ex99-2.htm

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Fourth Quarter - 2008

Table of Contents
		Page
Consolidated Highlights:
Selected Financial Data - Fourth Quarter			1
Selected Financial Data - Full Year			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Fourth Quarter			5
Consolidated Statements of Operations - Full Year			6
Consolidated Balance Sheets			7
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Fronting Arrangements;
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group			8
Invested Assets and Net Investment Income; Debt			9

Segment Information:
Statements of Operations - Consolidating - Full Year		11 - 12
Statements of Operations - Consolidating - Fourth 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)

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

Direct Premiums Written	$	91,416		$	140,431		$	99,092		$	148,193		$	129,713			41.9	%

Net Premiums Written	$	71,189		$	113,783		$	79,146		$	123,995		$	97,313			36.7	%

Revenues:
Net premiums earned	$	93,617		$	85,596		$	102,920		$	97,974		$	103,727			10.8	%
Claims service revenues		11,239			11,952			12,937			15,696			16,785			49.3	%
Commission income		3,005			4,281			2,631			2,637			2,835			-5.7	%
Net investment income		9,973			9,435			9,040			8,870			8,724			-12.5	%
Net realized investment gains (losses)		566			3,518			(572	)		(7,929	)		259			-54.2	%
Other revenues		168			146			2,214			125			356		NM
Total revenues	$	118,568		$	114,928		$	129,170		$	117,373		$	132,686			11.9	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	7,614		$	13,619		$	11,341		$	13,325		$	8,428			10.7	%
Fee-based Business		1,669			2,186			1,201			1,929			1,889			13.2	%
Corporate & Other		(5,003	)		(5,011	)		(5,424	)		(5,319	)		(4,897	)		2.1	%
Pre-tax operating income		4,280			10,794			7,118			9,935			5,420			26.6	%
Income tax expense		1,464			3,811			2,535			3,530			1,854			26.6	%
After-tax operating income		2,816			6,983			4,583			6,405			3,566			26.6	%
Net realized investment gains (losses) after tax		368			2,287			(372	)		(5,154	)		168			-54.3	%
Income from continuing operations		3,184			9,270			4,211			1,251			3,734			17.3	%
Loss from discontinued operations after tax		(40,746	)		(2,439	)		(188	)		(2,310	)		(7,840	)		80.8	%
Net income (loss)	$	(37,562	)	$	6,831		$	4,023		$	(1,059	)	$	(4,106	)		89.1	%

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.09		$	0.22		$	0.14		$	0.20		$	0.11			22.2	%
Realized gains (losses) after tax		0.01			0.07			(0.01	)		(0.16	)		0.01			0.0	%
Income from continuing operations		0.10			0.29			0.13			0.04			0.12			20.0	%
Loss from discontinued operations after tax		(1.27	)		(0.08	)		-			(0.07	)		(0.25	)		80.3	%
Net income (loss)	$	(1.17	)	$	0.21		$	0.13		$	(0.03	)	$	(0.13	)		88.9	%

Capitalization:
Debt	$	131,262		$	129,790		$	129,790		$	129,380		$	129,380			-1.4	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		374,603			381,255			387,761			380,107			365,547			-2.4	%
Total capitalization excluding FAS 115 unrealized gain (loss)		505,865			511,045			517,551			509,487			494,927			-2.2	%
FAS 115 unrealized gain (loss)		3,981			2,464			(7,166	)		(22,113	)		(20,891	)	NM
Total capitalization including FAS 115 unrealized gain (loss)	$	509,846		$	513,509		$	510,385		$	487,374		$	474,036			-7.0	%

Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	11.79		$	12.00		$	12.14		$	11.89		$	11.44			-3.0	%
Including FAS 115 unrealized gain (loss)	$	11.92		$	12.08		$	11.92		$	11.20		$	10.78			-9.6	%

Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		25.9	%		25.4	%		25.1	%		25.4	%		26.1	%		0.8	%
Including FAS 115 unrealized gain (loss)		25.7	%		25.3	%		25.4	%		26.5	%		27.3	%		6.2	%

Interest Coverage:
Income from continuing operations before interest and income taxes to interest expense		2.62			6.14			3.44			1.73			3.12			19.1	%

Operating income from continuing operations before interest and income taxes to interest expense		2.43			4.87			3.65			4.63			3.03			24.7	%

