ex99-2.htm

PMA Capital Corporation
Statistical Supplement
Third Quarter - 2007

Table of Contents
		Page
*Consolidated Highlights:*
Selected Financial Data - Third Quarter			1
Selected Financial Data - Year-to-date			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Third Quarter			5
Consolidated Statements of Operations - Year-to-date			6
Consolidated Balance Sheets			7
Selected Balance Sheet Items - Midwest; Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group;
Balance Sheet Impact of Commutations - Run-off Operations			8
Invested Assets and Net Investment Income; Debt			9

*Segment Information:*
Statements of Operations - Consolidating - Year-to-date		10 - 11
Statements of Operations - Consolidating - Third Quarter		12 - 13
Statements of Operations - PMA Insurance Group			14
Insurance Ratios - PMA Insurance Group			15
Statements of Operations - Run-off Operations			16
Statements of Operations - Corporate & Other			17

*Operating Cash Flow Information:*
Operating Cash Flows - Consolidated			18
Operating Cash Flows - PMA Insurance Group			19
Operating Cash Flows - Run-off Operations			20

*Statutory Financial Information:*
Statutory Surplus; Statutory Financial Information - PMA Pool			21

*Other Information:*
Industry Ratings and Market Information			22

*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)

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

Gross Premiums Written by Segment:
PMA Insurance Group	$	133,903		$	89,484		$	164,720		$	115,418		$	149,591			11.7	%
Run-off Operations		526			102			1,507			1,994			1,603		NM
Corporate & Other		(158	)		(157	)		(156	)		(160	)		(155	)		1.9	%
Gross premiums written	$	134,271		$	89,429		$	166,071		$	117,252		$	151,039			12.5	%

Net Premiums Written by Segment:
PMA Insurance Group	$	107,795		$	66,873		$	125,893		$	81,816		$	116,271			7.9	%
Run-off Operations		701			309			1,495			1,994			1,216			73.5	%
Corporate & Other		(158	)		(157	)		(156	)		(160	)		(155	)		1.9	%
Net premiums written	$	108,338		$	67,025		$	127,232		$	83,650		$	117,332			8.3	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	8,351		$	5,721		$	11,723		$	8,400		$	12,363			48.0	%
Run-off Operations		174			485			(738	)		(707	)		(22,016	)	NM
Corporate & Other		(5,016	)		(5,282	)		(5,309	)		(5,129	)		(4,850	)		3.3	%
Pre-tax operating income (loss)		3,509			924			5,676			2,564			(14,503	)	NM
Net realized investment gains (losses)		(799	)		(26	)		(430	)		(1,754	)		937		NM
Pre-tax income (loss)		2,710			898			5,246			810			(13,566	)	NM
Income tax expense (benefit)		1,209			67			1,900			319			(4,763	)	NM
Net income (loss)	$	1,501		$	831		$	3,346		$	491		$	(8,803	)	NM
After-tax operating income (loss)	$	2,020		$	848		$	3,626		$	1,631		$	(9,412	)	NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	0.05		$	0.03		$	0.10		$	0.01		$	(0.28	)	NM
Less the impact of:
Realized gains (losses) after tax		(0.01	)		-			(0.01	)		(0.04	)		0.01		NM
After-tax operating income (loss)	$	0.06		$	0.03		$	0.11		$	0.05		$	(0.29	)	NM

Capitalization:
Debt	$	131,561		$	131,211		$	130,822		$	144,629		$	135,072			2.7	%
Shareholders' equity excluding FAS 115 unrealized loss		418,372			425,132			424,894			420,150			409,263			-2.2	%
Total capitalization excluding FAS 115 unrealized loss		549,933			556,343			555,716			564,779			544,335			-1.0	%
FAS 115 unrealized loss		(6,169	)		(6,039	)		(1,084	)		(9,179	)		(2,138	)		65.3	%
Total capitalization including FAS 115 unrealized loss	$	543,764		$	550,304		$	554,632		$	555,600		$	542,197			-0.3	%

