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) August 3, 2009

PMA Capital Corporation

(Exact name of registrant as specified in its charter)

Pennsylvania	001-31706	23-2217932
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

380 Sentry Parkway Blue Bell, Pennsylvania	19422
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (610) 397-5298

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

On August 3, 2009, PMA Capital Corporation (the “Registrant”) issued a news release regarding its Second Quarter 2009 results, a copy of which is furnished as Exhibit 99.1 hereto.  Additionally, the Registrant’s Second Quarter 2009 Statistical Supplement is furnished as Exhibit 99.2.

The information, including Exhibits 99.1 and 99.2 attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.  The information furnished under this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit 99.1	PMA Capital Corporation News Release, dated August 3, 2009
Exhibit 99.2	PMA Capital Corporation Second Quarter 2009 Statistical Supplement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PMA Capital Corporation
August 3, 2009	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 News Release, dated August 3, 2009
Exhibit 99.2	PMA Capital Corporation Second Quarter 2009 Statistical Supplement

EX-99.1

Exhibit 99.1

For Immediate Release	Contact:	William E. Hitselberger
		(610) 397-5298
		bhitselberger@pmacapital.com

PMA Capital Reports Solid Second Quarter 2009 Results

Blue Bell, PA, August 3, 2009 -- PMA Capital Corporation (NASDAQ: PMACA) today reported the following financial results for the second quarter and first six months of 2009:

	Three months ended						Six months ended
	June 30,						June 30,
(in thousands, except per share data)	2009			2008			2009			2008
Operating income before gain on sale of real estate	$	4,074		$	3,205		$	11,890		$	10,188
Gain on sale of real estate after tax		-			1,378			-			1,378
Operating income		4,074			4,583			11,890			11,566
Realized gains (losses) after tax		(307	)		(372	)		180			1,915
Income from continuing operations		3,767			4,211			12,070			13,481
Loss from discontinued operations after tax		(1,165	)		(188	)		(1,251	)		(2,627	)
Net income	$	2,602		$	4,023		$	10,819		$	10,854
Diluted per share amounts:
Operating income	$	0.13		$	0.14		$	0.37		$	0.36
Realized gains (losses) after tax		(0.01	)		(0.01	)		0.01			0.06
Income from continuing operations		0.12			0.13			0.38			0.42
Loss from discontinued operations after tax		(0.04	)		-			(0.04	)		(0.08	)
Net income	$	0.08		$	0.13		$	0.34		$	0.34

Vincent T. Donnelly, President and Chief Executive Officer commented, “PMA Capital produced solid operating results for the quarter.  We had significant growth in the revenues and results of our Fee-based Business.  We modestly grew our core insurance business while achieving a combined ratio below 100%, and are seeing improvement in our workers’ compensation pricing trends.  The Company’s book value grew by 5% in the quarter reflecting improved values in our investment portfolio combined with our earnings.”

At The PMA Insurance Group, Mr. Donnelly noted the following significant operating highlights:

·   Pre-tax operating income was $10.0 million in the quarter and $25.2 million for the first six months of 2009, compared to $11.3 million and $25.0 million in the same periods last year.  The prior year results for both periods included a gain of $2.1 million from the sale of real estate;

380 Sentry Parkway * Blue Bell, PA 19422-0754 * www.pmacapital.com

·   The combined ratio improved modestly to 99.4% in the quarter and by 0.7 points to 96.5% year-to-date; and

·   Direct premium production, which excludes fronting premiums and premium adjustments, increased 6% in the second quarter to $102.2 million and increased 3% during the first six months of 2009 to $249.6 million.

Mr. Donnelly continued, “We are continuing to grow our Fee-based Business, and saw revenues increase $6.5 million to $39.2 million, which represented 15% of our total revenues for the first half of 2009, compared to 13% during the same period in 2008.  Organic growth of claims service revenues was 15% during the first six months of 2009, and PMA Management Corp. of New England, which we acquired in June 2008, added $4.1 million of claims service revenues for the first half of 2009.  As a result of organic growth and the acquisition, our Fee-based Business revenues increased 20%, compared to the first six months of last year.”

The Company previously announced the execution of a definitive stock purchase agreement to sell its Run-off Operations and the filing of the Form A with the Pennsylvania Insurance Department.  The closing of the sale and transfer of ownership are pending approval by the Department.  Under its amended terms, the Agreement may be terminated by either the Company or the buyer if the closing of the sale does not occur by October 31, 2009, or such later date as the parties may mutually agree.  The Company continues to work with the Department to resolve the remaining items associated with the regulatory review.

Financial Condition

Total assets were $2.5 billion as of June 30, 2009 and December 31, 2008.  Assets of discontinued operations represented 8% of total assets at June 30, 2009, compared to 10% at December 31, 2008.  At June 30, 2009, we had $29.0 million in cash and short-term investments at our holding company and non-regulated subsidiaries.

Shareholders’ equity and book value per share changed as follows:

	Three months ended					Six months ended
	June 30, 2009					June 30, 2009
(in thousands, except per share data)	Shareholders' equity		Book value per share			Shareholders' equity		Book value per share
Balance, beginning of period	$	351,270	$	10.91		$	344,656	$	10.78
Net income		2,602		0.08			10,819		0.34
Unrealized gain on securities, net of tax		14,230		0.44			12,384		0.38
Other		896		0.03			1,139		0.04
Impact of change in shares outstanding		-		(0.01	)		-		(0.09	)
Balance, end of period	$	368,998	$	11.45		$	368,998	$	11.45

The insurance companies within The PMA Insurance Group had statutory capital and surplus of $373.7 million as of June 30, 2009, compared to $332.9 million as of December 31, 2008.  The increase in capital and surplus during 2009 related primarily to statutory net income, which included a benefit from the commutation of a reinsurance agreement with an affiliated entity.  The PMA Insurance Group has the ability to pay $31.8 million in dividends during 2009 without the prior approval of the Pennsylvania Insurance Department.

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Segment Operating Results

Operating income, which we define as net income under accounting principles generally accepted in the United States (GAAP) excluding net realized investment gains and losses and results from discontinued operations, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our businesses.  Net realized investment activity is excluded because (i) net realized investment gains and losses are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments and (ii) in many instances, decisions to buy and sell securities are made at the holding company level, and such decisions result in net realized gains and losses that do not relate to the operations of the individual segments.  Operating income does not replace net income as the GAAP measure of our consolidated results of operations.

The following is a reconciliation of our operating results to GAAP net income:

	Three months ended						Six months ended
	June 30,						June 30,
(dollar amounts in thousands)	2009			2008			2009			2008
Pre-tax operating income (loss):
The PMA Insurance Group	$	9,965		$	11,341		$	25,152		$	24,960
Fee-based Business		1,525			1,201			3,538			3,387
Corporate & Other		(5,167	)		(5,424	)		(10,167	)		(10,435	)
Pre-tax operating income		6,323			7,118			18,523			17,912
Income tax expense		2,249			2,535			6,633			6,346
Operating income		4,074			4,583			11,890			11,566
Realized gains (losses) after tax		(307	)		(372	)		180			1,915
Income from continuing operations		3,767			4,211			12,070			13,481
Loss from discontinued operations after tax		(1,165	)		(188	)		(1,251	)		(2,627	)
Net income	$	2,602		$	4,023		$	10,819		$	10,854

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

	Three months ended						Six months ended
	June 30,						June 30,
(dollar amounts in thousands)	2009			2008			2009			2008
Net realized gains (losses) after tax:
Sales of investments	$	362		$	(372	)	$	3,390		$	1,933
Other than temporary impairments		(669	)		-			(3,210	)		-
Other		-			-			-			(18	)
Net realized gains (losses) after tax	$	(307	)	$	(372	)	$	180		$	1,915

We recorded other than temporary impairments of $669,000 and $3.2 million after-tax during the three and six months ended June 30, 2009.  The impairments in the first half of 2009 related primarily to a $2.9 million loss for write-downs on $45.9 million par of CMBS that were sold during the second quarter in order to reduce our exposure to this asset sector.  These write-downs were measured based on public market prices.  At June 30, 2009, our CMBS had an average credit rating of AAA and fair

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value of $89.0 million, which represented 83% of their amortized cost.  Details of the Company’s investment portfolio at June 30, 2009 and December 31, 2008 are posted on our website at www.pmacapital.com.

