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) February 18, 2010

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 February 18, 2010, PMA Capital Corporation (the “Registrant”) issued a news release regarding its Fourth Quarter and Full Year 2009 results, a copy of which is furnished as Exhibit 99.1 hereto.  Additionally, the Registrant’s Fourth 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 February 18, 2010
Exhibit 99.2	PMA Capital Corporation Fourth 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
February 18, 2010	By:	/s/ John M. Cochrane
	Name:		John M. Cochrane
	Title:		Senior Vice President and Interim Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
Exhibit 99.1	PMA Capital Corporation News Release, dated February 18, 2010
Exhibit 99.2	PMA Capital Corporation Fourth Quarter 2009 Statistical Supplement

EX-99.1

Exhibit 99.1

For Immediate Release	Contact:	John M. Cochrane
		(610) 397-5298
		john_cochrane@pmagroup.com

PMA Capital Reports Fourth Quarter and Full Year 2009 Results

Blue Bell, PA, February 18, 2010 -- PMA Capital Corporation (NASDAQ: PMACA) today reported the following financial results for the fourth quarter and full year 2009:
 

	Three months ended						Year ended
	December 31,						December 31,
(in thousands, except per share data)	2009			2008			2009			2008
Operating income before change in tax valuation allowance	$	1,866		$	3,566		$	20,488		$	21,537
Decrease in deferred tax asset valuation allowance		20,000			-			20,000			-
Operating income		21,866			3,566			40,488			21,537
Net realized investment gains (losses) after tax		(363	)		168			334			(3,071	)
Income from continuing operations		21,503			3,734			40,822			18,466
Loss from discontinued operations after tax		(18,318	)		(7,840	)		(19,609	)		(12,777	)
Net income (loss)	$	3,185		$	(4,106	)	$	21,213		$	5,689
Diluted per share amounts:
Operating income	$	0.68		$	0.11		$	1.26		$	0.67
Realized investment gains (losses) after tax		(0.01	)		0.01			0.01			(0.09	)
Income from continuing operations		0.67			0.12			1.27			0.58
Loss from discontinued operations after tax		(0.57	)		(0.25	)		(0.61	)		(0.40	)
Net income (loss)	$	0.10		$	(0.13	)	$	0.66		$	0.18
Book value per share, end of period							$	12.46		$	10.78

Vincent T. Donnelly, President and Chief Executive Officer, commented, "In spite of an economic environment which continues to provide significant challenges, PMA Capital finished 2009 with profitable operating results, significant book value growth, and closure on the sale of its run-off operations.  We also realized significant revenue growth in our Fee-based Business during the fourth quarter and full year 2009.  While we are disappointed with our fourth quarter results at The PMA Insurance Group, our full year combined ratio remained below 100% for the third straight year.  We continue to maintain our underwriting and pricing discipline and for the second half of 2009, our pricing on our rate-sensitive workers’ compensation business increased modestly.  The Company’s book value grew by 16% during 2009 to $12.46 per share, reflecting improved values in our investment portfolio combined with our earnings.”

Mr. Donnelly continued, “In the fourth quarter, we reduced the valuation allowance on our deferred tax assets by $20 million, or 62 cents per share.  This change resulted from the profitable operating results at The PMA Insurance Group and our fee-based businesses over the past several years, our expectation that profitable results will continue going forward, and the removal of the volatility and uncertainty related to the run-off businesses that we sold in December 2009.”

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

·   Direct premium production, which excludes fronting premiums and premium adjustments, decreased 4% in the fourth quarter to $108.2 million and increased 1% for full year 2009 to $512.5 million;

·   Net investment income increased 8% in the quarter to $9.3 million and 4% for full year 2009 to $36.7 million, compared to the same periods last year, due to increases in invested assets;

·   The combined ratio was 98.4% in 2009, compared to 97.5% for 2008; and

·   Pre-tax operating income was $4.3 million in the fourth quarter of 2009, compared to $8.4 million in the fourth quarter of 2008, and $43.1 million for full year 2009, compared to $46.7 million for 2008.  The 2009 periods included a net pre-tax charge of $3.0 million related to lower underwriting results for accident year 2008, and full year 2009 was reduced by $6.7 million for a reduction to our audit premium accrual, including $1.7 million in the fourth quarter.

Mr. Donnelly added, “We are continuing to achieve growth at our Fee-based Business, with total revenues for 2009 increasing 5% in the quarter and 13% for the year as a result of organic growth and our prior year acquisition of PMA Management Corp. of New England.  Organic growth of claims service revenues was 7% in the quarter and 11% for the year.  Our Fee-based Business revenues of $80.8 million represent 15% of our consolidated revenues for 2009.  Pre-tax operating income for our Fee-based Business was $2.1 million in the quarter, compared to $1.9 million for the same period last year, and $7.2 million for both full year periods in 2009 and 2008.”

As previously announced, the Company closed the sale of its Run-off Operations on December 24, 2009.  The Company received $100,000 for the shares of the Run-off Operations and agreed to contribute $13.1 million to the Run-off Operations and enter into two capital support agreements.  Upon the closing of the transaction, the Company recorded an after-tax charge of $18.3 million, or $0.57 per share, representing the impact of the capital contribution and the estimated fair value of the capital support, as well as other costs associated with the closing of the sale.

The Company will not provide operating return on equity guidance but will continue to provide information regarding trends in key operating metrics, its strategic initiatives, and other factors that are important to understand its business and the operating environment.

Financial Condition

Total assets were $2.4 billion as of December 31, 2009, compared to $2.5 billion as of December 31, 2008.  Prior year total assets included assets of discontinued operations of $244 million.  At December 31, 2009, we had $29.5 million in cash and short-term investments at our holding company and non-regulated subsidiaries.

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

	Three months ended						Year ended
	December 31, 2009						December 31, 2009
(in thousands, except per share data)	Shareholders' equity			Book value per share			Shareholders' equity		Book value per share
Balance, beginning of period	$	399,172		$	12.38		$	344,656	$	10.78
Net income		3,185			0.10			21,213		0.66
Unrealized gain (loss) on securities, net of tax		(4,410	)		(0.14	)		30,695		0.95
Net pension liability adjustment, net of tax		4,146			0.14			4,672		0.15
Other		(296	)		(0.01	)		561		0.02
Impact of change in shares outstanding		-			(0.01	)		-		(0.10	)
Balance, end of period	$	401,797		$	12.46		$	401,797	$	12.46

Segment Operating Results

Operating income, which we define as net income (loss) under accounting principles generally accepted in the United States (GAAP) excluding net realized investment gains (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 (loss) as the GAAP measure of our consolidated results of operations.