Book Value Per Share:
Excluding FAS 115 unrealized loss	$	12.82		$	13.02		$	13.02		$	13.06		$	12.82			0.0	%
Including FAS 115 unrealized loss	$	12.63		$	12.83		$	12.99		$	12.78		$	12.75			1.0	%

Debt to Total Capital:
Excluding FAS 115 unrealized loss		23.9	%		23.6	%		23.5	%		25.6	%		24.8	%		3.8	%
Including FAS 115 unrealized loss		24.2	%		23.8	%		23.6	%		26.0	%		24.9	%		2.9	%

Interest Coverage:
Income before interest and income taxes
to interest expense		1.89			1.32			2.86			1.28		NM			NM

Operating income before interest and income taxes
to interest expense		2.15			1.33			3.02			1.90		NM			NM

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

	Nine			Nine			% Change
	Months			Months			Nine
	2007			2006			Months

Gross Premiums Written by Segment:
PMA Insurance Group	$	429,729		$	366,968			17.1	%
Run-off Operations		5,104			1,884		NM
Corporate & Other		(471	)		(539	)		12.6	%
Gross premiums written	$	434,362		$	368,313			17.9	%

Net Premiums Written by Segment:
PMA Insurance Group	$	323,980		$	306,824			5.6	%
Run-off Operations		4,705			1,834		NM
Corporate & Other		(471	)		(539	)		12.6	%
Net premiums written	$	328,214		$	308,119			6.5	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	32,486		$	23,163			40.2	%
Run-off Operations		(23,461	)		763		NM
Corporate & Other		(15,288	)		(17,283	)		11.5	%
Pre-tax operating income (loss)		(6,263	)		6,643		NM
Net realized investment losses		(1,247	)		(959	)		-30.0	%
Pre-tax income (loss)		(7,510	)		5,684		NM
Income tax expense (benefit)		(2,544	)		2,464		NM
Net income (loss)	$	(4,966	)	$	3,220		NM
After-tax operating income (loss)	$	(4,155	)	$	3,843		NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	(0.15	)	$	0.10		NM
Less the impact of:
Realized losses after tax		(0.02	)		(0.02	)		0.0	%
After-tax operating income (loss)	$	(0.13	)	$	0.12		NM

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

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

Diluted Earnings (Loss) Per Share:

Net income (loss)	$	0.05	$	0.03	$	0.10	$	0.01	$	(0.28	)	$	(0.15	)	$	0.10

Pre-tax operating income (loss)	$	0.11	$	0.03	$	0.17	$	0.08	$	(0.45	)	$	(0.19	)	$	0.20

After-tax operating income (loss)	$	0.06	$	0.03	$	0.11	$	0.05	$	(0.29	)	$	(0.13	)	$	0.12

Diluted weighted average common
shares outstanding		32,922,643		32,916,423		32,900,397		32,838,046		32,001,649			32,304,383			32,669,303


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

Actual common shares issued
and outstanding		32,646,689		32,659,194		32,630,669		32,163,072		31,920,486			31,920,486			32,646,689


Class A Common Stock prices:
High	$	10.75	$	10.15	$	9.77	$	11.40	$	11.17		$	11.40		$	10.75
Low	$	8.60	$	8.60	$	8.40	$	9.12	$	8.63		$	8.40		$	8.60
Close	$	8.82	$	9.22	$	9.39	$	10.69	$	9.50		$	9.50		$	8.82

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

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

Gross Premiums Written	$	134,271		$	89,429		$	166,071		$	117,252		$	151,039			12.5	%

Net Premiums Written	$	108,338		$	67,025		$	127,232		$	83,650		$	117,332			8.3	%

Revenues:
Net premiums earned	$	95,284		$	88,316		$	95,032		$	97,531		$	94,878			-0.4	%
Net investment income		10,747			10,333			10,525			11,125			10,670			-0.7	%
Net realized investment gains (losses)		(799	)		(26	)		(430	)		(1,754	)		937		NM
Other revenues		6,624			7,107			7,787			7,614			7,649			15.5	%
Total revenues		111,856			105,730			112,914			114,516			114,134			2.0	%