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

	Twelve			Twelve			% Change
	Months			Months			Twelve
	2008			2007			Months

Direct Premiums Written	$	517,429		$	509,696			1.5	%

Net Premiums Written	$	414,237		$	394,698			5.0	%

Revenues:
Net premiums earned	$	390,217		$	378,243			3.2	%
Claims service revenues		57,370			34,034			68.6	%
Commission income		12,384			3,005		NM
Net investment income		36,069			39,592			-8.9	%
Net realized investment gains (losses)		(4,724	)		563		NM
Other revenues		2,841			340		NM
Total revenues	$	494,157		$	455,777			8.4	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	46,713		$	38,045			22.8	%
Fee-based Business		7,205			3,724			93.5	%
Corporate & Other		(20,651	)		(19,564	)		-5.6	%
Pre-tax operating income		33,267			22,205			49.8	%
Income tax expense		11,730			7,822			50.0	%
After-tax operating income		21,537			14,383			49.7	%
Net realized investment gains (losses) after tax		(3,071	)		366		NM
Income from continuing operations		18,466			14,749			25.2	%
Loss from discontinued operations after tax		(12,777	)		(57,277	)		77.7	%
Net income (loss)	$	5,689		$	(42,528	)	NM

Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.67		$	0.44			52.3	%
Realized gains (losses) after tax		(0.09	)		0.01		NM
Income from continuing operations		0.58			0.45			28.9	%
Loss from discontinued operations after tax		(0.40	)		(1.76	)		77.3	%
Net income (loss)	$	0.18		$	(1.31	)	NM

PMA Capital Corporation

Consolidated Statements of Operations - Per Share Data

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

Diluted Earnings (Loss) Per Share:

Pre-tax operating income	$	0.13		$	0.34		$	0.22	$	0.31		$	0.17		$	1.04		$	0.68

After-tax operating income	$	0.09		$	0.22		$	0.14	$	0.20		$	0.11		$	0.67		$	0.44

Income from continuing operations	$	0.10		$	0.29		$	0.13	$	0.04		$	0.12		$	0.58		$	0.45

Loss from discontinued operations after tax		(1.27	)		(0.08	)		-		(0.07	)		(0.25	)		(0.40	)		(1.76	)

Net income (loss)	$	(1.17	)	$	0.21		$	0.13	$	(0.03	)	$	(0.13	)	$	0.18		$	(1.31	)

Diluted weighted average common
shares outstanding		32,079,673			31,942,896			32,132,576		32,200,554			31,968,555			32,038,781			32,578,025


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

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


Class A Common Stock prices:
High	$	10.69		$	9.14		$	10.23	$	12.00		$	9.47		$	12.00		$	11.40
Low	$	8.05		$	7.45		$	8.24	$	8.00		$	3.46		$	3.46		$	8.05
Close	$	8.22		$	8.54		$	9.21	$	8.82		$	7.08		$	7.08		$	8.22

This Page Intentionally Left Blank

PMA Capital Corporation

Consolidated Statements of Operations

(Dollar Amounts in Thousands)

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

Gross Premiums Written	$	94,914		$	143,541		$	101,659		$	151,498		$	132,217			39.3	%

Net Premiums Written	$	71,189		$	113,783		$	79,146		$	123,995		$	97,313			36.7	%

Revenues:
Net premiums earned	$	93,617		$	85,596		$	102,920		$	97,974		$	103,727			10.8	%
Claims service revenues		11,239			11,952			12,937			15,696			16,785			49.3	%
Commission income		3,005			4,281			2,631			2,637			2,835			-5.7	%
Net investment income		9,973			9,435			9,040			8,870			8,724			-12.5	%
Net realized investment gains (losses)		566			3,518			(572	)		(7,929	)		259			-54.2	%
Other revenues		168			146			2,214			125			356		NM
Total revenues		118,568			114,928			129,170			117,373			132,686			11.9	%

Expenses:
Losses and loss adjustment expenses		66,152			59,922			71,572			68,660			70,671			6.8	%
Acquisition expenses		18,027			14,692			19,524			15,898			16,521			-8.4	%
Operating expenses		24,629			22,333			27,347			26,906			34,379			39.6	%
Dividends to policyholders		1,916			882			1,493			1,169			2,762			44.2	%
Interest expense		2,998			2,787			2,688			2,734			2,674			-10.8	%
Total losses and expenses		113,722			100,616			122,624			115,367			127,007			11.7	%

Pre-tax income		4,846			14,312			6,546			2,006			5,679			17.2	%

Income tax expense (benefit):
Current		(321	)		-			151			765			(211	)		34.3	%
Deferred		1,983			5,042			2,184			(10	)		2,156			8.7	%

Total income tax expense		1,662			5,042			2,335			755			1,945			17.0	%

Income from continuing operations		3,184			9,270			4,211			1,251			3,734			17.3	%

Loss from discontinued operations after tax		(40,746	)		(2,439	)		(188	)		(2,310	)		(7,840	)		80.8	%

