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) February 21, 2008

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 February 21, 2008, PMA Capital Corporation (the “Registrant”) issued a news release regarding its Fourth Quarter 2007 results, a copy of which is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.  Additionally, the Registrant’s Fourth 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 February 21, 2008
Exhibit 99.2	PMA Capital Corporation Fourth 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
February 21, 2008	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 February 21, 2008
Exhibit 99.2	PMA Capital Corporation Fourth 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 Reports Improved Operating Results from Ongoing Operations, Charge for Anticipated Sale of Run-off Operations

Blue Bell, PA, February 21, 2008 -- PMA Capital Corporation (NASDAQ: PMACA) today reported the following financial results for the fourth quarter and full year 2007:

	Three months ended					Year ended
	December 31,					December 31,
(in thousands, except per share data)	2007			2006		2007			2006
Operating income	$	2,816		$	664	$	14,383		$	4,521
Realized gains after tax		368			146		366			805
Income from continuing operations		3,184			810		14,749			5,326
Income (loss) from discontinued operations after tax		(40,746	)		21		(57,277	)		(1,275	)
Net income (loss)	$	(37,562	)	$	831	$	(42,528	)	$	4,051
Diluted per share amounts:
Operating income	$	0.09		$	0.02	$	0.45		$	0.14
Realized gains after tax		0.01			0.01		0.01			0.02
Income from continuing operations		0.10			0.03		0.46			0.16
Income (loss) from discontinued operations after tax		(1.28	)		-		(1.78	)		(0.04	)
Net income (loss)	$	(1.18	)	$	0.03	$	(1.32	)	$	0.12
Book value per share, end of period						$	11.92		$	12.83

Vincent T. Donnelly, President and Chief Executive Officer commented, “The PMA Insurance Group grew profitably in competitive market conditions by continuing to focus on service-oriented product delivery.  Significant operating achievements included:

·   For the fourth quarter, pre-tax operating income increased to $7.6 million, compared to $5.0 million in the same period last year, and increased to $38.0 million for full year 2007, compared to $26.1 million in 2006;

·   The full year 2007 combined ratio was 99.7%;

·   Direct premiums written, excluding production from our agreement with Midwest Insurance Companies, were up 10% quarter-to-date and 8% for the full year; and

·   New business written, excluding Midwest production, increased 21% to $23.1 million in the fourth quarter and increased 27% to $114.6 million for the full year 2007, compared to the same periods last year."

Mr. Donnelly continued, “In our fee-based businesses, we achieved an organic revenue growth of 11% at PMA Management Corp. and also completed the acquisition of Midlands at the beginning of the fourth quarter.  As a result, fee-based revenues increased to 12% of our total revenues in the fourth quarter of 2007, compared to 7% in the fourth quarter of 2006.  Midlands’ contribution to our results was in line with our initial estimates.”

“We are pleased with the positive momentum in our businesses and the improvements in our operating metrics at these businesses in 2007.  We believe the previously announced divestiture of the Run-off Operations is in the best interests of our shareholders.  We look forward to the finality that a sale of this business will bring so that we can focus all of our efforts on our ongoing businesses,” added Mr. Donnelly.

“On March 2, 2008, our arrangement with Midwest Insurance Companies will terminate.  Although this will result in a decrease in direct premiums written, this business will continue to have a positive impact on our operating results in 2008, as we will continue to earn fee income until the underlying policies expire.  We have entered into one fronting arrangement smaller than Midwest in the first quarter of 2008 and believe that we will write more of these programs this year.”

Mr. Donnelly concluded, “We believe that our businesses are well positioned for profitable growth in 2008 relative to our 2007 results.  We expect a return on equity of between 5.5% and 6.5% on our ongoing businesses in 2008.”

As the Company previously announced, it has entered into a non-binding letter of intent to sell its Run-off Operations and expects to execute a sales agreement in the first quarter of 2008.  The transfer of ownership will be subject to regulatory approval.  As a result of the expected sale, the Company has recorded all of the activity related to its Run-off Operations as discontinued operations.  The Company recorded an after-tax impairment loss of $40.0 million, or $1.26 per share, in the fourth quarter of 2007, as the book value of its Run-off Operations was greater than the net proceeds it expects it will receive in a sale.

On December 11, 2007, the U.S. District Court for the Eastern District of Pennsylvania approved the settlement of the securities class action, In re PMA Capital Corporation Securities Litigation (Civil Action No. 03-6121).  The settlement made no admission of liability or wrongdoing by the Company or its officers and directors.  The amounts necessary to fund this settlement have been paid by insurance carriers for the Company.

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Income from continuing operations included the following after-tax net realized gains:

	Three months ended						Year ended
	December 31,						December 31,
(dollar amounts in thousands)	2007			2006			2007			2006
Net realized gains (losses) after tax:
Sales of investments	$	441		$	(106	)	$	(1,220	)	$	570
Change in fair value of trading securities		-			-			2,093			-
Change in fair value of debt derivative		(57	)		253			(314	)		303
Other		(16	)		(1	)		(193	)		(68	)
Net realized gains after tax	$	368		$	146		$	366		$	805

Segment Operating Results

Operating income, which we define as net income (loss) under accounting principles generally accepted in the United States (GAAP) excluding net realized investment gains (losses) and results from discontinued operations, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our businesses.  Net realized investment activity is excluded 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 (loss) as the GAAP measure of our consolidated results of operations.

The following is a reconciliation of our operating results to GAAP net income (loss).

	Three months ended						Year ended
	December 31,						December 31,
(dollar amounts in thousands)	2007			2006			2007			2006
Pre-tax operating income (loss):
The PMA Insurance Group 1	$	7,614		$	4,983		$	38,045		$	26,082
Fee-based Business		1,669			738			3,724			2,802
Corporate & Other 2		(5,003	)		(5,081	)		(19,564	)		(21,580	)
Pre-tax operating income		4,280			640			22,205			7,304
Income tax expense (benefit)		1,464			(24	)		7,822			2,783
Operating income		2,816			664			14,383			4,521
Realized gains after tax		368			146			366			805
Income from continuing operations		3,184			810			14,749			5,326
Income (loss) from discontinued operations after tax 2		(40,746	)		21			(57,277	)		(1,275	)
Net income (loss)	$	(37,562	)	$	831		$	(42,528	)	$	4,051

1)   Beginning in the fourth quarter of 2007, the results of The PMA Insurance Group no longer include those of PMA Management Corp.  The results of PMA Management Corp. are currently included within the segment results of our Fee-based Business.  For comparative purposes, the financial results of The PMA Insurance Group and PMA Management Corp. have been reclassified in all prior periods to reflect this change.

2)   Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations.  As a result of this change, the Corporate and Other segment was impacted by investment income previously eliminated in the Corporate and Other segment.  For comparative purposes, all prior periods have been reclassified to reflect this change.

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The PMA Insurance Group

The PMA Insurance Group reported pre-tax operating income of $7.6 million for the fourth quarter of 2007, compared to $5.0 million for the fourth quarter of 2006.  Full year pre-tax operating income was $38.0 million, compared to $26.1 million in 2006.

Direct premiums written were $91.6 million for the fourth quarter of 2007, up from $84.1 million for the fourth quarter of 2006.  For the year ended December 31, 2007, direct premiums written increased to $510.3 million, compared to $431.6 million for the same period last year.  Included in direct premiums written for the fourth quarter and full year 2007 were $12.8 million and $59.8 million of California workers’ compensation business produced under our agreement with Midwest Insurance Companies ("Midwest"), compared to $12.7 million and $14.8 million for the same periods last year.  Our renewal retention rates on existing workers’ compensation accounts for the fourth quarter and full year 2007 improved to 86% and 87%, respectively, compared to 85% for the same periods in 2006.  We wrote $28.8 million of new business in the fourth quarter of 2007, compared to $31.7 million during the same period last year, while our new business for full year 2007 increased to $166.0 million, compared to $105.2 million for 2006.  Included in new business for the quarter and year ended December 31, 2007 was $5.8 million and $51.5 million of Midwest business, compared to $12.7 million and $14.8 million for the same periods last year.  On March 2, 2008, our agreement with Midwest will terminate.  We will continue to earn fees and service the business previously written, but no additional business will be written or renewed after the termination date.