Expenses:
Losses and loss adjustment expenses		66,754			60,695			67,026			68,150			85,610			28.2	%
Acquisition expenses		19,811			17,825			19,138			19,013			18,221			-8.0	%
Operating expenses		18,953			22,966			17,066			21,653			18,589			-1.9	%
Dividends to policyholders		589			510			1,622			2,047			2,205		NM
Interest expense		3,039			2,836			2,816			2,843			3,075			1.2	%
Total losses and expenses		109,146			104,832			107,668			113,706			127,700			17.0	%

Pre-tax income (loss)		2,710			898			5,246			810			(13,566	)	NM

Income tax expense (benefit):
Current		-			-			-			200			537		NM
Deferred		1,209			67			1,900			119			(5,300	)	NM

Total income tax expense (benefit)		1,209			67			1,900			319			(4,763	)	NM

Net income (loss)	$	1,501		$	831		$	3,346		$	491		$	(8,803	)	NM

Pre-tax operating income (loss)	$	3,509		$	924		$	5,676		$	2,564		$	(14,503	)	NM

After-tax operating income (loss)	$	2,020		$	848		$	3,626		$	1,631		$	(9,412	)	NM

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

	Nine			Nine			% Change
	Months			Months			Nine
	2007			2006			Months

Gross Premiums Written	$	434,362		$	368,313			17.9	%

Net Premiums Written	$	328,214		$	308,119			6.5	%

Revenues:
Net premiums earned	$	287,441		$	281,865			2.0	%
Net investment income		32,320			33,205			-2.7	%
Net realized investment losses		(1,247	)		(959	)		-30.0	%
Other revenues		23,050			21,014			9.7	%
Total revenues		341,564			335,125			1.9	%

Expenses:
Losses and loss adjustment expenses		220,786			198,526			11.2	%
Acquisition expenses		56,372			56,688			-0.6	%
Operating expenses		57,308			60,520			-5.3	%
Dividends to policyholders		5,874			3,022			94.4	%
Interest expense		8,734			10,685			-18.3	%
Total losses and expenses		349,074			329,441			6.0	%

Pre-tax income (loss)		(7,510	)		5,684		NM

Income tax expense (benefit):
Current		737			-		NM
Deferred		(3,281	)		2,464		NM

Total income tax expense (benefit)		(2,544	)		2,464		NM

Net income (loss)	$	(4,966	)	$	3,220		NM

Pre-tax operating income (loss)	$	(6,263	)	$	6,643		NM

After-tax operating income (loss)	$	(4,155	)	$	3,843		NM

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

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

Assets:
Investments in fixed maturities available for sale	$	904,074		$	871,951		$	735,048		$	733,083		$	725,637
Investments in fixed maturities trading		-			-			122,669			84,714			50,412
Short-term investments		59,227			86,448			93,385			100,788			104,692
Total investments		963,301			958,399			951,102			918,585			880,741

Cash		30,387			14,105			9,924			8,494			8,687
Accrued investment income		10,993			9,351			5,407			5,469			5,799
Premiums receivable		218,126			207,771			257,445			253,215			259,920
Reinsurance receivables		1,069,153			1,039,979			1,042,478			1,051,269			1,107,292
Prepaid reinsurance premiums		20,618			26,730			41,410			42,435			42,334
Deferred income taxes, net		102,986			100,019			97,565			101,696			103,284
Deferred acquisition costs		40,384			36,239			41,726			37,889			42,626
Funds held by reinsureds		133,222			130,214			132,926			102,519			104,715
Other assets		164,286			143,600			148,022			157,416			159,032
Total assets	$	2,753,456		$	2,666,407		$	2,728,005		$	2,678,987		$	2,714,430