The PMA Insurance Group

The PMA Insurance Group reported pre-tax operating income of $10.0 million for the second quarter of 2009, compared to $11.3 million for the same period last year.  Year-to-date pre-tax operating income increased modestly to $25.2 million, compared to $25.0 million for the first half of 2008.  The results for the second quarter and first six months of 2008 included a gain of $2.1 million from the sale of a property that housed one of our branch offices in order to move into a more modern, leased facility.

Direct premium production increased during the second quarter and first six months of 2009, compared to the same periods last year.  We define direct premium production as direct premiums written, excluding fronting premiums and premium adjustments.  The following is a reconciliation of our direct premium production to consolidated gross premiums written:

	Three months ended					Six months ended
	June 30,					June 30,
(dollar amounts in thousands)	2009			2008		2009			2008
Direct premium production	$	102,212		$	96,736	$	249,579		$	243,344
Fronting premiums		9,677			2,113		29,299			10,256
Premium adjustments		(2,753	)		370		(7,629	)		(13,828	)
Direct premiums written		109,136			99,219		271,249			239,772
Assumed premiums and other		4,288			2,440		6,245			5,428
Gross premiums written	$	113,424		$	101,659	$	277,494		$	245,200

Fronting premiums increased in the second quarter and first half of 2009 primarily as a result of the two fronting arrangements we entered into during August 2008.  The decrease in premium adjustments in the first six months of 2009, compared to the same period last year, primarily reflected a lower amount of return premium adjustments on loss-sensitive products where the insured shares in the underwriting result of the policy.  We write these retrospective products because we believe they provide us with greater certainty in achieving our targeted underwriting results as the customer shares in the underwriting result of the policy with us.

Excluding fronting business, we wrote $33.4 million of new business in the second quarter of 2009, up from $25.7 million in the second quarter of 2008, and $71.4 million for the first half of 2009, up from $60.4 million during the same period last year.  Pricing on our workers’ compensation rate-sensitive business declined 3% during the first six months of 2009, compared to a 7% decrease during the first six months of 2008.  Our renewal retention rates on existing workers’ compensation accounts were 78% for the second quarter and 79% for the first six months of 2009, compared to 84% and 85% for the same periods last year.  The decline in the retention rates in 2009 primarily reflected lower retentions on rate-sensitive middle-market business as we continue to maintain disciplined underwriting standards in a price competitive environment.  While retention rates were also down on loss-sensitive workers’ compensation business, the decrease was lower than that on rate-sensitive business and retention rates remained higher for business written on a loss-sensitive basis than for business written on a rate-sensitive basis, reflecting our strategy to emphasize loss-sensitive business.

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Net premiums written increased to $80.4 million in the second quarter of 2009, from $79.3 million in the second quarter of 2008.  For the six months ended June 30, 2009, net premiums written increased to $198.6 million, compared to $193.2 million during the same period last year.  The year-to-date increase in net premiums written was primarily due to the lower impact of premium adjustments.

Net premiums earned were $107.1 million in the second quarter of 2009, compared to $103.0 million in the second quarter of 2008.  For the first six months of 2009, net premiums earned increased to $212.2 million, from $188.8 million for the first half of 2008.  The increases in both periods reflect the increase in direct premium production over the past year.  The year-to-date increase also reflects the impact of lower return premium adjustments in 2009, which reduce earned premiums in the period the adjustment is made.

The combined ratio on a GAAP basis was 99.4% for the second quarter of 2009, compared to 99.5% in the second quarter last year.  In the second quarter of 2009, the loss and LAE ratio decreased primarily due to favorable development on captive business.  This improvement in loss experience was offset by an increase in policyholders’ dividends.

On a year-to-date basis, the combined ratio was 96.5% in 2009, compared to 97.2% for the same period in 2008.  The improvement in the combined ratio for the first six months of 2009, compared to the first six months of last year, was primarily the result of a lower expense ratio, which was partially offset by an increased loss and LAE ratio.

The increase in the loss and LAE ratio in the first six months of 2009 was due primarily to the first quarter reduction in audit premiums.  While payrolls, which declined by 2% through June, on our renewal book have been stable overall, this was lower than the rate of growth we experienced in 2008, and as a result, we reduced our accrual for additional audit premiums by $3.3 million.  Key loss indicators are in line with our expectations for this business, and we will continue to evaluate loss activity on these accounts as they mature, but we did not reduce our expectation of losses on these policies, which were primarily written in 2007 and 2008.  Although pricing changes coupled with payroll inflation for rate-sensitive workers’ compensation business were below overall estimated loss trends, our current accident year loss and LAE ratio remained consistent between periods as we continued to benefit in the first half of 2009 from changes in the type of workers’ compensation products selected by our insureds.  We estimate our medical cost inflation to be 6.0% in the first six months of 2009, compared to our estimate of 6.5% in the first six months of 2008.

The expense ratio for the first six months of 2009, compared to the same period last year, benefited as the increase in net premiums earned outpaced the 3% increase in our controllable expenses, which include salary, benefits and other employee-related costs. Commissions earned under our fronting arrangements reduced the acquisition expense ratio by 0.6 points for both the second quarter and first six months of 2009, compared to 0.7 points and 0.9 points for the same periods in 2008, as the ceding commissions earned on this business reduce our commission expense.

The policyholders’ dividend ratio was higher in the second quarter of 2009, compared to the same period last year.  The current year period reflected slightly lower than expected loss experience, which resulted in higher dividends on captive accounts business where the policyholders may receive a dividend based, to a large extent, on their loss experience.

Net investment income was $9.5 million in the second quarter of 2009, compared to $8.9 million in the prior year quarter.  Net investment income was $18.0 million for the first six months of 2009 and 2008.  The increase in the second quarter was due primarily to improved investment yields from our long-

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term fixed income securities, which were partially offset by declining investment yields on our short-term fixed income securities.

Fee-based Business

For the second quarter of 2009, total revenues at our Fee-based Business increased to $19.5 million, up from $16.1 million for the same period last year.  For the six months ended June 30, 2009, total revenues increased to $39.2 million, compared to $32.7 million for the first half of 2008.  The increases in revenues primarily reflected increases in claims service revenues of $3.9 million and $7.8 million for the second quarter and first six months of 2009, partially offset by decreases in commission income of $512,000 and $1.3 million, respectively.  Organic claims service revenue growth was 13% in the quarter and 15% in the first six months of 2009, compared to the prior year periods.  Claims service revenues also increased by $2.2 million and $4.1 million in the second quarter and first six months of 2009 as a result of our June 2008 acquisition of PMA Management Corp. of New England, Inc.

Our Fee-based Business reported pre-tax operating income of $1.5 million for the second quarter of 2009, compared to $1.2 million for the same quarter last year.  Year-to-date pre-tax operating income was $3.5 million, compared to $3.4 million for the first half of 2008.  The increase in pre-tax operating income in 2009 was less than the growth in total revenues due primarily to the decline in the net commissions earned by our agency business.

Corporate and Other

The Corporate and Other segment, which includes primarily corporate expenses and debt service, recorded net expenses of $5.2 million during the second quarter of 2009, compared to $5.4 million in the second quarter of 2008.  Net expenses were $10.2 million during the first six months of 2009, compared to $10.4 million for the same period in 2008.

Discontinued Operations

Discontinued operations, which consists of our former reinsurance and excess and surplus lines businesses, recorded after-tax losses of $1.2 million and $1.3 million for the three and six months ended June 30, 2009, compared to after-tax losses of $188,000 and $2.6 million for the same periods in 2008.  The loss in 2009 reflects the write-down of our carrying value of the discontinued operations to zero.  The loss for the first six months of 2008 was due to a charge in the first quarter for adverse loss development.

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Conference Call with Investors

As a reminder, we will hold a conference call with investors beginning at 8:30 a.m. Eastern Time on Tuesday, August 4th to review our second quarter 2009 results.  The conference call will be available via a live webcast over the Internet at www.pmacapital.com.  To access the webcast, enter the Investor Information section, click on News Releases and then click on the microphone icon.  Please note that by accessing the conference call via the Internet, you will be in a listen-only mode.

The call-in numbers and passcodes for the conference call are as follows:

Live Call	Replay
888-713-4213 (Domestic)	888-286-8010 (Domestic)
617-213-4865 (International)	617-801-6888 (International)
Passcode 53348087	Passcode 86929714

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

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

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

A replay of the conference call will be available over the Internet or by dialing the call-in number for the replay and using the passcode.  The replay will be available from approximately 11:30 a.m. Eastern Time on Tuesday, August 4th until 11:59 p.m. Eastern Time on Friday, September 4th.