Net income (loss)	$	(37,562	)	$	6,831		$	4,023		$	(1,059	)	$	(4,106	)		89.1	%

Pre-tax operating income from continuing operations	$	4,280		$	10,794		$	7,118		$	9,935		$	5,420			26.6	%

After-tax operating income from continuing operations	$	2,816		$	6,983		$	4,583		$	6,405		$	3,566			26.6	%

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

	Twelve			Twelve			% Change
	Months			Months			Twelve
	2008			2007			Months

Gross Premiums Written	$	528,915		$	524,172			0.9	%

Net Premiums Written	$	414,237		$	394,698			5.0	%

Revenues:
Net premiums earned	$	390,217		$	378,243			3.2	%
Claims service revenues		57,370			34,034			68.6	%
Commission income		12,384			3,005		NM
Net investment income		36,069			39,592			-8.9	%
Net realized investment gains (losses)		(4,724	)		563		NM
Other revenues		2,841			340		NM
Total revenues		494,157			455,777			8.4	%

Expenses:
Losses and loss adjustment expenses		270,825			263,199			2.9	%
Acquisition expenses		66,635			73,747			-9.6	%
Operating expenses		110,965			76,541			45.0	%
Dividends to policyholders		6,306			7,790			-19.1	%
Interest expense		10,883			11,732			-7.2	%
Total losses and expenses		465,614			433,009			7.5	%

Pre-tax income		28,543			22,768			25.4	%

Income tax expense:
Current		705			416			69.5	%
Deferred		9,372			7,603			23.3	%

Total income tax expense		10,077			8,019			25.7	%

Income from continuing operations		18,466			14,749			25.2	%

Loss from discontinued operations after tax		(12,777	)		(57,277	)		77.7	%

Net income (loss)	$	5,689		$	(42,528	)	NM

Pre-tax operating income from continuing operations	$	33,267		$	22,205			49.8	%

After-tax operating income from continuing operations	$	21,537		$	14,383			49.7	%

PMA Capital Corporation

Consolidated Balance Sheets

(Dollar Amounts in Thousands)

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

Assets:
Investments in fixed maturities available for sale	$	728,725		$	719,570		$	730,466		$	701,738		$	719,048
Short-term investments		78,426			78,086			59,785			88,358			42,949
Total investments		807,151			797,656			790,251			790,096			761,997

Cash		15,828			14,552			10,557			12,502			10,501
Accrued investment income		5,768			5,462			5,762			6,104			6,513
Premiums receivable		222,140			239,783			215,030			226,709			235,893
Reinsurance receivables		795,938			818,789			817,182			824,512			826,126
Prepaid reinsurance premiums		32,361			28,977			21,414			23,051			29,579
Deferred income taxes, net		118,857			116,342			117,983			131,132			138,514
Deferred acquisition costs		37,404			42,547			38,739			43,317			40,938
Funds held by reinsureds		42,418			44,622			46,980			49,292			51,754
Intangible assets		22,779			22,589			30,013			30,518			30,348
Other assets		105,341			115,255			125,533			152,327			126,890
Assets of discontinued operations		375,656			348,921			317,189			309,607			243,663
Total assets	$	2,581,641		$	2,595,495		$	2,536,633		$	2,599,167		$	2,502,716

Liabilities:
Unpaid losses and loss adjustment expenses	$	1,212,956		$	1,227,287		$	1,240,224		$	1,247,069		$	1,242,258
Unearned premiums		226,178			250,981			219,643			247,302			247,415
Debt		131,262			129,790			129,790			129,380			129,380
Accounts payable, accrued expenses
and other liabilities		195,895			191,029			193,342			247,196			216,266
Reinsurance funds held and balances payable		39,324			39,287			31,947			34,185			44,177
Dividends to policyholders		5,839			5,845			5,459			5,150			6,862
Liabilities of discontinued operations		391,603			367,557			335,633			330,891			271,702
Total liabilities		2,203,057			2,211,776			2,156,038			2,241,173			2,158,060

Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		111,088			111,588			111,754			112,427			112,921
Retained earnings		136,627			143,418			145,638			144,286			140,184
Accumulated other comprehensive loss		(6,663	)		(8,917	)		(17,743	)		(40,149	)		(49,876	)
Treasury stock, at cost		(33,558	)		(33,460	)		(30,144	)		(29,660	)		(29,663	)
Total shareholders' equity		378,584			383,719			380,595			357,994			344,656
Total liabilities and shareholders' equity	$	2,581,641		$	2,595,495		$	2,536,633		$	2,599,167		$	2,502,716

