ex99-2.htm

PMA Capital Corporation
Statistical Supplement
Third Quarter - 2008

Table of Contents
		Page
Consolidated Highlights:
Selected Financial Data - Third Quarter			1
Selected Financial Data - Year-to-date			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Third Quarter			5
Consolidated Statements of Operations - Year-to-date			6
Consolidated Balance Sheets			7
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 - Third 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)

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

Direct Premiums Written	$	146,547		$	91,416		$	140,431		$	99,092		$	148,193			1.1	%

Net Premiums Written	$	116,116		$	71,189		$	113,783		$	79,146		$	123,995			6.8	%

Revenues:
Net premiums earned	$	93,773		$	93,617		$	85,596		$	102,920		$	97,974			4.5	%
Claims service revenues		7,595			11,239			11,952			12,937			15,696		NM
Commission income		-			3,005			4,281			2,631			2,637		NM
Net investment income		9,914			9,973			9,435			9,040			8,870			-10.5	%
Net realized investment gains (losses)		153			566			3,518			(572	)		(7,929	)	NM
Other revenues		33			168			146			2,214			125		NM
Total revenues	$	111,468		$	118,568		$	114,928		$	129,170		$	117,373			5.3	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	11,702		$	7,614		$	13,619		$	11,341		$	13,325			13.9	%
Fee-based Business		661			1,669			2,186			1,201			1,929		NM
Corporate & Other		(4,573	)		(5,003	)		(5,011	)		(5,424	)		(5,319	)		-16.3	%
Pre-tax operating income		7,790			4,280			10,794			7,118			9,935			27.5	%
Income tax expense		2,711			1,464			3,811			2,535			3,530			30.2	%
After-tax operating income		5,079			2,816			6,983			4,583			6,405			26.1	%
Net realized investment gains (losses) after tax		99			368			2,287			(372	)		(5,154	)	NM
Income from continuing operations		5,178			3,184			9,270			4,211			1,251			-75.8	%
Loss from discontinued operations after tax		(13,981	)		(40,746	)		(2,439	)		(188	)		(2,310	)		83.5	%
Net income (loss)	$	(8,803	)	$	(37,562	)	$	6,831		$	4,023		$	(1,059	)		88.0	%

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.16		$	0.09		$	0.22		$	0.14		$	0.20			25.0	%
Realized gains (losses) after tax		-			0.01			0.07			(0.01	)		(0.16	)	NM
Income from continuing operations		0.16			0.10			0.29			0.13			0.04			-75.0	%
Loss from discontinued operations after tax		(0.43	)		(1.27	)		(0.08	)		-			(0.07	)		83.7	%
Net income (loss)	$	(0.27	)	$	(1.17	)	$	0.21		$	0.13		$	(0.03	)		88.9	%

Capitalization:
Debt	$	135,072		$	131,262		$	129,790		$	129,790		$	129,380			-4.2	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		409,263			374,603			381,255			387,761			380,107			-7.1	%
Total capitalization excluding FAS 115 unrealized gain (loss)		544,335			505,865			511,045			517,551			509,487			-6.4	%
FAS 115 unrealized gain (loss)		(2,138	)		3,981			2,464			(7,166	)		(22,113	)	NM
Total capitalization including FAS 115 unrealized gain (loss)	$	542,197		$	509,846		$	513,509		$	510,385		$	487,374			-10.1	%

Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	12.82		$	11.79		$	12.00		$	12.14		$	11.89			-7.3	%
Including FAS 115 unrealized gain (loss)	$	12.75		$	11.92		$	12.08		$	11.92		$	11.20			-12.2	%

Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		24.8	%		25.9	%		25.4	%		25.1	%		25.4	%		2.4	%
Including FAS 115 unrealized gain (loss)		24.9	%		25.7	%		25.3	%		25.4	%		26.5	%		6.4	%

Interest Coverage:
Income from continuing operations before interest
and income taxes to interest expense		3.58			2.62			6.14			3.44			1.73			-51.7	%

Operating income from continuing operations before
interest and income taxes to interest expense		3.53			2.43			4.87			3.65			4.63			31.2	%