Quarterly Statistical Supplement

Our Second Quarter Statistical Supplement, which provides more detailed historical information about us, is available on our website.  Please see the Investor Information section of our website at www.pmacapital.com.  You may also obtain a copy of this supplement by sending your request to:

PMA Capital Corporation

380 Sentry Parkway

Blue Bell, PA 19422

Attention: Investor Relations

Alternatively, you may make a request by telephone (610-397-5298) or by e-mail to InvestorRelations@pmacapital.com.  We will also furnish a copy of this news release and the Statistical Supplement to the Securities and Exchange Commission on a Form 8-K.  A copy of the Form 8-K will be available on the SEC’s website at www.sec.gov.

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CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 with respect to the Company’s financial condition and results of operations and the plans and objectives of its management.  Forward-looking statements can generally be identified by use of forward-looking terminology such as “may,” “will,” “plan,” “expect,” “intend,” “anticipate,” “should” and “believe.”  These forward-looking statements may include estimates, assumptions or projections and are based on currently available financial, competitive and economic data and the Company’s current operating plans.  All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.  The factors that could cause actual results to differ materially from those in the forward-looking statements, include, but are not limited to:

·   adequacy of reserves for claim liabilities, including reserves for potential environmental and asbestos claims;

·   any future lowering or loss of one or more of our financial strength and debt ratings, and the adverse impact that any such downgrade may have on our ability to compete and to raise capital, and our liquidity and financial condition;

·   adequacy and collectibility of reinsurance that we purchase;

·   uncertainty as to the price and availability of reinsurance on business we intend to write in the future, including reinsurance for terrorist acts;

·   the effects of emerging claims and coverage issues, including changing judicial interpretations of available coverage for certain insured losses;

·   the success with which our independent agents and brokers sell our products and our ability to collect payments from them;

·   regulatory changes in risk-based capital or other standards that affect the cost of, or demand for, our products or otherwise affect our ability to conduct business, including any future action with respect to our business taken by the Pennsylvania Insurance Department or any other state insurance department;

·   our concentration in workers’ compensation insurance, which makes us particularly susceptible to adverse changes in that industry segment;

·   our ability to consummate the sale of our Run-off Operations in a timely manner;

·   severity of natural disasters and other catastrophes, including the impact of future acts of terrorism, in connection with insurance and reinsurance policies;

·   uncertainties related to possible terrorist activities or international hostilities and whether the Terrorism Risk Insurance Program Reauthorization Act of 2007 is extended beyond its December 31, 2014 termination date;

·   our ability to effectively compete in the highly competitive property and casualty insurance industry;

·   adverse economic or regulatory developments in the eastern part of the United States, particularly those affecting Pennsylvania, New York and New Jersey;

·   fluctuations in interest rates and other events that can adversely impact our investment portfolio;

·   disruptions in the financial markets that affect the value of our investment portfolio and our ability to sell our investments;

·   our ability to repay our indebtedness;

·   our ability to raise additional capital on financially favorable terms when required;

·   restrictions on our operations contained in any document governing our indebtedness;

·   the impact of future results on the value of recorded goodwill and other intangible assets and the recoverability of our deferred tax asset;

·   our ability to attract and retain qualified management personnel;

·   the outcome of any litigation against us;

·   provisions in our charter documents that can inhibit a change in control of our company; and

·   other factors or uncertainties disclosed from time to time in our filings with the Securities and Exchange Commission.

You should not place undue reliance on any forward-looking statements in this press release.  Forward-looking statements are not generally required to be publicly revised as circumstances change and we do not intend to update the forward-looking statements in this press release to reflect circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

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PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Three months ended June 30,
(dollar amounts in thousands, except per share data)	2009			2008
Gross premiums written	$	113,424		$	101,659
Net premiums written	$	80,302		$	79,146
Revenues:
Net premiums earned	$	106,949		$	102,920
Claims service revenues		16,835			12,937
Commission income		2,117			2,631
Net investment income		9,561			9,040
Net realized investment losses		(472	)		(572	)
Other revenues		190			2,214
Total revenues		135,180			129,170
Expenses:
Losses and loss adjustment expenses		73,494			71,572
Acquisition expenses		19,508			19,524
Operating expenses		31,540			27,347
Dividends to policyholders		2,311			1,493
Interest expense		2,476			2,688
Total losses and expenses		129,329			122,624
Pre-tax income		5,851			6,546
Income tax expense:
Current		265			151
Deferred		1,819			2,184
Total income tax expense		2,084			2,335
Income from continuing operations		3,767			4,211
Loss from discontinued operations after tax		(1,165	)		(188	)
Net income	$	2,602		$	4,023
Income (loss) per share:
Basic:
Continuing Operations	$	0.12		$	0.13
Discontinued Operations		(0.04	)		-
	$	0.08		$	0.13
Diluted:
Continuing Operations	$	0.12		$	0.13
Discontinued Operations		(0.04	)		-
	$	0.08		$	0.13

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PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Six months ended June 30,
(dollar amounts in thousands, except per share data)	2009			2008
Gross premiums written	$	277,494		$	245,200
Net premiums written	$	198,280		$	192,929
Revenues:
Net premiums earned	$	211,879		$	188,516
Claims service revenues		32,519			24,889
Commission income		5,580			6,912
Net investment income		18,018			18,475
Net realized investment gains		277			2,946
Other revenues		366			2,360
Total revenues		268,639			244,098
Expenses:
Losses and loss adjustment expenses		149,269			131,494
Acquisition expenses		36,706			34,216
Operating expenses		55,925			49,680
Dividends to policyholders		2,957			2,375
Interest expense		4,982			5,475
Total losses and expenses		249,839			223,240
Pre-tax income		18,800			20,858
Income tax expense:
Current		509			151
Deferred		6,221			7,226
Total income tax expense		6,730			7,377
Income from continuing operations		12,070			13,481
Loss from discontinued operations after tax		(1,251	)		(2,627	)
Net income	$	10,819		$	10,854
Income (loss) per share:
Basic:
Continuing Operations	$	0.38		$	0.42
Discontinued Operations		(0.04	)		(0.08	)
	$	0.34		$	0.34
Diluted:
Continuing Operations	$	0.38		$	0.42
Discontinued Operations		(0.04	)		(0.08	)
	$	0.34		$	0.34

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PMA Capital Corporation

GAAP Consolidated Balance Sheets

(Unaudited)

	June 30,			December 31,
(dollar amounts in thousands, except per share data)	2009			2008
Assets:
Investments:
Fixed maturities available for sale	$	737,606		$	719,048
Short-term investments		38,103			45,066
Other investments		21,073			8,127
Total investments		796,782			772,241
Cash		10,163			10,501
Accrued investment income		7,221			6,513
Premiums receivable		236,663			235,893
Reinsurance receivables		855,161			826,126
Prepaid reinsurance premiums		37,271			29,579
Deferred income taxes, net		126,397			138,514
Deferred acquisition costs		39,364			40,938
Funds held by reinsureds		54,312			51,754
Intangible assets		30,165			30,348
Other assets		123,460			116,646
Assets of discontinued operations		208,272			243,663
Total assets	$	2,525,231		$	2,502,716
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,271,089		$	1,242,258
Unearned premiums		241,508			247,415
Debt		129,380			129,380
Accounts payable, accrued expenses
and other liabilities		222,359			216,266
Reinsurance funds held and balances payable		53,327			44,177
Dividends to policyholders		6,022			6,862
Liabilities of discontinued operations		232,548			271,702
Total liabilities		2,156,233			2,158,060
Shareholders' Equity:
Class A Common Stock		171,090			171,090
Additional paid-in capital		112,264			112,921
Retained earnings		145,500			140,184
Accumulated other comprehensive loss		(36,814	)		(49,876	)
Treasury stock, at cost		(23,042	)		(29,663	)
Total shareholders' equity		368,998			344,656
Total liabilities and shareholders' equity	$	2,525,231		$	2,502,716
Shareholders' equity per share	$	11.45		$	10.78