PMA Capital Corporation

Assets and Liabilities of Discontinued Operations

(Dollar Amounts in Thousands)

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

Assets
Investments	$	219,678	$	186,466	$	172,732	$	160,240	$	146,033
Cash		5,665		10,305		726		692		1,371
Reinsurance receivables		150,097		144,994		136,212		134,133		94,956
Other assets		216		7,156		7,519		14,542		1,303
Assets of discontinued operations	$	375,656	$	348,921	$	317,189	$	309,607	$	243,663

Liabilities
Unpaid losses and loss adjustment expenses	$	339,077	$	317,165	$	289,190	$	281,386	$	247,442
Other liabilities		52,526		50,392		46,443		49,505		24,260
Liabilities of discontinued operations	$	391,603	$	367,557	$	335,633	$	330,891	$	271,702

PMA Capital Corporation

Selected Balance Sheet Items - Fronting Arrangements

(Dollar Amounts in Thousands)

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

Assets
Premiums receivable	$	27,847	$	22,714	$	11,145	$	8,087	$	25,796
Reinsurance receivables		30,377		37,711		42,691		44,668		47,280
Prepaid reinsurance premiums		22,665		16,956		8,513		5,020		16,048
Deferred acquisition costs		254		189		61		79		748
Other assets		7,332		7,285		6,234		6,315		6,723

Liabilities
Unpaid losses and loss adjustment expenses	$	30,978	$	38,739	$	44,078	$	46,301	$	49,494
Unearned premiums		24,413		18,500		9,555		5,845		19,667
Reinsurance funds held and balances payable		21,333		16,510		8,047		6,126		20,965
Other liabilities		11,511		11,564		8,586		7,459		10,116

PMA Capital Corporation

Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group

(Dollar Amounts in Thousands)

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

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

Policy acquisition costs deferred		12,805			19,835			15,729			20,501			14,170
Amortization of policy acquisition costs		(18,027	)		(14,692	)		(19,537	)		(15,923	)		(16,549	)
Net change		(5,222	)		5,143			(3,808	)		4,578			(2,379	)

Balance, end of period	$	37,404		$	42,547		$	38,739		$	43,317		$	40,938

PMA Capital Corporation

Invested Assets and Net Investment Income

(Dollar Amounts in Thousands)

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

Total Investments & Cash
As reported		$	822,979		$	812,208		$	800,808		$	802,598		$	772,498		$	772,498		$	822,979
Less:
	Unrealized gain (loss) on
	fixed maturities available for sale		6,138			4,024			(10,663	)		(33,148	)		(30,758	)		(30,758	)		6,138
	Total adjusted investments & cash	$	816,841		$	808,184		$	811,471		$	835,746		$	803,256		$	803,256		$	816,841

Net Investment Income
As reported		$	9,973		$	9,435		$	9,040		$	8,870		$	8,724		$	36,069		$	39,592
Less:
	Interest on funds held		(676	)		(506	)		(558	)		(616	)		(479	)		(2,159	)		(2,194	)
	Total adjusted investment income	$	10,649		$	9,941		$	9,598		$	9,486		$	9,203		$	38,228		$	41,786

Yield
As reported			4.88	%		4.62	%		4.48	%		4.43	%		4.43	%		4.50	%		4.88	%
Investment portfolio			5.22	%		4.89	%		4.74	%		4.61	%		4.49	%		4.69	%		5.12	%

Duration (in years)			3.7			3.8			3.8			3.6			3.2			3.2			3.7




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					45		20223
	Total long-term debt				$	129,380

1	Weighted average interest rate on junior subordinated debt is 5.94% as of December 31, 2008.
2	Interest rate on surplus notes is 7.69% as of December 31, 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.

This Page Intentionally Left Blank

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2008
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	529,409	$	-	$	(494	)	$	528,915

Net Premiums Written	$	414,731	$	-	$	(494	)	$	414,237

Revenues:
Net premiums earned	$	390,711	$	-	$	(494	)	$	390,217
Claims service revenues		-		58,301		(931	)		57,370
Commission income		-		12,435		(51	)		12,384
Net investment income		35,431		540		98			36,069
Other revenues		2,138		334		369			2,841
Total operating revenues		428,280		71,610		(1,009	)		498,881

Losses and Expenses:
Losses and loss adjustment expenses		270,825		-		-			270,825
Acquisition expenses		66,701		-		(66	)		66,635
Operating expenses		36,946		64,405		9,614			110,965
Dividends to policyholders		6,306		-		-			6,306
Total losses and expenses		380,778		64,405		9,548			454,731

Operating income (loss) before income taxes
and interest expense		47,502		7,205		(10,557	)		44,150