Net premiums written increased to $71.3 million in the fourth quarter of 2007, compared to $66.9 million in the same period last year.  Full year net premiums written increased to $395.3 million, compared to $373.7 million during the same period in 2006.  Ceded premiums written increased for full year 2007 primarily due to our cession of the California workers’ compensation premiums written under our agreement with Midwest and, to a lesser extent, an increase in the amount of workers’ compensation business sold to captive accounts, where a substantial portion of the direct premiums are ceded.

The combined ratios on a GAAP basis were 101.6% and 99.7%, respectively, for the fourth quarter and full year 2007, compared to 104.3% and 102.1% for the same periods in 2006.  The improvement in the combined ratio for the fourth quarter of 2007, compared to the prior year, was primarily the result of an improved operating expense ratio.  The full year improvement in the combined ratio from 2006 primarily reflected a lower loss and LAE ratio as well as an improved expense ratio, partially offset by a higher policyholders’ dividend ratio.

The improved loss and LAE ratio for full year 2007 was primarily due to a lower current accident year loss and LAE ratio, compared to 2006.  While our underwriting criteria remained consistent in 2007, our current accident year loss and LAE ratio continued to benefit from changes in workers’ compensation products selected by our insureds and a reduced amount of integrated disability and assumed premiums in 2007.  Pricing changes coupled with payroll inflation for rate sensitive workers’ compensation business were slightly below overall estimated loss trends.  We estimated our medical cost inflation to be 7% during 2007, compared to our estimate of 8.5% in 2006.  We believe workers’ compensation medical inflationary trends are generally lower in 2007 relative to 2006.  In addition, the medical cost inflation rate has declined due to our enhanced network and managed care initiatives.  However, we expect that medical cost inflation will continue to be a significant component of our overall loss experience.

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The policyholders’ dividend ratio was higher for full year 2007 than in the prior year.  The current year reflected better loss experience, which resulted in larger dividends on participating products where the policyholders may receive a dividend based, to a large extent, on their loss experience.

Fees earned under our agreement with Midwest reduced the 2007 acquisition expense ratios by 90 and 70 basis points for the quarter and full year periods.  Although our agreement with Midwest will terminate in March 2008, we will continue to earn fee income on this business until the underlying policies expire.  The improved operating expense ratios in the fourth quarter and full year 2007 reflected lower loss based state assessments and a reduction in the allowance for uncollectible reinsurance.  Controllable expenses, which include salaries, benefits and other headcount-related expenses, grew by 4% in 2007, compared to the 8% growth rate in direct premiums written.

Net investment income increased to $9.4 million in the fourth quarter of 2007, compared to $9.0 million in the prior year quarter.  For the year ended December 31, 2007, net investment income increased by $3.1 million to $37.9 million, compared to the same period in 2006.  The improvements in 2007 were due primarily to higher yields on an increased invested asset base.

Fee-based Business

On October 1, 2007, we acquired Midlands Management Corporation (“Midlands”), an Oklahoma City-based managing general agent, program administrator and provider of third party administrator (“TPA”) services.  As a result of this acquisition, we reported the combined operating results of PMA Management Corp. and Midlands as our Fee-based Business segment.  All prior periods have been reclassified to reflect this change.  Our operating results include only the operating results of Midlands from the date of acquisition.

Our Fee-based Business reported pre-tax operating income of $1.7 million for the fourth quarter of 2007, compared to $738,000 for the same quarter last year.  Pre-tax operating income for full year 2007 was $3.7 million, compared to $2.8 million a year ago.  The increases primarily related to the inclusion of Midlands’ results.

For the fourth quarter of 2007, total revenues increased to $14.8 million, up $7.5 million from the same period last year.  Revenues resulting from our acquisition of Midlands accounted for $6.5 million of this growth.  The increase for the quarter reflected higher claims service revenues of $4.2 million and commission income of $3.0 million.  Total revenues for full year 2007 were $38.1 million, compared to $28.5 million in 2006.  Revenues from PMA Management Corp. increased 11% for full year 2007, compared to 2006.

Corporate and Other

The Corporate and Other segment, which includes primarily corporate expenses and debt service, recorded net expenses of $5.0 million during the fourth quarter of 2007, compared to $5.1 million in the fourth quarter of 2006.  Net expenses were $19.6 million for full year 2007, down from $21.6 million for the same period in 2006.  The improvement for full year 2007 was primarily due to lower interest expense, which resulted from a lower average level of debt outstanding in 2007, compared to the prior year.

Discontinued Operations

Discontinued operations, formerly our Run-off Operations which consists of our former reinsurance and excess and surplus lines businesses, recorded after-tax losses of $40.7 million and $57.3 million

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for the three months and year ended December 31, 2007, compared to after-tax income of $21,000 and an after-tax loss of $1.3 million for the same periods in 2006.  Results for the fourth quarter and full year 2007 reflected an impairment loss of $40.0 million.  Full year results also included an after-tax charge of $14.3 million for prior year loss development recorded in the third quarter.

Financial Condition

Total assets were $2.6 billion as of December 31, 2007, compared to $2.7 billion as of December 31, 2006.  Assets of discontinued operations represented 15% of total assets at December 31, 2007.  Shareholders’ equity was $378.6 million as of December 31, 2007, compared to $419.1 million as of December 31, 2006.  Book value per share decreased 91 cents during 2007 to $11.92 as of December 31, 2007.  The decreases in both shareholders’ equity and book value per share were primarily due to the $57.3 million, or $1.78 per share, net loss from our discontinued operations, which largely resulted from the fourth quarter impairment loss and the third quarter loss reserve charge.  These decreases were partially offset by $14.7 million in income from continuing operations, a $6.1 million increase in the net unrealized position on our investment portfolio and a $4.6 million after-tax decrease to our pension liabilities.  The unrealized position on our available for sale invested asset portfolio increased due to lower market interest rates.  Book value per share also benefited from the positive impact of share repurchases, as more fully described below.

In May 2007, our Board of Directors authorized the repurchase of up to $10.0 million of our Class A Common Stock.  During the fourth quarter and full year 2007, we repurchased 159,380 and 986,522 shares at a total cost of $1.4 million and $10.0 million, respectively.  At December 31, 2007, we had $38.2 million in cash and short-term investments at the holding company.

As of December 31, 2007, our total outstanding debt was $131.3 million, compared to $131.2 million at December 31, 2006.  Subsequent to December 31, 2007, we retired the remaining $1.3 million principal amount of our 6.50% Convertible Debt for which we paid $1.5 million, exclusive of accrued interest.  We are currently in process of releasing the covenants related to this debt that restrict our ability to repurchase shares of our common stock and pay dividends.  Any future share repurchases or dividends are subject to authorization by our Board of Directors.

The PMA Insurance Group had statutory capital and surplus of $335.4 million as of December 31, 2007, compared to $321.2 million as of December 31, 2006.  The PMA Insurance Group has the ability to pay $29.2 million in dividends during 2008 without the prior approval of the Pennsylvania Insurance Department.  The statutory capital and surplus of PMA Capital Insurance Company (“PMACIC”), PMA Capital Corporation’s wholly-owned run-off reinsurance subsidiary which is being reported as discontinued operations, was $47.6 million as of December 31, 2007, compared to $121.6 million as of December 31, 2006.  The reduction in PMACIC’s statutory capital and surplus was due primarily to its extraordinary dividend payment of $37.5 million to PMA Capital in April 2007 and its 2007 statutory net loss.