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

	Nine			Nine			% Change
	Months			Months			Nine
	2008			2007			Months

Direct Premiums Written	$	387,716		$	418,280			-7.3	%

Net Premiums Written	$	316,924		$	323,509			-2.0	%

Revenues:
Net premiums earned	$	286,490		$	284,626			0.7	%
Claims service revenues		40,585			22,795			78.0	%
Commission income		9,549			-		NM
Net investment income		27,345			29,619			-7.7	%
Net realized investment losses		(4,983	)		(3	)	NM
Other revenues		2,485			172		NM
Total revenues	$	361,471		$	337,209			7.2	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	38,285		$	30,431			25.8	%
Fee-based Business		5,316			2,055		NM
Corporate & Other		(15,754	)		(14,561	)		-8.2	%
Pre-tax operating income		27,847			17,925			55.4	%
Income tax expense		9,876			6,358			55.3	%
After-tax operating income		17,971			11,567			55.4	%
Net realized investment losses after tax		(3,239	)		(2	)	NM
Income from continuing operations		14,732			11,565			27.4	%
Loss from discontinued operations after tax		(4,937	)		(16,531	)		70.1	%
Net income (loss)	$	9,795		$	(4,966	)	NM

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.56		$	0.35			60.0	%
Realized losses after tax		(0.10	)		-		NM
Income from continuing operations		0.46			0.35			31.4	%
Loss from discontinued operations after tax		(0.15	)		(0.50	)		70.0	%
Net income (loss)	$	0.31		$	(0.15	)	NM

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

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

Diluted Earnings (Loss) Per Share:

Pre-tax operating income	$	0.24		$	0.13		$	0.34		$	0.22	$	0.31		$	0.87		$	0.55

After-tax operating income	$	0.16		$	0.09		$	0.22		$	0.14	$	0.20		$	0.56		$	0.35

Income from continuing operations	$	0.16		$	0.10		$	0.29		$	0.13	$	0.04		$	0.46		$	0.35

Loss from discontinued operations after tax		(0.43	)		(1.27	)		(0.08	)		-		(0.07	)		(0.15	)		(0.50	)

Net income (loss)	$	(0.27	)	$	(1.17	)	$	0.21		$	0.13	$	(0.03	)	$	0.31		$	(0.15	)

Diluted weighted average common
shares outstanding		32,412,070			32,079,673			31,942,896			32,132,576		32,200,554			32,102,465			32,736,340

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

Actual common shares issued
and outstanding		31,920,486			31,761,106			31,765,817			31,940,651		31,965,806			31,965,806			31,920,486


Class A Common Stock prices:
High	$	11.17		$	10.69		$	9.14		$	10.23	$	12.00		$	12.00		$	11.40
Low	$	8.63		$	8.05		$	7.45		$	8.24	$	8.00		$	7.45		$	8.40
Close	$	9.50		$	8.22		$	8.54		$	9.21	$	8.82		$	8.82		$	9.50

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

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

Gross Premiums Written	$	149,436		$	94,914		$	143,541		$	101,659		$	151,498			1.4	%

Net Premiums Written	$	116,116		$	71,189		$	113,783		$	79,146		$	123,995			6.8	%

Revenues:
Net premiums earned	$	93,773		$	93,617		$	85,596		$	102,920		$	97,974			4.5	%
Claims service revenues		7,595			11,239			11,952			12,937			15,696		NM
Commission income		-			3,005			4,281			2,631			2,637		NM
Net investment income		9,914			9,973			9,435			9,040			8,870			-10.5	%
Net realized investment gains (losses)		153			566			3,518			(572	)		(7,929	)	NM
Other revenues		33			168			146			2,214			125		NM
Total revenues		111,468			118,568			114,928			129,170			117,373			5.3	%

Expenses:
Losses and loss adjustment expenses		63,163			66,152			59,922			71,572			68,660			8.7	%
Acquisition expenses		18,182			18,027			14,692			19,524			15,898			-12.6	%
Operating expenses		16,900			24,629			22,333			27,347			26,906			59.2	%
Dividends to policyholders		2,205			1,916			882			1,493			1,169			-47.0	%
Interest expense		3,075			2,998			2,787			2,688			2,734			-11.1	%
Total losses and expenses		103,525			113,722			100,616			122,624			115,367			11.4	%

Pre-tax income		7,943			4,846			14,312			6,546			2,006			-74.7	%

Income tax expense (benefit):
Current		537			(321	)		-			151			765			42.5	%
Deferred		2,228			1,983			5,042			2,184			(10	)	NM

Total income tax expense		2,765			1,662			5,042			2,335			755			-72.7	%

Income from continuing operations		5,178			3,184			9,270			4,211			1,251			-75.8	%

Loss from discontinued operations after tax		(13,981	)		(40,746	)		(2,439	)		(188	)		(2,310	)		83.5	%

Net income (loss)	$	(8,803	)	$	(37,562	)	$	6,831		$	4,023		$	(1,059	)		88.0	%

Pre-tax operating income from continuing operations	$	7,790		$	4,280		$	10,794		$	7,118		$	9,935			27.5	%

