Exhibit 99.2
PMA Capital Corporation | |||||||
Statistical Supplement | |||||||
Second Quarter - 2005 | |||||||
Table of Contents | |||||||
Page | |||||||
Consolidated Highlights: | |||||||
Segment Information: | |||||||
Operating Cash Flow Information: | |||||||
Statutory Financial Information: | |||||||
Other Information: | |||||||
Legend: | |||||||
NM - Not Meaningful | |||||||
NA - Not Applicable | |||||||
Note: Operating income (loss), which we define as GAAP net income (loss) excluding net realized investment gains and losses, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our business segments. Accordingly, we report operating income (loss) by segment in the disclosures required under SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information." Our management and Board of Directors use operating income (loss) as the measure of financial performance for our business segments 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 (loss) 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). | |||||||
Selected Financial Data | |||||||||||||||||||
(Dollar Amounts in Thousands, Except Per Share Data) | |||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | % Change | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 2nd | ||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | Quarter | ||||||||||||||
Net Premiums Written by Segment: | |||||||||||||||||||
PMA Insurance Group | $ | 81,962 | $ | 97,637 | $ | 62,910 | $ | 105,474 | $ | 82,103 | 0.2 | % | |||||||
Run-off Operations | (78,864 | ) | (13,884 | ) | (5,974 | ) | 4,929 | 1,504 | NM | ||||||||||
Corporate & Other | (225 | ) | (186 | ) | (264 | ) | (194 | ) | (220 | ) | 2.2 | % | |||||||
Net premiums written | $ | 2,873 | $ | 83,567 | $ | 56,672 | $ | 110,209 | $ | 83,387 | NM | ||||||||
Major Components of Net Income (Loss): | |||||||||||||||||||
Pre-tax operating income (loss) by segment: | |||||||||||||||||||
PMA Insurance Group | $ | 2,809 | $ | 3,537 | $ | 261 | $ | 6,612 | $ | 4,941 | 75.9 | % | |||||||
Run-off Operations | 624 | (2,115 | ) | (1,946 | ) | (29,646 | ) | 1,133 | 81.6 | % | |||||||||
Corporate & Other | (5,506 | ) | (4,982 | ) | (5,423 | ) | (6,167 | ) | (5,721 | ) | -3.9 | % | |||||||
Pre-tax operating income (loss) | (2,073 | ) | (3,560 | ) | (7,108 | ) | (29,201 | ) | 353 | NM | |||||||||
Net realized investment gains (losses) | 2,248 | 3,515 | (7,870 | ) | 2,983 | (265 | ) | NM | |||||||||||
Pre-tax income (loss) | 175 | (45 | ) | (14,978 | ) | (26,218 | ) | 88 | -49.7 | % | |||||||||
Income tax expense (benefit) | 111 | 29 | (4,665 | ) | (5,667 | ) | 71 | -36.0 | % | ||||||||||
Net income (loss) | $ | 64 | $ | (74 | ) | $ | (10,313 | ) | $ | (20,551 | ) | $ | 17 | -73.4 | % | ||||
After-tax operating income (loss) | $ | (1,397 | ) | $ | (2,359 | ) | $ | (5,198 | ) | $ | (22,490 | ) | $ | 189 | NM | ||||
Diluted Earnings (Loss) Per Share: | |||||||||||||||||||
Net income (loss) | $ | - | $ | - | $ | (0.33 | ) | $ | (0.65 | ) | $ | - | NM | ||||||
Less the impact of: | |||||||||||||||||||
Realized gains (losses) after tax | 0.04 | 0.08 | (0.16 | ) | 0.06 | (0.01 | ) | NM | |||||||||||
After-tax operating income (loss) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.71 | ) | $ | 0.01 | NM | ||||