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

	Three months ended						Year ended
	December 31,						December 31,
(dollar amounts in thousands)	2009			2008			2009			2008
Pre-tax operating income (loss):
The PMA Insurance Group	$	4,282		$	8,428		$	43,050		$	46,713
Fee-based Business		2,096			1,889			7,208			7,205
Corporate & Other		(4,192	)		(4,897	)		(19,127	)		(20,651	)
Pre-tax operating income		2,186			5,420			31,131			33,267
Income tax expense (benefit)		(19,680	)		1,854			(9,357	)		11,730
Operating income		21,866			3,566			40,488			21,537
Net realized investment gains (losses) after tax		(363	)		168			334			(3,071	)
Income from continuing operations		21,503			3,734			40,822			18,466
Loss from discontinued operations after tax		(18,318	)		(7,840	)		(19,609	)		(12,777	)
Net income (loss)	$	3,185		$	(4,106	)	$	21,213		$	5,689

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

	Three months ended						Year ended
	December 31,						December 31,
(dollar amounts in thousands)	2009			2008			2009			2008
Net realized investment gains (losses) after tax:
Sales of investments	$	242		$	203		$	4,149		$	2,928
Other than temporary impairments		(605	)		(35	)		(3,815	)		(5,981	)
Other		-			-			-			(18	)
Net realized investment gains (losses) after tax	$	(363	)	$	168		$	334		$	(3,071	)

We recorded other than temporary impairments of $3.8 million after-tax for the year ended December 31, 2009.  These impairments included write-downs of $2.9 million on $45.9 million par value of commercial mortgage-backed securities (CMBS) that were subsequently sold in 2009 in order to reduce our exposure to this asset sector.  These write-downs were measured based on public market prices.  At December 31, 2009, our CMBS had an average credit rating of AAA- and fair value of $83.2 million, which represented 95% of their amortized cost.  The prior year other than temporary impairments resulted from writing down our investments of Lehman Brothers senior debt and Fannie Mae preferred stock.  Details of the Company’s investment portfolio at December 31, 2009 and December 31, 2008 are posted on its website at www.pmacapital.com.

The PMA Insurance Group

The PMA Insurance Group reported pre-tax operating income of $4.3 million for the fourth quarter of 2009, compared to $8.4 million for the same period last year.  Full year pre-tax operating income was $43.1 million, compared to $46.7 million in 2008.  The 2009 results included a fourth quarter pre-tax charge of $3.0 million due to lower underwriting results for accident year 2008.  The 2009 results also included a reduction in our accrual for additional audit premiums on rate-sensitive workers’ compensation business of $6.7 million, including $1.7 million for the fourth quarter.  The full year results for 2008 included a gain of $2.1 million from the sale of a property that housed one of our branch offices.

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						Year ended
	December 31,						December 31,
(dollar amounts in thousands)	2009			2008			2009			2008
Direct premium production	$	108,169		$	112,296		$	512,502		$	506,187
Fronting premiums		14,497			21,800			54,686			34,832
Premium adjustments		(4,252	)		(4,261	)		(15,402	)		(23,097	)
Direct premiums written		118,414			129,835			551,786			517,922
Assumed premiums and other		1,019			2,382			9,480			10,993
Gross premiums written	$	119,433		$	132,217		$	561,266		$	528,915

Direct premium production included new business of $28.4 million in the fourth quarter and $128.1 million for full year 2009, compared to $35.7 million and $135.5 million during the same periods last

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year.  Pricing on our rate-sensitive workers’ compensation business decreased 1% for full year 2009 and increased modestly during the second half of 2009, compared to a 6% decrease during 2008.  Payrolls on our renewal customer base decreased modestly for full year 2009, compared to the same period in 2008.  Our renewal retention rates on existing workers’ compensation accounts were 82% for the fourth quarter and 81% for full year 2009, compared to 89% and 87% 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.  The proportion of our workers’ compensation business written on a loss-sensitive basis increased modestly in 2009.

Fronting premiums increased in 2009 primarily as a result of two fronting arrangements we entered into during August 2008, and decreased in the fourth quarter of 2009, compared to the same period in 2008, primarily due to lower premiums written in California.  The decrease in premium adjustments in 2009 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.

Net premiums written were $84.5 million in the fourth quarter of 2009, compared to $97.4 million for the same quarter last year.  The decline for the quarter primarily reflected the decrease in direct premiums written for the period.  Net premiums written for full year 2009 were $402.5 million, compared to $414.7 million for the same period in 2008.  The declines in 2009 were mainly due to a decrease in workers’ compensation premium production.

Net premiums earned were $100.6 million in the fourth quarter of 2009, compared to $103.9 million in the fourth quarter of 2008.  Net premiums earned for full year 2009 increased to $415.4 million, compared to $390.7 million during 2008.  The full year increase reflects the increase in direct premiums written over the past year.

The combined ratio on a GAAP basis was 105.0% for the fourth quarter of 2009, compared to 100.0% in the fourth quarter last year.  The higher combined ratio in the fourth quarter of 2009 was the result of increases in the loss and LAE and expense ratios.  The increase in the expense ratio reflected higher state based assessments.

On a full year basis, the combined ratio was 98.4% in 2009, compared to 97.5% for the same period in 2008.  The higher combined ratio for full year 2009, compared to last year, was primarily the result of higher loss and LAE and policyholders’ dividend ratios, which were partially offset by a lower expense ratio.

The loss and LAE ratio increased for the full year 2009, compared to prior year, due primarily to fourth quarter loss emergence on our 2008 workers’ compensation business and a decrease in additional audit premiums.  As a result of the loss emergence, we recorded a net charge of $3.0 million comprised of an increase in our workers’ compensation loss reserves of $5.0 million, which was partially offset by $2.0 million of additional premiums due under our loss-sensitive products for the portion of this development that is shared with the insureds.  The reduction in the accrual for additional audit premiums reflected lower than expected payrolls on audited policies, which were primarily written in 2007 and 2008.  Over the past several years, audit premiums have been approximately 1% of workers’ compensation premiums.  In 2009, audit premiums were modestly negative.  As a result of this

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decrease, we reduced our accrual for additional audit premiums by $6.7 million during 2009, including $1.7 million in the fourth quarter.  

Pricing changes coupled with payroll inflation for rate-sensitive workers’ compensation business are slightly above overall estimated loss trends.  In addition, our current accident year loss and LAE ratio improved modestly between years as we continued to benefit in 2009 from changes in the type of workers’ compensation products selected by our insureds and from managed care initiatives.  We estimated our medical cost inflation to be 6.0% during 2009, compared to our estimate of 6.5% in 2008.

The higher policyholders’ dividend ratio was primarily in our captive business and reflected better than anticipated underwriting and investment results in many of the captive programs.  In this business, the policyholders may receive dividends based, to a large extent, on their program’s underwriting and investment results.

The expense ratio for full year 2009, compared to the same period last year, benefited as the increase in net premiums earned outpaced the 2% increase in our controllable expenses, which include salary, benefits and other employee-related costs.  Commissions earned under our fronting arrangements reduced the acquisition expense ratios by 0.8 points for the fourth quarter and 0.6 points for full year 2009, compared to 0.5 points and 0.7 points for the same periods in 2008, as the ceding commissions earned on this business reduce our commission expense.

Net investment income increased to $9.3 million in the fourth quarter of 2009, compared to $8.6 million in the prior year quarter.  For full year 2009, net investment income increased to $36.7 million from $35.4 million in 2008.  The 2009 increases were due primarily to increases in average invested assets.  The increase for full year was partially offset by a lower investment yield.

