Exhibit 99.1

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

PMA Capital Reports First Quarter 2010 Results

Blue Bell, PA, April 29, 2010 -- PMA Capital Corporation (NASDAQ: PMACA) today reported the following financial results for the first quarter of 2010:

	Three months ended
	March 31,
(in thousands, except per share data)	2010		2009
Operating income	$	7,817	$	7,816
Net realized investment gains after tax		277		487
Income from continuing operations		8,094		8,303
Loss from discontinued operations after tax		-		(86	)
Net income	$	8,094	$	8,217
Diluted per share amounts:
Operating income	$	0.24	$	0.24
Realized gains after tax		0.01		0.02
Income from continuing operations		0.25		0.26
Loss from discontinued operations after tax		-		-
Net income	$	0.25	$	0.26

Vincent T. Donnelly, President and Chief Executive Officer, commented, “Despite very competitive marketplace conditions and continued challenges in the economy and labor markets, I am pleased to report a positive start to 2010.  We continued to successfully execute our strategy of increasing the proportion of loss-sensitive workers’ compensation business, which was the primary driver of our 7% increase in direct premium production, and achieved a combined ratio of 95%.  Our Fee-based Business, which now represents 16% of our consolidated revenues, had a solid quarter with continued revenue and operating income growth.  Our book value increased for the fifth consecutive quarter to $12.96 per share due primarily to our earnings combined with improved values in our investment portfolio.”

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

·   Pre-tax operating income was $14.3 million, compared to $15.2 million in the first quarter of 2009;

·   The combined ratio was 95.0%, compared to 93.5% for the first quarter last year;

·   Pricing on our rate-sensitive workers’ compensation business increased 2%, compared to a decline of 4% in the first quarter of 2009; and

·   Direct premiums written increased 5% due to increased premium production which was partially offset by a decrease in fronting premiums.

Fee-based Business operating highlights included:

·   Our Fee-based Business revenues increased 9% to $21.5 million, compared to the first quarter of 2009;

·   Claims service revenues grew 12% in the quarter to $17.9 million; and

·  Pre-tax operating income increased to $2.3 million in the quarter, compared to $2.0 million for the same period last year.

Financial Condition

Total assets were $2.4 billion as of March 31, 2010 and December 31, 2009.  At March 31, 2010, we had $25.6 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
	March 31, 2010
(in thousands, except per share data)	Shareholders' equity		Book value per share
Balance, beginning of period	$	401,797	$	12.46
Net income		8,094		0.25
Unrealized gain on securities, net of tax		7,989		0.25
Other		250		-
Balance, end of period	$	418,130	$	12.96

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 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.

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

	Three months ended
	March 31,
(dollar amounts in thousands)	2010			2009
Pre-tax operating income (loss):
The PMA Insurance Group	$	14,267		$	15,187
Fee-based Business		2,305			2,013
Corporate & Other		(4,366	)		(5,000	)
Pre-tax operating income		12,206			12,200
Income tax expense		4,389			4,384
Operating income		7,817			7,816
Net realized investment gains after tax		277			487
Income from continuing operations		8,094			8,303
Loss from discontinued operations after tax		-			(86	)
Net income	$	8,094		$	8,217

Income from continuing operations included the following after-tax net realized investment gains:

	Three months ended
	March 31,
(dollar amounts in thousands)	2010		2009
Net realized investment gains after tax:
Sales of investments	$	277	$	3,028
Other than temporary impairments		-		(2,541	)
Net realized investment gains after tax	$	277	$	487

Details of the Company’s investment portfolio at March 31, 2010 and December 31, 2009 are posted on our website at www.pmacapital.com.

The PMA Insurance Group

The PMA Insurance Group had pre-tax operating income of $14.3 million for the first quarter of 2010, compared to $15.2 million for the first quarter of 2009.

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
	March 31,
(dollar amounts in thousands)	2010			2009
Direct premium production	$	157,092		$	147,367
Fronting premiums		15,795			19,622
Premium adjustments		(2,019	)		(4,876	)
Direct premiums written		170,868			162,113
Assumed premiums and other		1,037			1,957
Gross premiums written	$	171,905		$	164,070

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Direct premium production included new business of $34.5 million in the first quarter of 2010, compared to $38.0 million during the same period last year.  Pricing on our rate-sensitive workers’ compensation business increased 2% during the first three months of 2010, compared to a 4% decrease during the first three months of 2009.  Our renewal retention rate on existing workers’ compensation accounts for the first quarter improved to 83% in 2010, compared to 79% in 2009.  During 2010, our retention rates and new business for workers’ compensation were higher for business written on a loss-sensitive basis than for business written on a rate-sensitive basis, as we continue to emphasize loss-sensitive business.  The increase in the retention rate in 2010 also reflected a higher retention rate on large account business.

Net premiums written increased to $128.4 million in the first quarter of 2010, compared to $118.1 million for the same quarter last year.  The increase for the quarter primarily reflected the increase in direct premium production for the period.

The combined ratio on a GAAP basis was 95.0% for the first quarter of 2010, compared to 93.5% in the first quarter last year.  The higher combined ratio in the first quarter of 2010 was primarily the result of an increase in the expense ratio, which reflected higher state based assessments.  Given the seasonality of our business, our first quarter combined ratios have historically been lower than the subsequent quarters and full year ratios.

