ex99-2.htm

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Second Quarter - 2008


Table of Contents
		Page
Consolidated Highlights:
Selected Financial Data - Second Quarter			1
Selected Financial Data - Year-to-date			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Second Quarter			5
Consolidated Statements of Operations - Year-to-date			6
Consolidated Balance Sheets			7
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Fronting Agreements;
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		11 - 12
Statements of Operations - Consolidating - Second Quarter		13 - 14
Statements of Operations - PMA Insurance Group			15
Insurance Ratios - PMA Insurance Group			16
Components of Direct Premiums Written - PMA Insurance Group			17
Statements of Operations - Fee-based Business			18
Statements of Operations - Corporate & Other			19
Statements of Operations - Discontinued Operations			20

Operating Cash Flow Information:
Operating Cash Flows - Consolidated			21
Operating Cash Flows - PMA Insurance Group			22
Operating Cash Flows - Fee-based Business			23

Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool			24

Other Information:
Industry Ratings and Market Information			25

Legend:
NM - Not Meaningful

	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)

	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2007			2007			2007			2008			2008			Quarter

Direct Premiums Written	$	110,958		$	146,547		$	91,416		$	140,431		$	99,092			-10.7	%

Net Premiums Written	$	81,656		$	116,116		$	71,189		$	113,783		$	79,146			-3.1	%

Revenues:
Net premiums earned	$	97,014		$	93,773		$	93,617		$	85,596		$	102,920			6.1	%
Claims service revenues		7,535			7,595			11,239			11,952			12,937			71.7	%
Commission income		-			-			3,005			4,281			2,631		NM
Net investment income		9,951			9,914			9,973			9,435			9,040			-9.2	%
Net realized investment gains (losses)		(1,134	)		153			566			3,518			(572	)		49.6	%
Other revenues		32			33			168			146			2,214		NM
Total revenues	$	113,398		$	111,468		$	118,568		$	114,928		$	129,170			13.9	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	7,799		$	11,702		$	7,614		$	13,619		$	11,341			45.4	%
Fee-based Business		601			661			1,669			2,186			1,201			99.8	%
Corporate & Other		(4,893	)		(4,573	)		(5,003	)		(5,011	)		(5,424	)		-10.9	%
Pre-tax operating income		3,507			7,790			4,280			10,794			7,118		NM
Income tax expense		1,263			2,711			1,464			3,811			2,535		NM
After-tax operating income		2,244			5,079			2,816			6,983			4,583		NM
Net realized investment gains (losses) after tax		(737	)		99			368			2,287			(372	)		49.5	%
Income from continuing operations		1,507			5,178			3,184			9,270			4,211		NM
Loss from discontinued operations after tax		(1,016	)		(13,981	)		(40,746	)		(2,439	)		(188	)		81.5	%
Net income (loss)	$	491		$	(8,803	)	$	(37,562	)	$	6,831		$	4,023		NM

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.07		$	0.16		$	0.09		$	0.22		$	0.14		NM
Realized gains (losses) after tax		(0.03	)		-			0.01			0.07			(0.01	)		66.7	%
Income from continuing operations		0.04			0.16			0.10			0.29			0.13		NM
Loss from discontinued operations after tax		(0.03	)		(0.43	)		(1.27	)		(0.08	)		-		NM
Net income (loss)	$	0.01		$	(0.27	)	$	(1.17	)	$	0.21		$	0.13		NM

Capitalization:
Debt	$	144,629		$	135,072		$	131,262		$	129,790		$	129,790			-10.3	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		420,150			409,263			374,603			381,255			387,761			-7.7	%
Total capitalization excluding FAS 115 unrealized gain (loss)		564,779			544,335			505,865			511,045			517,551			-8.4	%
FAS 115 unrealized gain (loss)		(9,179	)		(2,138	)		3,981			2,464			(7,166	)		21.9	%
Total capitalization including FAS 115 unrealized gain (loss)	$	555,600		$	542,197		$	509,846		$	513,509		$	510,385			-8.1	%

Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	13.06		$	12.82		$	11.79		$	12.00		$	12.14			-7.0	%
Including FAS 115 unrealized gain (loss)	$	12.78		$	12.75		$	11.92		$	12.08		$	11.92			-6.7	%

Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		25.6	%		24.8	%		25.9	%		25.4	%		25.1	%		-2.0	%
Including FAS 115 unrealized gain (loss)		26.0	%		24.9	%		25.7	%		25.3	%		25.4	%		-2.3	%

Interest Coverage:
Income from continuing operations before interest
and income taxes to interest expense		1.83			3.58			2.62			6.14			3.44			88.0	%

Operating income from continuing operations before
interest and income taxes to interest expense		2.23			3.53			2.43			4.87			3.65			63.7	%