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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, February 22nd to review our fourth quarter and full year 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
888-679-8033(Domestic)	888-286-8010(Domestic)
617-213-4846(International)	617-801-6888(International)
Passcode 44681894	Passcode 86606624

You may pre-register for the conference call using the following link:

www.theconferencingservice.com/prereg/key.process?key=PVVMKUX3T

Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference.  Pre-registration only takes a few moments and you may pre-register at anytime, including up to and after the call start time.  Alternatively, if you would rather be placed into the call by an operator, please use the dial-in information above at least 15 minutes prior to the call start time.

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, February 22nd until 11:59 p.m. Eastern Time on Friday, March 21st.

Quarterly Statistical Supplement

Our Fourth 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 will also furnish a copy of this news release and the Statistical Supplement to the SEC on a Form 8-K.  A copy of the Form 8-K will be available on the SEC’s website at www.sec.gov.

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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:

·   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 revenues of our fee-based businesses;

·   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;

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

·   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 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;

·   our 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 TRIPRA is extended beyond its December 31, 2014 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.

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PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Three months ended December 31,
(dollar amounts in thousands, except per share data)	2007			2006
Gross premiums written	$	94,914		$	89,327
Net premiums written	$	71,189		$	66,716
Revenues:
Net premiums earned	$	93,617		$	87,222
Claims service revenues		11,239			7,058
Commission income		3,005			-
Net investment income		9,973			9,149
Net realized investment gains		566			225
Other revenues		168			42
Total revenues		118,568			103,696
Expenses:
Losses and loss adjustment expenses		66,152			61,841
Acquisition expenses		18,027			17,486
Operating expenses		24,629			20,158
Dividends to policyholders		1,916			510
Interest expense		2,998			2,836
Total losses and expenses		113,722			102,831
Pre-tax income		4,846			865
Income tax expense (benefit):
Current		(321	)		-
Deferred		1,983			55
Total income tax expense		1,662			55
Income from continuing operations		3,184			810
Income (loss) from discontinued operations after tax		(40,746	)		21
Net income (loss)	$	(37,562	)	$	831
Net income (loss) per share:
Basic:
Continuing Operations	$	0.10		$	0.03
Discontinued Operations		(1.28	)		0.00
	$	(1.18	)	$	0.03
Diluted:
Continuing Operations	$	0.10		$	0.03
Discontinued Operations		(1.28	)		0.00
	$	(1.18	)	$	0.03

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PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Year ended December 31,
(dollar amounts in thousands, except per share data)	2007			2006
Gross premiums written	$	524,172		$	455,756
Net premiums written	$	394,698		$	373,001
Revenues:
Net premiums earned	$	378,243		$	367,403
Claims service revenues		34,034			27,853
Commission income		3,005			-
Net investment income		39,592			35,851
Net realized investment gains		563			1,239
Other revenues		340			244
Total revenues		455,777			432,590
Expenses:
Losses and loss adjustment expenses		263,199			262,297
Acquisition expenses		73,747			73,726
Operating expenses		76,541			70,971
Dividends to policyholders		7,790			3,532
Interest expense		11,732			13,521
Total losses and expenses		433,009			424,047
Pre-tax income		22,768			8,543
Income tax expense:
Current		416			-
Deferred		7,603			3,217
Total income tax expense		8,019			3,217
Income from continuing operations		14,749			5,326
Loss from discontinued operations after tax		(57,277	)		(1,275	)
Net income (loss)	$	(42,528	)	$	4,051
Net income (loss) per share:
Basic:
Continuing Operations	$	0.46		$	0.17
Discontinued Operations		(1.78	)		(0.04	)
	$	(1.32	)	$	0.13
Diluted:
Continuing Operations	$	0.46		$	0.16
Discontinued Operations		(1.78	)		(0.04	)
	$	(1.32	)	$	0.12

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PMA Capital Corporation

GAAP Consolidated Balance Sheets

(Unaudited)

	December 31,			December 31,
(dollar amounts in thousands, except per share data)	2007			2006
Assets:
Investments:
Fixed maturities available for sale	$	728,725		$	718,865
Short-term investments		78,426			61,180
Total investments		807,151			780,045
Cash		15,828			9,498
Accrued investment income		5,768			5,495
Premiums receivable		222,140			200,164
Reinsurance receivables		795,938			720,110
Prepaid reinsurance premiums		32,361			25,611
Deferred income taxes, net		118,857			100,019
Deferred acquisition costs		37,404			36,239
Funds held by reinsureds		42,418			33,432
Intangible assets		22,779			-
Other assets		105,341			81,096
Assets of discontinued operations		375,656			674,698
Total assets	$	2,581,641		$	2,666,407
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,212,956		$	1,152,704
Unearned premiums		226,178			202,973
Debt		131,262			131,211
Accounts payable, accrued expenses
and other liabilities		195,895			156,745
Reinsurance funds held and balances payable		39,324			27,000
Dividends to policyholders		5,839			4,450
Liabilities of discontinued operations		391,603			572,231
Total liabilities		2,203,057			2,247,314
Shareholders' Equity:
Class A Common Stock		171,090			171,090
Additional paid-in capital		111,088			109,922
Retained earnings		136,627			184,216
Accumulated other comprehensive loss		(6,663	)		(20,624	)
Treasury stock, at cost		(33,558	)		(25,511	)
Total shareholders' equity		378,584			419,093
Total liabilities and shareholders' equity	$	2,581,641		$	2,666,407
Shareholders' equity per share	$	11.92		$	12.83