Liabilities:
Unpaid losses and loss adjustment expenses	$	1,690,483		$	1,634,865		$	1,620,952		$	1,563,324		$	1,586,471
Unearned premiums		217,506			202,973			249,689			235,356			257,598
Debt		131,561			131,211			130,822			144,629			135,072
Accounts payable, accrued expenses
and other liabilities		208,854			191,540			195,228			214,240			225,783
Reinsurance funds held and balances payable		88,105			82,275			103,021			106,288			97,651
Dividends to policyholders		4,744			4,450			4,483			4,179			4,730
Total liabilities		2,341,253			2,247,314			2,304,195			2,268,016			2,307,305

Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		111,116			109,922			110,527			110,318			110,687
Retained earnings		181,719			184,216			183,611			183,019			174,190
Accumulated other comprehensive loss		(26,010	)		(20,624	)		(15,675	)		(23,569	)		(16,673	)
Treasury stock, at cost		(25,712	)		(25,511	)		(25,743	)		(29,887	)		(32,169	)
Total shareholders' equity		412,203			419,093			423,810			410,971			407,125
Total liabilities and shareholders' equity	$	2,753,456		$	2,666,407		$	2,728,005		$	2,678,987		$	2,714,430

PMA Capital Corporation
Selected Balance Sheet Items - Midwest
(Dollar Amounts in Thousands)

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

Assets
Premiums receivable	$	249		$	15,255		$	25,810		$	28,418		$	31,136
Reinsurance receivables		88			1,812			6,200			13,035			21,799
Prepaid reinsurance premiums		1,955			12,105			23,724			27,307			26,188
Deferred acquisition costs		-			-			-			140			231
Other assets		-			60			561			3,108			3,375

Liabilities
Unpaid losses and loss adjustment expenses	$	88		$	1,812		$	6,200		$	13,064		$	21,855
Unearned premiums		1,955			12,105			23,724			27,897			27,338
Reinsurance funds held and balances payable		-			13,513			22,209			23,224			24,652
Other liabilities		237			1,639			3,730			6,890			7,435




PMA Capital Corporation
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group
(Dollar Amounts in Thousands)

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

Balance Sheet
Balance, beginning of period	$	37,336		$	40,384		$	36,239		$	41,726		$	37,889

Policy acquisition costs deferred		22,146			13,341			24,266			14,922			22,919
Amortization of policy acquisition costs		(19,098	)		(17,486	)		(18,779	)		(18,759	)		(18,182	)
Net change		3,048			(4,145	)		5,487			(3,837	)		4,737

Balance, end of period		40,384			36,239			41,726			37,889			42,626



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

	3rd Quarter 2007						Nine Months 2007
Assets	Assumed						Assumed
Funds held by reinsureds	$	-					$	(32,813	)

Liabilities
Unpaid losses and loss adjustment expenses	$	(260	)				$	(28,503	)
Other liabilities		(109	)					(7,695	)

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

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

Total Investments & Cash
As reported	$	993,688		$	972,504		$	961,026		$	927,079		$	889,428		$	889,428		$	993,688
Less:
Unrealized loss		(9,490	)		(9,291	)		(1,668	)		(14,121	)		(3,289	)		(3,289	)		(9,490	)
Unrealized loss and accrued income - trading		-			-			(5,858	)		(5,282	)		(1,007	)		(1,007	)		-
Total adjusted investments & cash	$	1,003,178		$	981,795		$	968,552		$	946,482		$	893,724		$	893,724		$	1,003,178

Net Investment Income
As reported	$	10,747		$	10,333		$	10,525		$	11,125		$	10,670		$	32,320		$	33,205
Funds held:
Assumed		185			160			246			212			251			709			1,057
Ceded		(1,482	)		(1,374	)		(1,560	)		(931	)		(912	)		(3,403	)		(4,644	)
Total funds held		(1,297	)		(1,214	)		(1,314	)		(719	)		(661	)		(2,694	)		(3,587	)

Total adjusted investment income	$	12,044		$	11,547		$	11,839		$	11,844		$	11,331		$	35,014		$	36,792

Yield
As reported		4.28	%		4.20	%		4.35	%		4.71	%		4.70	%		4.60	%		4.19	%
Investment portfolio		4.72	%		4.65	%		4.86	%		4.95	%		4.93	%		4.93	%		4.59	%