After-tax operating income from continuing operations	$	5,079		$	2,816		$	6,983		$	4,583		$	6,405			26.1	%

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

	Nine			Nine			% Change
	Months			Months			Nine
	2008			2007			Months

Gross Premiums Written	$	396,698		$	429,258			-7.6	%

Net Premiums Written	$	316,924		$	323,509			-2.0	%

Revenues:
Net premiums earned	$	286,490		$	284,626			0.7	%
Claims service revenues		40,585			22,795			78.0	%
Commission income		9,549			-		NM
Net investment income		27,345			29,619			-7.7	%
Net realized investment losses		(4,983	)		(3	)	NM
Other revenues		2,485			172		NM
Total revenues		361,471			337,209			7.2	%

Expenses:
Losses and loss adjustment expenses		200,154			197,047			1.6	%
Acquisition expenses		50,114			55,720			-10.1	%
Operating expenses		76,586			51,912			47.5	%
Dividends to policyholders		3,544			5,874			-39.7	%
Interest expense		8,209			8,734			-6.0	%
Total losses and expenses		338,607			319,287			6.1	%

Pre-tax income		22,864			17,922			27.6	%

Income tax expense:
Current		916			737			24.3	%
Deferred		7,216			5,620			28.4	%

Total income tax expense		8,132			6,357			27.9	%

Income from continuing operations		14,732			11,565			27.4	%

Loss from discontinued operations after tax		(4,937	)		(16,531	)		70.1	%

Net income (loss)	$	9,795		$	(4,966	)	NM

Pre-tax operating income from continuing operations	$	27,847		$	17,925			55.4	%

After-tax operating income from continuing operations	$	17,971		$	11,567			55.4	%

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

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

Assets:
Investments in fixed maturities available for sale	$	725,637		$	728,725		$	719,570		$	730,466		$	701,738
Short-term investments		83,618			78,426			78,086			59,785			88,358
Total investments		809,255			807,151			797,656			790,251			790,096

Cash		4,164			15,828			14,552			10,557			12,502
Accrued investment income		5,789			5,768			5,462			5,762			6,104
Premiums receivable		254,804			222,140			239,783			215,030			226,709
Reinsurance receivables		795,118			795,938			818,789			817,182			824,512
Prepaid reinsurance premiums		41,354			32,361			28,977			21,414			23,051
Deferred income taxes, net		103,284			118,857			116,342			117,983			131,132
Deferred acquisition costs		42,626			37,404			42,547			38,739			43,317
Funds held by reinsureds		40,150			42,418			44,622			46,980			49,292
Intangible assets		-			22,779			22,589			30,013			30,518
Other assets		92,176			105,341			115,255			125,533			152,327
Assets of discontinued operations		525,710			375,656			348,921			317,189			309,607
Total assets	$	2,714,430		$	2,581,641		$	2,595,495		$	2,536,633		$	2,599,167

Liabilities:
Unpaid losses and loss adjustment expenses	$	1,206,550		$	1,212,956		$	1,227,287		$	1,240,224		$	1,247,069
Unearned premiums		257,598			226,178			250,981			219,643			247,302
Debt		135,072			131,262			129,790			129,790			129,380
Accounts payable, accrued expenses
and other liabilities		173,242			195,895			191,029			193,342			247,196
Reinsurance funds held and balances payable		44,884			39,324			39,287			31,947			34,185
Dividends to policyholders		4,730			5,839			5,845			5,459			5,150
Liabilities of discontinued operations		485,229			391,603			367,557			335,633			330,891
Total liabilities		2,307,305			2,203,057			2,211,776			2,156,038			2,241,173

Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		110,687			111,088			111,588			111,754			112,427
Retained earnings		174,190			136,627			143,418			145,638			144,286
Accumulated other comprehensive loss		(16,673	)		(6,663	)		(8,917	)		(17,743	)		(40,149	)
Treasury stock, at cost		(32,169	)		(33,558	)		(33,460	)		(30,144	)		(29,660	)
Total shareholders' equity		407,125			378,584			383,719			380,595			357,994
Total liabilities and shareholders' equity	$	2,714,430		$	2,581,641		$	2,595,495		$	2,536,633		$	2,599,167

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

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

Assets
Investments	$ 71,486	$ 219,678		$ 186,466		$ 172,732		$ 160,240
Cash	4,524	5,665		10,305		726		692
Reinsurance receivables	312,175	150,097		144,994		136,212		134,133
Other assets	137,525	216	1	7,156	1	7,519	1	14,542	1
Assets of discontinued operations	$ 525,710	$ 375,656		$ 348,921		$ 317,189		$ 309,607