11

EX-99.2

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Fourth Quarter - 2007
Table of Contents
		Page
Consolidated Highlights:
Selected Financial Data - Fourth Quarter				1
Selected Financial Data - Year-to-date				2
Consolidated Statements of Operations - Per Share Data				3
Consolidated Statements of Operations - Fourth Quarter				5
Consolidated Statements of Operations - Year-to-date				6
Consolidated Balance Sheets				7
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Midwest;
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group				8
Invested Assets and Net Investment Income; Debt				9
Segment Information:
Statements of Operations - Consolidating - Year-to-date		10	-	11
Statements of Operations - Consolidating - Fourth Quarter		12	-	13
Statements of Operations - PMA Insurance Group				14
Insurance Ratios - PMA Insurance Group				15
Statements of Operations - Fee-based Business				16
Statements of Operations - Corporate & Other				17
Statements of Operations - Discontinued Operations				18
Operating Cash Flow Information:
Operating Cash Flows - Consolidated				19
Operating Cash Flows - PMA Insurance Group				20
Operating Cash Flows - Fee-based Business				21
Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool				22
Other Information:
Industry Ratings and Market Information				23
Legend:
NM - Not Meaningful
	Note 1: As a result of the Company's acquisition of Midlands Management Corporation ("Midlands") at the beginning of the fourth quarter of 2007, the combined operating results of PMA Management Corp. and Midlands have been reported in a new reporting segment, Fee-based Business.  The results of PMA Management Corp. were previously included in PMA Insurance Group segment.  In the fourth quarter of 2007, the Company reported the results of its Run-off Operations as discontinued operations.  For comparative purposes, the Company has reclassified its prior period financial presentation to conform to these changes.
	Note 2: Operating income, which we define as GAAP net income (loss) excluding net realized investment gains and losses and the results from discontinued operations, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our businesses.  Net realized investment activity is excluded 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 (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)
	4th			1st			2nd			3rd			4th			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			4th
	2006			2007			2007			2007			2007			Quarter
Direct Premiums Written	$	83,971		$	160,775		$	110,958		$	146,547		$	91,416			8.9	%
Net Premiums Written	$	66,716		$	125,737		$	81,656		$	116,116		$	71,189			6.7	%
Revenues:
Net premiums earned	$	87,222		$	93,839		$	97,014		$	93,773		$	93,617			7.3	%
Claims service revenues		7,058			7,665			7,535			7,595			11,239			59.2	%
Commission income		-			-			-			-			3,005		NM
Net investment income		9,149			9,754			9,951			9,914			9,973			9.0	%
Net realized investment gains (losses)		225			978			(1,134	)		153			566		NM
Other revenues		42			107			32			33			168		NM
Total revenues	$	103,696		$	112,343		$	113,398		$	111,468		$	118,568			14.3	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	4,983		$	10,930		$	7,799		$	11,702		$	7,614			52.8	%
Fee-based Business		738			793			601			661			1,669		NM
Corporate & Other		(5,081	)		(5,095	)		(4,893	)		(4,573	)		(5,003	)		1.5	%
Pre-tax operating income		640			6,628			3,507			7,790			4,280		NM
Income tax expense (benefit)		(24	)		2,384			1,263			2,711			1,464		NM
After-tax operating income		664			4,244			2,244			5,079			2,816		NM
Net realized investment gains (losses) after tax		146			636			(737	)		99			368		NM
Income from continuing operations		810			4,880			1,507			5,178			3,184		NM
Income (loss) from discontinued operations after tax		21			(1,534	)		(1,016	)		(13,981	)		(40,746	)	NM
Net income (loss)	$	831		$	3,346		$	491		$	(8,803	)	$	(37,562	)	NM
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.02		$	0.13		$	0.07		$	0.16		$	0.09		NM
Realized gains (losses) after tax		0.01			0.02			(0.03	)		-			0.01			0.0	%
Income from continuing operations		0.03			0.15			0.04			0.16			0.10		NM
Income (loss) from discontinued operations after tax		-			(0.05	)		(0.03	)		(0.44	)		(1.28	)	NM
Net income (loss)	$	0.03		$	0.10		$	0.01		$	(0.28	)	$	(1.18	)	NM
Capitalization:
Debt	$	131,211		$	130,822		$	144,629		$	135,072		$	131,262			0.0	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		425,132			424,894			420,150			409,263			374,603			-11.9	%
Total capitalization excluding FAS 115 unrealized gain (loss)		556,343			555,716			564,779			544,335			505,865			-9.1	%
FAS 115 unrealized gain (loss)		(6,039	)		(1,084	)		(9,179	)		(2,138	)		3,981		NM
Total capitalization including FAS 115 unrealized gain (loss)	$	550,304		$	554,632		$	555,600		$	542,197		$	509,846			-7.4	%
Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	13.02		$	13.02		$	13.06		$	12.82		$	11.79			-9.4	%
Including FAS 115 unrealized gain (loss)	$	12.83		$	12.99		$	12.78		$	12.75		$	11.92			-7.1	%
Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		23.6	%		23.5	%		25.6	%		24.8	%		25.9	%		9.7	%
Including FAS 115 unrealized gain (loss)		23.8	%		23.6	%		26.0	%		24.9	%		25.7	%		8.0	%
Interest Coverage:
Income from continuing operations before interest and income taxes to interest expense		1.31			3.70			1.83			3.58			2.62		NM
Operating income from continuing operations before interest and income taxes to interest expense		1.23			3.35			2.23			3.53			2.43			97.6	%

1

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	Twelve			Twelve			% Change
	Months			Months			Twelve
	2007			2006			Months
Direct Premiums Written	$	509,696		$	430,931			18.3	%
Net Premiums Written	$	394,698		$	373,001			5.8	%
Revenues:
Net premiums earned	$	378,243		$	367,403			3.0	%
Claims service revenues		34,034			27,853			22.2	%
Commission income		3,005			-		NM
Net investment income		39,592			35,851			10.4	%
Net realized investment gains		563			1,239			-54.6	%
Other revenues		340			244			39.3	%
Total revenues	$	455,777		$	432,590			5.4	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	38,045		$	26,082			45.9	%
Fee-based Business		3,724			2,802			32.9	%
Corporate & Other		(19,564	)		(21,580	)		9.3	%
Pre-tax operating income		22,205			7,304		NM
Income tax expense		7,822			2,783		NM
After-tax operating income		14,383			4,521		NM
Net realized investment gains after tax		366			805			-54.5	%
Income from continuing operations		14,749			5,326		NM
Loss from discontinued operations after tax		(57,277	)		(1,275	)	NM
Net income (loss)	$	(42,528	)	$	4,051		NM
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.45		$	0.14		NM
Realized gains after tax		0.01			0.02			-50.0	%
Income from continuing operations		0.46			0.16		NM
Loss from discontinued operations after tax		(1.78	)		(0.04	)	NM
Net income (loss)	$	(1.32	)	$	0.12		NM

2

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
	4th		1st			2nd			3rd			4th			Twelve			Twelve
	Quarter		Quarter			Quarter			Quarter			Quarter			Months			Months
	2006		2007			2007			2007			2007			2007			2006
Diluted Earnings (Loss) Per Share:
Pre-tax operating income	$	0.02	$	0.20		$	0.11		$	0.24		$	0.13		$	0.69		$	0.22
After-tax operating income	$	0.02	$	0.13		$	0.07		$	0.16		$	0.09		$	0.45		$	0.14
Income from continuing operations	$	0.03	$	0.15		$	0.04		$	0.16		$	0.10		$	0.46		$	0.16
Income (loss) from discontinued operations after tax		-		(0.05	)		(0.03	)		(0.44	)		(1.28	)		(1.78	)		(0.04	)
Net income (loss)	$	0.03	$	0.10		$	0.01		$	(0.28	)	$	(1.18	)	$	(1.32	)	$	0.12
Diluted weighted average common shares outstanding		32,916,423		32,900,397			32,838,046			32,001,649			31,768,405			32,169,287			32,731,360
Dividends declared:
Class A Common Stock	$	-	$	-		$	-		$	-		$	-		$	-		$	-
Actual common shares issued and outstanding		32,659,194		32,630,669			32,163,072			31,920,486			31,761,106			31,761,106			32,659,194
Class A Common Stock prices:
High	$	10.15	$	9.77		$	11.40		$	11.17		$	10.69		$	11.40		$	10.75
Low	$	8.60	$	8.40		$	9.12		$	8.63		$	8.05		$	8.05		$	8.60
Close	$	9.22	$	9.39		$	10.69		$	9.50		$	8.22		$	8.22		$	9.22

3

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4

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	4th		1st			2nd			3rd			4th			% Change
	Quarter		Quarter			Quarter			Quarter			Quarter			4th
	2006		2007			2007			2007			2007			Quarter
Gross Premiums Written	$	89,327	$	164,564		$	115,258		$	149,436		$	94,914			6.3	%
Net Premiums Written	$	66,716	$	125,737		$	81,656		$	116,116		$	71,189			6.7	%
Revenues:
Net premiums earned	$	87,222	$	93,839		$	97,014		$	93,773		$	93,617			7.3	%
Claims service revenues		7,058		7,665			7,535			7,595			11,239			59.2	%
Commission income		-		-			-			-			3,005		NM
Net investment income		9,149		9,754			9,951			9,914			9,973			9.0	%
Net realized investment gains (losses)		225		978			(1,134	)		153			566		NM
Other revenues		42		107			32			33			168		NM
Total revenues		103,696		112,343			113,398			111,468			118,568			14.3	%
Expenses:
Losses and loss adjustment expenses		61,841		65,919			67,965			63,163			66,152			7.0	%
Acquisition expenses		17,486		18,779			18,759			18,182			18,027			3.1	%
Operating expenses		20,158		15,601			19,411			16,900			24,629			22.2	%
Dividends to policyholders		510		1,622			2,047			2,205			1,916		NM
Interest expense		2,836		2,816			2,843			3,075			2,998			5.7	%
Total losses and expenses		102,831		104,737			111,025			103,525			113,722			10.6	%
Pre-tax income		865		7,606			2,373			7,943			4,846		NM
Income tax expense (benefit):
Current		-		-			200			537			(321	)	NM
Deferred		55		2,726			666			2,228			1,983		NM
Total income tax expense		55		2,726			866			2,765			1,662		NM
Income from continuing operations		810		4,880			1,507			5,178			3,184		NM
Income (loss) from discontinued operations after tax		21		(1,534	)		(1,016	)		(13,981	)		(40,746	)	NM
Net income (loss)	$	831	$	3,346		$	491		$	(8,803	)	$	(37,562	)	NM
Pre-tax operating income from continuing operations	$	640	$	6,628		$	3,507		$	7,790		$	4,280		NM
After-tax operating income from continuing operations	$	664	$	4,244		$	2,244		$	5,079		$	2,816		NM