11

EX-99.2

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Second Quarter - 2009
Table of Contents
		Page
Consolidated Highlights:
Selected Financial Data - Second Quarter			1
Selected Financial Data - Year-to-date			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Second Quarter			5
Consolidated Statements of Operations - Year-to-date			6
Consolidated Balance Sheets			7
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Fronting 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 - Year-to-date		11 - 12
Statements of Operations - Consolidating - Second Quarter		13 - 14
Statements of Operations - PMA Insurance Group			15
Insurance Ratios - PMA Insurance Group			16
Components of Direct Premiums Written - PMA Insurance Group			17
Statements of Operations - Fee-based Business			18
Statements of Operations - Corporate & Other			19
Statements of Operations - Discontinued Operations			20
Operating Cash Flow Information:
Operating Cash Flows - Consolidated			21
Operating Cash Flows - PMA Insurance Group			22
Operating Cash Flows - Fee-based Business			23
Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool			24
Other Information:
Industry Ratings and Market Information			25
Legend:
NM - Not Meaningful
	Operating income, which we define as GAAP net income (loss) excluding net realized investment gains and losses and the results from discontinued operations, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our businesses.  Net realized investment activity is excluded because (i) net realized investment gains and losses are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments and (ii) in many instances, decisions to buy and sell securities are made at the holding company level, and such decisions result in net realized gains and losses that do not relate to the operations of the individual segments.  Operating income does not replace net income (loss) as the GAAP measure of our consolidated results of operations.  See pages 1 and 2 for reconciliations of operating results by segment to GAAP net income (loss).

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2008			2008			2008			2009			2009			Quarter
Direct Premiums Written	$	99,092		$	148,193		$	129,713		$	161,965		$	108,994			10.0	%
Net Premiums Written	$	79,146		$	123,995		$	97,313		$	117,978		$	80,302			1.5	%
Revenues:
Net premiums earned	$	102,920		$	97,974		$	103,727		$	104,930		$	106,949			3.9	%
Claims service revenues		12,937			15,696			16,785			15,684			16,835			30.1	%
Commission income		2,631			2,637			2,835			3,463			2,117			-19.5	%
Net investment income		9,040			8,870			8,724			8,457			9,561			5.8	%
Net realized investment gains (losses)		(572	)		(7,929	)		259			749			(472	)		17.5	%
Other revenues		2,214			125			356			176			190			-91.4	%
Total revenues	$	129,170		$	117,373		$	132,686		$	133,459		$	135,180			4.7	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	11,341		$	13,325		$	8,428		$	15,187		$	9,965			-12.1	%
Fee-based Business		1,201			1,929			1,889			2,013			1,525			27.0	%
Corporate & Other		(5,424	)		(5,319	)		(4,897	)		(5,000	)		(5,167	)		4.7	%
Pre-tax operating income		7,118			9,935			5,420			12,200			6,323			-11.2	%
Income tax expense		2,535			3,530			1,854			4,384			2,249			-11.3	%
After-tax operating income		4,583			6,405			3,566			7,816			4,074			-11.1	%
Net realized investment gains (losses) after tax		(372	)		(5,154	)		168			487			(307	)		17.5	%
Income from continuing operations		4,211			1,251			3,734			8,303			3,767			-10.5	%
Loss from discontinued operations after tax		(188	)		(2,310	)		(7,840	)		(86	)		(1,165	)	NM
Net income (loss)	$	4,023		$	(1,059	)	$	(4,106	)	$	8,217		$	2,602			-35.3	%
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.14		$	0.20		$	0.11		$	0.24		$	0.13			-7.1	%
Realized gains (losses) after tax		(0.01	)		(0.16	)		0.01			0.02			(0.01	)		0.0	%
Income from continuing operations		0.13			0.04			0.12			0.26			0.12			-7.7	%
Loss from discontinued operations after tax		-			(0.07	)		(0.25	)		-			(0.04	)	NM
Net income (loss)	$	0.13		$	(0.03	)	$	(0.13	)	$	0.26		$	0.08			-38.5	%
Capitalization:
Debt	$	129,790		$	129,380		$	129,380		$	129,380		$	129,380			-0.3	%
Shareholders' equity excluding FAS 115 unrealized loss		387,761			380,107			365,547			374,007			377,505			-2.6	%
Total capitalization excluding FAS 115 unrealized loss		517,551			509,487			494,927			503,387			506,885			-2.1	%
FAS 115 unrealized loss		(7,166	)		(22,113	)		(20,891	)		(22,737	)		(8,507	)		-18.7	%
Total capitalization including FAS 115 unrealized loss	$	510,385		$	487,374		$	474,036		$	480,650		$	498,378			-2.4	%
Book Value Per Share:
Excluding FAS 115 unrealized loss	$	12.14		$	11.89		$	11.44		$	11.61		$	11.71			-3.5	%
Including FAS 115 unrealized loss	$	11.92		$	11.20		$	10.78		$	10.91		$	11.45			-3.9	%
Debt to Total Capital:
Excluding FAS 115 unrealized loss		25.1	%		25.4	%		26.1	%		25.7	%		25.5	%		1.6	%
Including FAS 115 unrealized loss		25.4	%		26.5	%		27.3	%		26.9	%		26.0	%		2.4	%
Interest Coverage:
Income from continuing operations before interest
and income taxes to interest expense		3.44			1.73			3.12			6.17			3.36			-2.3	%
Operating income from continuing operations before
interest and income taxes to interest expense		3.65			4.63			3.03			5.87			3.55			-2.7	%

1

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	Six			Six			% Change
	Months			Months			Six
	2009			2008			Months
Direct Premiums Written	$	270,959		$	239,523			13.1	%
Net Premiums Written	$	198,280		$	192,929			2.8	%
Revenues:
Net premiums earned	$	211,879		$	188,516			12.4	%
Claims service revenues		32,519			24,889			30.7	%
Commission income		5,580			6,912			-19.3	%
Net investment income		18,018			18,475			-2.5	%
Net realized investment gains		277			2,946			-90.6	%
Other revenues		366			2,360			-84.5	%
Total revenues	$	268,639		$	244,098			10.1	%
Major Components of Net Income:
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	25,152		$	24,960			0.8	%
Fee-based Business		3,538			3,387			4.5	%
Corporate & Other		(10,167	)		(10,435	)		2.6	%
Pre-tax operating income		18,523			17,912			3.4	%
Income tax expense		6,633			6,346			4.5	%
After-tax operating income		11,890			11,566			2.8	%
Net realized investment gains after tax		180			1,915			-90.6	%
Income from continuing operations		12,070			13,481			-10.5	%
Loss from discontinued operations after tax		(1,251	)		(2,627	)		52.4	%
Net income	$	10,819		$	10,854			-0.3	%
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.37		$	0.36			2.8	%
Realized gains after tax		0.01			0.06			-83.3	%
Income from continuing operations		0.38			0.42			-9.5	%
Loss from discontinued operations after tax		(0.04	)		(0.08	)		50.0	%
Net income	$	0.34		$	0.34			0.0	%

2

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
	2nd		3rd			4th			1st		2nd			Six			Six
	Quarter		Quarter			Quarter			Quarter		Quarter			Months			Months
	2008		2008			2008			2009		2009			2009			2008
Diluted Earnings (Loss) Per Share:
Pre-tax operating income	$	0.22	$	0.31		$	0.17		$	0.38	$	0.20		$	0.58		$	0.56
After-tax operating income	$	0.14	$	0.20		$	0.11		$	0.24	$	0.13		$	0.37		$	0.36
Income from continuing operations	$	0.13	$	0.04		$	0.12		$	0.26	$	0.12		$	0.38		$	0.42
Loss from discontinued operations after tax		-		(0.07	)		(0.25	)		-		(0.04	)		(0.04	)		(0.08	)
Net income (loss)	$	0.13	$	(0.03	)	$	(0.13	)	$	0.26	$	0.08		$	0.34		$	0.34
Diluted weighted average common
shares outstanding		32,132,576		32,200,554			31,968,555			32,020,346		32,231,391			32,126,451			32,051,518
Dividends declared:
Class A Common Stock	$	-	$	-		$	-		$	-	$	-		$	-		$	-
Actual common shares issued
and outstanding		31,940,651		31,965,806			31,965,806			32,211,133		32,238,944			32,238,944			31,940,651
Class A Common Stock prices:
High	$	10.23	$	12.00		$	9.47		$	7.20	$	5.35		$	7.20		$	10.23
Low	$	8.24	$	8.00		$	3.46		$	3.50	$	3.70		$	3.50		$	7.45
Close	$	9.21	$	8.82		$	7.08		$	4.17	$	4.55		$	4.55		$	9.21