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

	Six			Six			% Change
	Months			Months			Six
	2008			2007			Months

Direct Premiums Written	$	239,523		$	271,733			-11.9	%

Net Premiums Written	$	192,929		$	207,393			-7.0	%

Revenues:
Net premiums earned	$	188,516		$	190,853			-1.2	%
Claims service revenues		24,889			15,200			63.7	%
Commission income		6,912			-		NM
Net investment income		18,475			19,705			-6.2	%
Net realized investment gains (losses)		2,946			(156	)	NM
Other revenues		2,360			139		NM
Total revenues	$	244,098		$	225,741			8.1	%

Major Components of Net Income:
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	24,960		$	18,729			33.3	%
Fee-based Business		3,387			1,394		NM
Corporate & Other		(10,435	)		(9,988	)		-4.5	%
Pre-tax operating income		17,912			10,135			76.7	%
Income tax expense		6,346			3,647			74.0	%
After-tax operating income		11,566			6,488			78.3	%
Net realized investment gains (losses) after tax		1,915			(101	)	NM
Income from continuing operations		13,481			6,387		NM
Loss from discontinued operations after tax		(2,627	)		(2,550	)		-3.0	%
Net income	$	10,854		$	3,837		NM

Diluted Earnings Per Share:
After-tax operating income	$	0.36		$	0.20			80.0	%
Realized gains (losses) after tax		0.06			(0.01	)	NM
Income from continuing operations		0.42			0.19		NM
Loss from discontinued operations after tax		(0.08	)		(0.07	)		-14.3	%
Net income	$	0.34		$	0.12		NM

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

	2nd			3rd			4th			1st			2nd		Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter		Months			Months
	2007			2007			2007			2008			2008		2008			2007

Diluted Earnings (Loss) Per Share:

Pre-tax operating income	$	0.11		$	0.24		$	0.13		$	0.34		$	0.22	$	0.56		$	0.31

After-tax operating income	$	0.07		$	0.16		$	0.09		$	0.22		$	0.14	$	0.36		$	0.20

Income from continuing operations	$	0.04		$	0.16		$	0.10		$	0.29		$	0.13	$	0.42		$	0.19

Loss from discontinued operations after tax		(0.03	)		(0.43	)		(1.27	)		(0.08	)		-		(0.08	)		(0.07	)

Net income (loss)	$	0.01		$	(0.27	)	$	(1.17	)	$	0.21		$	0.13	$	0.34		$	0.12

Diluted weighted average common
shares outstanding		32,838,046			32,412,070			32,079,673			31,942,896			32,132,576		32,051,518			32,872,801


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

Actual common shares issued
and outstanding		32,163,072			31,920,486			31,761,106			31,765,817			31,940,651		31,940,651			32,163,072


Class A Common Stock prices:
High	$	11.40		$	11.17		$	10.69		$	9.14		$	10.23	$	10.23		$	11.40
Low	$	9.12		$	8.63		$	8.05		$	7.45		$	8.24	$	7.45		$	8.40
Close	$	10.69		$	9.50		$	8.22		$	8.54		$	9.21	$	9.21		$	10.69

This Page Intentionally Left Blank

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

	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2007			2007			2007			2008			2008			Quarter

Gross Premiums Written	$	115,258		$	149,436		$	94,914		$	143,541		$	101,659			-11.8	%

Net Premiums Written	$	81,656		$	116,116		$	71,189		$	113,783		$	79,146			-3.1	%

Revenues:
Net premiums earned	$	97,014		$	93,773		$	93,617		$	85,596		$	102,920			6.1	%
Claims service revenues		7,535			7,595			11,239			11,952			12,937			71.7	%
Commission income		-			-			3,005			4,281			2,631		NM
Net investment income		9,951			9,914			9,973			9,435			9,040			-9.2	%
Net realized investment gains (losses)		(1,134	)		153			566			3,518			(572	)		49.6	%
Other revenues		32			33			168			146			2,214		NM
Total revenues		113,398			111,468			118,568			114,928			129,170			13.9	%

Expenses:
Losses and loss adjustment expenses		67,965			63,163			66,152			59,922			71,572			5.3	%
Acquisition expenses		18,759			18,182			18,027			14,692			19,524			4.1	%
Operating expenses		19,411			16,900			24,629			22,333			27,347			40.9	%
Dividends to policyholders		2,047			2,205			1,916			882			1,493			-27.1	%
Interest expense		2,843			3,075			2,998			2,787			2,688			-5.5	%
Total losses and expenses		111,025			103,525			113,722			100,616			122,624			10.4	%

Pre-tax income		2,373			7,943			4,846			14,312			6,546		NM

Income tax expense (benefit):
Current		200			537			(321	)		-			151			-24.5	%
Deferred		666			2,228			1,983			5,042			2,184		NM

Total income tax expense		866			2,765			1,662			5,042			2,335		NM

Income from continuing operations		1,507			5,178			3,184			9,270			4,211		NM

Loss from discontinued operations after tax		(1,016	)		(13,981	)		(40,746	)		(2,439	)		(188	)		81.5	%

Net income (loss)	$	491		$	(8,803	)	$	(37,562	)	$	6,831		$	4,023		NM

Pre-tax operating income from continuing operations	$	3,507		$	7,790		$	4,280		$	10,794		$	7,118		NM