5

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	Twelve			Twelve			% Change
	Months			Months			Twelve
	2007			2006			Months
Gross Premiums Written	$	524,172		$	455,756			15.0	%
Net Premiums Written	$	394,698		$	373,001			5.8	%
Revenues:
Net premiums earned	$	378,243		$	367,403			3.0	%
Claims service revenues		34,034			27,853			22.2	%
Commission income		3,005			-		NM
Net investment income		39,592			35,851			10.4	%
Net realized investment gains		563			1,239			-54.6	%
Other revenues		340			244			39.3	%
Total revenues		455,777			432,590			5.4	%
Expenses:
Losses and loss adjustment expenses		263,199			262,297			0.3	%
Acquisition expenses		73,747			73,726			0.0	%
Operating expenses		76,541			70,971			7.8	%
Dividends to policyholders		7,790			3,532		NM
Interest expense		11,732			13,521			-13.2	%
Total losses and expenses		433,009			424,047			2.1	%
Pre-tax income		22,768			8,543		NM
Income tax expense:
Current		416			-		NM
Deferred		7,603			3,217		NM
Total income tax expense		8,019			3,217		NM
Income from continuing operations		14,749			5,326		NM
Loss from discontinued operations after tax		(57,277	)		(1,275	)	NM
Net income (loss)	$	(42,528	)	$	4,051		NM
Pre-tax operating income from continuing operations	$	22,205		$	7,304		NM
After-tax operating income from continuing operations	$	14,383		$	4,521		NM

6

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2007			2007			2007			2007
Assets:
Investments in fixed maturities available for sale	$	718,865		$	735,048		$	733,083		$	725,637		$	728,725
Investments in fixed maturities trading		-			-			16,760			-			-
Short-term investments		61,180			57,675			79,632			83,618			78,426
Total investments		780,045			792,723			829,475			809,255			807,151
Cash		9,498			5,028			5,228			4,164			15,828
Accrued investment income		5,495			5,400			5,438			5,789			5,768
Premiums receivable		200,164			251,073			248,049			254,804			222,140
Reinsurance receivables		720,110			730,854			745,269			795,118			795,938
Prepaid reinsurance premiums		25,611			40,430			41,455			41,354			32,361
Deferred income taxes, net		100,019			97,565			101,696			103,284			118,857
Deferred acquisition costs		36,239			41,726			37,889			42,626			37,404
Funds held by reinsureds		33,432			35,610			37,879			40,150			42,418
Intangible assets		-			-			-			-			22,779
Other assets		81,096			84,981			92,518			92,176			105,341
Assets of discontinued operations		674,698			642,615			534,091			525,710			375,656
Total assets	$	2,666,407		$	2,728,005		$	2,678,987		$	2,714,430		$	2,581,641
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,152,704		$	1,168,457		$	1,181,143		$	1,206,550		$	1,212,956
Unearned premiums		202,973			249,689			235,356			257,598			226,178
Debt		131,211			130,822			144,629			135,072			131,262
Accounts payable, accrued expenses
and other liabilities		156,745			161,596			181,532			173,242			195,895
Reinsurance funds held and balances payable		27,000			47,836			52,629			44,884			39,324
Dividends to policyholders		4,450			4,483			4,179			4,730			5,839
Liabilities of discontinued operations		572,231			541,312			468,548			485,229			391,603
Total liabilities		2,247,314			2,304,195			2,268,016			2,307,305			2,203,057
Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		109,922			110,527			110,318			110,687			111,088
Retained earnings		184,216			183,611			183,019			174,190			136,627
Accumulated other comprehensive loss		(20,624	)		(15,675	)		(23,569	)		(16,673	)		(6,663	)
Treasury stock, at cost		(25,511	)		(25,743	)		(29,887	)		(32,169	)		(33,558	)
Total shareholders' equity		419,093			423,810			410,971			407,125			378,584
Total liabilities and shareholders' equity	$	2,666,407		$	2,728,005		$	2,678,987		$	2,714,430		$	2,581,641

7

PMA Capital Corporation
Assets and Liabilities of Discontinued Operations
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2007			2007			2007			2007
Assets
Investments	$	178,354		$	158,379		$	89,109		$	71,486		$	219,678
Cash		4,607			4,896			3,266			4,524			5,665
Reinsurance receivables		319,869			311,624			306,000			312,175			150,097
Other assets		171,868			167,716			135,716			137,525			216	(1)
Assets of discontinued operations	$	674,698		$	642,615		$	534,091		$	525,710		$	375,656
Liabilities
Unpaid losses and loss adjustment expenses	$	482,161		$	452,495		$	382,182		$	379,920		$	339,077
Other liabilities		90,070			88,817			86,366			105,309			52,526
Liabilities of discontinued operations	$	572,231		$	541,312		$	468,548		$	485,229		$	391,603
(1) Includes write-down of net assets of Run-off Operations to fair value less cost to sell.
PMA Capital Corporation
Selected Balance Sheet Items - Midwest
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2007			2007			2007			2007
Assets
Premiums receivable	$	15,255		$	25,810		$	28,418		$	31,136		$	27,847
Reinsurance receivables		1,812			6,200			13,035			21,799			30,377
Prepaid reinsurance premiums		12,105			23,724			27,307			26,188			22,665
Deferred acquisition costs		-			-			140			231			254
Other assets		60			561			3,108			3,375			7,332
Liabilities
Unpaid losses and loss adjustment expenses	$	1,812		$	6,200		$	13,064		$	21,855		$	30,978
Unearned premiums		12,105			23,724			27,897			27,338			24,413
Reinsurance funds held and balances payable		13,513			22,209			23,224			24,652			21,333
Other liabilities		1,639			3,730			6,890			7,435			11,511
PMA Capital Corporation
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2006			2007			2007			2007			2007
Balance Sheet
Balance, beginning of period	$	40,384		$	36,239		$	41,726		$	37,889		$	42,626
Policy acquisition costs deferred		13,341			24,266			14,922			22,919			12,805
Amortization of policy acquisition costs		(17,486	)		(18,779	)		(18,759	)		(18,182	)		(18,027	)
Net change		(4,145	)		5,487			(3,837	)		4,737			(5,222	)
Balance, end of period	$	36,239		$	41,726		$	37,889		$	42,626		$	37,404