Interest expense		789		-		10,094			10,883

Pre-tax operating income (loss)	$	46,713	$	7,205	$	(20,651	)		33,267

Net realized investment losses									(4,724	)

Pre-tax income								$	28,543

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

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2007
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	524,799	$	-	$	(627	)	$	524,172

Net Premiums Written	$	395,325	$	-	$	(627	)	$	394,698

Revenues:
Net premiums earned	$	378,870	$	-	$	(627	)	$	378,243
Claims service revenues		-		34,034		-			34,034
Commission income		-		3,005		-			3,005
Net investment income		37,936		972		684			39,592
Other revenues		-		113		227			340
Total operating revenues		416,806		38,124		284			455,214

Losses and Expenses:
Losses and loss adjustment expenses		263,199		-		-			263,199
Acquisition expenses		73,747		-		-			73,747
Operating expenses		33,024		34,400		9,117			76,541
Dividends to policyholders		7,790		-		-			7,790
Total losses and expenses		377,760		34,400		9,117			421,277

Operating income (loss) before income taxes
and interest expense		39,046		3,724		(8,833	)		33,937

Interest expense		1,001		-		10,731			11,732

Pre-tax operating income (loss)	$	38,045	$	3,724	$	(19,564	)		22,205

Net realized investment gains									563

Pre-tax income								$	22,768

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

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2008
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	132,340	$	-	$	(123	)	$	132,217

Net Premiums Written	$	97,436	$	-	$	(123	)	$	97,313

Revenues:
Net premiums earned	$	103,850	$	-	$	(123	)	$	103,727
Claims service revenues		-		17,029		(244	)		16,785
Commission income		-		2,848		(13	)		2,835
Net investment income		8,613		143		(32	)		8,724
Other revenues		18		59		279			356
Total operating revenues		112,481		20,079		(133	)		132,427

Losses and Expenses:
Losses and loss adjustment expenses		70,671		-		-			70,671
Acquisition expenses		16,549		-		(28	)		16,521
Operating expenses		13,875		18,190		2,314			34,379
Dividends to policyholders		2,762		-		-			2,762
Total losses and expenses		103,857		18,190		2,286			124,333

Operating income (loss) before income taxes
and interest expense		8,624		1,889		(2,419	)		8,094

Interest expense		196		-		2,478			2,674

Pre-tax operating income (loss)	$	8,428	$	1,889	$	(4,897	)		5,420

Net realized investment gains									259

Pre-tax income								$	5,679

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

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2007
(Dollar Amounts in Thousands)

	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated

Gross Premiums Written	$	95,070	$	-	$	(156	)	$	94,914

Net Premiums Written	$	71,345	$	-	$	(156	)	$	71,189

Revenues:
Net premiums earned	$	93,773	$	-	$	(156	)	$	93,617
Claims service revenues		-		11,239		-			11,239
Commission income		-		3,005		-			3,005
Net investment income		9,406		435		132			9,973
Other revenues		-		113		55			168
Total operating revenues		103,179		14,792		31			118,002

Losses and Expenses:
Losses and loss adjustment expenses		66,152		-		-			66,152
Acquisition expenses		18,027		-		-			18,027
Operating expenses		9,223		13,123		2,283			24,629
Dividends to policyholders		1,916		-		-			1,916
Total losses and expenses		95,318		13,123		2,283			110,724

Operating income (loss) before income taxes
and interest expense		7,861		1,669		(2,252	)		7,278

Interest expense		247		-		2,751			2,998

Pre-tax operating income (loss)	$	7,614	$	1,669	$	(5,003	)		4,280

Net realized investment gains									566

Pre-tax income								$	4,846

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

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

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

Gross Premiums Written	$	95,070	$	143,663	$	101,786	$	151,620	$	132,340	$	529,409	$	524,799		39.2	%		0.9	%

Net Premiums Written	$	71,345	$	113,905	$	79,273	$	124,117	$	97,436	$	414,731	$	395,325		36.6	%		4.9	%

Revenues:
Net premiums earned	$	93,773	$	85,718	$	103,047	$	98,096	$	103,850	$	390,711	$	378,870		10.7	%		3.1	%
Net investment income		9,406		9,099		8,943		8,776		8,613		35,431		37,936		-8.4	%		-6.6	%
Other revenues		-		-		2,120		-		18		2,138		-	NM			NM
Total operating revenues		103,179		94,817		114,110		106,872		112,481		428,280		416,806		9.0	%		2.8	%