After-tax operating income from continuing operations	$	2,244		$	5,079		$	2,816		$	6,983		$	4,583		NM

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

	Six			Six			% Change
	Months			Months			Six
	2008			2007			Months

Gross Premiums Written	$	245,200		$	279,822			-12.4	%

Net Premiums Written	$	192,929		$	207,393			-7.0	%

Revenues:
Net premiums earned	$	188,516		$	190,853			-1.2	%
Claims service revenues		24,889			15,200			63.7	%
Commission income		6,912			-		NM
Net investment income		18,475			19,705			-6.2	%
Net realized investment gains (losses)		2,946			(156	)	NM
Other revenues		2,360			139		NM
Total revenues		244,098			225,741			8.1	%

Expenses:
Losses and loss adjustment expenses		131,494			133,884			-1.8	%
Acquisition expenses		34,216			37,538			-8.8	%
Operating expenses		49,680			35,012			41.9	%
Dividends to policyholders		2,375			3,669			-35.3	%
Interest expense		5,475			5,659			-3.3	%
Total losses and expenses		223,240			215,762			3.5	%

Pre-tax income		20,858			9,979		NM

Income tax expense:
Current		151			200			-24.5	%
Deferred		7,226			3,392		NM

Total income tax expense		7,377			3,592		NM

Income from continuing operations		13,481			6,387		NM

Loss from discontinued operations after tax		(2,627	)		(2,550	)		-3.0	%

Net income	$	10,854		$	3,837		NM

Pre-tax operating income from continuing operations	$	17,912		$	10,135			76.7	%

After-tax operating income from continuing operations	$	11,566		$	6,488			78.3	%

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

	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2007			2007			2007			2008			2008

Assets:
Investments in fixed maturities available for sale	$	733,083		$	725,637		$	728,725		$	719,570		$	730,466
Investments in fixed maturities trading		16,760			-			-			-			-
Short-term investments		79,632			83,618			78,426			78,086			59,785
Total investments		829,475			809,255			807,151			797,656			790,251

Cash		5,228			4,164			15,828			14,552			10,557
Accrued investment income		5,438			5,789			5,768			5,462			5,762
Premiums receivable		248,049			254,804			222,140			239,783			215,030
Reinsurance receivables		745,269			795,118			795,938			818,789			817,182
Prepaid reinsurance premiums		41,455			41,354			32,361			28,977			21,414
Deferred income taxes, net		101,696			103,284			118,857			116,342			117,983
Deferred acquisition costs		37,889			42,626			37,404			42,547			38,739
Funds held by reinsureds		37,879			40,150			42,418			44,622			46,980
Intangible assets		-			-			22,779			22,589			30,013
Other assets		92,518			92,176			105,341			115,255			125,533
Assets of discontinued operations		534,091			525,710			375,656			348,921			317,189
Total assets	$	2,678,987		$	2,714,430		$	2,581,641		$	2,595,495		$	2,536,633

Liabilities:
Unpaid losses and loss adjustment expenses	$	1,181,143		$	1,206,550		$	1,212,956		$	1,227,287		$	1,240,224
Unearned premiums		235,356			257,598			226,178			250,981			219,643
Debt		144,629			135,072			131,262			129,790			129,790
Accounts payable, accrued expenses
and other liabilities		181,532			173,242			195,895			191,029			193,342
Reinsurance funds held and balances payable		52,629			44,884			39,324			39,287			31,947
Dividends to policyholders		4,179			4,730			5,839			5,845			5,459
Liabilities of discontinued operations		468,548			485,229			391,603			367,557			335,633
Total liabilities		2,268,016			2,307,305			2,203,057			2,211,776			2,156,038

Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		110,318			110,687			111,088			111,588			111,754
Retained earnings		183,019			174,190			136,627			143,418			145,638
Accumulated other comprehensive loss		(23,569	)		(16,673	)		(6,663	)		(8,917	)		(17,743	)
Treasury stock, at cost		(29,887	)		(32,169	)		(33,558	)		(33,460	)		(30,144	)
Total shareholders' equity		410,971			407,125			378,584			383,719			380,595
Total liabilities and shareholders' equity	$	2,678,987		$	2,714,430		$	2,581,641		$	2,595,495		$	2,536,633

PMA Capital Corporation
Assets and Liabilities of Discontinued Operations
(Dollar Amounts in Thousands)

	2nd		3rd		4th			1st			2nd
	Quarter		Quarter		Quarter			Quarter			Quarter
	2007		2007		2007			2008			2008

Assets
Investments	$	89,109	$	71,486	$	219,678		$	186,466		$	172,732
Cash		3,266		4,524		5,665			10,305			726
Reinsurance receivables		306,000		312,175		150,097			144,994			136,212
Other assets		135,716		137,525		216	1		7,156	1		7,519	1
Assets of discontinued operations	$	534,091	$	525,710	$	375,656		$	348,921		$	317,189