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



PMA Capital Corporation
Debt
(Dollar Amounts in Thousands)

				Amount
				Outstanding			Maturity
6.50% convertible debt				$	4,584		2022¹
Derivative component of 6.50% convertible debt					762
4.25% convertible debt					455		2022²
8.50% senior notes					54,900		2018
Junior subordinated debt³					64,435		2033 - 2037
Surplus notes ⁴					10,000		2035
Unamortized debt discount					(64	)
Total long-term debt				$	135,072

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 9.45% as of September 30, 2007.
⁴	Interest rate on surplus notes is 9.86% as of September 30, 2007.

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

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	429,729	$	(471	)	$	5,104		$	434,362

Net Premiums Written	$	323,980	$	(471	)	$	4,705		$	328,214

Revenues:
Net premiums earned	$	285,097	$	(471	)	$	2,815		$	287,441
Net investment income		28,984		(175	)		3,511			32,320
Other revenues		22,878		172			-			23,050
Operating revenues		336,959		(474	)		6,326			342,811

Losses and Expenses:
Losses and loss adjustment expenses		197,047		-			23,739			220,786
Acquisition expenses		55,720		-			652			56,372
Operating expenses		45,078		6,834			5,396			57,308
Dividends to policyholders		5,874		-			-			5,874
Total losses and expenses		303,719		6,834			29,787			340,340

Operating income (loss) before income taxes
and interest expense		33,240		(7,308	)		(23,461	)		2,471

Interest expense		754		7,980			-			8,734

Pre-tax operating income (loss)	$	32,486	$	(15,288	)	$	(23,461	)		(6,263	)

Net realized investment losses										(1,247	)

Pre-tax loss									$	(7,510	)

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2006
(Dollar Amounts in Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	366,968	$	(539	)	$	1,884		$	368,313

Net Premiums Written	$	306,824	$	(539	)	$	1,834		$	308,119

Revenues:
Net premiums earned	$	280,720	$	(539	)	$	1,684		$	281,865
Net investment income		26,310		(409	)		7,304			33,205
Other revenues		20,812		202			-			21,014
Operating revenues		327,842		(746	)		8,988			336,084

Losses and Expenses:
Losses and loss adjustment expenses		200,456		-			(1,930	)		198,526
Acquisition expenses		56,240		-			448			56,688
Operating expenses		44,238		6,575			9,707			60,520
Dividends to policyholders		3,022		-			-			3,022
Total losses and expenses		303,956		6,575			8,225			318,756

Operating income (loss) before income taxes
and interest expense		23,886		(7,321	)		763			17,328

Interest expense		723		9,962			-			10,685

Pre-tax operating income (loss)	$	23,163	$	(17,283	)	$	763			6,643

Net realized investment losses										(959	)

Pre-tax income									$	5,684

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

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	149,591	$	(155	)	$	1,603		$	151,039

Net Premiums Written	$	116,271	$	(155	)	$	1,216		$	117,332

Revenues:
Net premiums earned	$	93,928	$	(155	)	$	1,105		$	94,878
Net investment income		9,569		47			1,054			10,670
Other revenues		7,616		33			-			7,649
Operating revenues		111,113		(75	)		2,159			113,197

Losses and Expenses:
Losses and loss adjustment expenses		63,163		-			22,447			85,610
Acquisition expenses		18,182		-			39			18,221
Operating expenses		14,946		1,954			1,689			18,589
Dividends to policyholders		2,205		-			-			2,205
Total losses and expenses		98,496		1,954			24,175			124,625

Operating income (loss) before income taxes
and interest expense		12,617		(2,029	)		(22,016	)		(11,428	)

Interest expense		254		2,821			-			3,075

Pre-tax operating income (loss)	$	12,363	$	(4,850	)	$	(22,016	)		(14,503	)

Net realized investment gains										937

Pre-tax loss									$	(13,566	)

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

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	133,903	$	(158	)	$	526		$	134,271