Liabilities
Unpaid losses and loss adjustment expenses	$ 379,920	$ 339,077		$ 317,165		$ 289,190		$ 281,386
Other liabilities	105,309	52,526		50,392		46,443		49,505
Liabilities of discontinued operations	$ 485,229	$ 391,603		$ 367,557		$ 335,633		$ 330,891


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)

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

Assets
Premiums receivable	$ 31,136	$ 27,847	$ 22,714	$ 11,145	$ 8,087
Reinsurance receivables	21,799	30,377	37,711	42,691	44,668
Prepaid reinsurance premiums	26,188	22,665	16,956	8,513	5,020
Deferred acquisition costs	231	254	189	61	79
Other assets	3,375	7,332	7,285	6,234	6,315

Liabilities
Unpaid losses and loss adjustment expenses	$ 21,855	$ 30,978	$ 38,739	$ 44,078	$ 46,301
Unearned premiums	27,338	24,413	18,500	9,555	5,845
Reinsurance funds held and balances payable	24,652	21,333	16,510	8,047	6,126
Other liabilities	7,435	11,511	11,564	8,586	7,459

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

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

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

Policy acquisition costs deferred	22,919	12,805	19,835	15,729	20,501
Amortization of policy acquisition costs	(18,182)	(18,027)	(14,692)	(19,537)	(15,923)
Net change	4,737	(5,222)	5,143	(3,808)	4,578

Balance, end of period	$ 42,626	$ 37,404	$ 42,547	$ 38,739	$ 43,317

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

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

Total Investments & Cash
As reported	$	813,419		$	822,979		$	812,208		$	800,808		$	802,598		$	802,598		$	813,419
Less:
Unrealized gain (loss) on
fixed maturities available for sale		(3,315	)		6,138			4,024			(10,663	)		(33,148	)		(33,148	)		(3,315	)
Total adjusted investments & cash	$	816,734		$	816,841		$	808,184		$	811,471		$	835,746		$	835,746		$	816,734

Net Investment Income
As reported	$	9,914		$	9,973		$	9,435		$	9,040		$	8,870		$	27,345		$	29,619
Less:
Interest on funds held		(529	)		(676	)		(506	)		(558	)		(616	)		(1,680	)		(1,518	)
Total adjusted investment income	$	10,443		$	10,649		$	9,941		$	9,598		$	9,486		$	29,025		$	31,137

Yield
As reported		4.81	%		4.88	%		4.62	%		4.48	%		4.43	%		4.50	%		4.88	%
Investment portfolio		5.01	%		5.22	%		4.89	%		4.74	%		4.61	%		4.73	%		5.09	%

Duration (in years)		3.8			3.7			3.8			3.8			3.6			3.6			3.8

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

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	397,069	$	-	$	(371	)	$	396,698

Net Premiums Written	$	317,295	$	-	$	(371	)	$	316,924

Revenues:
Net premiums earned	$	286,861	$	-	$	(371	)	$	286,490
Claims service revenues		-		41,272		(687	)		40,585
Commission income		-		9,587		(38	)		9,549
Net investment income		26,818		397		130			27,345
Other revenues		2,120		275		90			2,485
Operating revenues		315,799		51,531		(876	)		366,454

Losses and Expenses:
Losses and loss adjustment expenses		200,154		-		-			200,154
Acquisition expenses		50,152		-		(38	)		50,114
Operating expenses		23,071		46,215		7,300			76,586
Dividends to policyholders		3,544		-		-			3,544
Total losses and expenses		276,921		46,215		7,262			330,398

Operating income (loss) before income taxes
and interest expense		38,878		5,316		(8,138	)		36,056

Interest expense		593		-		7,616			8,209

Pre-tax operating income (loss)	$	38,285	$	5,316	$	(15,754	)		27,847

Net realized investment losses									(4,983	)

Pre-tax income								$	22,864



1 Corporate & Other includes the effect of eliminating transactions between the operating segments.

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

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	429,729	$	-	$	(471	)	$	429,258

Net Premiums Written	$	323,980	$	-	$	(471	)	$	323,509

Revenues:
Net premiums earned	$	285,097	$	-	$	(471	)	$	284,626
Claims service revenues		-		22,795		-			22,795
Net investment income		28,530		537		552			29,619
Other revenues		-		-		172			172
Operating revenues		313,627		23,332		253			337,212