Liabilities
Unpaid losses and loss adjustment expenses	$	382,182	$	379,920	$	339,077		$	317,165		$	289,190
Other liabilities		86,366		105,309		52,526			50,392			46,443
Liabilities of discontinued operations	$	468,548	$	485,229	$	391,603		$	367,557		$	335,633


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 - Fronting Agreements
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2007			2007			2007			2008			2008

Assets
Premiums receivable	$	28,418		$	31,136		$	27,847		$	22,714		$	11,145
Reinsurance receivables		13,035			21,799			30,377			37,711			42,691
Prepaid reinsurance premiums		27,307			26,188			22,665			16,956			8,513
Deferred acquisition costs		140			231			254			189			61
Other assets		3,108			3,375			7,332			7,285			6,234

Liabilities
Unpaid losses and loss adjustment expenses	$	13,064		$	21,855		$	30,978		$	38,739		$	44,078
Unearned premiums		27,897			27,338			24,413			18,500			9,555
Reinsurance funds held and balances payable		23,224			24,652			21,333			16,510			8,047
Other liabilities		6,890			7,435			11,511			11,564			8,586




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

	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2007			2007			2007			2008			2008

Balance Sheet
Balance, beginning of period	$	41,726		$	37,889		$	42,626		$	37,404		$	42,547

Policy acquisition costs deferred		14,922			22,919			12,805			19,835			15,729
Amortization of policy acquisition costs		(18,759	)		(18,182	)		(18,027	)		(14,692	)		(19,537	)
Net change		(3,837	)		4,737			(5,222	)		5,143			(3,808	)

Balance, end of period	$	37,889		$	42,626		$	37,404		$	42,547		$	38,739

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

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2007			2007			2007			2008			2008			2008			2007

Total Investments & Cash
As reported	$	834,703		$	813,419		$	822,979		$	812,208		$	800,808		$	800,808		$	834,703
Less:
Unrealized gain (loss)		(14,121	)		(3,289	)		6,125			3,791			(11,025	)		(11,025	)		(14,121	)
Unrealized loss and accrued income - trading		(3,240	)		-			-			-			-			-			(3,240	)
Total adjusted investments & cash	$	852,064		$	816,708		$	816,854		$	808,417		$	811,833		$	811,833		$	852,064

Net Investment Income
As reported	$	9,951		$	9,914		$	9,973		$	9,435		$	9,040		$	18,475		$	19,705
Less:
Interest on funds held		(596	)		(529	)		(676	)		(506	)		(558	)		(1,064	)		(989	)
Total adjusted investment income	$	10,547		$	10,443		$	10,649		$	9,941		$	9,598		$	19,539		$	20,694

Yield
As reported		4.88	%		4.81	%		4.88	%		4.62	%		4.48	%		4.55	%		4.88	%
Investment portfolio		5.11	%		5.01	%		5.22	%		4.89	%		4.74	%		4.81	%		5.08	%

Duration (in years)		3.9			3.8			3.7			3.8			3.8			3.8			3.9


PMA Capital Corporation
Debt
(Dollar Amounts in Thousands)

	Amount
	Outstanding		Maturity
Junior subordinated debt 1	$	64,435	2033 - 2037
8.50% senior notes		54,900	2018
Surplus notes 2		10,000	2035
4.25% convertible debt		455	20223
Total long-term debt	$	129,790

Weighted average interest rate on junior subordinated debt is 6.67% as of June 30, 2008.

Interest rate on surplus notes is 7.35% as of June 30, 2008.

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.

This Page Intentionally Left Blank

PMA Capital Corporation
Statements of Operations - Consolidating
Six Months Ended June 30, 2008
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	245,449	$	-	$	(249	)	$	245,200

Net Premiums Written	$	193,178	$	-	$	(249	)	$	192,929

Revenues:
Net premiums earned	$	188,765	$	-	$	(249	)	$	188,516
Claims service revenues		-		25,321		(432	)		24,889
Commission income		-		6,925		(13	)		6,912
Net investment income		18,042		279		154			18,475
Other revenues		2,120		184		56			2,360
Operating revenues		208,927		32,709		(484	)		241,152

Losses and Expenses:
Losses and loss adjustment expenses		131,494		-		-			131,494
Acquisition expenses		34,229		-		(13	)		34,216
Operating expenses		15,467		29,322		4,891			49,680
Dividends to policyholders		2,375		-		-			2,375
Total losses and expenses		183,565		29,322		4,878			217,765

Operating income (loss) before income taxes
and interest expense		25,362		3,387		(5,362	)		23,387

Interest expense		402		-		5,073			5,475

Pre-tax operating income (loss)	$	24,960	$	3,387	$	(10,435	)		17,912

Net realized investment gains									2,946

Pre-tax income								$	20,858


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.