Capitalization: | |||||||||||||||||||
Debt | $ | 187,566 | $ | 187,566 | $ | 214,467 | $ | 211,769 | $ | 211,853 | 12.9 | % | |||||||
Shareholders' equity excluding FAS 115 unrealized gain | 443,634 | 442,797 | 431,828 | 412,349 | 412,330 | -7.1 | % | ||||||||||||
Total capitalization excluding FAS 115 unrealized gain | 631,200 | 630,363 | 646,295 | 624,118 | 624,183 | -1.1 | % | ||||||||||||
FAS 115 unrealized gain | 29 | 15,350 | 13,623 | 1,539 | 17,266 | NM | |||||||||||||
Total capitalization including FAS 115 unrealized gain | $ | 631,229 | $ | 645,713 | $ | 659,918 | $ | 625,657 | $ | 641,449 | 1.6 | % | |||||||
Book Value Per Share: | |||||||||||||||||||
Excluding FAS 115 unrealized gain | $ | 14.00 | $ | 13.98 | $ | 13.63 | $ | 12.95 | $ | 12.93 | -7.6 | % | |||||||
Including FAS 115 unrealized gain | $ | 14.00 | $ | 14.46 | $ | 14.06 | $ | 13.00 | $ | 13.47 | -3.8 | % | |||||||
Debt to Total Capital: | |||||||||||||||||||
Excluding FAS 115 unrealized gain | 29.7 | % | 29.8 | % | 33.2 | % | 33.9 | % | 33.9 | % | 14.1 | % | |||||||
Including FAS 115 unrealized gain | 29.7 | % | 29.0 | % | 32.5 | % | 33.8 | % | 33.0 | % | 11.1 | % | |||||||
Interest Coverage: | |||||||||||||||||||
Income before interest and income taxes | |||||||||||||||||||
to interest expense | 1.06 | 0.98 | NM | NM | 1.02 | -3.5 | % | ||||||||||||
Operating income before interest and income | |||||||||||||||||||
taxes to interest expense | 0.30 | NM | NM | NM | 1.09 | 263.3 | % |
1
Selected Financial Data | ||||||||||
(Dollar Amounts in Thousands, Except Per Share Data) | ||||||||||
Six | Six | % Change | ||||||||
Months | Months | Six | ||||||||
2005 | 2004 | Months | ||||||||
Net Premiums Written by Segment: | ||||||||||
PMA Insurance Group | $ | 187,577 | $ | 217,248 | -13.7 | % | ||||
Run-off Operations | 6,433 | (55,502 | ) | NM | ||||||
Corporate & Other | (414 | ) | (375 | ) | -10.4 | % | ||||
Net premiums written | $ | 193,596 | $ | 161,371 | 20.0 | % | ||||
Major Components of Net Income (Loss): | ||||||||||
Pre-tax operating income (loss) by segment: | ||||||||||
PMA Insurance Group | $ | 11,553 | $ | 9,368 | 23.3 | % | ||||
Run-off Operations | (28,513 | ) | 9,570 | NM | ||||||
Corporate & Other | (11,888 | ) | (10,818 | ) | -9.9 | % | ||||
Pre-tax operating income (loss) | (28,848 | ) | 8,120 | NM | ||||||
Net realized investment gains | 2,718 | 10,848 | -74.9 | % | ||||||
Pre-tax income (loss) | (26,130 | ) | 18,968 | NM | ||||||
Income tax expense (benefit) | (5,596 | ) | 6,751 | NM | ||||||
Net income (loss) | $ | (20,534 | ) | $ | 12,217 | NM | ||||
After-tax operating income (loss) | $ | (22,301 | ) | $ | 5,166 | NM | ||||
Diluted Earnings (Loss) Per Share: | ||||||||||
Net income (loss) | $ | (0.65 | ) | $ | 0.36 | NM | ||||
Less the impact of: | ||||||||||
Realized gains after tax | 0.06 | 0.19 | -68.4 | % | ||||||
After-tax operating income (loss) | $ | (0.71 | ) | $ | 0.17 | NM |
2
Consolidated Statements of Operations - Per Share Data | ||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income (loss) | $ | - | $ | - | $ | (0.33 | ) | $ | (0.65 | ) | $ | - | $ | (0.65 | ) | $ | 0.36 | |||||
Pre-tax operating income (loss) | $ | (0.07 | ) | $ | (0.11 | ) | $ | (0.23 | ) | $ | (0.93 | ) | $ | 0.01 | $ | (0.91 | ) | $ | 0.27 | |||