Net Premiums Written	$	107,795	$	(158	)	$	701		$	108,338

Revenues:
Net premiums earned	$	94,696	$	(158	)	$	746		$	95,284
Net investment income		8,998		54			1,695			10,747
Other revenues		6,573		51			-			6,624
Operating revenues		110,267		(53	)		2,441			112,655

Losses and Expenses:
Losses and loss adjustment expenses		68,255		-			(1,501	)		66,754
Acquisition expenses		19,098		-			713			19,811
Operating expenses		13,720		2,178			3,055			18,953
Dividends to policyholders		589		-			-			589
Total losses and expenses		101,662		2,178			2,267			106,107

Operating income (loss) before income taxes
and interest expense		8,605		(2,231	)		174			6,548

Interest expense		254		2,785			-			3,039

Pre-tax operating income (loss)	$	8,351	$	(5,016	)	$	174			3,509

Net realized investment losses										(799	)

Pre-tax income									$	2,710

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

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

Gross Premiums Written	$	133,903	$	89,484	$	164,720	$	115,418	$	149,591	$	429,729	$	366,968		11.7	%		17.1	%

Net Premiums Written	$	107,795	$	66,873	$	125,893	$	81,816	$	116,271	$	323,980	$	306,824		7.9	%		5.6	%

Revenues:
Net premiums earned	$	94,696	$	87,379	$	93,995	$	97,174	$	93,928	$	285,097	$	280,720		-0.8	%		1.6	%
Net investment income		8,998		9,190		9,704		9,711		9,569		28,984		26,310		6.3	%		10.2	%
Other revenues		6,573		7,065		7,680		7,582		7,616		22,878		20,812		15.9	%		9.9	%
Total revenues		110,267		103,634		111,379		114,467		111,113		336,959		327,842		0.8	%		2.8	%

Losses and Expenses:
Losses and loss adjustment expenses		68,255		61,841		65,919		67,965		63,163		197,047		200,456		-7.5	%		-1.7	%
Acquisition expenses		19,098		17,486		18,779		18,759		18,182		55,720		56,240		-4.8	%		-0.9	%
Operating expenses		13,720		17,821		13,087		17,045		14,946		45,078		44,238		8.9	%		1.9	%
Dividends to policyholders		589		510		1,622		2,047		2,205		5,874		3,022	NM				94.4	%
Total losses and expenses		101,662		97,658		99,407		105,816		98,496		303,719		303,956		-3.1	%		-0.1	%

Operating income before income taxes
and interest expense		8,605		5,976		11,972		8,651		12,617		33,240		23,886		46.6	%		39.2	%

Interest expense		254		255		249		251		254		754		723		0.0	%		4.3	%

Pre-tax operating income	$	8,351	$	5,721	$	11,723	$	8,400	$	12,363	$	32,486	$	23,163		48.0	%		40.2	%

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group

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

Ratios - GAAP Basis:


Loss and LAE ratio		72.1%		70.8%		70.1%	69.9%	67.2%	69.1%	71.4%		4.9	2.3

Expense ratio:
	Acquisition expenses	20.2%		20.0%		20.0%	19.3%	19.4%	19.5%	20.0%		0.8	0.5
	Operating expenses¹	8.1%	²	12.9%	²	6.4%	10.3%	8.4%	8.3%	8.9%	²	(0.3)	0.6
	Total expense ratio	28.3%		32.9%		26.4%	29.6%	27.8%	27.8%	28.9%		0.5	1.1

Policyholders' dividend ratio		0.6%		0.6%		1.7%	2.1%	2.3%	2.1%	1.1%		(1.7)	(1.0)
Combined ratio		101.0%	²	104.3%	²	98.2%	101.6%	97.3%	99.0%	101.4%	²	3.7	2.4

Net investment income ratio		-9.5%		-10.5%		-10.3%	-10.0%	-10.2%	-10.2%	-9.4%		0.7	0.8
Operating ratio		91.5%		93.8%		87.9%	91.6%	87.1%	88.8%	92.0%		4.4	3.2