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

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	280,138	$	-	$	(316	)	$	279,822

Net Premiums Written	$	207,709	$	-	$	(316	)	$	207,393

Revenues:
Net premiums earned	$	191,169	$	-	$	(316	)	$	190,853
Claims service revenues		-		15,200		-			15,200
Net investment income		19,133		344		228			19,705
Other revenues		-		-		139			139
Operating revenues		210,302		15,544		51			225,897

Losses and Expenses:
Losses and loss adjustment expenses		133,884		-		-			133,884
Acquisition expenses		37,538		-		-			37,538
Operating expenses		15,982		14,150		4,880			35,012
Dividends to policyholders		3,669		-		-			3,669
Total losses and expenses		191,073		14,150		4,880			210,103

Operating income (loss) before income taxes
and interest expense		19,229		1,394		(4,829	)		15,794

Interest expense		500		-		5,159			5,659

Pre-tax operating income (loss)	$	18,729	$	1,394	$	(9,988	)		10,135

Net realized investment losses									(156	)

Pre-tax income								$	9,979


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.

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended June 30, 2008
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	101,786	$	-	$	(127	)	$	101,659

Net Premiums Written	$	79,273	$	-	$	(127	)	$	79,146

Revenues:
Net premiums earned	$	103,047	$	-	$	(127	)	$	102,920
Claims service revenues		-		13,213		(276	)		12,937
Commission income		-		2,644		(13	)		2,631
Net investment income		8,943		118		(21	)		9,040
Other revenues		2,120		82		12			2,214
Operating revenues		114,110		16,057		(425	)		129,742

Losses and Expenses:
Losses and loss adjustment expenses		71,572		-		-			71,572
Acquisition expenses		19,537		-		(13	)		19,524
Operating expenses		9,979		14,856		2,512			27,347
Dividends to policyholders		1,493		-		-			1,493
Total losses and expenses		102,581		14,856		2,499			119,936

Operating income (loss) before income taxes
and interest expense		11,529		1,201		(2,924	)		9,806

Interest expense		188		-		2,500			2,688

Pre-tax operating income (loss)	$	11,341	$	1,201	$	(5,424	)		7,118

Net realized investment losses									(572	)

Pre-tax income								$	6,546

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.

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

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	115,418	$	-	$	(160	)	$	115,258

Net Premiums Written	$	81,816	$	-	$	(160	)	$	81,656

Revenues:
Net premiums earned	$	97,174	$	-	$	(160	)	$	97,014
Claims service revenues		-		7,535		-			7,535
Net investment income		9,578		180		193			9,951
Other revenues		-		-		32			32
Operating revenues		106,752		7,715		65			114,532

Losses and Expenses:
Losses and loss adjustment expenses		67,965		-		-			67,965
Acquisition expenses		18,759		-		-			18,759
Operating expenses		9,931		7,114		2,366			19,411
Dividends to policyholders		2,047		-		-			2,047
Total losses and expenses		98,702		7,114		2,366			108,182

Operating income (loss) before income taxes
and interest expense		8,050		601		(2,301	)		6,350

Interest expense		251		-		2,592			2,843

Pre-tax operating income (loss)	$	7,799	$	601	$	(4,893	)		3,507

Net realized investment losses									(1,134	)

Pre-tax income								$	2,373

PMA Capital Corporation
Statements of Operations - PMA Insurance Group 1
(Dollar Amounts in Thousands)

	2nd		3rd		4th		1st		2nd		Six		Six		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		2nd			Six
	2007		2007		2007		2008		2008		2008		2007		Quarter			Months

Gross Premiums Written	$	115,418	$	149,591	$	95,070	$	143,663	$	101,786	$	245,449	$	280,138		-11.8	%		-12.4	%

Net Premiums Written	$	81,816	$	116,271	$	71,345	$	113,905	$	79,273	$	193,178	$	207,709		-3.1	%		-7.0	%

Revenues:
Net premiums earned	$	97,174	$	93,928	$	93,773	$	85,718	$	103,047	$	188,765	$	191,169		6.0	%		-1.3	%
Net investment income		9,578		9,397		9,406		9,099		8,943		18,042		19,133		-6.6	%		-5.7	%
Other revenues		-		-		-		-		2,120		2,120		-	NM			NM
Total revenues		106,752		103,325		103,179		94,817		114,110		208,927		210,302		6.9	%		-0.7	%

Losses and Expenses:
Losses and loss adjustment expenses		67,965		63,163		66,152		59,922		71,572		131,494		133,884		5.3	%		-1.8	%
Acquisition expenses		18,759		18,182		18,027		14,692		19,537		34,229		37,538		4.1	%		-8.8	%
Operating expenses		9,931		7,819		9,223		5,488		9,979		15,467		15,982		0.5	%		-3.2	%
Dividends to policyholders		2,047		2,205		1,916		882		1,493		2,375		3,669		-27.1	%		-35.3	%
Total losses and expenses		98,702		91,369		95,318		80,984		102,581		183,565		191,073		3.9	%		-3.9	%

Operating income before income taxes
and interest expense		8,050		11,956		7,861		13,833		11,529		25,362		19,229		43.2	%		31.9	%

Interest expense		251		254		247		214		188		402		500		-25.1	%		-19.6	%

Pre-tax operating income	$	7,799	$	11,702	$	7,614	$	13,619	$	11,341	$	24,960	$	18,729		45.4	%		33.3	%

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.