Losses and Expenses:
Losses and loss adjustment expenses		197,047		-		-			197,047
Acquisition expenses		55,720		-		-			55,720
Operating expenses		23,801		21,277		6,834			51,912
Dividends to policyholders		5,874		-		-			5,874
Total losses and expenses		282,442		21,277		6,834			310,553

Operating income (loss) before income taxes
and interest expense		31,185		2,055		(6,581	)		26,659

Interest expense		754		-		7,980			8,734

Pre-tax operating income (loss)	$	30,431	$	2,055	$	(14,561	)		17,925

Net realized investment losses									(3	)

Pre-tax income								$	17,922

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

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	151,620	$	-	$	(122	)	$	151,498

Net Premiums Written	$	124,117	$	-	$	(122	)	$	123,995

Revenues:
Net premiums earned	$	98,096	$	-	$	(122	)	$	97,974
Claims service revenues		-		15,951		(255	)		15,696
Commission income		-		2,662		(25	)		2,637
Net investment income		8,776		118		(24	)		8,870
Other revenues		-		91		34			125
Operating revenues		106,872		18,822		(392	)		125,302

Losses and Expenses:
Losses and loss adjustment expenses		68,660		-		-			68,660
Acquisition expenses		15,923		-		(25	)		15,898
Operating expenses		7,604		16,893		2,409			26,906
Dividends to policyholders		1,169		-		-			1,169
Total losses and expenses		93,356		16,893		2,384			112,633

Operating income (loss) before income taxes
and interest expense		13,516		1,929		(2,776	)		12,669

Interest expense		191		-		2,543			2,734

Pre-tax operating income (loss)	$	13,325	$	1,929	$	(5,319	)		9,935

Net realized investment losses									(7,929	)

Pre-tax income								$	2,006

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

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	149,591	$	-	$	(155	)	$	149,436

Net Premiums Written	$	116,271	$	-	$	(155	)	$	116,116

Revenues:
Net premiums earned	$	93,928	$	-	$	(155	)	$	93,773
Claims service revenues		-		7,595		-			7,595
Net investment income		9,397		193		324			9,914
Other revenues		-		-		33			33
Operating revenues		103,325		7,788		202			111,315

Losses and Expenses:
Losses and loss adjustment expenses		63,163		-		-			63,163
Acquisition expenses		18,182		-		-			18,182
Operating expenses		7,819		7,127		1,954			16,900
Dividends to policyholders		2,205		-		-			2,205
Total losses and expenses		91,369		7,127		1,954			100,450

Operating income (loss) before income taxes
and interest expense		11,956		661		(1,752	)		10,865

Interest expense		254		-		2,821			3,075

Pre-tax operating income (loss)	$	11,702	$	661	$	(4,573	)		7,790

Net realized investment gains									153

Pre-tax income								$	7,943

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

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

Gross Premiums Written	$	149,591	$	95,070	$	143,663	$	101,786	$	151,620	$	397,069	$	429,729		1.4	%		-7.6	%

Net Premiums Written	$	116,271	$	71,345	$	113,905	$	79,273	$	124,117	$	317,295	$	323,980		6.7	%		-2.1	%

Revenues:
Net premiums earned	$	93,928	$	93,773	$	85,718	$	103,047	$	98,096	$	286,861	$	285,097		4.4	%		0.6	%
Net investment income		9,397		9,406		9,099		8,943		8,776		26,818		28,530		-6.6	%		-6.0	%
Other revenues		-		-		-		2,120		-		2,120		-	NM			NM
Total revenues		103,325		103,179		94,817		114,110		106,872		315,799		313,627		3.4	%		0.7	%

Losses and Expenses:
Losses and loss adjustment expenses		63,163		66,152		59,922		71,572		68,660		200,154		197,047		8.7	%		1.6	%
Acquisition expenses		18,182		18,027		14,692		19,537		15,923		50,152		55,720		-12.4	%		-10.0	%
Operating expenses		7,819		9,223		5,488		9,979		7,604		23,071		23,801		-2.7	%		-3.1	%
Dividends to policyholders		2,205		1,916		882		1,493		1,169		3,544		5,874		-47.0	%		-39.7	%
Total losses and expenses		91,369		95,318		80,984		102,581		93,356		276,921		282,442		2.2	%		-2.0	%

Operating income before
income taxes and interest expense		11,956		7,861		13,833		11,529		13,516		38,878		31,185		13.0	%		24.7	%

Interest expense		254		247		214		188		191		593		754		-24.8	%		-21.4	%

Pre-tax operating income	$	11,702	$	7,614	$	13,619	$	11,341	$	13,325	$	38,285	$	30,431		13.9	%		25.8	%