8

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			Twelve			Twelve
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2006			2007			2007			2007			2007			2007			2006
Total Investments & Cash
As reported	$	789,543		$	797,751		$	834,703		$	813,419		$	822,979		$	822,979		$	789,543
Less:
Unrealized gain (loss)		(3,248	)		(1,668	)		(14,121	)		(3,289	)		6,125			6,125			(3,248	)
Unrealized loss and accrued income - trading		-			-			(3,240	)		-			-			-			-
Total adjusted investments & cash	$	792,791		$	799,419		$	852,064		$	816,708		$	816,854		$	816,854		$	792,791
Net Investment Income
As reported	$	9,149		$	9,754		$	9,951		$	9,914		$	9,973		$	39,592		$	35,851
Less:
Ceded funds held		(349	)		(393	)		(596	)		(529	)		(676	)		(2,194	)		(1,586	)
Total adjusted investment income	$	9,498		$	10,147		$	10,547		$	10,443		$	10,649		$	41,786		$	37,437
Yield
As reported		4.68	%		4.92	%		4.88	%		4.81	%		4.88	%		4.88	%		4.66	%
Investment portfolio		4.85	%		5.10	%		5.11	%		5.01	%		5.22	%		5.12	%		4.84	%
Duration (in years)		3.5			3.6			3.9			3.8			3.7			3.7			3.5
PMA Capital Corporation
Debt
(Dollar Amounts in Thousands)
				Amount
				Outstanding			Maturity
6.50% convertible debt				$	1,254		20221
Derivative component of 6.50% convertible debt					233
4.25% convertible debt					455		20222
8.50% senior notes					54,900		2018
Junior subordinated debt 3					64,435		2033 - 2037
Surplus notes 4					10,000		2035
Unamortized debt discount					(15	)
Total long-term debt				$	131,262

1	Subsequent to December 31, 2007, we retired the remaining $1.3 million principal amount of this debt for which we paid $1.5 million, exclusive of accrued interest.
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 8.90% as of December 31, 2007.
4	Interest rate on surplus notes is 9.39% as of December 31, 2007.

9

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2007
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	524,799	$	-	$	(627	)	$	524,172
Net Premiums Written		$	395,325	$	-	$	(627	)	$	394,698
Revenues:
Net premiums earned		$	378,870	$	-	$	(627	)	$	378,243
Claims service revenues			-		34,034		-			34,034
Commission income			-		3,005		-			3,005
Net investment income			37,936		972		684			39,592
Other revenues			-		113		227			340
Operating revenues			416,806		38,124		284			455,214
Losses and Expenses:
Losses and loss adjustment expenses			263,199		-		-			263,199
Acquisition expenses			73,747		-		-			73,747
Operating expenses			33,024		34,400		9,117			76,541
Dividends to policyholders			7,790		-		-			7,790
Total losses and expenses			377,760		34,400		9,117			421,277
Operating income (loss) before income taxes
and interest expense			39,046		3,724		(8,833	)		33,937
Interest expense			1,001		-		10,731			11,732
Pre-tax operating income (loss)		$	38,045	$	3,724	$	(19,564	)		22,205
Net realized investment gains										563
Pre-tax income									$	22,768
1	Corporate & Other includes the effect of eliminating transactions between the operating segments. Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations. As a result of this change, the Corporate & Other segment was impacted by investment income previously eliminated in the Corporate & Other segment.

10

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2006
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	456,452	$	-	$	(696	)	$	455,756
Net Premiums Written		$	373,697	$	-	$	(696	)	$	373,001
Revenues:
Net premiums earned		$	368,099	$	-	$	(696	)	$	367,403
Claims service revenues			-		27,853		-			27,853
Net investment income			34,855		669		327			35,851
Other revenues			-		-		244			244
	Operating revenues		402,954		28,522		(125	)		431,351
Losses and Expenses:
Losses and loss adjustment expenses			262,297		-		-			262,297
Acquisition expenses			73,726		-		-			73,726
Operating expenses			36,339		25,720		8,912			70,971
Dividends to policyholders			3,532		-		-			3,532
	Total losses and expenses		375,894		25,720		8,912			410,526
Operating income (loss) before income taxes
	and interest expense		27,060		2,802		(9,037	)		20,825
Interest expense			978		-		12,543			13,521
Pre-tax operating income (loss)		$	26,082	$	2,802	$	(21,580	)		7,304
Net realized investment gains										1,239
Pre-tax income									$	8,543
1	Corporate & Other includes the effect of eliminating transactions between the operating segments. Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations. As a result of this change, the Corporate & Other segment was impacted by investment income previously eliminated in the Corporate & Other segment. For comparative purposes, all prior periods have been reclassified to reflect this change.

11

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2007
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	95,070	$	-	$	(156	)	$	94,914
Net Premiums Written		$	71,345	$	-	$	(156	)	$	71,189
Revenues:
Net premiums earned		$	93,773	$	-	$	(156	)	$	93,617
Claims service revenues			-		11,239		-			11,239
Commission income			-		3,005		-			3,005
Net investment income			9,406		435		132			9,973
Other revenues			-		113		55			168
	Operating revenues		103,179		14,792		31			118,002
Losses and Expenses:
Losses and loss adjustment expenses			66,152		-		-			66,152
Acquisition expenses			18,027		-		-			18,027
Operating expenses			9,223		13,123		2,283			24,629
Dividends to policyholders			1,916		-		-			1,916
	Total losses and expenses		95,318		13,123		2,283			110,724
Operating income (loss) before income taxes
	and interest expense		7,861		1,669		(2,252	)		7,278
Interest expense			247		-		2,751			2,998
Pre-tax operating income (loss)		$	7,614	$	1,669	$	(5,003	)		4,280
Net realized investment gains										566
Pre-tax income									$	4,846
1	Corporate & Other includes the effect of eliminating transactions between the operating segments. Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations. As a result of this change, the Corporate & Other segment was impacted by investment income previously eliminated in the Corporate & Other segment.

12

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2006
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	89,484	$	-	$	(157	)	$	89,327
Net Premiums Written		$	66,873	$	-	$	(157	)	$	66,716
Revenues:
Net premiums earned		$	87,379	$	-	$	(157	)	$	87,222
Claims service revenues			-		7,058		-			7,058
Net investment income			9,007		190		(48	)		9,149
Other revenues			-		-		42			42
	Operating revenues		96,386		7,248		(163	)		103,471
Losses and Expenses:
Losses and loss adjustment expenses			61,841		-		-			61,841
Acquisition expenses			17,486		-		-			17,486
Operating expenses			11,311		6,510		2,337			20,158
Dividends to policyholders			510		-		-			510
	Total losses and expenses		91,148		6,510		2,337			99,995
Operating income (loss) before income taxes
	and interest expense		5,238		738		(2,500	)		3,476
Interest expense			255		-		2,581			2,836
Pre-tax operating income (loss)		$	4,983	$	738	$	(5,081	)		640
Net realized investment gains										225
Pre-tax income									$	865
1	Corporate & Other includes the effect of eliminating transactions between the operating segments. Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations. As a result of this change, the Corporate & Other segment was impacted by investment income previously eliminated in the Corporate & Other segment. For comparative purposes, all prior periods have been reclassified to reflect this change.

13

PMA Capital Corporation
Statements of Operations - PMA Insurance Group 1
(Dollar Amounts in Thousands)
		4th		1st		2nd		3rd		4th		Twelve		Twelve		% Change			% Change
		Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		4th			Twelve
		2006		2007		2007		2007		2007		2007		2006		Quarter			Months
Gross Premiums Written		$	89,484	$	164,720	$	115,418	$	149,591	$	95,070	$	524,799	$	456,452		6.2	%		15.0	%
Net Premiums Written		$	66,873	$	125,893	$	81,816	$	116,271	$	71,345	$	395,325	$	373,697		6.7	%		5.8	%
Revenues:
Net premiums earned		$	87,379	$	93,995	$	97,174	$	93,928	$	93,773	$	378,870	$	368,099		7.3	%		2.9	%
Net investment income			9,007		9,555		9,578		9,397		9,406		37,936		34,855		4.4	%		8.8	%
	Total revenues		96,386		103,550		106,752		103,325		103,179		416,806		402,954		7.0	%		3.4	%
Losses and Expenses:
Losses and loss adjustment expenses			61,841		65,919		67,965		63,163		66,152		263,199		262,297		7.0	%		0.3	%
Acquisition expenses			17,486		18,779		18,759		18,182		18,027		73,747		73,726		3.1	%		0.0	%
Operating expenses			11,311		6,051		9,931		7,819		9,223		33,024		36,339		-18.5	%		-9.1	%
Dividends to policyholders			510		1,622		2,047		2,205		1,916		7,790		3,532	NM			NM
	Total losses and expenses		91,148		92,371		98,702		91,369		95,318		377,760		375,894		4.6	%		0.5	%
Operating income before income taxes
	and interest expense		5,238		11,179		8,050		11,956		7,861		39,046		27,060		50.1	%		44.3	%
Interest expense			255		249		251		254		247		1,001		978		-3.1	%		2.4	%
Pre-tax operating income		$	4,983	$	10,930	$	7,799	$	11,702	$	7,614	$	38,045	$	26,082		52.8	%		45.9	%
1	Beginning in the fourth quarter of 2007, the results of PMA Insurance Group no longer include those of PMA Management Corp. The results of PMA Management Corp. are currently included within the segment results of the Company's Fee-based Business. For comparative purposes, the financial results of PMA Insurance Group and PMA Management Corp. have been reclassified in all prior periods to reflect this change.