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
																						Point Chg.			Point Chg.
	2nd			3rd			4th			1st			2nd			Six			Six			2nd Quarter			Six Months
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			Better			Better
	2007			2007			2007			2008			2008			2008			2007			(Worse)			(Worse)

Ratios - GAAP Basis:


Loss and LAE ratio		69.9	%		67.2	%		70.5	%		69.9	%		69.4	%		69.6	%		70.0	%		0.5			0.4

Expense ratio:
Acquisition expenses		19.3	%		19.4	%		19.2	%		17.1	%		19.0	%		18.1	%		19.6	%		0.3			1.5
Operating expenses		10.3	%		8.4	%		9.9	%		6.5	%		9.7	%		8.2	%		8.4	%		0.6			0.2
Total expense ratio		29.6	%		27.8	%		29.1	%		23.6	%		28.7	%		26.3	%		28.0	%		0.9			1.7

Policyholders' dividend ratio		2.1	%		2.3	%		2.0	%		1.0	%		1.4	%		1.3	%		1.9	%		0.7			0.6
Combined ratio		101.6	%		97.3	%		101.6	%		94.5	%		99.5	%		97.2	%		99.9	%		2.1			2.7

Net investment income ratio		-9.9	%		-10.0	%		-10.0	%		-10.6	%		-8.7	%		-9.6	%		-10.0	%		(1.2	)		(0.4	)
Operating ratio		91.7	%		87.3	%		91.6	%		83.9	%		90.8	%		87.6	%		89.9	%		0.9			2.3

PMA Capital Corporation
Components of Direct Premiums Written - PMA Insurance Group
(Dollar Amounts in Thousands)


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

Direct premium production	$	127,138		$	92,932		$	126,858		$	78,751		$	220,070		$	425,679
Fronting premiums		-			-			2,086			12,704			-			14,790
Premium adjustments		435			(498	)		(1,452	)		(7,327	)		(63	)		(8,842	)
Direct premiums written	$	127,573		$	92,434		$	127,492		$	84,128		$	220,007		$	431,627


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

Direct premium production	$	143,389		$	96,316		$	137,144		$	83,103		$	239,705		$	459,952
Fronting premiums		18,401			14,936			13,707			12,796			33,337			59,840
Premium adjustments		(859	)		(134	)		(4,149	)		(4,327	)		(993	)		(9,469	)
Direct premiums written	$	160,931		$	111,118		$	146,702		$	91,572		$	272,049		$	510,323


	1st			2nd									Six
	Quarter			Quarter									Months
	2008			2008									2008

Direct premium production	$	146,608		$	96,736								$	243,344
Fronting premiums		8,143			2,113									10,256
Premium adjustments		(14,198	)		370									(13,828	)
Direct premiums written	$	140,553		$	99,219								$	239,772

PMA Capital Corporation
Statements of Operations - Fee-based Business 1
(Dollar Amounts in Thousands)

	2nd		3rd		4th		1st		2nd		Six		Six		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		2nd			Six
	2007		2007		2007		2008		2008		2008		2007		Quarter			Months

Revenues:
Claims service revenues	$	7,535	$	7,595	$	11,239	$	12,108	$	13,213	$	25,321	$	15,200		75.4	%		66.6	%
Commission income		-		-		3,005		4,281		2,644		6,925		-	NM			NM
Net investment income		180		193		435		161		118		279		344		-34.4	%		-18.9	%
Other revenues		-		-		113		102		82		184		-	NM			NM
Total revenues		7,715		7,788		14,792		16,652		16,057		32,709		15,544	NM			NM

Expenses:
Operating expenses		7,114		7,127		13,123		14,466		14,856		29,322		14,150	NM			NM
Total expenses		7,114		7,127		13,123		14,466		14,856		29,322		14,150	NM			NM

Pre-tax operating income	$	601	$	661	$	1,669	$	2,186	$	1,201	$	3,387	$	1,394		99.8	%	NM

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. Beginning in the third quarter of 2008, the operating results for this segment will also include those of PMA Management Corp. of New England, which was acquired by the Company on June 30, 2008.

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

	2nd			3rd			4th			1st			2nd			Six			Six			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			2nd			Six
	2007			2007			2007			2008			2008			2008			2007			Quarter			Months

Gross Premiums Written	$	(160	)	$	(155	)	$	(156	)	$	(122	)	$	(127	)	$	(249	)	$	(316	)		20.6	%		21.2	%

Net Premiums Written	$	(160	)	$	(155	)	$	(156	)	$	(122	)	$	(127	)	$	(249	)	$	(316	)		20.6	%		21.2	%

Revenues:
Net premiums earned	$	(160	)	$	(155	)	$	(156	)	$	(122	)	$	(127	)	$	(249	)	$	(316	)		20.6	%		21.2	%
Claims service revenues		-			-			-			(156	)		(276	)		(432	)		-		NM			NM
Commission income		-			-			-			-			(13	)		(13	)		-		NM			NM
Net investment income 1		193			324			132			175			(21	)		154			228		NM				-32.5	%
Other revenues		32			33			55			44			12			56			139			-62.5	%		-59.7	%
Total revenues		65			202			31			(59	)		(425	)		(484	)		51		NM			NM