3

This Page Intentionally Left Blank

4

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2008			2008			2008			2009			2009			Quarter
Gross Premiums Written	$	101,659		$	151,498		$	132,217		$	164,070		$	113,424			11.6	%
Net Premiums Written	$	79,146		$	123,995		$	97,313		$	117,978		$	80,302			1.5	%
Revenues:
Net premiums earned	$	102,920		$	97,974		$	103,727		$	104,930		$	106,949			3.9	%
Claims service revenues		12,937			15,696			16,785			15,684			16,835			30.1	%
Commission income		2,631			2,637			2,835			3,463			2,117			-19.5	%
Net investment income		9,040			8,870			8,724			8,457			9,561			5.8	%
Net realized investment gains (losses)		(572	)		(7,929	)		259			749			(472	)		17.5	%
Other revenues		2,214			125			356			176			190			-91.4	%
Total revenues		129,170			117,373			132,686			133,459			135,180			4.7	%
Expenses:
Losses and loss adjustment expenses		71,572			68,660			70,671			75,775			73,494			2.7	%
Acquisition expenses		19,524			15,898			16,521			17,198			19,508			-0.1	%
Operating expenses		27,347			26,906			34,379			24,385			31,540			15.3	%
Dividends to policyholders		1,493			1,169			2,762			646			2,311			54.8	%
Interest expense		2,688			2,734			2,674			2,506			2,476			-7.9	%
Total losses and expenses		122,624			115,367			127,007			120,510			129,329			5.5	%
Pre-tax income		6,546			2,006			5,679			12,949			5,851			-10.6	%
Income tax expense (benefit):
Current		151			765			(211	)		244			265			75.5	%
Deferred		2,184			(10	)		2,156			4,402			1,819			-16.7	%
Total income tax expense		2,335			755			1,945			4,646			2,084			-10.7	%
Income from continuing operations		4,211			1,251			3,734			8,303			3,767			-10.5	%
Loss from discontinued operations after tax		(188	)		(2,310	)		(7,840	)		(86	)		(1,165	)	NM
Net income (loss)	$	4,023		$	(1,059	)	$	(4,106	)	$	8,217		$	2,602			-35.3	%
Pre-tax operating income from continuing operations	$	7,118		$	9,935		$	5,420		$	12,200		$	6,323			-11.2	%
After-tax operating income from continuing operations	$	4,583		$	6,405		$	3,566		$	7,816		$	4,074			-11.1	%

5

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	Six			Six			% Change
	Months			Months			Six
	2009			2008			Months
Gross Premiums Written	$	277,494		$	245,200			13.2	%
Net Premiums Written	$	198,280		$	192,929			2.8	%
Revenues:
Net premiums earned	$	211,879		$	188,516			12.4	%
Claims service revenues		32,519			24,889			30.7	%
Commission income		5,580			6,912			-19.3	%
Net investment income		18,018			18,475			-2.5	%
Net realized investment gains		277			2,946			-90.6	%
Other revenues		366			2,360			-84.5	%
Total revenues		268,639			244,098			10.1	%
Expenses:
Losses and loss adjustment expenses		149,269			131,494			13.5	%
Acquisition expenses		36,706			34,216			7.3	%
Operating expenses		55,925			49,680			12.6	%
Dividends to policyholders		2,957			2,375			24.5	%
Interest expense		4,982			5,475			-9.0	%
Total losses and expenses		249,839			223,240			11.9	%
Pre-tax income		18,800			20,858			-9.9	%
Income tax expense:
Current		509			151		NM
Deferred		6,221			7,226			-13.9	%
Total income tax expense		6,730			7,377			-8.8	%
Income from continuing operations		12,070			13,481			-10.5	%
Loss from discontinued operations after tax		(1,251	)		(2,627	)		52.4	%
Net income	$	10,819		$	10,854			-0.3	%
Pre-tax operating income from continuing operations	$	18,523		$	17,912			3.4	%
After-tax operating income from continuing operations	$	11,890		$	11,566			2.8	%

6

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)
	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2008			2008			2009			2009
Assets:
Investments in fixed maturities available for sale	$	730,466		$	701,738		$	719,048		$	714,202		$	737,606
Short-term investments		60,891			89,766			45,066			58,273			38,103
Other investments		8,009			8,247			8,127			13,832			21,073
Total investments		799,366			799,751			772,241			786,307			796,782
Cash		10,557			12,502			10,501			11,767			10,163
Accrued investment income		5,762			6,104			6,513			6,500			7,221
Premiums receivable		215,030			226,709			235,893			257,380			236,663
Reinsurance receivables		817,182			824,512			826,126			830,962			855,161
Prepaid reinsurance premiums		21,414			23,051			29,579			41,314			37,271
Deferred income taxes, net		117,983			131,132			138,514			135,496			126,397
Deferred acquisition costs		38,739			43,317			40,938			44,857			39,364
Funds held by reinsureds		46,980			49,292			51,754			54,166			54,312
Intangible assets		30,013			30,518			30,348			29,668			30,165
Other assets		116,418			142,672			116,646			119,361			123,460
Assets of discontinued operations		317,189			309,607			243,663			235,265			208,272
Total assets	$	2,536,633		$	2,599,167		$	2,502,716		$	2,553,043		$	2,525,231
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,240,224		$	1,247,069		$	1,242,258		$	1,256,435		$	1,271,089
Unearned premiums		219,643			247,302			247,415			272,200			241,508
Debt		129,790			129,380			129,380			129,380			129,380
Accounts payable, accrued expenses
and other liabilities		193,342			247,196			216,266			219,189			222,359
Reinsurance funds held and balances payable		31,947			34,185			44,177			59,074			53,327
Dividends to policyholders		5,459			5,150			6,862			7,224			6,022
Liabilities of discontinued operations		335,633			330,891			271,702			258,271			232,548
Total liabilities		2,156,038			2,241,173			2,158,060			2,201,773			2,156,233
Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		111,754			112,427			112,921			111,953			112,264
Retained earnings		145,638			144,286			140,184			143,291			145,500
Accumulated other comprehensive loss		(17,743	)		(40,149	)		(49,876	)		(51,497	)		(36,814	)
Treasury stock, at cost		(30,144	)		(29,660	)		(29,663	)		(23,567	)		(23,042	)
Total shareholders' equity		380,595			357,994			344,656			351,270			368,998
Total liabilities and shareholders' equity	$	2,536,633		$	2,599,167		$	2,502,716		$	2,553,043		$	2,525,231

7

PMA Capital Corporation
Assets and Liabilities of Discontinued Operations
(Dollar Amounts in Thousands)
	2nd		3rd		4th		1st		2nd
	Quarter		Quarter		Quarter		Quarter		Quarter
	2008		2008		2008		2009		2009
Assets
Investments	$	172,732	$	160,240	$	146,033	$	137,317	$	110,736
Cash		726		692		1,371		85		1,271
Reinsurance receivables		136,212		134,133		94,956		93,120		89,361
Other assets		7,519		14,542		1,303		4,743		6,904
Assets of discontinued operations	$	317,189	$	309,607	$	243,663	$	235,265	$	208,272
Liabilities
Unpaid losses and loss adjustment expenses	$	289,190	$	281,386	$	247,442	$	235,568	$	206,743
Other liabilities		46,443		49,505		24,260		22,703		25,805
Liabilities of discontinued operations	$	335,633	$	330,891	$	271,702	$	258,271	$	232,548

PMA Capital Corporation
Selected Balance Sheet Items - Fronting Arrangements
(Dollar Amounts in Thousands)
	2nd		3rd		4th		1st		2nd
	Quarter		Quarter		Quarter		Quarter		Quarter
	2008		2008		2008		2009		2009
Assets
Premiums receivable	$	11,145	$	8,087	$	25,796	$	38,833	$	36,670
Reinsurance receivables		42,691		44,668		47,280		50,175		53,675
Prepaid reinsurance premiums		8,513		5,020		16,048		24,884		23,072
Deferred acquisition costs		61		79		748		1,269		1,081
Other assets		6,234		6,315		6,723		6,818		7,269
Liabilities
Unpaid losses and loss adjustment expenses	$	44,078	$	46,301	$	49,494	$	53,087	$	57,367
Unearned premiums		9,555		5,845		19,667		29,430		26,866
Reinsurance funds held and balances payable		8,047		6,126		20,965		31,237		26,951
Other liabilities		8,586		7,459		10,116		11,392		12,081