The loss and LAE ratio in the first quarter of 2010 was modestly higher than the prior year period.  Pricing increases coupled with payroll changes for rate-sensitive workers’ compensation business were slightly below overall estimated loss trends.  Losses and LAE in 2010 also included expenses incurred on a new claims system which has been implemented in both our insurance and fee-based businesses.  We estimated our medical cost inflation to be 6.0% in the first quarters of 2010 and 2009.

Net investment income was $9.2 million in the first quarter of 2010, compared to $8.5 million in the same period last year.  The increase was due primarily to an increase in average invested assets.

Fee-based Business

For the first quarter of 2010, total revenues at our Fee-based Business increased to $21.5 million from $19.7 million for the same period last year.  The increase in revenues primarily reflected claims service revenue growth of $1.9 million, or 12%, which was partially offset by a decrease in commission income of $316,000.  Commission income was impacted by the continued softness in the labor markets.  Pre-tax operating income increased to $2.3 million for the first quarter of 2010, compared to $2.0 million for the same quarter last year.

Corporate and Other

The Corporate and Other segment, which includes primarily corporate expenses and debt service, had net expenses of $4.4 million during the first quarter of 2010, compared to $5.0 million in the first quarter of 2009.  The decrease in net expenses for the first quarter of 2010 related primarily to lower stock-based compensation expense and certain 2009 intercompany transactions with our former run-off operations which were eliminated in the Corporate and Other segment.

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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 Time on Friday, April 30th to review its first quarter 2010 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
888-713-4217 (Domestic)	888-286-8010 (Domestic)
617-213-4869 (International)	617-801-6888 (International)
Passcode 96118078	Passcode 52027414

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

www.theconferencingservice.com/prereg/key.process?key=P8PQBBEMM

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 call.  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 Friday, April 30th until 11:59 p.m. Eastern Time on Monday, May 31st.

Quarterly Statistical Supplement

Our First 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, strategy 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;

·   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;

·   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;

·   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;

·   cyclical changes in the insurance industry;

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

·   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;

·   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 attract and retain qualified management personnel;

·   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 future or existing indebtedness;

·   statutory requirements and rating agency expectations that limit our ability to receive dividends from our insurance subsidiaries;

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

·   limitations on our ability to use our deferred tax assets in the event we experience an ownership change;

·   the outcome of any litigation against us;

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

·   other risks or uncertainties disclosed from time to time in our filings with the Securities and Exchange Commission and, in particular, our Annual Report on Form 10-K for the year ended December 31, 2009.

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 March 31,
(dollar amounts in thousands, except per share data)	2010		2009
Gross premiums written	$	171,905	$	164,070
Net premiums written	$	128,245	$	117,978
Revenues:
Net premiums earned	$	103,496	$	104,930
Claims service revenues		17,883		15,684
Commission income		3,092		3,463
Net investment income		9,120		8,457
Net realized investment gains		426		749
Other revenues		392		176
Total revenues		134,409		133,459
Expenses:
Losses and loss adjustment expenses		75,070		75,775
Acquisition expenses		18,047		17,198
Operating expenses		25,632		24,385
Dividends to policyholders		524		646
Interest expense		2,504		2,506
Total losses and expenses		121,777		120,510
Pre-tax income		12,632		12,949
Income tax expense:
Current		254		244
Deferred		4,284		4,402
Total income tax expense		4,538		4,646
Income from continuing operations		8,094		8,303
Loss from discontinued operations after tax		-		(86	)
Net income	$	8,094	$	8,217
Income per share:
Basic:
Continuing Operations	$	0.25	$	0.26
Discontinued Operations		-		-
	$	0.25	$	0.26
Diluted:
Continuing Operations	$	0.25	$	0.26
Discontinued Operations		-		-
	$	0.25	$	0.26

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PMA Capital Corporation

GAAP Consolidated Balance Sheets

(Unaudited)

	March 31,			December 31,
(dollar amounts in thousands, except per share data)	2010			2009
Assets:
Investments:
Fixed maturities available for sale	$	800,612		$	791,355
Short-term investments		25,921			41,072
Other investments		31,205			30,226
Total investments		857,738			862,653
Cash		13,583			11,059
Accrued investment income		7,663			7,352
Premiums receivable		275,122			238,650
Reinsurance receivables		839,723			827,458
Prepaid reinsurance premiums		40,363			35,788
Deferred income taxes, net		131,097			139,782
Deferred acquisition costs		44,820			39,124
Funds held by reinsureds		61,573			58,935
Intangible assets		29,553			29,757
Other assets		108,476			112,181
Total assets	$	2,409,711		$	2,362,739
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,274,006		$	1,269,685
Unearned premiums		270,083			240,759
Debt		137,445			143,380
Accounts payable, accrued expenses
and other liabilities		238,493			249,787
Reinsurance funds held and balances payable		65,610			51,331
Dividends to policyholders		5,944			6,000
Total liabilities		1,991,581			1,960,942
Shareholders' Equity:
Class A Common Stock		171,090			171,090
Additional paid-in capital		111,906			111,841
Retained earnings		163,841			155,747
Accumulated other comprehensive loss		(5,886	)		(14,060	)
Treasury stock, at cost		(22,821	)		(22,821	)
Total shareholders' equity		418,130			401,797
Total liabilities and shareholders' equity	$	2,409,711		$	2,362,739
Shareholders' equity per share	$	12.96		$	12.46

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