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) November 14, 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 7.01.  Regulation FD Disclosure.

On November 18, 2008, the Chief Financial Officer of PMA Capital Corporation will be delivering a presentation at the Oppenheimer 4th Annual Mid and Small Cap “Best Ideas” Conference.  A copy of the presentation is being furnished as a part of this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference herein. 

Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit 99.1    PMA Capital Corporation Investor Presentation

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
November 14, 2008	By:	/s/ William E. Hitselberger
	Name:		William E. Hitselberger
	Title:		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
Exhibit 99.1	PMA Capital Corporation Investor Presentation

EX-99.1

Exhibit 99.1

SM

®

Oppenheimer 4th Annual Mid and Small Cap
Conference

November 18, 2008

Forward-looking
statements

qThis presentation and our discussion contain forward-
lookinginformation and statements including, but not
limited to, such matters as business strategies, market
trends, future financial performance, and other matters
which inherently involve risks and uncertainties which could
cause actual results to differ from those projected or
implied in the forward-looking statements.Please refer to
the Company’s SEC filings including its most recent Annual
Report on Form 10-K for risk factors which could cause
actual performance to differ from these forward-looking
statements.

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Who We Are

Two Ongoing Operating Segments

The PMA Insurance Group

qSolid presence in workers’ compensation market

qDisciplined underwriting standards

qSuperior long-term client relationships

qStatutory capital of $336 million

Fee-based Business

qIncludes combined operating results of PMA Management Corp., PMA
Management Corp. of New England and Midlands Management
Corporation

qAcquisition of Midlands in October 2007 provides expanded fee-
based services and customer base

qIn June 2008, acquired a workers’ compensation TPA in Connecticut,
a market we previously had little penetration

Run-off Operations- Sale agreement executed in 2008, pending state
approval

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____________________

*Based on direct premiums written, excludes fronting premiums.

MI

FL

DE

MD

KY

ME

NY

PA

VT

NH

MA

RI

CT

VA

WV

OH

IN

IL

NC

TN

SC

AL

MS

WI

NJ

GA

NM

TX

OK

KS

NE

SD

ND

MT

WY

CO

UT

ID

AZ

NV

WA

CA

OR

AR

LA

MO

IA

MN

PA

36%

NY

10%

NJ

12%

MD

6%

VA

4%

FL

6%

NC

4%

GA

3%

TN

3%

DE

3%

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MI

FL

DE

MD

KY

ME

NY

PA

VT

NH

MA

RI

CT

VA

WV

OH

IN

IL

NC

TN

SC

AL

MS

WI

NJ

GA

NM

TX

OK

KS

NE

SD

ND

MT

WY

CO

UT

ID

AZ

NV

WA

CA

OR

AR

LA

MO

IA

MN

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PMA has 50 state writing and servicing capabilities

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Highlights

q2008 Focus:

§Profitable, measured growth at Primary
Insurance Operations

§High client retention and expansion of Fee-
based Business opportunities, as demonstrated
by high rate of organic growth and June 2008
acquisition

§Assist with regulatory review process in order
to obtain approval to close on sale of Run-off
Operations

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($ millions, except per share)	2008	2007
Direct premiums written	$387.7	$418.3
Net premiums earned	286.5	284.6
Fee-based revenues	50.1	22.8
Operating income from continuing operations	18.0	11.6
Loss from discontinued operations	(4.9)	(16.5)
After Tax Capital Gains (Losses)	(3.2)	-
Net Income (Loss)	$9.8	$(5.0)
Earnings per share from continuing operations	$.46	$.35
Loss per share from discontinued operations	(.15)	(.50)
Earnings (Loss) per share	$.31	$(.15)

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Consolidated
Year to Date 9/30 Results

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Consolidated
Nine Month Results

qImproved underwriting results at The PMA
Insurance Group (combined ratio 96.5% vs.
99.0% in 2007)

qPre-tax operating income increased by 26% at
The PMA Insurance Group, compared to first nine
months of 2007

qFee-based revenues increased $27.3 million to
$50.1 million due to acquisition of Midlands and
organic growth at PMA Management Corp.

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The PMA Insurance Group

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Business Overview

qSpecializes in workers’ compensation and other
commercial lines

qFocus on mid-size to large accounts

§Commercial Markets

§Risk Management Services

§Specialty Markets

qReputation for excellent customer service and
execution

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Premium Distribution by Class

All Lines Combined*

*Excluding Fronting Premiums

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Diversified Distribution Channels

Premium Profile by Source*

FY 2007

Q3 2008

* Excluding Fronting Premiums

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Source: AM Best

Proven Platform

qDisciplined underwriting -> Consistent operating returns

qThe PMA Insurance Group - Workers’ Compensation
Estimated Undiscounted Accident Year Net Loss and LAE
Ratio (2003 adjusted for retro premium)

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Maintain Competitive Advantage
in Workers’ Compensation Line

qLong-term strategy of Insurance Group is to write workers
compensation business at a combined ratio of 100% through
underwriting cycle

qSeptember year to date 2008 combined ratio of 96.5%, 2007
full year combined ratio was 99.7%

qMeasured steps to improve expense ratio, while maintaining
service levels to customers

qExpense target is currently to maintain controllable expense
growth less than half the rate of direct premium growth

qClaims Strategic Alliances assist in managing loss costs

§Medical networks

§Bill review

§Catastrophic claims

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Managing the Loss and
LAE Ratio

qPricing changes, coupled with payroll inflation for rate sensitive
workers’ compensation business were below overall estimated loss
trends

qDiversification among classes of business insured

qLoss containment protection in loss sensitive business (about 40-
45% of our business) reduce risk to Company

qOutcome focused claims philosophy

§Full integration of nurse professionals in claims process

§In-house counsel in select jurisdictions

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Managing the Loss and
LAE Ratio (cont.)

qStrategic alliances:

§Coventry: preferred provider network; out of network
bill review

§QualCare: preferred provider network in NJ

§MedRisk: physical therapy provider

§Corporate Systems: detailed medical bill review

§TMESYS: retail pharmacy program

§Paradigm: catastrophic claim management

§Computer Sciences Corporation: legal bill review

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Fee-based Business

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qIn fourth quarter of 2007, began reporting Fee-based Business
results as a separate operating segment

qPMA Management Corp.