14

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
	4th Quarter 2006			1st Quarter 2007			2nd Quarter 2007			3rd Quarter 2007			4th Quarter 2007			Twelve Months 2007			Twelve Months 2006			Point Chg. 4th Quarter Better (Worse)			Point Chg. Twelve Months Better (Worse)
Ratios - GAAP Basis:
Loss and LAE ratio		70.8	%		70.1	%		69.9	%		67.2	%		70.5	%		69.5	%		71.3	%		0.3			1.8
Expense ratio:
Acquisition expenses		20.0	%		20.0	%		19.3	%		19.4	%		19.2	%		19.4	%		20.0	%		0.8			0.6
Operating expenses		12.9	%		6.4	%		10.3	%		8.4	%		9.9	%		8.7	%		9.8	%		3.0			1.1
Total expense ratio		32.9	%		26.4	%		29.6	%		27.8	%		29.1	%		28.1	%		29.8	%		3.8			1.7
Policyholders' dividend ratio		0.6	%		1.7	%		2.1	%		2.3	%		2.0	%		2.1	%		1.0	%		(1.4	)		(1.1	)
Combined ratio		104.3	%		98.2	%		101.6	%		97.3	%		101.6	%		99.7	%		102.1	%		2.7			2.4
Net investment income ratio		-10.3	%		-10.2	%		-9.9	%		-10.0	%		-10.0	%		-10.0	%		-9.5	%		(0.3	)		0.5
Operating ratio		94.0	%		88.0	%		91.7	%		87.3	%		91.6	%		89.7	%		92.6	%		2.4			2.9

15

PMA Capital Corporation
Statements of Operations - Fee-based Business 1
(Dollar Amounts in Thousands)
		4th		1st		2nd		3rd		4th		Twelve		Twelve		% Change			% Change
		Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		4th			Twelve
		2006		2007		2007		2007		2007		2007		2006		Quarter			Months
Revenues:
Claims service revenues		$	7,058	$	7,665	$	7,535	$	7,595	$	11,239	$	34,034	$	27,853		59.2	%		22.2	%
Commission income			-		-		-		-		3,005		3,005		-	NM			NM
Net investment income			190		164		180		193		435		972		669	NM				45.3	%
Other revenues			-		-		-		-		113		113		-	NM			NM
	Total revenues		7,248		7,829		7,715		7,788		14,792		38,124		28,522	NM				33.7	%
Expenses:
Operating expenses			6,510		7,036		7,114		7,127		13,123		34,400		25,720	NM				33.7	%
	Total expenses		6,510		7,036		7,114		7,127		13,123		34,400		25,720	NM				33.7	%
Pre-tax operating income		$	738	$	793	$	601	$	661	$	1,669	$	3,724	$	2,802	NM				32.9	%
1	As a result of the Company's acquisition of Midlands at the beginning of the fourth quarter of 2007, the combined operating results of PMA Management Corp. and Midlands have been reported in a new reporting segment, Fee-based Business. For comparative purposes, all prior periods have been reclassified to reflect this change. Fee-based Business operating results include only the operating results of Midlands from the date of acquisition.

16

PMA Capital Corporation
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve			% Change			% Change
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			4th			Twelve
		2006			2007			2007			2007			2007			2007			2006			Quarter			Months
Gross Premiums Written		$	(157	)	$	(156	)	$	(160	)	$	(155	)	$	(156	)	$	(627	)	$	(696	)		0.6	%		9.9	%
Net Premiums Written		$	(157	)	$	(156	)	$	(160	)	$	(155	)	$	(156	)	$	(627	)	$	(696	)		0.6	%		9.9	%
Revenues:
Net premiums earned		$	(157	)	$	(156	)	$	(160	)	$	(155	)	$	(156	)	$	(627	)	$	(696	)		0.6	%		9.9	%
Net investment income 1			(48	)		35			193			324			132			684			327		NM			NM
Other revenues			42			107			32			33			55			227			244			31.0	%		-7.0	%
	Total revenues		(163	)		(14	)		65			202			31			284			(125	)	NM			NM
Expenses:
Operating expenses			2,337			2,514			2,366			1,954			2,283			9,117			8,912			-2.3	%		2.3	%
	Total expenses		2,337			2,514			2,366			1,954			2,283			9,117			8,912			-2.3	%		2.3	%
Operating loss before income taxes
	and interest expense		(2,500	)		(2,528	)		(2,301	)		(1,752	)		(2,252	)		(8,833	)		(9,037	)		9.9	%		2.3	%
Interest expense			2,581			2,567			2,592			2,821			2,751			10,731			12,543			6.6	%		-14.4	%
Pre-tax operating loss		$	(5,081	)	$	(5,095	)	$	(4,893	)	$	(4,573	)	$	(5,003	)	$	(19,564	)	$	(21,580	)		1.5	%		9.3	%
1	Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations. As a result of this change, the Corporate & Other segment was impacted by investment income previously eliminated in the Corporate & Other segment. For comparative purposes, all prior periods have been reclassified to reflect this change.

17

PMA Capital Corporation
Statements of Operations - Discontinued Operations 1
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve			% Change			% Change
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			4th			Twelve
		2006			2007			2007			2007			2007			2007			2006			Quarter			Months
Gross Premiums Written		$	102		$	1,507		$	1,994		$	1,603		$	(301	)	$	4,803		$	1,986		NM			NM
Net Premiums Written		$	309		$	1,495		$	1,994		$	1,216		$	680		$	5,385		$	2,143		NM			NM
Revenues:
Net premiums earned		$	1,094		$	1,193		$	517		$	1,105		$	656		$	3,471		$	2,778			-40.0	%		24.9	%
Net investment income 1			1,190			786			1,221			777			60			2,844			7,710			-95.0	%		-63.1	%
	Total revenues		2,284			1,979			1,738			1,882			716			6,315			10,488			-68.7	%		-39.8	%
Losses and Expenses:
Losses and loss adjustment expenses			(1,146	)		1,107			185			22,447			274			24,013			(3,076	)	NM			NM
Acquisition expenses			339			359			254			39			239			891			787			-29.5	%		13.2	%
Operating expenses			2,808			1,465			2,242			1,689			2,111			7,507			12,515			-24.8	%		-40.0	%
Impairment charge			-			-			-			-			61,482			61,482			-		NM			NM
	Total losses and expenses		2,001			2,931			2,681			24,175			64,106			93,893			10,226		NM			NM
Pre-tax operating income (loss) from discontinued operations			283			(952	)		(943	)		(22,293	)		(63,390	)		(87,578	)		262		NM			NM
Income tax expense (benefit)			99			(333	)		(330	)		(7,803	)		(22,187	)		(30,653	)		92		NM			NM
Operating income (loss) from discontinued operations net of tax			184			(619	)		(613	)		(14,490	)		(41,203	)		(56,925	)		170		NM			NM
Realized gains (losses) after tax			(163	)		(915	)		(403	)		509			457			(352	)		(1,445	)	NM				75.6	%
Income (loss) from discontinued operations		$	21		$	(1,534	)	$	(1,016	)	$	(13,981	)	$	(40,746	)	$	(57,277	)	$	(1,275	)	NM			NM
1	Effective in the fourth quarter of 2007, the Company reported the results of its former Run-off Operations segment as discontinued operations. As a result of this change, the discontinued operations were impacted by investment income previously eliminated in the Corporate & Other segment. For comparative purposes, all prior periods have been reclassified to reflect this change.
	Note: The net results from discontinued operations are reported as a separate line item below "Income from continuing operations" in the consolidated statements of operations.