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

Ratios - GAAP Basis:


Loss and LAE ratio		67.2	%		70.5	%		69.9	%		69.4	%		70.0	%		69.8	%		69.1	%		(2.8	)		(0.7	)

Expense ratio:
Acquisition expenses		19.4	%		19.2	%		17.1	%		19.0	%		16.2	%		17.5	%		19.5	%		3.2			2.0
Operating expenses		8.4	%		9.9	%		6.5	%		9.7	%		7.8	%		8.0	%		8.3	%		0.6			0.3
Total expense ratio		27.8	%		29.1	%		23.6	%		28.7	%		24.0	%		25.5	%		27.8	%		3.8			2.3

Policyholders' dividend ratio		2.3	%		2.0	%		1.0	%		1.4	%		1.2	%		1.2	%		2.1	%		1.1			0.9
Combined ratio		97.3	%		101.6	%		94.5	%		99.5	%		95.2	%		96.5	%		99.0	%		2.1			2.5

Net investment income ratio		-10.0	%		-10.0	%		-10.6	%		-8.7	%		-8.9	%		-9.3	%		-10.0	%		(1.1	)		(0.7	)
Operating ratio		87.3	%		91.6	%		83.9	%		90.8	%		86.3	%		87.2	%		89.0	%		1.0			1.8

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


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

Direct premium production	$	127,138		$	92,932		$	126,858		$	78,751		$	346,928		$	425,679
Fronting premiums		-			-			2,086			12,704			2,086			14,790
Premium adjustments		435			(498	)		(1,452	)		(7,327	)		(1,515	)		(8,842	)
Direct premiums written	$	127,573		$	92,434		$	127,492		$	84,128		$	347,499		$	431,627


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

Direct premium production	$	143,389		$	96,316		$	137,144		$	83,103		$	376,849		$	459,952
Fronting premiums		18,401			14,936			13,707			12,796			47,044			59,840
Premium adjustments		(859	)		(134	)		(4,149	)		(4,327	)		(5,142	)		(9,469	)
Direct premiums written	$	160,931		$	111,118		$	146,702		$	91,572		$	418,751		$	510,323


	1st			2nd			3rd						Nine
	Quarter			Quarter			Quarter						Months
	2008			2008			2008						2008

Direct premium production	$	146,608		$	96,736		$	150,547					$	393,891
Fronting premiums		8,143			2,113			2,776						13,032
Premium adjustments		(14,198	)		370			(5,008	)					(18,836	)
Direct premiums written	$	140,553		$	99,219		$	148,315					$	388,087

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

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

Revenues:
Claims service revenues	$	7,595	$	11,239	$	12,108	$	13,213	$	15,951	$	41,272	$	22,795	NM				81.1	%
Commission income		-		3,005		4,281		2,644		2,662		9,587		-	NM			NM
Net investment income		193		435		161		118		118		397		537		-38.9	%		-26.1	%
Other revenues		-		113		102		82		91		275		-	NM			NM
Total revenues		7,788		14,792		16,652		16,057		18,822		51,531		23,332	NM			NM

Expenses:
Operating expenses		7,127		13,123		14,466		14,856		16,893		46,215		21,277	NM			NM
Total expenses		7,127		13,123		14,466		14,856		16,893		46,215		21,277	NM			NM

Pre-tax operating income	$	661	$	1,669	$	2,186	$	1,201	$	1,929	$	5,316	$	2,055	NM			NM

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

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

Gross Premiums Written	$	(155	)	$	(156	)	$	(122	)	$	(127	)	$	(122	)	$	(371	)	$	(471	)		21.3	%		21.2	%

Net Premiums Written	$	(155	)	$	(156	)	$	(122	)	$	(127	)	$	(122	)	$	(371	)	$	(471	)		21.3	%		21.2	%

Revenues:
Net premiums earned	$	(155	)	$	(156	)	$	(122	)	$	(127	)	$	(122	)	$	(371	)	$	(471	)		21.3	%		21.2	%
Claims service revenues		-			-			(156	)		(276	)		(255	)		(687	)		-		NM			NM
Commission income		-			-			-			(13	)		(25	)		(38	)		-		NM			NM
Net investment income 1		324			132			175			(21	)		(24	)		130			552		NM				-76.4	%
Other revenues		33			55			44			12			34			90			172			3.0	%		-47.7	%
Total revenues		202			31			(59	)		(425	)		(392	)		(876	)		253		NM			NM