PMA Capital Corporation
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group
(Dollar Amounts in Thousands)
	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2008			2008			2009			2009
Balance Sheet
Balance, beginning of period	$	42,547		$	38,739		$	43,317		$	40,938		$	44,857
Policy acquisition costs deferred		15,729			20,501			14,170			21,136			14,036
Amortization of policy acquisition costs		(19,537	)		(15,923	)		(16,549	)		(17,217	)		(19,529	)
Net change		(3,808	)		4,578			(2,379	)		3,919			(5,493	)
Balance, end of period	$	38,739		$	43,317		$	40,938		$	44,857		$	39,364

8

PMA Capital Corporation

Invested Assets and Net Investment Income

(Dollar Amounts in Thousands)

		2nd			3rd			4th			1st			2nd			Six			Six
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2008			2008			2008			2009			2009			2009			2008
Total Investments & Cash
As reported		$	809,923		$	812,253		$	782,742		$	798,074		$	806,945		$	806,945		$	809,923
Less:
	Unrealized loss on fixed maturities available for sale		(10,663	)		(33,148	)		(30,758	)		(33,799	)		(13,563	)		(13,563	)		(10,663	)
	Unrealized gain (loss) on other investments		(362	)		(872	)		(1,382	)		(1,181	)		475			475			(362	)
	Total adjusted investments & cash	$	820,948		$	846,273		$	814,882		$	833,054		$	820,033		$	820,033		$	820,948
Net Investment Income
As reported		$	9,040		$	8,870		$	8,724		$	8,457		$	9,561		$	18,018		$	18,475
Less:
	Interest on funds held		(558	)		(616	)		(479	)		(288	)		(511	)		(799	)		(1,064	)
	Total adjusted investment income	$	9,598		$	9,486		$	9,203		$	8,745		$	10,072		$	18,817		$	19,539
Yield
As reported			4.43	%		4.37	%		4.38	%		4.28	%		4.77	%		4.53	%		4.50	%
Investment portfolio			4.69	%		4.55	%		4.43	%		4.25	%		4.87	%		4.57	%		4.76	%
Duration (in years)			3.8			3.6			3.2			3.5			4.3			4.3			3.8

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		2022	3
		Total long-term debt	$	129,380
	1	Weighted average interest rate on junior subordinated debt is 4.64% as of June 30, 2009.
	2	Interest rate on surplus notes is 5.52% as of June 30, 2009.
	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.

9

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10

PMA Capital Corporation
Statements of Operations - Consolidating
Six Months Ended June 30, 2009
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	277,784	$	-	$	(290	)	$	277,494
Net Premiums Written		$	198,570	$	-	$	(290	)	$	198,280
Revenues:
Net premiums earned		$	212,169	$	-	$	(290	)	$	211,879
Claims service revenues			-		33,117		(598	)		32,519
Commission income			-		5,607		(27	)		5,580
Net investment income			17,968		187		(137	)		18,018
Other revenues			-		337		29			366
	Total operating revenues		230,137		39,248		(1,023	)		268,362
Losses and Expenses:
Losses and loss adjustment expenses			149,269		-		-			149,269
Acquisition expenses			36,746		-		(40	)		36,706
Operating expenses			15,710		35,710		4,505			55,925
Dividends to policyholders			2,957		-		-			2,957
	Total losses and expenses		204,682		35,710		4,465			244,857
Operating income (loss) before income taxes
	and interest expense		25,455		3,538		(5,488	)		23,505
Interest expense			303		-		4,679			4,982
Pre-tax operating income (loss)		$	25,152	$	3,538	$	(10,167	)		18,523
Net realized investment gains										277
Pre-tax income									$	18,800
1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

11

PMA Capital Corporation
Statements of Operations - Consolidating
Six Months Ended June 30, 2008
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	245,449	$	-	$	(249	)	$	245,200
Net Premiums Written		$	193,178	$	-	$	(249	)	$	192,929
Revenues:
Net premiums earned		$	188,765	$	-	$	(249	)	$	188,516
Claims service revenues			-		25,321		(432	)		24,889
Commission income			-		6,925		(13	)		6,912
Net investment income			18,042		279		154			18,475
Other revenues			2,120		184		56			2,360
	Total operating revenues		208,927		32,709		(484	)		241,152
Losses and Expenses:
Losses and loss adjustment expenses			131,494		-		-			131,494
Acquisition expenses			34,229		-		(13	)		34,216
Operating expenses			15,467		29,322		4,891			49,680
Dividends to policyholders			2,375		-		-			2,375
	Total losses and expenses		183,565		29,322		4,878			217,765
Operating income (loss) before income taxes
	and interest expense		25,362		3,387		(5,362	)		23,387
Interest expense			402		-		5,073			5,475
Pre-tax operating income (loss)		$	24,960	$	3,387	$	(10,435	)		17,912
Net realized investment gains										2,946
Pre-tax income									$	20,858
1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

12

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended June 30, 2009
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	113,566	$	-	$	(142	)	$	113,424
Net Premiums Written		$	80,444	$	-	$	(142	)	$	80,302
Revenues:
Net premiums earned		$	107,091	$	-	$	(142	)	$	106,949
Claims service revenues			-		17,122		(287	)		16,835
Commission income			-		2,132		(15	)		2,117
Net investment income			9,502		101		(42	)		9,561
Other revenues			-		167		23			190
	Total operating revenues		116,593		19,522		(463	)		135,652
Losses and Expenses:
Losses and loss adjustment expenses			73,494		-		-			73,494
Acquisition expenses			19,529		-		(21	)		19,508
Operating expenses			11,151		17,997		2,392			31,540
Dividends to policyholders			2,311		-		-			2,311
	Total losses and expenses		106,485		17,997		2,371			126,853
Operating income (loss) before income taxes
	and interest expense		10,108		1,525		(2,834	)		8,799
Interest expense			143		-		2,333			2,476
Pre-tax operating income (loss)		$	9,965	$	1,525	$	(5,167	)		6,323
Net realized investment losses										(472	)
Pre-tax income									$	5,851
1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

13

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended June 30, 2008
(Dollar Amounts in Thousands)
		PMA
		Insurance		Fee-based		Corporate
		Group		Business		& Other1			Consolidated
Gross Premiums Written		$	101,786	$	-	$	(127	)	$	101,659
Net Premiums Written		$	79,273	$	-	$	(127	)	$	79,146
Revenues:
Net premiums earned		$	103,047	$	-	$	(127	)	$	102,920
Claims service revenues			-		13,213		(276	)		12,937
Commission income			-		2,644		(13	)		2,631
Net investment income			8,943		118		(21	)		9,040
Other revenues			2,120		82		12			2,214
	Total operating revenues		114,110		16,057		(425	)		129,742
Losses and Expenses:
Losses and loss adjustment expenses			71,572		-		-			71,572
Acquisition expenses			19,537		-		(13	)		19,524
Operating expenses			9,979		14,856		2,512			27,347
Dividends to policyholders			1,493		-		-			1,493
	Total losses and expenses		102,581		14,856		2,499			119,936
Operating income (loss) before income taxes
	and interest expense		11,529		1,201		(2,924	)		9,806
Interest expense			188		-		2,500			2,688
Pre-tax operating income (loss)		$	11,341	$	1,201	$	(5,424	)		7,118
Net realized investment losses										(572	)
Pre-tax income									$	6,546
1	Corporate & Other includes the effect of eliminating transactions between the operating segments.