Fee-based Business

For the fourth quarter of 2009, total revenues at our Fee-based Business increased to $21.0 million, compared to $20.1 million for the same period in 2008.  For full year 2009, total revenues increased to $80.8 million, compared to $71.6 million in 2008.  The increases in revenues primarily reflected increases in claims service revenues of $1.2 million for the fourth quarter and $10.5 million for full year 2009.  The increases in claims service revenues for both periods were partially offset by declines in commission income of $276,000 and $1.5 million.  Organic claims service revenue growth was 7% in the quarter and 11% for full year 2009, compared to the same periods a year ago.  Claims service revenues also increased 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 $2.1 million for the fourth quarter of 2009, up from $1.9 million for the same period last year.  Pre-tax operating income for both full year periods in 2009 and 2008 was $7.2 million.  The results for both periods benefited as claims service revenues increased at faster rates than the increases in operating expenses.  The impact of the higher claims service revenues for both periods was reduced by lower net commissions earned by our agency business.

Corporate and Other

The Corporate and Other segment, which includes primarily corporate expenses and debt service, had net expenses of $4.2 million during the fourth quarter of 2009, compared to $4.9 million in the fourth quarter of 2008.  Net expenses were $19.1 million for full year 2009, compared to $20.7 million for the

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same period in 2008.  The decreases in net expenses for both periods in 2009 related primarily to lower stock-based compensation expense and lower interest expense on variable rate debt.

Discontinued Operations

Discontinued operations, formerly the Company’s Run-off Operations, which consists of our former reinsurance and excess and surplus lines businesses, had after-tax losses of $18.3 million for the fourth quarter and $19.6 million for full year 2009, compared to after-tax losses of $7.8 million and $12.8 million for the same periods in 2008.

The losses for both periods in 2009 reflect the impact of a $13.1 million capital contribution, the estimated fair value of the capital support and other closing costs associated with the sale of the Run-off Operations.  Results for the fourth quarter and full year 2008 included an after-tax charge of $8.5 million, resulting from a capital contribution received from the holding company.  Results for 2008 also included an after-tax charge of $4.9 million for adverse loss development.

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Conference Call with Investors

As a reminder, the Company will hold a conference call with investors beginning at 8:30 a.m. Eastern Standard Time on Friday, February 19th to review its fourth quarter and full year 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
888-680-0890 (Domestic)	888-286-8010 (Domestic)
617-213-4857 (International)	617-801-6888 (International)
Passcode 43353682	Passcode 66909051

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

www.theconferencingservice.com/prereg/key.process?key=PNM6YB3G8

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 Standard Time on Friday, February 19th until 11:59 p.m. Eastern Standard Time on Friday, March 19th.

Quarterly Statistical Supplement

Our Fourth Quarter Statistical Supplement, which provides more detailed information about our results, 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;

·   judicial, legislative and regulatory changes that affect the cost of, or demand for, our products or otherwise affect our ability to conduct business, including any action with respect to our industry or business taken by state insurance departments or the federal government;

·   regulatory actions by state insurance departments affecting the operation of our business or our financial condition, including actions relating to licensing, examinations, reserving, rate changes, investments, insurance policy terms and conditions and state based assessments;

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

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

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

·   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 modified or extended beyond its December 31, 2014 termination date;

·   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 and meet our other contractual and financial obligations;

·   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 December 31,
(dollar amounts in thousands, except per share data)	2009			2008
Gross premiums written	$	119,433		$	132,217
Net premiums written	$	84,366		$	97,313
Revenues:
Net premiums earned	$	100,464		$	103,727
Claims service revenues		17,998			16,785
Commission income		2,515			2,835
Net investment income		9,336			8,724
Net realized investment gains (losses)		(558	)		259
Other revenues		458			356
Total revenues		130,213			132,686
Expenses:
Losses and loss adjustment expenses		71,783			70,671
Acquisition expenses		17,282			16,521
Operating expenses		34,213			34,379
Dividends to policyholders		2,918			2,762
Interest expense		2,389			2,674
Total losses and expenses		128,585			127,007
Pre-tax income		1,628			5,679
Income tax expense (benefit):
Current		(412	)		(211	)
Deferred		(19,463	)		2,156
Total income tax expense (benefit)		(19,875	)		1,945
Income from continuing operations		21,503			3,734
Loss from discontinued operations after tax		(18,318	)		(7,840	)
Net income (loss)	$	3,185		$	(4,106	)
Income (loss) per share:
Basic:
Continuing Operations	$	0.67		$	0.12
Discontinued Operations		(0.57	)		(0.25	)
	$	0.10		$	(0.13	)
Diluted:
Continuing Operations	$	0.67		$	0.12
Discontinued Operations		(0.57	)		(0.25	)
	$	0.10		$	(0.13	)

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PMA Capital Corporation

GAAP Consolidated Statements of Operations

(Unaudited)

	Year ended December 31,
(dollar amounts in thousands, except per share data)	2009			2008
Gross premiums written	$	561,266		$	528,915
Net premiums written	$	401,905		$	414,237
Revenues:
Net premiums earned	$	414,771		$	390,217
Claims service revenues		67,629			57,370
Commission income		10,842			12,384
Net investment income		36,876			36,069
Net realized investment gains (losses)		514			(4,724	)
Other revenues		1,083			2,841
Total revenues		531,715			494,157
Expenses:
Losses and loss adjustment expenses		291,210			270,825
Acquisition expenses		70,034			66,635
Operating expenses		120,373			110,965
Dividends to policyholders		8,661			6,306
Interest expense		9,792			10,883
Total losses and expenses		500,070			465,614
Pre-tax income		31,645			28,543
Income tax expense (benefit):
Current		317			705
Deferred		(9,494	)		9,372
Total income tax expense (benefit)		(9,177	)		10,077
Income from continuing operations		40,822			18,466
Loss from discontinued operations after tax		(19,609	)		(12,777	)
Net income	$	21,213		$	5,689
Income (loss) per share:
Basic:
Continuing Operations	$	1.27		$	0.58
Discontinued Operations		(0.61	)		(0.40	)
	$	0.66		$	0.18
Diluted:
Continuing Operations	$	1.27		$	0.58
Discontinued Operations		(0.61	)		(0.40	)
	$	0.66		$	0.18

11

PMA Capital Corporation

GAAP Consolidated Balance Sheets

(Unaudited)

	December 31,			December 31,
(dollar amounts in thousands, except per share data)	2009			2008
Assets:
Investments:
Fixed maturities available for sale	$	791,355		$	719,048
Short-term investments		41,072			45,066
Other investments		30,226			8,127
Total investments		862,653			772,241
Cash		11,059			10,501
Accrued investment income		7,352			6,513
Premiums receivable		238,650			235,893
Reinsurance receivables		827,458			826,126
Prepaid reinsurance premiums		35,788			29,579
Deferred income taxes, net		139,782			138,514
Deferred acquisition costs		39,124			40,938
Funds held by reinsureds		58,935			51,754
Intangible assets		29,757			30,348
Other assets		112,181			116,646
Assets of discontinued operations		-			243,663
Total assets	$	2,362,739		$	2,502,716
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,269,685		$	1,242,258
Unearned premiums		240,759			247,415
Debt		143,380			129,380
Accounts payable, accrued expenses
and other liabilities		249,787			216,266
Reinsurance funds held and balances payable		51,331			44,177
Dividends to policyholders		6,000			6,862
Liabilities of discontinued operations		-			271,702
Total liabilities		1,960,942			2,158,060
Shareholders' Equity:
Class A Common Stock		171,090			171,090
Additional paid-in capital		111,841			112,921
Retained earnings		155,747			140,184
Accumulated other comprehensive loss		(14,060	)		(49,876	)
Treasury stock, at cost		(22,821	)		(29,663	)
Total shareholders' equity		401,797			344,656
Total liabilities and shareholders' equity	$	2,362,739		$	2,502,716
Shareholders' equity per share	$	12.46		$	10.78