Losses and Expenses:
Losses and loss adjustment expenses		66,152		59,922		71,572		68,660		70,671		270,825		263,199		6.8	%		2.9	%
Acquisition expenses		18,027		14,692		19,537		15,923		16,549		66,701		73,747		-8.2	%		-9.6	%
Operating expenses		9,223		5,488		9,979		7,604		13,875		36,946		33,024		50.4	%		11.9	%
Dividends to policyholders		1,916		882		1,493		1,169		2,762		6,306		7,790		44.2	%		-19.1	%
Total losses and expenses		95,318		80,984		102,581		93,356		103,857		380,778		377,760		9.0	%		0.8	%

Operating income before income taxes
and interest expense		7,861		13,833		11,529		13,516		8,624		47,502		39,046		9.7	%		21.7	%

Interest expense		247		214		188		191		196		789		1,001		-20.6	%		-21.2	%

Pre-tax operating income	$	7,614	$	13,619	$	11,341	$	13,325	$	8,428	$	46,713	$	38,045		10.7	%		22.8	%

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



Loss and LAE ratio		70.5	%		69.9	%		69.4	%		70.0	%		68.1	%		69.3	%		69.5	%		2.4			0.2

Expense ratio:
Acquisition expenses		19.2	%		17.1	%		19.0	%		16.2	%		15.9	%		17.1	%		19.4	%		3.3			2.3
Operating expenses		9.9	%		6.5	%		9.7	%		7.8	%		13.3	%		9.5	%		8.7	%		(3.4	)		(0.8	)
Total expense ratio		29.1	%		23.6	%		28.7	%		24.0	%		29.2	%		26.6	%		28.1	%		(0.1	)		1.5

Policyholders' dividend ratio		2.0	%		1.0	%		1.4	%		1.2	%		2.7	%		1.6	%		2.1	%		(0.7	)		0.5
Combined ratio		101.6	%		94.5	%		99.5	%		95.2	%		100.0	%		97.5	%		99.7	%		1.6			2.2

Net investment income ratio		-10.0	%		-10.6	%		-8.7	%		-8.9	%		-8.3	%		-9.1	%		-10.0	%		(1.7	)		(0.9	)
Operating ratio		91.6	%		83.9	%		90.8	%		86.3	%		91.7	%		88.4	%		89.7	%		(0.1	)		1.3

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


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

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


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

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


	1st			2nd			3rd			4th			Twelve
	Quarter			Quarter			Quarter			Quarter			Months
	2008			2008			2008			2008			2008

Direct premium production	$	146,608		$	96,736		$	150,547		$	112,296		$	506,187
Fronting premiums		8,143			2,113			2,776			21,800			34,832
Premium adjustments		(14,198	)		370			(5,008	)		(4,261	)		(23,097	)
Direct premiums written	$	140,553		$	99,219		$	148,315		$	129,835		$	517,922

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

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

Revenues:
Claims service revenues	$	11,239	$	12,108	$	13,213	$	15,951	$	17,029	$	58,301	$	34,034		51.5	%		71.3	%
Commission income		3,005		4,281		2,644		2,662		2,848		12,435		3,005		-5.2	%	NM
Net investment income		435		161		118		118		143		540		972		-67.1	%		-44.4	%
Other revenues		113		102		82		91		59		334		113		-47.8	%	NM
Total operating revenues		14,792		16,652		16,057		18,822		20,079		71,610		38,124		35.7	%		87.8	%

Expenses:
Operating expenses		13,123		14,466		14,856		16,893		18,190		64,405		34,400		38.6	%		87.2	%
Total expenses		13,123		14,466		14,856		16,893		18,190		64,405		34,400		38.6	%		87.2	%

Pre-tax operating income	$	1,669	$	2,186	$	1,201	$	1,929	$	1,889	$	7,205	$	3,724		13.2	%		93.5	%

Beginning in the third quarter of 2008, the operating results 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
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)

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

Gross Premiums Written	$	(156	)	$	(122	)	$	(127	)	$	(122	)	$	(123	)	$	(494	)	$	(627	)		21.2	%		21.2	%

Net Premiums Written	$	(156	)	$	(122	)	$	(127	)	$	(122	)	$	(123	)	$	(494	)	$	(627	)		21.2	%		21.2	%

Revenues:
Net premiums earned	$	(156	)	$	(122	)	$	(127	)	$	(122	)	$	(123	)	$	(494	)	$	(627	)		21.2	%		21.2	%
Claims service revenues		-			(156	)		(276	)		(255	)		(244	)		(931	)		-		NM			NM
Commission income		-			-			(13	)		(25	)		(13	)		(51	)		-		NM			NM
Net investment income		132			175			(21	)		(24	)		(32	)		98			684		NM				-85.7	%
Other revenues		55			44			12			34			279			369			227		NM				62.6	%
Total operating revenues		31			(59	)		(425	)		(392	)		(133	)		(1,009	)		284		NM			NM