Expenses:
Acquisition expenses		-			-			-			(13	)		(25	)		(38	)		-		NM			NM
Operating expenses		1,954			2,283			2,379			2,512			2,409			7,300			6,834			23.3	%		6.8	%
Total expenses		1,954			2,283			2,379			2,499			2,384			7,262			6,834			22.0	%		6.3	%

Operating loss before income
taxes and interest expense		(1,752	)		(2,252	)		(2,438	)		(2,924	)		(2,776	)		(8,138	)		(6,581	)		-58.4	%		-23.7	%

Interest expense		2,821			2,751			2,573			2,500			2,543			7,616			7,980			-9.9	%		-4.6	%

Pre-tax operating loss	$	(4,573	)	$	(5,003	)	$	(5,011	)	$	(5,424	)	$	(5,319	)	$	(15,754	)	$	(14,561	)		-16.3	%		-8.2	%

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

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

Gross Premiums Written	$	1,603		$	(301	)	$	2,331		$	(214	)	$	417		$	2,534		$	5,104			-74.0	%		-50.4	%

Net Premiums Written	$	1,216		$	680		$	2,439		$	(227	)	$	167		$	2,379		$	4,705			-86.3	%		-49.4	%

Revenues:
Net premiums earned	$	1,105		$	656		$	1,026		$	11		$	517		$	1,554		$	2,815			-53.2	%		-44.8	%
Net investment income 1		777			60			128			(451	)		(663	)		(986	)		2,784		NM			NM
Total revenues		1,882			716			1,154			(440	)		(146	)		568			5,599		NM				-89.9	%

Losses and Expenses:
Losses and loss adjustment expenses		22,447			274			9,280			550			10,201			20,031			23,739			-54.6	%		-15.6	%
Acquisition expenses		39			239			85			168			(146	)		107			652		NM				-83.6	%
Operating expenses		1,689			2,111			2,782			1,952			2,054			6,788			5,396			21.6	%		25.8	%
Impairment charge / valuation adjustment		-			61,482			(6,480	)		(3,550	)		(8,594	)		(18,624	)		-		NM			NM
Total losses and expenses		24,175			64,106			5,667			(880	)		3,515			8,302			29,787			-85.5	%		-72.1	%

Pre-tax operating income (loss) from discontinued operations		(22,293	)		(63,390	)		(4,513	)		440			(3,661	)		(7,734	)		(24,188	)		83.6	%		68.0	%

Income tax expense (benefit)		(7,803	)		(22,187	)		(1,580	)		154			(1,281	)		(2,707	)		(8,466	)		83.6	%		68.0	%

After-tax operating income (loss) from discontinued operations		(14,490)			(41,203)			(2,933)			286			(2,380)			(5,027)			(15,722)			83.6	%		68.0	%

Realized gains (losses) after tax		509			457			494			(474	)		70			90			(809	)		-86.2	%	NM

Loss from discontinued operations	$	(13,981	)	$	(40,746	)	$	(2,439	)	$	(188	)	$	(2,310	)	$	(4,937	)	$	(16,531	)		83.5	%		70.1	%

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

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

Receipts:
Premiums collected	$	99,713		$	95,709		$	93,222		$	94,883		$	112,274		$	300,379		$	279,440
Claims service, commissions and other revenues		8,097			19,473			14,097			16,180			22,643			52,920			22,732
Investment income received		9,981			10,730			10,623			9,418			9,688			29,729			31,090
Total receipts		117,791			125,912			117,942			120,481			144,605			383,028			333,262

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		20,704			24,466			4,991			17,075			25,618			47,684			40,314
Losses and LAE paid - prior years		61,340			34,968			61,577			54,638			46,851			163,066			175,450
Total losses and LAE paid		82,044			59,434			66,568			71,713			72,469			210,750			215,764
Operating expenses paid		32,950			36,995			44,966			43,369			43,785			132,120			98,403
Commissions and premiums paid		-			7,792			922			2,117			3,387			6,426			-
Policyholders' dividends paid		690			791			1,138			1,882			1,663			4,683			3,067
Interest on corporate debt		2,888			3,396			2,926			2,680			2,700			8,306			8,416
Total disbursements		118,572			108,408			116,520			121,761			124,004			362,285			325,650

Net other		(4,183	)		793			(5,637	)		12,080			(6,158	)		285			(6,261	)

Net operating cash flows from continuing operations		(4,964	)		18,297			(4,215	)		10,800			14,443			21,028			1,351
Net operating cash flows from discontinued operations		(18,174	)		143,177	2		(31,345	)		(23,228	)		(13,236	)		(67,809	)		(75,999	)
Net operating cash flows	$	(23,138	)	$	161,474		$	(35,560	)	$	(12,428	)	$	1,207		$	(46,781	)	$	(74,648	)