14

PMA Capital Corporation

Statements of Operations - PMA Insurance Group

(Dollar Amounts in Thousands)

	2nd		3rd		4th		1st		2nd		Six		Six		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		2nd			Six
	2008		2008		2008		2009		2009		2009		2008		Quarter			Months
Gross Premiums Written	$	101,786	$	151,620	$	132,340	$	164,218	$	113,566	$	277,784	$	245,449		11.6	%		13.2	%
Net Premiums Written	$	79,273	$	124,117	$	97,436	$	118,126	$	80,444	$	198,570	$	193,178		1.5	%		2.8	%
Revenues:
Net premiums earned	$	103,047	$	98,096	$	103,850	$	105,078	$	107,091	$	212,169	$	188,765		3.9	%		12.4	%
Net investment income		8,943		8,776		8,613		8,466		9,502		17,968		18,042		6.3	%		-0.4	%
Other revenues		2,120		-		18		-		-		-		2,120	NM			NM
Total operating revenues		114,110		106,872		112,481		113,544		116,593		230,137		208,927		2.2	%		10.2	%
Losses and Expenses:
Losses and loss adjustment expenses		71,572		68,660		70,671		75,775		73,494		149,269		131,494		2.7	%		13.5	%
Acquisition expenses		19,537		15,923		16,549		17,217		19,529		36,746		34,229		0.0	%		7.4	%
Operating expenses		9,979		7,604		13,875		4,559		11,151		15,710		15,467		11.7	%		1.6	%
Dividends to policyholders		1,493		1,169		2,762		646		2,311		2,957		2,375		54.8	%		24.5	%
Total losses and expenses		102,581		93,356		103,857		98,197		106,485		204,682		183,565		3.8	%		11.5	%
Operating income before income taxes and interest expense		11,529		13,516		8,624		15,347		10,108		25,455		25,362		-12.3	%		0.4	%
Interest expense		188		191		196		160		143		303		402		-23.9	%		-24.6	%
Pre-tax operating income	$	11,341	$	13,325	$	8,428	$	15,187	$	9,965	$	25,152	$	24,960		-12.1	%		0.8	%

15

PMA Capital Corporation

Insurance Ratios - PMA Insurance Group

	2nd Quarter 2008			3rd Quarter 2008			4th Quarter 2008			1st Quarter 2009			2nd Quarter 2009			Six Months 2009			Six Months 2008			Point Chg. 2nd Quarter Better (Worse)			Point Chg. Six Months Better (Worse)
Ratios - GAAP Basis:
Loss and LAE ratio		69.4	%		70.0	%		68.1	%		72.1	%		68.6	%		70.4	%		69.6	%		0.8			(0.8	)
Expense ratio:
Acquisition expenses		19.0	%		16.2	%		15.9	%		16.4	%		18.2	%		17.3	%		18.1	%		0.8			0.8
Operating expenses		9.7	%		7.8	%		13.3	%		4.4	%		10.4	%		7.4	%		8.2	%		(0.7	)		0.8
Total expense ratio		28.7	%		24.0	%		29.2	%		20.8	%		28.6	%		24.7	%		26.3	%		0.1			1.6
Policyholders' dividend ratio		1.4	%		1.2	%		2.7	%		0.6	%		2.2	%		1.4	%		1.3	%		(0.8	)		(0.1	)
Combined ratio		99.5	%		95.2	%		100.0	%		93.5	%		99.4	%		96.5	%		97.2	%		0.1			0.7
Net investment income ratio		-8.7	%		-8.9	%		-8.3	%		-8.1	%		-8.9	%		-8.5	%		-9.6	%		0.2			(1.1	)
Operating ratio		90.8	%		86.3	%		91.7	%		85.4	%		90.5	%		88.0	%		87.6	%		0.3			(0.4	)

16

PMA Capital Corporation
Components of Direct Premiums Written - PMA Insurance Group
(Dollar Amounts in Thousands)
	1st			2nd			3rd			4th			Six			Twelve
	Quarter			Quarter			Quarter			Quarter			Months			Months
	2007			2007			2007			2007			2007			2007
Direct premium production	$	143,389		$	96,316		$	137,144		$	83,103		$	239,705		$	459,952
Fronting premiums		18,401			14,936			13,707			12,796			33,337			59,840
Premium adjustments		(859	)		(134	)		(4,149	)		(4,327	)		(993	)		(9,469	)
Direct premiums written	$	160,931		$	111,118		$	146,702		$	91,572		$	272,049		$	510,323
	1st			2nd			3rd			4th			Six			Twelve
	Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2008			2008			2008			2008
Direct premium production	$	146,608		$	96,736		$	150,547		$	112,296		$	243,344		$	506,187
Fronting premiums		8,143			2,113			2,776			21,800			10,256			34,832
Premium adjustments		(14,198	)		370			(5,008	)		(4,261	)		(13,828	)		(23,097	)
Direct premiums written	$	140,553		$	99,219		$	148,315		$	129,835		$	239,772		$	517,922
	1st			2nd									Six
	Quarter			Quarter									Months
	2009			2009									2009
Direct premium production	$	147,367		$	102,212								$	249,579
Fronting premiums		19,622			9,677									29,299
Premium adjustments		(4,876	)		(2,753	)								(7,629	)
Direct premiums written	$	162,113		$	109,136								$	271,249

17

PMA Capital Corporation

Statements of Operations - Fee-based Business 1

(Dollar Amounts in Thousands)

		2nd		3rd		4th		1st		2nd		Six		Six		% Change			% Change
		Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		2nd			Six
		2008		2008		2008		2009		2009		2009		2008		Quarter			Months
Revenues:
Claims service revenues		$	13,213	$	15,951	$	17,029	$	15,995	$	17,122	$	33,117	$	25,321		29.6	%		30.8	%
Commission income			2,644		2,662		2,848		3,475		2,132		5,607		6,925		-19.4	%		-19.0	%
Net investment income			118		118		143		86		101		187		279		-14.4	%		-33.0	%
Other revenues			82		91		59		170		167		337		184	NM				83.2	%
	Total operating revenues		16,057		18,822		20,079		19,726		19,522		39,248		32,709		21.6	%		20.0	%
Expenses:
Operating expenses			14,856		16,893		18,190		17,713		17,997		35,710		29,322		21.1	%		21.8	%
	Total expenses		14,856		16,893		18,190		17,713		17,997		35,710		29,322		21.1	%		21.8	%
Pre-tax operating income		$	1,201	$	1,929	$	1,889	$	2,013	$	1,525	$	3,538	$	3,387		27.0	%		4.5	%

1 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.

18

PMA Capital Corporation

Statements of Operations - Corporate & Other

(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			2nd			Six
	2008			2008			2008			2009			2009			2009			2008			Quarter			Months
Gross Premiums Written	$	(127	)	$	(122	)	$	(123	)	$	(148	)	$	(142	)	$	(290	)	$	(249	)		-11.8	%		-16.5	%
Net Premiums Written	$	(127	)	$	(122	)	$	(123	)	$	(148	)	$	(142	)	$	(290	)	$	(249	)		-11.8	%		-16.5	%
Revenues:
Net premiums earned	$	(127	)	$	(122	)	$	(123	)	$	(148	)	$	(142	)	$	(290	)	$	(249	)		-11.8	%		-16.5	%
Claims service revenues		(276	)		(255	)		(244	)		(311	)		(287	)		(598	)		(432	)		-4.0	%		-38.4	%
Commission income		(13	)		(25	)		(13	)		(12	)		(15	)		(27	)		(13	)		-15.4	%	NM
Net investment income		(21	)		(24	)		(32	)		(95	)		(42	)		(137	)		154		NM			NM
Other revenues		12			34			279			6			23			29			56			91.7	%		-48.2	%
Total operating revenues		(425	)		(392	)		(133	)		(560	)		(463	)		(1,023	)		(484	)		-8.9	%	NM
Expenses:
Acquisition expenses		(13	)		(25	)		(28	)		(19	)		(21	)		(40	)		(13	)		-61.5	%	NM
Operating expenses		2,512			2,409			2,314			2,113			2,392			4,505			4,891			-4.8	%		-7.9	%
Total expenses		2,499			2,384			2,286			2,094			2,371			4,465			4,878			-5.1	%		-8.5	%
Operating loss before income taxes
and interest expense		(2,924	)		(2,776	)		(2,419	)		(2,654	)		(2,834	)		(5,488	)		(5,362	)		3.1	%		-2.3	%
Interest expense		2,500			2,543			2,478			2,346			2,333			4,679			5,073			-6.7	%		-7.8	%
Pre-tax operating loss	$	(5,424	)	$	(5,319	)	$	(4,897	)	$	(5,000	)	$	(5,167	)	$	(10,167	)	$	(10,435	)		4.7	%		2.6	%