Expenses:
Acquisition expenses		-			-			-			-			(13	)		(13	)		-		NM			NM
Operating expenses		2,366			1,954			2,283			2,379			2,512			4,891			4,880			6.2	%		0.2	%
Total expenses		2,366			1,954			2,283			2,379			2,499			4,878			4,880			5.6	%		-0.0	%

Operating loss before income taxes
and interest expense		(2,301	)		(1,752	)		(2,252	)		(2,438	)		(2,924	)		(5,362	)		(4,829	)		-27.1	%		-11.0	%

Interest expense		2,592			2,821			2,751			2,573			2,500			5,073			5,159			-3.5	%		-1.7	%

Pre-tax operating loss	$	(4,893	)	$	(4,573	)	$	(5,003	)	$	(5,011	)	$	(5,424	)	$	(10,435	)	$	(9,988	)		-10.9	%		-4.5	%

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.

PMA Capital Corporation
Statements of Operations - Discontinued Operations 1
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			2nd			Six
	2007			2007			2007			2008			2008			2008			2007			Quarter			Months

Gross Premiums Written	$	1,994		$	1,603		$	(301	)	$	2,331		$	(214	)	$	2,117		$	3,501		NM				-39.5	%

Net Premiums Written	$	1,994		$	1,216		$	680		$	2,439		$	(227	)	$	2,212		$	3,489		NM				-36.6	%

Revenues:
Net premiums earned	$	517		$	1,105		$	656		$	1,026		$	11		$	1,037		$	1,710			-97.9	%		-39.4	%
Net investment income 1		1,221			777			60			128			(451	)		(323	)		2,007		NM			NM
Total revenues		1,738			1,882			716			1,154			(440	)		714			3,717		NM				-80.8	%

Losses and Expenses:
Losses and loss adjustment expenses		185			22,447			274			9,280			550			9,830			1,292		NM			NM
Acquisition expenses		254			39			239			85			168			253			613			-33.9	%		-58.7	%
Operating expenses		2,242			1,689			2,111			2,782			1,952			4,734			3,707			-12.9	%		27.7	%
Impairment charge / valuation adjustment		-			-			61,482			(6,480	)		(3,550	)		(10,030	)		-		NM			NM
Total losses and expenses		2,681			24,175			64,106			5,667			(880	)		4,787			5,612		NM				-14.7	%

Pre-tax operating income (loss) from discontinued operations		(943	)		(22,293	)		(63,390	)		(4,513	)		440			(4,073	)		(1,895	)	NM			NM

Income tax expense (benefit)		(330	)		(7,803	)		(22,187	)		(1,580	)		154			(1,426	)		(663	)	NM			NM

After-tax operating income (loss) from discontinued operations		(613)			(14,490)			(41,203)			(2,993)			286			(2,647)			(1,232)			NM			NM

Realized gains (losses) after tax		(403	)		509			457			494			(474	)		20			(1,318	)		-17.6	%	NM

Loss from discontinued operations	$	(1,016	)	$	(13,981	)	$	(40,746	)	$	(2,439	)	$	(188	)	$	(2,627	)	$	(2,550	)		81.5	%		-3.0	%

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.

PMA Capital Corporation
Operating Cash Flows - Consolidated 1
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2007			2007			2007			2008			2008			2008			2007

Receipts:
Premiums collected	$	87,468		$	99,713		$	95,709		$	93,222		$	94,883		$	188,105		$	179,727
Claims service, commissions and other revenues		6,588			8,097			19,473			14,097			16,180			30,277			14,635
Investment income received		10,605			9,981			10,730			10,623			9,418			20,041			21,109
Total receipts		104,661			117,791			125,912			117,942			120,481			238,423			215,471

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		15,005			20,704			24,466			4,991			17,075			22,066			19,610
Losses and LAE paid - prior years		51,295			61,340			34,968			61,577			54,638			116,215			114,110
Total losses and LAE paid		66,300			82,044			59,434			66,568			71,713			138,281			133,720
Operating expenses paid		28,060			32,950			36,995			44,966			43,369			88,335			65,453
Commissions and premiums paid		-			-			7,792			922			2,117			3,039			-
Policyholders' dividends paid		1,878			690			791			1,138			1,882			3,020			2,377
Interest on corporate debt		2,446			2,888			3,396			2,926			2,680			5,606			5,528
Total disbursements		98,684			118,572			108,408			116,520			121,761			238,281			207,078

Net other		(5,728	)		(4,183	)		793			(5,637	)		12,080			6,443			(2,078	)

Net operating cash flows from continuing operations		249			(4,964	)		18,297			(4,215	)		10,800			6,585			6,315
Net operating cash flows from discontinued operations		(35,532	)		(18,174	)		143,177	2		(31,345	)		(23,228	)		(54,573	)		(57,825	)
Net operating cash flows	$	(35,283	)	$	(23,138	)	$	161,474		$	(35,560	)	$	(12,428	)	$	(47,988	)	$	(51,510	)

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.