¹ The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $7.7 million, $11.3 million, $6.0 million, $9.9 million and $7.8 million for the third and fourth quarters of 2006 and the first, second and third 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)

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

Gross Premiums Written	$	526		$	102		$	1,507		$	1,994		$	1,603		$	5,104		$	1,884		NM			NM

Net Premiums Written	$	701		$	309		$	1,495		$	1,994		$	1,216		$	4,705		$	1,834			73.5	%	NM

Revenues:
Net premiums earned	$	746		$	1,094		$	1,193		$	517		$	1,105		$	2,815		$	1,684			48.1	%		67.2	%
Net investment income		1,695			1,392			1,000			1,457			1,054			3,511			7,304			-37.8	%		-51.9	%
Total revenues		2,441			2,486			2,193			1,974			2,159			6,326			8,988			-11.6	%		-29.6	%

Losses and Expenses:
Losses and loss adjustment expenses		(1,501	)		(1,146	)		1,107			185			22,447			23,739			(1,930	)	NM			NM
Acquisition expenses		713			339			359			254			39			652			448			-94.5	%		45.5	%
Operating expenses		3,055			2,808			1,465			2,242			1,689			5,396			9,707			-44.7	%		-44.4	%
Total losses and expenses		2,267			2,001			2,931			2,681			24,175			29,787			8,225		NM			NM

Pre-tax operating income (loss)	$	174		$	485		$	(738	)	$	(707	)	$	(22,016	)	$	(23,461	)	$	763		NM			NM

PMA Capital Corporation
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)

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

Gross Premiums Written	$	(158	)	$	(157	)	$	(156	)	$	(160	)	$	(155	)	$	(471	)	$	(539	)		1.9	%		12.6	%

Net Premiums Written	$	(158	)	$	(157	)	$	(156	)	$	(160	)	$	(155	)	$	(471	)	$	(539	)		1.9	%		12.6	%

Revenues:
Net premiums earned	$	(158	)	$	(157	)	$	(156	)	$	(160	)	$	(155	)	$	(471	)	$	(539	)		1.9	%		12.6	%
Net investment income		54			(249	)		(179	)		(43	)		47			(175	)		(409	)		-13.0	%		57.2	%
Other revenues		51			42			107			32			33			172			202			-35.3	%		-14.9	%
Total revenues		(53	)		(364	)		(228	)		(171	)		(75	)		(474	)		(746	)		-41.5	%		36.5	%

Losses and Expenses:
Operating expenses		2,178			2,337			2,514			2,366			1,954			6,834			6,575			-10.3	%		3.9	%
Total losses and expenses		2,178			2,337			2,514			2,366			1,954			6,834			6,575			-10.3	%		3.9	%

Operating loss before income taxes
and interest expense		(2,231	)		(2,701	)		(2,742	)		(2,537	)		(2,029	)		(7,308	)		(7,321	)		9.1	%		0.2	%

Interest expense		2,785			2,581			2,567			2,592			2,821			7,980			9,962			1.3	%		-19.9	%

Pre-tax operating loss	$	(5,016	)	$	(5,282	)	$	(5,309	)	$	(5,129	)	$	(4,850	)	$	(15,288	)	$	(17,283	)		3.3	%		11.5	%

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

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

Receipts:
Premiums and other revenues collected	$	108,027		$	93,253		$	102,505		$	96,874		$	107,896		$	307,275		$	309,670
Investment income received		11,795			13,730			13,251			12,472			11,101			36,824			42,053
Total receipts		119,822			106,983			115,756			109,346			118,997			344,099			351,723

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		17,034			22,696			4,605			15,005			20,704			40,314			37,867
Losses and LAE paid - prior years		65,455			90,825			85,995			90,855			77,324			254,174			250,056
Total losses and LAE paid		82,489			113,521			90,600			105,860			98,028			294,488			287,923
Insurance operating expenses paid		26,899			30,327			38,826			31,657			35,273			105,756			112,720
Policyholders' dividends paid		451			812			499			1,878			690			3,067			1,094
Interest on corporate debt		3,470			2,461			3,082			2,446			2,888			8,416			11,226
Total disbursements		113,309			147,121			133,007			141,841			136,879			411,727			412,963