19

PMA Capital Corporation

Statements of Operations - Discontinued Operations

(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			2nd			Six
	2008			2008			2008			2009			2009			2009			2008			Quarter			Months
Gross Premiums Written	$	(214	)	$	417		$	3		$	466		$	2,093		$	2,559		$	2,117		NM				20.9	%
Net Premiums Written	$	(227	)	$	167		$	2		$	(87	)	$	1,798		$	1,711		$	2,212		NM				-22.6	%
Revenues:
Net premiums earned	$	11		$	517		$	145		$	617		$	1,673		$	2,290		$	1,037		NM			NM
Net investment income		(451	)		(663	)		1,546			(878	)		(937	)		(1,815	)		(323	)	NM			NM
Total operating revenues		(440	)		(146	)		1,691			(261	)		736			475			714		NM				-33.5	%
Losses and Expenses:
Losses and loss adjustment expenses		550			10,201			4,226			129			1,910			2,039			9,830		NM				-79.3	%
Acquisition expenses		168			(146	)		339			1,199			120			1,319			253			-28.6	%	NM
Operating expenses		1,952			2,054			2,228			2,577			2,397			4,974			4,734			22.8	%		5.1	%
Impairment charge / valuation adjustment		(3,550	)		(8,594	)		8,722			(4,387	)		(2,172	)		(6,559	)		(10,030	)		38.8	%		34.6	%
Total losses and expenses		(880	)		3,515			15,515			(482	)		2,255			1,773			4,787		NM				-63.0	%
Pre-tax operating income (loss) from discontinued operations		440			(3,661	)		(13,824	)		221			(1,519	)		(1,298	)		(4,073	)	NM				68.1	%
Income tax expense (benefit)		154			(1,281	)		(4,838	)		77			(530	)		(453	)		(1,426	)	NM				68.2	%
After-tax operating income (loss) from discontinued operations		286			(2,380	)		(8,986	)		144			(989	)		(845	)		(2,647	)	NM				68.1	%
Realized gains (losses) after tax		(474	)		70			1,146			(230	)		(176	)		(406	)		20			62.9	%	NM
Loss from discontinued operations	$	(188	)	$	(2,310	)	$	(7,840	)	$	(86	)	$	(1,165	)	$	(1,251	)	$	(2,627	)	NM				52.4	%
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.

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PMA Capital Corporation

Operating Cash Flows - Consolidated

(Dollar Amounts in Thousands)

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2008			2008			2009			2009			2009			2008
Receipts:
Premiums collected	$	94,883		$	112,274		$	96,678		$	109,089		$	96,214		$	205,303		$	188,105
Claims service, commissions and other revenues		16,180			22,643			16,251			22,276			18,203			40,479			30,277
Investment income received		9,418			9,688			9,172			9,789			9,164			18,953			20,041
Total receipts		120,481			144,605			122,101			141,154			123,581			264,735			238,423
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		17,075			25,618			30,952			5,265			18,874			24,139			22,066
Losses and LAE paid - prior years		54,638			46,851			41,207			61,152			63,486			124,638			116,215
Total losses and LAE paid		71,713			72,469			72,159			66,417			82,360			148,777			138,281
Operating expenses paid		43,369			43,785			37,866			46,907			41,332			88,239			88,335
Commissions and premiums paid		2,117			3,387			580			1,680			2,090			3,770			3,039
Policyholders' dividends paid		1,882			1,663			1,592			863			2,401			3,264			3,020
Interest on corporate debt		2,680			2,700			2,645			2,526			2,437			4,963			5,606
Total disbursements		121,761			124,004			114,842			118,393			130,620			249,013			238,281
Net other		12,080			(6,158	)		(691	)		(629	)		(1,459	)		(2,088	)		6,443
Net operating cash flows from continuing operations		10,800			14,443			6,568			22,132			(8,498	)		13,634			6,585
Net operating cash flows from discontinued operations		(23,228	)		(13,236	)		(20,948	)		(14,742	)		(25,656	)		(40,398	)		(54,573	)
Net operating cash flows	$	(12,428	)	$	1,207		$	(14,380	)	$	7,390		$	(34,154	)	$	(26,764	)	$	(47,988	)

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PMA Capital Corporation

Operating Cash Flows - PMA Insurance Group

(Dollar Amounts in Thousands)

	2nd		3rd			4th			1st			2nd			Six			Six
	Quarter		Quarter			Quarter			Quarter			Quarter			Months			Months
	2008		2008			2008			2009			2009			2009			2008
Receipts:
Premiums collected	$	94,883	$	112,274		$	96,678		$	109,089		$	96,214		$	205,303		$	188,105
Investment income received		9,300		9,570			9,029			9,703			9,062			18,765			19,762
Total receipts		104,183		121,844			105,707			118,792			105,276			224,068			207,867
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		17,075		25,618			30,952			5,265			18,874			24,139			22,066
Losses and LAE paid - prior years		54,638		46,851			41,207			61,152			63,486			124,638			116,215
Total losses and LAE paid		71,713		72,469			72,159			66,417			82,360			148,777			138,281
Operating expenses paid		28,756		26,531			23,391			30,060			27,192			57,252			61,210
Policyholders' dividends paid		1,882		1,663			1,592			863			2,401			3,264			3,020
Interest on corporate debt		186		192			185			194			144			338			431
Total disbursements		102,537		100,855			97,327			97,534			112,097			209,631			202,942
Net other		10,964		(6,659	)		(18,635	)		(1,205	)		501			(704	)		7,552
Net operating cash flows	$	12,610	$	14,330		$	(10,255	)	$	20,053		$	(6,320	)	$	13,733		$	12,477

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PMA Capital Corporation

Operating Cash Flows - Fee-based Business 1

(Dollar Amounts in Thousands)

		2nd			3rd		4th		1st			2nd			Six			Six
		Quarter			Quarter		Quarter		Quarter			Quarter			Months			Months
		2008			2008		2008		2009			2009			2009			2008
Receipts:
Claims service, commissions and other revenues		$	16,180		$	22,643	$	16,251	$	22,276		$	18,203		$	40,479		$	30,277
Investment income received			118			118		143		86			102			188			279
	Total receipts		16,298			22,761		16,394		22,362			18,305			40,667			30,556
Disbursements:
Operating expenses paid			14,613			17,254		14,475		16,847			14,140			30,987			27,125
Commissions and premiums paid			2,117			3,387		580		1,680			2,090			3,770			3,039
	Total disbursements		16,730			20,641		15,055		18,527			16,230			34,757			30,164
	Net other		(3,003	)		970		3,850		(242	)		(3,644	)		(3,886	)		(2,026	)
Net operating cash flows		$	(3,435	)	$	3,090	$	5,189	$	3,593		$	(1,569	)	$	2,024		$	(1,634	)

1 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.

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PMA Capital Corporation

Statutory Surplus

(Dollar Amounts in Thousands)

	2nd		3rd		4th		1st		2nd
	Quarter		Quarter		Quarter		Quarter		Quarter
	2008		2008		2008		2009		20091
PMA Pool 2	$	352,096	$	336,368	$	332,915	$	337,495	$	373,654	3
PMA Capital Insurance Company		37,838		26,143		34,468		29,252		26,446

PMA Capital Corporation

Statutory Financial Information - PMA Pool 2

(Dollar Amounts in Thousands)

		2nd			3rd			4th			1st			2nd			Six			Six
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2008			2008			2008			2009			20091			20091			2008
Net Premiums Written:
	Workers' Compensation	$	71,998		$	107,446		$	87,722		$	101,891		$	72,181		$	174,072		$	175,016
	Other Commercial Lines		9,079			8,692			8,154			13,487			8,403			21,890			19,884
	Total - PMA Pool	$	81,077		$	116,138		$	95,876		$	115,378		$	80,584		$	195,962		$	194,900
Statutory Ratios:
	Loss and LAE ratio		69.5	%		69.4	%		67.7	%		71.6	%		51.8	%		61.5	%		69.5	%
	Underwriting expense ratio		32.1	%		22.1	%		26.9	%		21.1	%		30.7	%		25.1	%		25.2	%
	Policyholders' dividend ratio		1.5	%		1.4	%		3.3	%		1.2	%		1.2	%		1.2	%		1.4	%
	Combined ratio		103.1	%		92.9	%		97.9	%		93.9	%		83.7	%		87.8	%		96.1	%
	Operating ratio		94.4	%		84.0	%		89.5	%		85.8	%		75.0	%		79.4	%		86.5	%

1	Estimated.
2	The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company.
3	The increase in statutory surplus during the second quarter of 2009 related primarily to statutory net income, which included a benefit from the commutation of a reinsurance agreement with an affiliated entity.

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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 7/31/2009):
	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)	Not Rated	Not Rated
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.

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