12

EX-99.2

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Fourth Quarter - 2009
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
	2008			2009			2009			2009			2009			Quarter
Direct Premiums Written	$	129,713		$	161,965		$	108,994		$	161,965		$	118,272			-8.8	%
Net Premiums Written	$	97,313		$	117,978		$	80,302		$	119,259		$	84,366			-13.3	%
Revenues:
Net premiums earned	$	103,727		$	104,930		$	106,949		$	102,428		$	100,464			-3.1	%
Claims service revenues		16,785			15,684			16,835			17,112			17,998			7.2	%
Commission income		2,835			3,463			2,117			2,747			2,515			-11.3	%
Net investment income		8,724			8,457			9,561			9,522			9,336			7.0	%
Net realized investment gains (losses)		259			749			(472	)		795			(558	)	NM
Other revenues		356			176			190			259			458			28.7	%
Total revenues	$	132,686		$	133,459		$	135,180		$	132,863		$	130,213			-1.9	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	8,428		$	15,187		$	9,965		$	13,616		$	4,282			-49.2	%
Fee-based Business		1,889			2,013			1,525			1,574			2,096			11.0	%
Corporate & Other		(4,897	)		(5,000	)		(5,167	)		(4,768	)		(4,192	)		14.4	%
Pre-tax operating income		5,420			12,200			6,323			10,422			2,186			-59.7	%
Income tax expense (benefit)		1,854			4,384			2,249			3,690			(19,680	)	NM
After-tax operating income		3,566			7,816			4,074			6,732			21,866		NM
Net realized investment gains (losses) after tax		168			487			(307	)		517			(363	)	NM
Income from continuing operations		3,734			8,303			3,767			7,249			21,503		NM
Loss from discontinued operations after tax		(7,840	)		(86	)		(1,165	)		(40	)		(18,318	)	NM
Net income (loss)	$	(4,106	)	$	8,217		$	2,602		$	7,209		$	3,185		NM
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.11		$	0.24		$	0.13		$	0.21		$	0.68		NM
Realized gains (losses) after tax		0.01			0.02			(0.01	)		0.01			(0.01	)	NM
Income from continuing operations		0.12			0.26			0.12			0.22			0.67		NM
Loss from discontinued operations after tax		(0.25	)		-			(0.04	)		-			(0.57	)	NM
Net income (loss)	$	(0.13	)	$	0.26		$	0.08		$	0.22		$	0.10		NM
Capitalization:
Debt	$	129,380		$	129,380		$	129,380		$	129,380		$	143,380			10.8	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		365,547			374,007			377,505			384,958			392,005			7.2	%
Total capitalization excluding FAS 115 unrealized gain (loss)		494,927			503,387			506,885			514,338			535,385			8.2	%
FAS 115 unrealized gain (loss)		(20,891	)		(22,737	)		(8,507	)		14,214			9,792		NM
Total capitalization including FAS 115 unrealized gain (loss)	$	474,036		$	480,650		$	498,378		$	528,552		$	545,177			15.0	%
Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	11.44		$	11.61		$	11.71		$	11.94		$	12.15			6.2	%
Including FAS 115 unrealized gain (loss)	$	10.78		$	10.91		$	11.45		$	12.38		$	12.46			15.6	%
Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		26.1	%		25.7	%		25.5	%		25.2	%		26.8	%		2.7	%
Including FAS 115 unrealized gain (loss)		27.3	%		26.9	%		26.0	%		24.5	%		26.3	%		-3.7	%
Interest Coverage:
Income from continuing operations before interest
and income taxes to interest expense		3.12			6.17			3.36			5.63			1.68			-46.2	%
Operating income from continuing operations before
interest and income taxes to interest expense		3.03			5.87			3.55			5.30			1.92			-36.6	%

1

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	Twelve			Twelve			% Change
	Months			Months			Twelve
	2009			2008			Months
Direct Premiums Written	$	551,196		$	517,429			6.5	%
Net Premiums Written	$	401,905		$	414,237			-3.0	%
Revenues:
Net premiums earned	$	414,771		$	390,217			6.3	%
Claims service revenues		67,629			57,370			17.9	%
Commission income		10,842			12,384			-12.5	%
Net investment income		36,876			36,069			2.2	%
Net realized investment gains (losses)		514			(4,724	)	NM
Other revenues		1,083			2,841			-61.9	%
Total revenues	$	531,715		$	494,157			7.6	%
Major Components of Net Income:
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	43,050		$	46,713			-7.8	%
Fee-based Business		7,208			7,205			0.0	%
Corporate & Other		(19,127	)		(20,651	)		7.4	%
Pre-tax operating income		31,131			33,267			-6.4	%
Income tax expense (benefit)		(9,357	)		11,730		NM
After-tax operating income		40,488			21,537			88.0	%
Net realized investment gains (losses) after tax		334			(3,071	)	NM
Income from continuing operations		40,822			18,466		NM
Loss from discontinued operations after tax		(19,609	)		(12,777	)		-53.5	%
Net income	$	21,213		$	5,689		NM
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	1.26		$	0.67			88.1	%
Realized gains (losses) after tax		0.01			(0.09	)	NM
Income from continuing operations		1.27			0.58		NM
Loss from discontinued operations after tax		(0.61	)		(0.40	)		-52.5	%
Net income	$	0.66		$	0.18		NM

2

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
	4th			1st		2nd			3rd		4th			Twelve			Twelve
	Quarter			Quarter		Quarter			Quarter		Quarter			Months			Months
	2008			2009		2009			2009		2009			2009			2008
Diluted Earnings (Loss) Per Share:
Pre-tax operating income	$	0.17		$	0.38	$	0.20		$	0.32	$	0.07		$	0.97		$	1.04
After-tax operating income	$	0.11		$	0.24	$	0.13		$	0.21	$	0.68		$	1.26		$	0.67
Income from continuing operations	$	0.12		$	0.26	$	0.12		$	0.22	$	0.67		$	1.27		$	0.58
Loss from discontinued operations after tax		(0.25	)		-		(0.04	)		-		(0.57	)		(0.61	)		(0.40	)
Net income (loss)	$	(0.13	)	$	0.26	$	0.08		$	0.22	$	0.10		$	0.66		$	0.18
Diluted weighted average common
shares outstanding		31,968,555			32,020,346		32,231,391			32,244,469		32,250,573			32,186,402			32,038,781
Dividends declared:
Class A Common Stock	$	-		$	-	$	-		$	-	$	-		$	-		$	-
Actual common shares issued
and outstanding		31,965,806			32,211,133		32,238,944			32,241,620		32,251,120			32,251,120			31,965,806
Class A Common Stock prices:
High	$	9.47		$	7.20	$	5.35		$	6.33	$	7.44		$	7.44		$	12.00
Low	$	3.46		$	3.50	$	3.70		$	4.27	$	4.64		$	3.50		$	3.46
Close	$	7.08		$	4.17	$	4.55		$	5.69	$	6.30		$	6.30		$	7.08