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

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

Receipts:
Premiums collected	$	99,713		$	95,709		$	93,222		$	94,883	$	112,274		$	300,379	$	279,440
Investment income received		9,788			10,292			10,462			9,300		9,570			29,332		30,553
Total receipts		109,501			106,001			103,684			104,183		121,844			329,711		309,993

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		20,704			24,466			4,991			17,075		25,618			47,684		40,314
Losses and LAE paid - prior years		61,340			34,968			61,577			54,638		46,851			163,066		175,450
Total losses and LAE paid		82,044			59,434			66,568			71,713		72,469			210,750		215,764
Operating expenses paid		25,806			22,146			32,454			28,756		26,531			87,741		76,998
Policyholders' dividends paid		690			791			1,138			1,882		1,663			4,683		3,067
Interest on corporate debt		252			252			245			186		192			623		748
Total disbursements		108,792			82,623			100,405			102,537		100,855			303,797		296,577

Net other		(6,333	)		(15,631	)		(3,412	)		10,964		(6,659	)		893		(15,829	)

Net operating cash flows	$	(5,624	)	$	7,747		$	(133	)	$	12,610	$	14,330		$	26,807	$	(2,413	)

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

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

Receipts:
Claims service, commissions and other revenues	$	8,097		$	19,473		$	14,097	$	16,180		$	22,643	$	52,920		$	22,732
Investment income received		193			438			161		118			118		397			537
Total receipts		8,290			19,911			14,258		16,298			22,761		53,317			23,269

Disbursements:
Operating expenses paid		7,144			14,849			12,512		14,613			17,254		44,379			21,405
Commissions and premiums paid		-			7,792			922		2,117			3,387		6,426			-
Total disbursements		7,144			22,641			13,434		16,730			20,641		50,805			21,405

Net other		(105	)		(48	)		977		(3,003	)		970		(1,056	)		(3,581	)

Net operating cash flows	$	1,041		$	(2,778	)	$	1,801	$	(3,435	)	$	3,090	$	1,456		$	(1,717	)

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 also include those of PMA Management Corp. of New England, which was acquired by the Company on June 30, 2008.

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

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

Net Premiums Written:
Workers' Compensation	$	98,459		$	64,477		$	103,018		$	71,998		$	107,446		$	282,462		$	288,167
Other Commercial Lines		9,900			6,139			10,805			9,079			8,692			28,576			27,517
Total - PMA Pool	$	108,359		$	70,616		$	113,823		$	81,077		$	116,138		$	311,038		$	315,684

Statutory Ratios:
Loss and LAE ratio		68.0	%		70.4	%		69.6	%		69.5	%		69.4	%		69.5	%		69.8	%
Underwriting expense ratio		25.9	%		34.6	%		20.3	%		32.1	%		22.1	%		24.1	%		25.2	%
Policyholders' dividend ratio		1.4	%		2.1	%		1.4	%		1.5	%		1.4	%		1.4	%		1.2	%
Combined ratio		95.3	%		107.1	%		91.3	%		103.1	%		92.9	%		95.0	%		96.2	%
Operating ratio		85.7	%		97.2	%		80.7	%		94.4	%		84.0	%		85.7	%		86.5	%

PMA Capital Corporation
Industry Ratings and Market Information

Transfer Agent and Registrar:				Inquiries:
American Stock Transfer & Trust Company				William E. Hitselberger
Shareholder Relations				Chief Financial Officer
59 Maiden Lane – Plaza Level				610.397.5083
New York, NY 10038				e-mail: bhitselberger@pmacapital.com
www.amstock.com
				Investor Relations
Phone Inquiries:				610.397.5298
800.937.5449				investorrelations@pmacapital.com

Email Inquiries:				Company Website:
info@amstock.com				www.pmacapital.com


Securities Listing:
The Corporation's Class A Common Stock is listed
on the NASDAQ Stock Market®. It trades under
the stock symbol: PMACA.


Financial Strength Ratings (as of 10/30/2008):

	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).

	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		45		20223
Total long-term debt	$	129,380

1	Weighted average interest rate on junior subordinated debt is 6.90% as of September 30, 2008.
2	Interest rate on surplus notes is 7.29% as of September 30, 2008.
3	Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 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.

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
Statutory Surplus
(Dollar Amounts in Thousands)

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


PMA Pool 2	$	339,800	$	335,394	$	343,582	$	352,096	$	336,368
PMA Capital Insurance Company		58,040		47,580		41,099		37,838		26,143

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