18

PMA Capital Corporation
Operating Cash Flows - Consolidated1
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2006			2007			2007			2007			2007			2007			2006
Receipts:
Premiums collected		$	85,672		$	92,259		$	87,468		$	99,713		$	95,709		$	375,149		$	366,066
Claims service, commissions and other revenues			7,323			8,047			6,588			8,097			19,473			42,205			27,901
Investment income received			10,564			10,504			10,605			9,981			10,730			41,820			40,472
	Total receipts		103,559			110,810			104,661			117,791			125,912			459,174			434,439
Disbursements:
Losses and LAE paid:
	Losses and LAE paid - current year		22,696			4,605			15,005			20,704			24,466			64,780			60,563
	Losses and LAE paid - prior years		44,787			62,815			51,295			61,340			34,968			210,418			212,900
Total losses and LAE paid			67,483			67,420			66,300			82,044			59,434			275,198			273,463
Operating expenses paid			28,638			37,393			28,060			32,950			36,995			135,398			128,935
Commissions and premiums paid			-			-			-			-			7,792			7,792			-
Policyholders' dividends paid			812			499			1,878			690			791			3,858			1,906
Interest on corporate debt			2,461			3,082			2,446			2,888			3,396			11,812			13,687
	Total disbursements		99,394			108,394			98,684			118,572			108,408			434,058			417,991
	Net other		13,151			3,650			(5,728	)		(4,183	)		793			(5,468	)		429
Net operating cash flows from continuing operations			17,316			6,066			249			(4,964	)		18,297			19,648			16,877
Net operating cash flows from discontinued operations			(38,074	)		(22,293	)		(35,532	)		(18,174	)		143,177	2		67,180	2		(113,041	)
Net operating cash flows		$	(20,758	)	$	(16,227	)	$	(35,283	)	$	(23,138	)	$	161,474		$	86,828		$	(96,164	)
1	Effective in the fourth quarter of 2007, the Company reported the operating cash flows of its former Run-off Operations segment as discontinued operations. For comparative purposes, all prior periods have been reclassified to reflect this change.
2	Includes $172 million received for commutation of adverse development cover reinsurance.

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PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group1
(Dollar Amounts in Thousands)
		4th		1st			2nd			3rd			4th			Twelve			Twelve
		Quarter		Quarter			Quarter			Quarter			Quarter			Months			Months
		2006		2007			2007			2007			2007			2007			2006
Receipts:
Premiums collected		$	85,672	$	92,259		$	87,468		$	99,713		$	95,709		$	375,149		$	366,066
Investment income received			10,401		10,339			10,426			9,788			10,292			40,845			39,912
	Total receipts		96,073		102,598			97,894			109,501			106,001			415,994			405,978
Disbursements:
Losses and LAE paid:
	Losses and LAE paid - current year		22,696		4,605			15,005			20,704			24,466			64,780			60,563
	Losses and LAE paid - prior years		44,787		62,815			51,295			61,340			34,968			210,418			212,900
Total losses and LAE paid			67,483		67,420			66,300			82,044			59,434			275,198			273,463
Operating expenses paid			22,352		30,207			20,985			25,806			22,146			99,144			103,739
Policyholders' dividends paid			812		499			1,878			690			791			3,858			1,906
Interest on corporate debt			255		252			244			252			252			1,000			952
	Total disbursements		90,902		98,378			89,407			108,792			82,623			379,200			380,060
	Net other		6,572		(1,795	)		(7,701	)		(6,333	)		(15,631	)		(31,460	)		(728	)
Net operating cash flows		$	11,743	$	2,425		$	786		$	(5,624	)	$	7,747		$	5,334		$	25,190
1	Beginning in the fourth quarter of 2007, the operating cash flows of PMA Insurance Group no longer include those of PMA Management Corp. The operating cash flows of PMA Management Corp. are currently included within the segment operating cash flows of the Company's Fee-based Business. For comparative purposes, all prior periods have been reclassified to reflect this change.

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PMA Capital Corporation
Operating Cash Flows - Fee-based Business1
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2006			2007			2007			2007			2007			2007			2006
Receipts:
Claims service, commissions and other revenues		$	7,323		$	8,047		$	6,588		$	8,097		$	19,473		$	42,205		$	27,901
Investment income received			163			165			179			193			438			975			560
	Total receipts		7,486			8,212			6,767			8,290			19,911			43,180			28,461
Disbursements:
Operating expenses paid			6,286			7,186			7,075			7,144			14,849			36,254			25,196
Commissions and premiums paid			-			-			-			-			7,792			7,792			-
	Total disbursements		6,286			7,186			7,075			7,144			22,641			44,046			25,196
	Net other		(115	)		(1,150	)		(2,326	)		(105	)		(48	)		(3,629	)		(373	)
Net operating cash flows		$	1,085		$	(124	)	$	(2,634	)	$	1,041		$	(2,778	)	$	(4,495	)	$	2,892
1	As a result of the Company's acquisition of Midlands at the beginning of the fourth quarter of 2007, the combined operating cash flows of PMA Management Corp. and Midlands have been reported in a new reporting segment, Fee-based Business. For comparative purposes, all prior periods have been reclassified to reflect this change. Fee-based Business operating cash flows include only the operating cash flows of Midlands from the date of acquisition.

21

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th
		Quarter			Quarter			Quarter			Quarter			Quarter
		2006			2007			2007			2007			20071
PMA Pool 2		$	321,245		$	327,379		$	333,118		$	339,800		$	335,394
PMA Capital Insurance Company			121,566			117,098			75,585	3		58,040			47,580
PMA Capital Corporation
Statutory Financial Information - PMA Pool 2
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2006			2007			2007			2007			20071			20071			2006
Net Premiums Written:
	Workers' Compensation	$	58,731		$	113,732		$	75,976		$	98,459		$	64,477		$	352,644		$	330,866
	Other Commercial Lines		4,637			10,258			7,359			9,900			6,139			33,656			28,439
	Total - PMA Pool	$	63,368		$	123,990		$	83,335		$	108,359		$	70,616		$	386,300		$	359,305
Statutory Ratios:
	Loss and LAE ratio		71.3	%		71.2	%		70.3	%		68.0	%		70.4	%		70.0	%		71.9	%
	Underwriting expense ratio		37.5	%		21.1	%		30.2	%		25.9	%		34.6	%		26.9	%		29.0	%
	Policyholders' dividend ratio		0.6	%		0.6	%		1.7	%		1.4	%		2.1	%		1.4	%		0.5	%
	Combined ratio		109.4	%		92.9	%		102.2	%		95.3	%		107.1	%		98.3	%		101.4	%
	Operating ratio		99.8	%		83.3	%		92.4	%		85.7	%		97.2	%		88.6	%		92.7	%
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 April 2007, PMA Capital Insurance Company paid an extraordinary dividend in the amount of $37.5 million to its parent, PMA Capital Corporation.

22

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 2/20/2008):
	A.M. Best	Moody's
PMA Pool 1	A-   (4th of 16)	Baa3  (10th of 21)
PMA Capital Insurance Company 2	B  (7th 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.  On February 12, 2008, we announced that we have entered into a non-binding letter of intent with a third party to sell this business.

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