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group 1
(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd		Six		Six
	Quarter			Quarter			Quarter			Quarter			Quarter		Months		Months
	2007			2007			2007			2008			2008		2008		2007

Receipts:
Premiums collected	$	87,468		$	99,713		$	95,709		$	93,222		$	94,883	$	188,105	$	179,727
Investment income received		10,426			9,788			10,292			10,462			9,300		19,762		20,765
Total receipts		97,894			109,501			106,001			103,684			104,183		207,867		200,492

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		15,005			20,704			24,466			4,991			17,075		22,066		19,610
Losses and LAE paid - prior years		51,295			61,340			34,968			61,577			54,638		116,215		114,110
Total losses and LAE paid		66,300			82,044			59,434			66,568			71,713		138,281		133,720
Operating expenses paid		20,985			25,806			22,146			32,454			28,756		61,210		51,192
Policyholders' dividends paid		1,878			690			791			1,138			1,882		3,020		2,377
Interest on corporate debt		244			252			252			245			186		431		496
Total disbursements		89,407			108,792			82,623			100,405			102,537		202,942		187,785

Net other		(7,701	)		(6,333	)		(15,631	)		(3,412	)		10,964		7,552		(9,496	)

Net operating cash flows	$	786		$	(5,624	)	$	7,747		$	(133	)	$	12,610	$	12,477	$	3,211

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.

PMA Capital Corporation
Operating Cash Flows - Fee-based Business 1
(Dollar Amounts in Thousands)

		2nd			3rd			4th			1st		2nd			Six			Six
		Quarter			Quarter			Quarter			Quarter		Quarter			Months			Months
		2007			2007			2007			2008		2008			2008			2007

Receipts:
Claims service, commissions and other revenues		$	6,588		$	8,097		$	19,473		$	14,097	$	16,180		$	30,277		$	14,635
Investment income received			179			193			438			161		118			279			344
	Total receipts		6,767			8,290			19,911			14,258		16,298			30,556			14,979

Disbursements:
Operating expenses paid			7,075			7,144			14,849			12,512		14,613			27,125			14,261
Commissions and premiums paid			-			-			7,792			922		2,117			3,039			-
	Total disbursements		7,075			7,144			22,641			13,434		16,730			30,164			14,261

	Net other		(2,326	)		(105	)		(48	)		977		(3,003	)		(2,026	)		(3,476	)

Net operating cash flows		$	(2,634	)	$	1,041		$	(2,778	)	$	1,801	$	(3,435	)	$	(1,634	)	$	(2,758	)


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. Beginning in the third quarter of 2008, the operating cash flows for this segment will also include those of PMA Management Corp. of New England, which was acquired by the Company on June 30, 2008.

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)

	2nd		3rd		4th		1st		2nd
	Quarter		Quarter		Quarter		Quarter		Quarter
	2007		2007		2007		2008		20081


PMA Pool 2	$	333,118	$	339,800	$	335,394	$	343,582	$	352,096
PMA Capital Insurance Company		75,585		58,040		47,580		41,099		37,838

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

		2nd			3rd			4th			1st			2nd			Six			Six
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2007			2007			2007			2008			20081			20081			2007

Net Premiums Written:
	Workers' Compensation	$	75,976		$	98,459		$	64,477		$	103,018		$	71,998		$	175,016		$	189,708
	Other Commercial Lines		7,359			9,900			6,139			10,805			9,079			19,884			17,617
	Total - PMA Pool	$	83,335		$	108,359		$	70,616		$	113,823		$	81,077		$	194,900		$	207,325

Statutory Ratios:
	Loss and LAE ratio		70.3	%		68.0	%		70.4	%		69.6	%		69.5	%		69.5	%		70.8	%
	Underwriting expense ratio		30.2	%		25.9	%		34.6	%		20.3	%		32.1	%		25.2	%		24.8	%
	Policyholders' dividend ratio		1.7	%		1.4	%		2.1	%		1.4	%		1.5	%		1.4	%		1.1	%
	Combined ratio		102.2	%		95.3	%		107.1	%		91.3	%		103.1	%		96.1	%		96.7	%
	Operating ratio		92.4	%		85.7	%		97.2	%		80.7	%		94.4	%		86.5	%		87.0	%


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

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 7/30/2008):

	A.M. Best	Fitch	Moody's
PMA Pool 1	A- (4th of 16)	BBB+ (8th of 21)	Baa3 (10th of 21)
PMA Capital Insurance Company 2	B (7th of 16)	NR 3	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 ("PMACIC"). The reinsurance business is in run-off. On April 1, 2008, we announced that we have executed a definitive stock purchase agreement to sell our Run-off Operations to Armour Reinsurance Group Limited.
3 NR - No Rating; On July 21, 2008, Fitch withdrew its financial strength rating of PMACIC. Prior to the rating withdrawal, PMACIC had a financial strength rating of "B-" (16th of 21).