3

This Page Intentionally Left Blank

4

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			4th
	2008			2009			2009			2009			2009			Quarter
Gross Premiums Written	$	132,217		$	164,070		$	113,424		$	164,339		$	119,433			-9.7	%
Net Premiums Written	$	97,313		$	117,978		$	80,302		$	119,259		$	84,366			-13.3	%
Revenues:
Net premiums earned	$	103,727		$	104,930		$	106,949		$	102,428		$	100,464			-3.1	%
Claims service revenues		16,785			15,684			16,835			17,112			17,998			7.2	%
Commission income		2,835			3,463			2,117			2,747			2,515			-11.3	%
Net investment income		8,724			8,457			9,561			9,522			9,336			7.0	%
Net realized investment gains (losses)		259			749			(472	)		795			(558	)	NM
Other revenues		356			176			190			259			458			28.7	%
Total revenues		132,686			133,459			135,180			132,863			130,213			-1.9	%
Expenses:
Losses and loss adjustment expenses		70,671			75,775			73,494			70,158			71,783			1.6	%
Acquisition expenses		16,521			17,198			19,508			16,046			17,282			4.6	%
Operating expenses		34,379			24,385			31,540			30,235			34,213			-0.5	%
Dividends to policyholders		2,762			646			2,311			2,786			2,918			5.6	%
Interest expense		2,674			2,506			2,476			2,421			2,389			-10.7	%
Total losses and expenses		127,007			120,510			129,329			121,646			128,585			1.2	%
Pre-tax income		5,679			12,949			5,851			11,217			1,628			-71.3	%
Income tax expense (benefit):
Current		(211	)		244			265			220			(412	)		-95.3	%
Deferred		2,156			4,402			1,819			3,748			(19,463	)	NM
Total income tax expense (benefit)		1,945			4,646			2,084			3,968			(19,875	)	NM
Income from continuing operations		3,734			8,303			3,767			7,249			21,503		NM
Loss from discontinued operations after tax		(7,840	)		(86	)		(1,165	)		(40	)		(18,318	)	NM
Net income (loss)	$	(4,106	)	$	8,217		$	2,602		$	7,209		$	3,185		NM
Pre-tax operating income from continuing operations	$	5,420		$	12,200		$	6,323		$	10,422		$	2,186			-59.7	%
After-tax operating income from continuing operations	$	3,566		$	7,816		$	4,074		$	6,732		$	21,866		NM

5

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	Twelve			Twelve			% Change
	Months			Months			Twelve
	2009			2008			Months
Gross Premiums Written	$	561,266		$	528,915			6.1	%
Net Premiums Written	$	401,905		$	414,237			-3.0	%
Revenues:
Net premiums earned	$	414,771		$	390,217			6.3	%
Claims service revenues		67,629			57,370			17.9	%
Commission income		10,842			12,384			-12.5	%
Net investment income		36,876			36,069			2.2	%
Net realized investment gains (losses)		514			(4,724	)	NM
Other revenues		1,083			2,841			-61.9	%
Total revenues		531,715			494,157			7.6	%
Expenses:
Losses and loss adjustment expenses		291,210			270,825			7.5	%
Acquisition expenses		70,034			66,635			5.1	%
Operating expenses		120,373			110,965			8.5	%
Dividends to policyholders		8,661			6,306			37.3	%
Interest expense		9,792			10,883			-10.0	%
Total losses and expenses		500,070			465,614			7.4	%
Pre-tax income		31,645			28,543			10.9	%
Income tax expense (benefit):
Current		317			705			-55.0	%
Deferred		(9,494	)		9,372		NM
Total income tax expense (benefit)		(9,177	)		10,077		NM
Income from continuing operations		40,822			18,466		NM
Loss from discontinued operations after tax		(19,609	)		(12,777	)		-53.5	%
Net income	$	21,213		$	5,689		NM
Pre-tax operating income from continuing operations	$	31,131		$	33,267			-6.4	%
After-tax operating income from continuing operations	$	40,488		$	21,537			88.0	%

6

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Assets:
Investments in fixed maturities available for sale	$	719,048		$	714,202		$	737,606		$	817,089		$	791,355
Short-term investments		45,066			58,273			38,103			62,004			41,072
Other investments		8,127			13,832			21,073			22,669			30,226
Total investments		772,241			786,307			796,782			901,762			862,653
Cash		10,501			11,767			10,163			13,887			11,059
Accrued investment income		6,513			6,500			7,221			6,918			7,352
Premiums receivable		235,893			257,380			236,663			246,871			238,650
Reinsurance receivables		826,126			830,962			855,161			807,245			827,458
Prepaid reinsurance premiums		29,579			41,314			37,271			40,883			35,788
Deferred income taxes, net		138,514			135,496			126,397			110,358			139,782
Deferred acquisition costs		40,938			44,857			39,364			42,583			39,124
Funds held by reinsureds		51,754			54,166			54,312			56,623			58,935
Intangible assets		30,348			29,668			30,165			29,961			29,757
Other assets		116,646			119,361			123,460			126,015			112,181
Assets of discontinued operations		243,663			235,265			208,272			192,431			-
Total assets	$	2,502,716		$	2,553,043		$	2,525,231		$	2,575,537		$	2,362,739
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,242,258		$	1,256,435		$	1,271,089		$	1,259,940		$	1,269,685
Unearned premiums		247,415			272,200			241,508			261,952			240,759
Debt		129,380			129,380			129,380			129,380			143,380
Accounts payable, accrued expenses
and other liabilities		216,266			219,189			222,359			250,304			249,787
Reinsurance funds held and balances payable		44,177			59,074			53,327			52,914			51,331
Dividends to policyholders		6,862			7,224			6,022			6,177			6,000
Liabilities of discontinued operations		271,702			258,271			232,548			215,698			-
Total liabilities		2,158,060			2,201,773			2,156,233			2,176,365			1,960,942
Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		112,921			111,953			112,264			112,349			111,841
Retained earnings		140,184			143,291			145,500			152,670			155,747
Accumulated other comprehensive loss		(49,876	)		(51,497	)		(36,814	)		(13,947	)		(14,060	)
Treasury stock, at cost		(29,663	)		(23,567	)		(23,042	)		(22,990	)		(22,821	)
Total shareholders' equity		344,656			351,270			368,998			399,172			401,797
Total liabilities and shareholders' equity	$	2,502,716		$	2,553,043		$	2,525,231		$	2,575,537		$	2,362,739