§Third-Party Administrator (TPA) producing fee-based revenues

§Focus on workers’ compensation & risk management services

§Business shares IT infrastructure with PMA Insurance Group

qMidlands Management Corporation

§Acquired October 1, 2007

§Oklahoma City-based managing general agent (MGA), program
administrator and provider of TPA services

§Little overlap with PMA Management Corp.

qIn June 2008, acquired PMA Management Corp. of New England
(formerly Webster Risk Services)

qRevenues and margins from our fee-based businesses are less
volatile than insurance underwriting

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PMA Management Corp.

qBroad service capabilities:

§Claims administration/TPA

§Managed care

§Disability management

§Risk control

qSolid portfolio of managed care strategic alliances
that leverage combined purchasing power with
insurance operations

qThree-year business retention of over 90%

qRevenue CAGR of over 16% since 2001 - continue
to see organic growth opportunities

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Midlands Management
Corporation

qAcquired October 1, 2007- Initial cash paid of $19.8 million

§Ultimate price, which is based on EBITDA growth levels
over next four years, could range from $22.8 million
(6.9x EBITDA) to $44.5 million (4.8x EBITDA)

qOverview of Midlands

§Very strong name recognition and brand equity

§TPA specializes in casualty claims adjusting

§Managing general agency places excess workers’
compensation

§Revenues in 2007 of $28 million

§Will continue to operate in current markets with existing
management and will maintain its brand identity and
strong service culture

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PMA Management Corp.
of New England

qConnecticut-based TPA, formerly Webster Risk
Services

qPurchase price of $7.3 million, closing adjustments
reduced cash transferred to $5.9 million

qSpecializes in providing workers’ compensation
and risk management services to health care
systems and public entities

qVery little geographical overlap - expect to grow
New England annual revenue base of $6 million

qOn an annual basis, expect to add 2 cents to
earnings- excludes any potential cross-selling

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Holding Company Review

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$ millions	9/30/08	12/31/07
Shareholders' Equity (Including SFAS #115)	$358.0	$378.6
Shareholders' Equity (Excluding SFAS #115)	$380.1	$374.6
Debt	$129.4	$131.3
Debt to Capital (Including SFAS #115)	27%	26%

Capitalization

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$ millions	9/30/08
Trust Preferred and Surplus Notes, Mature 2033-37	$74.4
Monthly Senior Notes, Matures 2018	54.9
Other	.1
Total	$ 129.4

Debt Structure

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Invested Assets

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Total = $823 million

(excludes cash)

September 30, 2008

Asset Type

nConservative investment
posture

nNo wrapped ABS CDO
exposures

nNo derivatives

nNo equity exposure

nPre-tax net unrealized loss
of $33 million at
September 30, 2008

nOutside professional
manager

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Total = $735 million

(excludes short-term investments and cash)

September 30, 2008

Asset Quality

nAA+ average credit quality

n68% AAA Rated or
Government bonds

n2% held in Alternative A/
Subprime loans - average
credit quality of AAA with no
OTTI

n4% held in credit-enhanced
securities with average credit
quality of AA- and imputed
credit quality of A

nPortfolio duration - 3.6 years

nCurrent portfolio book yield -
5.3%

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pPre-tax other than temporary impairment (OTTI) charges of $8.2 million
and $913,000 taken through realized losses on holdings in Lehman senior
debt and Fannie Mae preferred stock, respectively; collectively approx 1% of
the investment portfolio.There were no other OTTI losses during the nine
month period ending September 30, 2008

pNo holdings in AIG or WaMu

pAlt A and Subprime portfolio, with a $17.9 million amortized book value,
continues to pay down; collected $10.7 million in principal paydowns since
March 2007

pNo delinquencies or OTTI losses in the Alt A and Subprime portfolio

pHeld CMO’s with an amortized book value of $181.8 million issued by
entities other than Government Sponsored Enterprises.These securities had
a weighted average life of 5.2 years, an average credit quality of AAA and
were paying down as expected; delinquencies were well below their credit
support structure and no defaults.

pDetailed portfolio holdings at September 30, 2008 and December 31, 2007
posted on our website (www.pmacapital.com)

Investment Portfolio
Comments- 9/30/08

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1Fee-based Business book value increased $0.23 as a result of the acquisition of
PMA Management Corp. of New England. The purchase price was funded by the
Holding Company.

PMA Capital
Book Value

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q2008 results through September detail execution of our
business plan:

§Measured revenue growth at The PMA Insurance Group

§Diligent expense management

§Continued expansion of fee-based service platform

qExpecting profitable growth in workers’ compensation in
2008

qExecution of 2008 plan should result in continued
improvement in profitability of operations

qExpect a return on equity of between 5.5% and 6.5% on
our ongoing businesses in 2008

qSeptember 30, 2008 book value of $11.20 per share,
compared to a current stock price (November 12) of $5.02

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