	%		11.0	%
Total losses and expenses		2,401			2,178			2,337			2,514			2,366			4,880			4,397			-1.5	%		11.0	%

Operating loss before income taxes
and interest expense		(2,596	)		(2,231	)		(2,701	)		(2,742	)		(2,537	)		(5,279	)		(5,090	)		2.3	%		-3.7	%

Interest expense		3,532			2,785			2,581			2,567			2,592			5,159			7,177			-26.6	%		-28.1	%

Pre-tax operating loss	$	(6,128	)	$	(5,016	)	$	(5,282	)	$	(5,309	)	$	(5,129	)	$	(10,438	)	$	(12,267	)		16.3	%		14.9	%

PMA Capital Corporation
Operating Cash Flows - Consolidated
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2006			2006			2006			2007			2007			2007			2006

Receipts:
Premiums and other revenues collected	$	96,652		$	108,027		$	93,253		$	102,505		$	96,874		$	199,379		$	201,643
Investment income received		14,890			11,795			13,730			13,251			12,472			25,723			30,258
Total receipts		111,542			119,822			106,983			115,756			109,346			225,102			231,901

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		17,337			17,034			22,696			4,605			15,005			19,610			20,833
Losses and LAE paid - prior years		92,004			65,455			90,825			85,995			90,855			176,850			184,601
Total losses and LAE paid		109,341			82,489			113,521			90,600			105,860			196,460			205,434
Insurance operating expenses paid		39,618			26,899			30,327			38,826			31,657			70,483			85,821
Policyholders' dividends paid		397			451			812			499			1,878			2,377			643
Interest on corporate debt		2,965			3,470			2,461			3,082			2,446			5,528			7,756
Total disbursements		152,321			113,309			147,121			133,007			141,841			274,848			299,654

Net other		7,406			(9,204	)		19,380			1,024			(2,788	)		(1,764	)		(4,962	)

Net operating cash flows	$	(33,373	)	$	(2,691	)	$	(20,758	)	$	(16,227	)	$	(35,283	)	$	(51,510	)	$	(72,715	)

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(Dollar Amounts in Thousands)

	2nd			3rd			4th		1st			2nd			Six			Six
	Quarter			Quarter			Quarter		Quarter			Quarter			Months			Months
	2006			2006			2006		2007			2007			2007			2006

Receipts:
Premiums and other revenues collected	$	94,320		$	107,102		$	92,720	$	99,923		$	94,993		$	194,916		$	194,060
Investment income received		10,598			8,831			10,564		10,504			10,605			21,109			21,077
Total receipts		104,918			115,933			103,284		110,427			105,598			216,025			215,137

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		17,337			17,034			22,696		4,605			15,005			19,610			20,833
Losses and LAE paid - prior years		57,537			45,463			44,787		62,815			51,295			114,110			122,650
Total losses and LAE paid		74,874			62,497			67,483		67,420			66,300			133,720			143,483
Insurance operating expenses paid		35,129			24,446			26,521		35,766			30,727			66,493			77,239
Policyholders' dividends paid		397			451			812		499			1,878			2,377			643
Interest on corporate debt		227			246			255		252			244			496			451
Total disbursements		110,627			87,640			95,071		103,937			99,149			203,086			221,816

Net other		1,955			(1,939	)		4,615		(4,189	)		(8,297	)		(12,486	)		(4,421	)

Net operating cash flows	$	(3,754	)	$	26,354		$	12,828	$	2,301		$	(1,848	)	$	453		$	(11,100	)

PMA Capital Corporation
Operating Cash Flows - Run-off Operations
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2006			2006			2006			2007			2007			2007			2006

Receipts:
Premiums collected	$	2,332		$	925		$	533		$	2,582		$	1,881		$	4,463		$	7,583
Investment income received		4,292			2,964			3,166			2,747			1,867			4,614			9,181
Total receipts		6,624			3,889			3,699			5,329			3,748			9,077			16,764

Disbursements:
Losses and LAE paid:
Losses and LAE paid - prior years		34,467			19,992			46,038			23,180			39,560			62,740			61,951
Total losses and LAE paid		34,467			19,992			46,038			23,180			39,560			62,740			61,951
Insurance operating expenses paid		4,489			2,453			3,806			3,060			930			3,990			8,582
Total disbursements		38,956			22,445			49,844			26,240			40,490			66,730			70,533

Net other		1,775			(5,500	)		8,071			(1,382	)		1,210			(172	)		2,858

Net operating cash flows	$	(30,557	)	$	(24,056	)	$	(38,074	)	$	(22,293	)	$	(35,532	)	$	(57,825	)	$	(50,911	)

PMA Capital Corporation
Statutory Financial Information - PMA Pool ²
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2006			2006			2006			2007			2007¹			2007¹			2006

Net Premiums Written:
Workers' Compensation	$	76,602		$	95,437		$	58,731		$	113,732		$	75,976		$	189,708		$	176,698
Other Commercial Lines		6,687			6,067			4,637			10,258			7,359			17,617			17,735
Total - PMA Pool	$	83,289		$	101,504		$	63,368		$	123,990		$	83,335		$	207,325		$	194,433

Statutory Ratios:
Loss and LAE ratio		72.5	%		72.1	%		71.3	%		71.2	%		70.3	%		70.8	%		72.0	%
Underwriting expense ratio		31.6	%		26.3	%		37.5	%		21.1	%		30.2	%		24.8	%		27.6	%
Policyholders' dividend ratio		0.1	%		0.5	%		0.6	%		0.6	%		1.7	%		1.1	%		0.5	%
Combined ratio		104.2	%		98.9	%		109.4	%		92.9	%		102.2	%		96.7	%		100.1	%
Operating ratio		96.0	%		90.5	%		99.8	%		83.3	%		92.4	%		87.0	%		91.7	%

Estimated.

The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company.

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 $153.8 million and ($7.0) million for the PMA Pool and PMA Capital Insurance Company, respectively.

⁵

In April 2007, PMA Capital Insurance Company paid an extraordinary dividend in the amount of $37.5 million to its parent, PMA Capital Corporation.

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 8/1/2007):

	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.

PMA Capital Corporation
Balance Sheet Impact of Commutations - Run-off Operations
(Dollar Amounts in Thousands)

	2nd Quarter and Six Months 2007
Assets	Assumed			Ceded		Total
Funds held by reinsureds	$	(32,813	)	$	-	$	(32,813	)

Liabilities	Assumed			Ceded		Total
Unpaid loss and loss adjustment expenses	$	(28,243	)	$	-	$	(28,243	)
Other liabilities		(7,586	)		-		(7,586	)

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)

	2nd		3rd		4th		1st		2nd
	Quarter		Quarter		Quarter		Quarter		Quarter
	2006		2006		2006		2007		2007¹


PMA Pool ²	$	321,114	$	325,242	$	321,245	$	327,379	$	333,118	⁴
PMA Capital Insurance Company ³		125,989		123,428		121,566		117,098		75,585	^4,5