7

PMA Capital Corporation
Assets and Liabilities of Discontinued Operations
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Assets
Investments	$	146,033		$	137,317		$	110,736		$	100,296		$	-
Cash		1,371			85			1,271			494			-
Reinsurance receivables		94,956			93,120			89,361			81,887			-
Other assets		1,303			4,743			6,904			9,754			-
Assets of discontinued operations	$	243,663		$	235,265		$	208,272		$	192,431		$	-
Liabilities
Unpaid losses and loss adjustment expenses	$	247,442		$	235,568		$	206,743		$	193,051		$	-
Other liabilities		24,260			22,703			25,805			22,647			-
Liabilities of discontinued operations	$	271,702		$	258,271		$	232,548		$	215,698		$	-
PMA Capital Corporation
Selected Balance Sheet Items - Fronting Arrangements
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Assets
Premiums receivable	$	25,796		$	38,833		$	36,670		$	33,337		$	38,756
Reinsurance receivables		47,280			50,175			53,675			58,107			59,579
Prepaid reinsurance premiums		16,048			24,884			23,072			20,346			20,685
Deferred acquisition costs		748			1,269			1,081			902			964
Other assets		6,723			6,818			7,269			6,684			7,161
Liabilities
Unpaid losses and loss adjustment expenses	$	49,494		$	53,087		$	57,367		$	62,642		$	65,165
Unearned premiums		19,667			29,430			26,866			23,512			24,073
Reinsurance funds held and balances payable		20,965			31,237			26,951			23,138			27,176
Other liabilities		10,116			11,392			12,081			12,620			14,481
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
	2008			2009			2009			2009			2009
Balance Sheet
Balance, beginning of period	$	43,317		$	40,938		$	44,857		$	39,364		$	42,583
Policy acquisition costs deferred		14,170			21,136			14,036			19,312			13,849
Amortization of policy acquisition costs		(16,549	)		(17,217	)		(19,529	)		(16,093	)		(17,308	)
Net change		(2,379	)		3,919			(5,493	)		3,219			(3,459	)
Balance, end of period	$	40,938		$	44,857		$	39,364		$	42,583		$	39,124

8

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
	2008			2009			2009			2009			2009			2009			2008
Total Investments & Cash
As reported	$	782,742		$	798,074		$	806,945		$	915,649		$	873,712		$	873,712		$	782,742
Less:
Unrealized gain (loss) on
fixed maturities available for sale		(30,758	)		(33,799	)		(13,563	)		19,501			12,201			12,201			(30,758	)
Unrealized gain (loss) on other investments		(1,382	)		(1,181	)		475			2,367			2,863			2,863			(1,382	)
Total adjusted investments & cash		814,882			833,054			820,033			893,781			858,648			858,648			814,882
Net Investment Income
As reported	$	8,724		$	8,457		$	9,561		$	9,522		$	9,336		$	36,876		$	36,069
Less:
Interest on funds held		(479	)		(288	)		(511	)		(463	)		(406	)		(1,668	)		(2,159	)
Total adjusted investment income	$	9,203		$	8,745		$	10,072		$	9,985		$	9,742		$	38,544		$	38,228
Yield
As reported		4.38	%		4.28	%		4.77	%		4.42	%		4.17	%		4.41	%		4.45	%
Investment portfolio		4.43	%		4.25	%		4.87	%		4.66	%		4.45	%		4.57	%		4.63	%
Duration (in years)		3.2			3.5			4.3			4.2			4.3			4.3			3.2

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
	Notes payable		14,000	2010 - 20113
	Surplus notes 2		10,000	2035
	4.25% convertible debt		45	20224
	Total long-term debt	$	143,380

1	Weighted average interest rate on junior subordinated debt is 4.20% as of December 31, 2009.
2	Interest rate on surplus notes is 4.78% as of December 31, 2009.
3	Notes payable are for capital contributions to our former Run-off Operations, of which $4 million is payable in March 2010, $5 million in June 2010 and $5 million in June 2011.
4	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
Year Ended December 31, 2009
(Dollar Amounts in Thousands)
	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated
Gross Premiums Written	$	561,856	$	-	$	(590	)	$	561,266
Net Premiums Written	$	402,495	$	-	$	(590	)	$	401,905
Revenues:
Net premiums earned	$	415,361	$	-	$	(590	)	$	414,771
Claims service revenues		-		68,751		(1,122	)		67,629
Commission income		-		10,956		(114	)		10,842
Net investment income		36,690		344		(158	)		36,876
Other revenues		166		781		136			1,083
Total operating revenues		452,217		80,832		(1,848	)		531,201
Losses and Expenses:
Losses and loss adjustment expenses		291,210		-		-			291,210
Acquisition expenses		70,147		-		(113	)		70,034
Operating expenses		38,585		73,624		8,164			120,373
Dividends to policyholders		8,661		-		-			8,661
Total losses and expenses		408,603		73,624		8,051			490,278
Operating income (loss) before income taxes
and interest expense		43,614		7,208		(9,899	)		40,923
Interest expense		564		-		9,228			9,792
Pre-tax operating income (loss)	$	43,050	$	7,208	$	(19,127	)		31,131
Net realized investment gains									514
Pre-tax income								$	31,645

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

11

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

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

12

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2009
(Dollar Amounts in Thousands)
	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated
Gross Premiums Written	$	119,575	$	-	$	(142	)	$	119,433
Net Premiums Written	$	84,508	$	-	$	(142	)	$	84,366
Revenues:
Net premiums earned	$	100,606	$	-	$	(142	)	$	100,464
Claims service revenues		-		18,236		(238	)		17,998
Commission income		-		2,572		(57	)		2,515
Net investment income		9,307		15		14			9,336
Other revenues		166		208		84			458
Total operating revenues		110,079		21,031		(339	)		130,771
Losses and Expenses:
Losses and loss adjustment expenses		71,783		-		-			71,783
Acquisition expenses		17,308		-		(26	)		17,282
Operating expenses		13,662		18,935		1,616			34,213
Dividends to policyholders		2,918		-		-			2,918
Total losses and expenses		105,671		18,935		1,590			126,196
Operating income (loss) before income taxes
and interest expense		4,408		2,096		(1,929	)		4,575
Interest expense		126		-		2,263			2,389
Pre-tax operating income (loss)	$	4,282	$	2,096	$	(4,192	)		2,186
Net realized investment losses									(558	)
Pre-tax income								$	1,628

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

13

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.

14

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
	2008		2009		2009		2009		2009		2009		2008		Quarter			Months
Gross Premiums Written	$	132,340	$	164,218	$	113,566	$	164,497	$	119,575	$	561,856	$	529,409		-9.6	%		6.1	%
Net Premiums Written	$	97,436	$	118,126	$	80,444	$	119,417	$	84,508	$	402,495	$	414,731		-13.3	%		-3.0	%
Revenues:
Net premiums earned	$	103,850	$	105,078	$	107,091	$	102,586	$	100,606	$	415,361	$	390,711		-3.1	%		6.3	%
Net investment income		8,613		8,466		9,502		9,415		9,307		36,690		35,431		8.1	%		3.6	%
Other revenues		18		-		-		-		166		166		2,138	NM				-92.2	%
Total operating revenues		112,481		113,544		116,593		112,001		110,079		452,217		428,280		-2.1	%		5.6	%
Losses and Expenses:
Losses and loss adjustment expenses		70,671		75,775		73,494		70,158		71,783		291,210		270,825		1.6	%		7.5	%
Acquisition expenses		16,549		17,217		19,529		16,093		17,308		70,147		66,701		4.6	%		5.2	%
Operating expenses		13,875		4,559		11,151		9,213		13,662		38,585		36,946		-1.5	%		4.4	%
Dividends to policyholders		2,762		646		2,311		2,786		2,918		8,661		6,306		5.6	%		37.3	%
Total losses and expenses		103,857		98,197		106,485		98,250		105,671		408,603		380,778		1.7	%		7.3	%
Operating income before income taxes
and interest expense		8,624		15,347		10,108		13,751		4,408		43,614		47,502		-48.9	%		-8.2	%
Interest expense		196		160		143		135		126		564		789		-35.7	%		-28.5	%
Pre-tax operating income	$	8,428	$	15,187	$	9,965	$	13,616	$	4,282	$	43,050	$	46,713		-49.2	%		-7.8	%