Expenses:
Acquisition expenses		-			-			(13	)		(25	)		(28	)		(66	)		-		NM			NM
Operating expenses		2,283			2,379			2,512			2,409			2,314			9,614			9,117			1.4	%		5.5	%
Total expenses		2,283			2,379			2,499			2,384			2,286			9,548			9,117			0.1	%		4.7	%

Operating loss before income
taxes and interest expense		(2,252	)		(2,438	)		(2,924	)		(2,776	)		(2,419	)		(10,557	)		(8,833	)		-7.4	%		-19.5	%

Interest expense		2,751			2,573			2,500			2,543			2,478			10,094			10,731			-9.9	%		-5.9	%

Pre-tax operating loss	$	(5,003	)	$	(5,011	)	$	(5,424	)	$	(5,319	)	$	(4,897	)	$	(20,651	)	$	(19,564	)		2.1	%		-5.6	%

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

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

Gross Premiums Written	$	(301	)	$	2,331		$	(214	)	$	417		$	3		$	2,537		$	4,803		NM				-47.2	%

Net Premiums Written	$	680		$	2,439		$	(227	)	$	167		$	2		$	2,381		$	5,385			-99.7	%		-55.8	%

Revenues:
Net premiums earned	$	656		$	1,026		$	11		$	517		$	145		$	1,699		$	3,471			-77.9	%		-51.1	%
Net investment income		60			128			(451	)		(663	)		1,546			560			2,844		NM				-80.3	%
Total operating revenues		716			1,154			(440	)		(146	)		1,691			2,259			6,315		NM				-64.2	%

Losses and Expenses:
Losses and loss adjustment expenses		274			9,280			550			10,201			4,226			24,257			24,013		NM				1.0	%
Acquisition expenses		239			85			168			(146	)		339			446			891			41.8	%		-49.9	%
Operating expenses		2,111			2,782			1,952			2,054			2,228			9,016			7,507			5.5	%		20.1	%
Impairment charge / valuation adjustment		61,482			(6,480	)		(3,550	)		(8,594	)		8,722			(9,902	)		61,482			-85.8	%	NM
Total losses and expenses		64,106			5,667			(880	)		3,515			15,515			23,817			93,893			-75.8	%		-74.6	%

Pre-tax operating income (loss) from discontinued operations		(63,390	)		(4,513	)		440			(3,661	)		(13,824	)		(21,558	)		(87,578	)		78.2	%		75.4	%

Income tax expense (benefit)		(22,187	)		(1,580	)		154			(1,281	)		(4,838	)		(7,545	)		(30,653	)		78.2	%		75.4	%

After-tax operating income (loss) from discontinued operations		(41,203)			(2,933)			286			(2,380)			(8,986)			(14,013)			(56,925)			78.2%			75.4%

Realized gains (losses) after tax		457			494			(474	)		70			1,146			1,236			(352	)	NM			NM

Loss from discontinued operations	$	(40,746	)	$	(2,439	)	$	(188	)	$	(2,310	)	$	(7,840	)	$	(12,777	)	$	(57,277	)		80.8	%		77.7	%


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

(Dollar Amounts in Thousands)

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

Receipts:
Premiums collected	$	95,709		$	93,222		$	94,883		$	112,274		$	96,678		$	397,057		$	375,149
Claims service, commissions and other revenues		19,473			14,097			16,180			22,643			16,251			69,171			42,205
Investment income received		10,730			10,623			9,418			9,688			9,172			38,901			41,820
Total receipts		125,912			117,942			120,481			144,605			122,101			505,129			459,174

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		24,466			4,991			17,075			25,618			30,952			78,636			64,780
Losses and LAE paid - prior years		34,968			61,577			54,638			46,851			41,207			204,273			210,418
Total losses and LAE paid		59,434			66,568			71,713			72,469			72,159			282,909			275,198
Operating expenses paid		36,995			44,966			43,369			43,785			37,866			169,986			135,398
Commissions and premiums paid		7,792			922			2,117			3,387			580			7,006			7,792
Policyholders' dividends paid		791			1,138			1,882			1,663			1,592			6,275			3,858
Interest on corporate debt		3,396			2,926			2,680			2,700			2,645			10,951			11,812
Total disbursements		108,408			116,520			121,761			124,004			114,842			477,127			434,058

Net other		793			(5,637	)		12,080			(6,158	)		(691	)		(406	)		(5,468	)

Net operating cash flows from continuing operations		18,297			(4,215	)		10,800			14,443			6,568			27,596			19,648
Net operating cash flows from discontinued operations		143,177	1		(31,345	)		(23,228	)		(13,236	)		(20,948	)		(88,757	)		67,180	1
Net operating cash flows	$	161,474		$	(35,560	)	$	(12,428	)	$	1,207		$	(14,380	)	$	(61,161	)	$	86,828

Includes $172 million received for commutation of adverse development cover reinsurance.