Net other		(9,204	)		19,380			1,024			(2,788	)		(5,256	)		(7,020	)		(14,166	)

Net operating cash flows	$	(2,691	)	$	(20,758	)	$	(16,227	)	$	(35,283	)	$	(23,138	)	$	(74,648	)	$	(75,406	)

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

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

Receipts:
Premiums and other revenues collected	$	107,102		$	92,720	$	99,923		$	94,993		$	107,297		$	302,213		$	301,162
Investment income received		8,831			10,564		10,504			10,605			9,981			31,090			29,908
Total receipts		115,933			103,284		110,427			105,598			117,278			333,303			331,070

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		17,034			22,696		4,605			15,005			20,704			40,314			37,867
Losses and LAE paid - prior years		45,463			44,787		62,815			51,295			61,340			175,450			168,113
Total losses and LAE paid		62,497			67,483		67,420			66,300			82,044			215,764			205,980
Insurance operating expenses paid		24,446			26,521		35,766			30,727			32,168			98,661			101,685
Policyholders' dividends paid		451			812		499			1,878			690			3,067			1,094
Interest on corporate debt		246			255		252			244			252			748			697
Total disbursements		87,640			95,071		103,937			99,149			115,154			318,240			309,456

Net other		(1,939	)		4,615		(4,189	)		(8,297	)		(6,707	)		(19,193	)		(6,360	)

Net operating cash flows	$	26,354		$	12,828	$	2,301		$	(1,848	)	$	(4,583	)	$	(4,130	)	$	15,254

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

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

Receipts:
Premiums collected	$	925		$	533		$	2,582		$	1,881		$	599		$	5,062		$	8,508
Investment income received		2,964			3,166			2,747			1,867			1,120			5,734			12,145
Total receipts		3,889			3,699			5,329			3,748			1,719			10,796			20,653

Disbursements:
Losses and LAE paid:
Losses and LAE paid - prior years		19,992			46,038			23,180			39,560			15,984			78,724			81,943
Total losses and LAE paid		19,992			46,038			23,180			39,560			15,984			78,724			81,943
Insurance operating expenses paid		2,453			3,806			3,060			930			3,105			7,095			11,035
Total disbursements		22,445			49,844			26,240			40,490			19,089			85,819			92,978

Net other		(5,500	)		8,071			(1,382	)		1,210			(804	)		(976	)		(2,642	)

Net operating cash flows	$	(24,056	)	$	(38,074	)	$	(22,293	)	$	(35,532	)	$	(18,174	)	$	(75,999	)	$	(74,967	)

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)

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


PMA Pool ²	$	325,242		$	321,245		$	327,379		$	333,118		$	339,800	⁴
PMA Capital Insurance Company ³		123,428			121,566			117,098			75,585	⁵	58,040		^4,5


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

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

Net Premiums Written:
Workers' Compensation	$	95,437		$	58,731		$	113,732		$	75,976		$	98,459		$	288,167		$	272,135
Other Commercial Lines		6,067			4,637			10,258			7,359			9,900			27,517			23,802
Total - PMA Pool	$	101,504		$	63,368		$	123,990		$	83,335		$	108,359		$	315,684		$	295,937

Statutory Ratios:
Loss and LAE ratio		72.1	%		71.3	%		71.2	%		70.3	%		68.0	%		69.8	%		72.0	%
Underwriting expense ratio		26.3	%		37.5	%		21.1	%		30.2	%		25.9	%		25.2	%		27.2	%
Policyholders' dividend ratio		0.5	%		0.6	%		0.6	%		1.7	%		1.4	%		1.2	%		0.5	%
Combined ratio		98.9	%		109.4	%		92.9	%		102.2	%		95.3	%		96.2	%		99.7	%
Operating ratio		90.5	%		99.8	%		83.3	%		92.4	%		85.7	%		86.5	%		91.3	%

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 $157.5 million and ($24.5) 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 10/31/2007):

	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.