15

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
	4th Quarter			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Twelve Months			Twelve Months			Point Chg. 4th Quarter Better			Point Chg. Twelve Months Better
	2008			2009			2009			2009			2009			2009			2008			(Worse)			(Worse)
Ratios - GAAP Basis:
Loss and LAE ratio		68.1	%		72.1	%		68.6	%		68.4	%		71.4	%		70.1	%		69.3	%		(3.3	)		(0.8	)
Expense ratio:
Acquisition expenses		15.9	%		16.4	%		18.2	%		15.7	%		17.2	%		16.9	%		17.1	%		(1.3	)		0.2
Operating expenses		13.3	%		4.4	%		10.4	%		9.0	%		13.5	%		9.3	%		9.5	%		(0.2	)		0.2
Total expense ratio		29.2	%		20.8	%		28.6	%		24.7	%		30.7	%		26.2	%		26.6	%		(1.5	)		0.4
Policyholders' dividend ratio		2.7	%		0.6	%		2.2	%		2.7	%		2.9	%		2.1	%		1.6	%		(0.2	)		(0.5	)
Combined ratio		100.0	%		93.5	%		99.4	%		95.8	%		105.0	%		98.4	%		97.5	%		(5.0	)		(0.9	)
Net investment income ratio		-8.3	%		-8.1	%		-8.9	%		-9.2	%		-9.3	%		-8.8	%		-9.1	%		1.0			(0.3	)
Operating ratio		91.7	%		85.4	%		90.5	%		86.6	%		95.7	%		89.6	%		88.4	%		(4.0	)		(1.2	)

16

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
	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
	1st			2nd			3rd			4th			Twelve
	Quarter			Quarter			Quarter			Quarter			Months
	2009			2009			2009			2009			2009
Direct premium production	$	147,367		$	102,212		$	154,754		$	108,169		$	512,502
Fronting premiums		19,622			9,677			10,890			14,497			54,686
Premium adjustments		(4,876	)		(2,753	)		(3,521	)		(4,252	)		(15,402	)
Direct premiums written	$	162,113		$	109,136		$	162,123		$	118,414		$	551,786

17

PMA Capital Corporation
Statements of Operations - Fee-based Business
(Dollar Amounts in Thousands)
	4th		1st		2nd		3rd		4th		Twelve		Twelve		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		4th			Twelve
	2008		2009		2009		2009		2009		2009		2008		Quarter			Months
Revenues:
Claims service revenues	$	17,029	$	15,995	$	17,122	$	17,398	$	18,236	$	68,751	$	58,301		7.1	%		17.9	%
Commission income		2,848		3,475		2,132		2,777		2,572		10,956		12,435		-9.7	%		-11.9	%
Net investment income		143		86		101		142		15		344		540		-89.5	%		-36.3	%
Other revenues		59		170		167		236		208		781		334	NM			NM
Total operating revenues		20,079		19,726		19,522		20,553		21,031		80,832		71,610		4.7	%		12.9	%
Expenses:
Operating expenses		18,190		17,713		17,997		18,979		18,935		73,624		64,405		4.1	%		14.3	%
Total expenses		18,190		17,713		17,997		18,979		18,935		73,624		64,405		4.1	%		14.3	%
Pre-tax operating income	$	1,889	$	2,013	$	1,525	$	1,574	$	2,096	$	7,208	$	7,205		11.0	%		0.0	%

18

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
	2008			2009			2009			2009			2009			2009			2008			Quarter			Months
Gross Premiums Written	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(142	)	$	(590	)	$	(494	)		-15.4	%		-19.4	%
Net Premiums Written	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(142	)	$	(590	)	$	(494	)		-15.4	%		-19.4	%
Revenues:
Net premiums earned	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(142	)	$	(590	)	$	(494	)		-15.4	%		-19.4	%
Claims service revenues		(244	)		(311	)		(287	)		(286	)		(238	)		(1,122	)		(931	)		2.5	%		-20.5	%
Commission income		(13	)		(12	)		(15	)		(30	)		(57	)		(114	)		(51	)	NM			NM
Net investment income		(32	)		(95	)		(42	)		(35	)		14			(158	)		98		NM			NM
Other revenues		279			6			23			23			84			136			369			-69.9	%		-63.1	%
Total operating revenues		(133	)		(560	)		(463	)		(486	)		(339	)		(1,848	)		(1,009	)	NM				-83.2	%
Expenses:
Acquisition expenses		(28	)		(19	)		(21	)		(47	)		(26	)		(113	)		(66	)		7.1	%		-71.2	%
Operating expenses		2,314			2,113			2,392			2,043			1,616			8,164			9,614			-30.2	%		-15.1	%
Total expenses		2,286			2,094			2,371			1,996			1,590			8,051			9,548			-30.4	%		-15.7	%
Operating loss before income taxes
and interest expense		(2,419	)		(2,654	)		(2,834	)		(2,482	)		(1,929	)		(9,899	)		(10,557	)		20.3	%		6.2	%
Interest expense		2,478			2,346			2,333			2,286			2,263			9,228			10,094			-8.7	%		-8.6	%
Pre-tax operating loss	$	(4,897	)	$	(5,000	)	$	(5,167	)	$	(4,768	)	$	(4,192	)	$	(19,127	)	$	(20,651	)		14.4	%		7.4	%

19

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
	2008			2009			2009			2009			2009			2009			2008			Quarter			Months
Gross Premiums Written	$	3		$	466		$	2,093		$	384		$	(485	)	$	2,458		$	2,537		NM				-3.1	%
Net Premiums Written	$	2		$	(87	)	$	1,798		$	360		$	(755	)	$	1,316		$	2,381		NM				-44.7	%
Revenues:
Net premiums earned	$	145		$	617		$	1,673		$	(2	)	$	-		$	2,288		$	1,699		NM				34.7	%
Net investment income		1,546			(878	)		(937	)		(1,066	)		6,908			4,027			560		NM			NM
Total operating revenues		1,691			(261	)		736			(1,068	)		6,908			6,315			2,259		NM			NM
Losses and Expenses:
Losses and loss adjustment expenses		4,226			129			1,910			(175	)		33			1,897			24,257			-99.2	%		-92.2	%
Acquisition expenses		339			1,199			120			104			14			1,437			446			-95.9	%	NM
Operating expenses		2,228			2,577			2,397			2,101			4,945			12,020			9,016		NM				33.3	%
Impairment charge / valuation adjustment		8,722			(4,387	)		(2,172	)		(2,722	)		29,673			20,392			(9,902	)	NM			NM
Total losses and expenses		15,515			(482	)		2,255			(692	)		34,665			35,746			23,817		NM				50.1	%
Pre-tax operating income (loss) from discontinued operations		(13,824	)		221			(1,519	)		(376	)		(27,757	)		(29,431	)		(21,558	)	NM				-36.5	%
Income tax expense (benefit)		(4,838	)		77			(530	)		(133	)		(9,715	)		(10,301	)		(7,545	)	NM				-36.5	%
After-tax operating income (loss) from discontinued operations		(8,986	)		144			(989	)		(243	)		(18,042	)		(19,130	)		(14,013	)	NM				-36.5	%
Realized gains (losses) after tax		1,146			(230	)		(176	)		203			(276	)		(479	)		1,236		NM			NM
Loss from discontinued operations	$	(7,840	)	$	(86	)	$	(1,165	)	$	(40	)	$	(18,318	)	$	(19,609	)	$	(12,777	)	NM				-53.5	%