PMA Capital Corporation

Operating Cash Flows - PMA Insurance Group

(Dollar Amounts in Thousands)

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

Receipts:
Premiums collected	$	95,709		$	93,222		$	94,883	$	112,274		$	96,678		$	397,057		$	375,149
Investment income received		10,292			10,462			9,300		9,570			9,029			38,361			40,845
Total receipts		106,001			103,684			104,183		121,844			105,707			435,418			415,994

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		24,466			4,991			17,075		25,618			30,952			78,636			64,780
Losses and LAE paid - prior years		34,968			61,577			54,638		46,851			41,207			204,273			210,418
Total losses and LAE paid		59,434			66,568			71,713		72,469			72,159			282,909			275,198
Operating expenses paid		22,146			32,454			28,756		26,531			23,391			111,132			99,144
Policyholders' dividends paid		791			1,138			1,882		1,663			1,592			6,275			3,858
Interest on corporate debt		252			245			186		192			185			808			1,000
Total disbursements		82,623			100,405			102,537		100,855			97,327			401,124			379,200

Net other		(15,631	)		(3,412	)		10,964		(6,659	)		(18,635	)		(17,742	)		(31,460	)

Net operating cash flows	$	7,747		$	(133	)	$	12,610	$	14,330		$	(10,255	)	$	16,552		$	5,334

PMA Capital Corporation

Operating Cash Flows - Fee-based Business 1

(Dollar Amounts in Thousands)

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

Receipts:
Claims service, commissions and other revenues	$	19,473		$	14,097	$	16,180		$	22,643	$	16,251	$	69,171	$	42,205
Investment income received		438			161		118			118		143		540		975
Total receipts		19,911			14,258		16,298			22,761		16,394		69,711		43,180

Disbursements:
Operating expenses paid		14,849			12,512		14,613			17,254		14,475		58,854		36,254
Commissions and premiums paid		7,792			922		2,117			3,387		580		7,006		7,792
Total disbursements		22,641			13,434		16,730			20,641		15,055		65,860		44,046

Net other		(48	)		977		(3,003	)		970		3,850		2,794		(3,629	)

Net operating cash flows	$	(2,778	)	$	1,801	$	(3,435	)	$	3,090	$	5,189	$	6,645	$	(4,495	)

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 Surplus
(Dollar Amounts in Thousands)

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


PMA Pool 2	$	335,394	$	343,582	$	352,096	$	336,368	$	332,915
PMA Capital Insurance Company		47,580		41,099		37,838		26,143		34,468

PMA Capital Corporation

Statutory Financial Information - PMA Pool 2

(Dollar Amounts in Thousands)

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

Net Premiums Written:
Workers' Compensation	$	64,477		$	103,018		$	71,998		$	107,446		$	87,722		$	370,184		$	352,644
Other Commercial Lines		6,139			10,805			9,079			8,692			8,154			36,730			33,656
Total - PMA Pool	$	70,616		$	113,823		$	81,077		$	116,138		$	95,876		$	406,914		$	386,300

Statutory Ratios:
Loss and LAE ratio		70.4	%		69.6	%		69.5	%		69.4	%		67.7	%		69.0	%		70.0	%
Underwriting expense ratio		34.6	%		20.3	%		32.1	%		22.1	%		26.9	%		24.8	%		26.9	%
Policyholders' dividend ratio		2.1	%		1.4	%		1.5	%		1.4	%		3.3	%		1.9	%		1.4	%
Combined ratio		107.1	%		91.3	%		103.1	%		92.9	%		97.9	%		95.7	%		98.3	%
Operating ratio		97.2	%		80.7	%		94.4	%		84.0	%		89.5	%		86.6	%		88.6	%

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				email: bhitselberger@pmacapital.com
www.amstock.com
				Investor Relations
Phone Inquiries:				610.397.5298
800.937.5449				email: investorrelations@pmacapital.com

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


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


Financial Strength Ratings (as of 2/18/2009):

	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	C++ (9th 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. The reinsurance business is in run-off. On April 1, 2008, we announced that we executed a definitive stock purchase agreement to sell our Run-off Operations to Armour Reinsurance Group Limited. The closing of the sale and transfer of ownership are currently pending approval by the Pennsylvania Insurance Department.
3 NR - Not Rated.