20

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
	2008			2009			2009			2009			2009			2009			2008
Receipts:
Premiums collected	$	96,678		$	109,089		$	96,214		$	105,816		$	89,289		$	400,408		$	397,057
Claims service, commissions and other revenues		16,251			22,276			18,203			21,658			15,909			78,046			69,171
Investment income received		9,172			9,789			9,164			10,124			9,430			38,507			38,901
Total receipts		122,101			141,154			123,581			137,598			114,628			516,961			505,129
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		30,952			5,265			18,874			25,500			35,347			84,986			78,636
Losses and LAE paid - prior years		41,207			61,152			63,486			6,931			49,219			180,788			204,273
Total losses and LAE paid		72,159			66,417			82,360			32,431			84,566			265,774			282,909
Operating expenses paid		37,866			46,907			41,332			43,129			42,596			173,964			169,986
Commissions and premiums paid		580			1,680			2,090			3,270			(4,117	)		2,923			7,006
Policyholders' dividends paid		1,592			863			2,401			1,264			1,633			6,161			6,275
Interest on corporate debt		2,645			2,526			2,437			2,388			2,344			9,695			10,951
Total disbursements		114,842			118,393			130,620			82,482			127,022			458,517			477,127
Net other		(691	)		(629	)		(1,459	)		4,976			3,262			6,150			(406	)
Net operating cash flows from continuing operations		6,568			22,132			(8,498	)		60,092			(9,132	)		64,594			27,596
Net operating cash flows from discontinued operations		(20,948	)		(14,742	)		(25,656	)		(12,549	)		(15,799	)		(68,746	)		(88,757	)
Net operating cash flows	$	(14,380	)	$	7,390		$	(34,154	)	$	47,543		$	(24,931	)		(4,152	)	$	(61,161	)

21

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
		2008			2009			2009			2009			2009			2009			2008
Receipts:
Premiums collected		$	96,678		$	109,089		$	96,214		$	105,816		$	89,289		$	400,408		$	397,057
Investment income received			9,029			9,703			9,062			9,985			9,417			38,167			38,361
	Total receipts		105,707			118,792			105,276			115,801			98,706			438,575			435,418
Disbursements:
Losses and LAE paid:
	Losses and LAE paid - current year		30,952			5,265			18,874			25,500			35,347			84,986			78,636
	Losses and LAE paid - prior years		41,207			61,152			63,486			6,931	1		49,219			180,788	1		204,273
Total losses and LAE paid			72,159			66,417			82,360			32,431			84,566			265,774			282,909
Operating expenses paid			23,391			30,060			27,192			24,079			27,792			109,123			111,132
Policyholders' dividends paid			1,592			863			2,401			1,264			1,633			6,161			6,275
Interest on corporate debt			185			194			144			139			126			603			808
	Total disbursements		97,327			97,534			112,097			57,913			114,117			381,661			401,124
	Net other		(18,635	)		(1,205	)		501			(3,712	)		(11,932	)		(16,348	)		(17,742	)
Net operating cash flows		$	(10,255	)	$	20,053		$	(6,320	)	$	54,176		$	(27,343	)	$	40,566		$	16,552
1	Reduced by $43.9 million received for a commutation with Houston Casualty Company.

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PMA Capital Corporation
Operating Cash Flows - Fee-based Business
(Dollar Amounts in Thousands)
	4th		1st			2nd			3rd		4th			Twelve			Twelve
	Quarter		Quarter			Quarter			Quarter		Quarter			Months			Months
	2008		2009			2009			2009		2009			2009			2008
Receipts:
Claims service, commissions and other revenues	$	16,251	$	22,276		$	18,203		$	21,658	$	15,909		$	78,046		$	69,171
Investment income received		143		86			102			139		13			340			540
Total receipts		16,394		22,362			18,305			21,797		15,922			78,386			69,711
Disbursements:
Operating expenses paid		14,475		16,847			14,140			19,050		14,804			64,841			58,854
Commissions and premiums paid		580		1,680			2,090			3,270		(4,117	)		2,923			7,006
Total disbursements		15,055		18,527			16,230			22,320		10,687			67,764			65,860
Net other		3,850		(242	)		(3,644	)		4,453		(2,690	)		(2,123	)		2,794
Net operating cash flows	$	5,189	$	3,593		$	(1,569	)	$	3,930	$	2,545		$	8,499		$	6,645

23

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)
	4th		1st		2nd			3rd		4th
	Quarter		Quarter		Quarter			Quarter		Quarter
	2008		2009		2009			2009		20091
PMA Pool 2	$	332,915	$	337,495	$	373,654	3	$	385,111	$	417,330	4
PMA Capital Insurance Company5		34,468		29,252		26,446			30,202		-

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
		2008			2009			2009			2009			20091			20091			2008
Net Premiums Written:
	Workers' Compensation	$	87,722		$	101,891		$	72,181		$	102,329		$	72,373		$	348,774		$	370,184
	Other Commercial Lines		8,154			13,487			8,403			8,965			8,167			39,022			36,730
	Total - PMA Pool	$	95,876		$	115,378		$	80,584		$	111,294		$	80,540		$	387,796		$	406,914
Statutory Ratios:
	Loss and LAE ratio		67.7	%		71.6	%		51.8	%		68.9	%		72.8	%		66.1	%		69.0	%
	Underwriting expense ratio		26.9	%		21.1	%		30.7	%		22.0	%		31.3	%		25.5	%		24.8	%
	Policyholders' dividend ratio		3.3	%		1.2	%		1.2	%		1.4	%		1.5	%		1.3	%		1.9	%
	Combined ratio		97.9	%		93.9	%		83.7	%		92.3	%		105.6	%		92.9	%		95.7	%
	Operating ratio		89.5	%		85.8	%		75.0	%		83.5	%		96.3	%		84.2	%		86.6	%

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.
4	Includes impact of adoption of Statement of Statutory Accounting Principles No. 10R, "Income Taxes - Revised, A Temporary Replacement of SSAP No. 10."
5	Sold December 24, 2009.

24

PMA Capital Corporation
Industry Ratings and Market Information
Transfer Agent and Registrar:	Inquiries:
American Stock Transfer & Trust Company	John M. Cochrane
Shareholder Relations	Interim Chief Financial Officer
59 Maiden Lane – Plaza Level	610.397.5076
New York, NY 10038	email: john_cochrane@pmagroup.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 2/17/2010):
	A.M. Best	Fitch	Moody's
PMA Pool 1	A-   (4th of 16)	BBB+  (8th of 21)	Baa3  (10th of 21)
1 The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance
Insurance Company and Pennsylvania Manufacturers Indemnity Company.

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