After-tax operating income (loss) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.71 | ) | $ | 0.01 | $ | (0.71 | ) | $ | 0.17 | |||
Diluted weighted average common | ||||||||||||||||||||||
shares outstanding | 31,741,827 | 31,350,825 | 31,350,825 | 31,393,684 | 32,015,127 | 31,559,468 | 36,798,188 | |||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Class A Common stock | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
Actual common shares issued | ||||||||||||||||||||||
and outstanding | 31,692,351 | 31,681,751 | 31,676,851 | 31,835,136 | 31,885,541 | 31,885,541 | 31,692,351 | |||||||||||||||
Class A Common Stock prices: | ||||||||||||||||||||||
High | $ | 9.13 | $ | 9.16 | $ | 10.85 | $ | 10.65 | $ | 9.00 | $ | 10.65 | $ | 9.13 | ||||||||
Low | $ | 6.01 | $ | 5.70 | $ | 6.74 | $ | 7.05 | $ | 5.91 | $ | 5.91 | $ | 4.78 | ||||||||
Close | $ | 9.00 | $ | 7.55 | $ | 10.35 | $ | 8.00 | $ | 8.83 | $ | 8.83 | $ | 9.00 | ||||||||
3
This Page Intentionally Left Blank
Consolidated Statements of Operations | |||||||||||||||||||
(In Thousands) | |||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | % Change | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 2nd | ||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | Quarter | ||||||||||||||
Gross Premiums Written | $ | 24,449 | $ | 100,013 | $ | 69,940 | $ | 121,313 | $ | 95,069 | 288.8 | % | |||||||
Net Premiums Written | $ | 2,873 | $ | 83,567 | $ | 56,672 | $ | 110,209 | $ | 83,387 | NM | ||||||||
Revenues: | |||||||||||||||||||
Net premiums earned | $ | 118,348 | $ | 104,210 | $ | 89,758 | $ | 87,723 | $ | 88,720 | -25.0 | % | |||||||
Net investment income | 14,807 | 13,238 | 12,142 | 11,712 | 12,542 | -15.3 | % | ||||||||||||
Net realized investment gains (losses) | 2,248 | 3,515 | (7,870 | ) | 2,983 | (265 | ) | NM | |||||||||||
Other revenues | 5,872 | 5,881 | 12,125 | 6,192 | 4,939 | -15.9 | % | ||||||||||||
Total revenues | 141,275 | 126,844 | 106,155 | 108,610 | 105,936 | -25.0 | % | ||||||||||||
Expenses: | |||||||||||||||||||
Losses and loss adjustment expenses | 87,471 | 80,706 | 70,189 | 93,988 | 63,261 | -27.7 | % | ||||||||||||
Acquisition expenses | 24,968 | 24,087 | 18,935 | 18,671 | 17,983 | -28.0 | % | ||||||||||||
Operating expenses | 24,755 | 18,318 | 20,735 | 17,698 | 18,802 | -24.0 | % | ||||||||||||
Dividends to policyholders | 946 | 805 | 1,819 | 502 | 1,762 | 86.3 | % | ||||||||||||
Interest expense | 2,960 | 2,973 | 3,482 | 3,969 | 4,040 | 36.5 | % | ||||||||||||
Loss on debt exchange | - | - | 5,973 | - | - | NM | |||||||||||||
Total losses and expenses | 141,100 | 126,889 | 121,133 | 134,828 | 105,848 | -25.0 | % | ||||||||||||
Pre-tax income (loss) | 175 | (45 | ) | (14,978 | ) | (26,218 | ) | 88 | -49.7 | % | |||||||||
Income tax expense (benefit): | |||||||||||||||||||
Current | 64 | (117 | ) | (272 | ) | - | - | NM | |||||||||||
Deferred | 47 | 146 | (4,393 | ) | (5,667 | ) | 71 | 51.1 | % | ||||||||||
Total income tax expense (benefit) | 111 | 29 | (4,665 | ) | (5,667 | ) | 71 | -36.0 | % | ||||||||||
Net income (loss) | $ | 64 | $ | (74 | ) | $ | (10,313 | ) | $ | (20,551 | ) | $ | 17 | -73.4 | % | ||||
Pre-tax operating income (loss) | $ | (2,073 | ) | $ | (3,560 | ) | $ | (7,108 | ) | $ | (29,201 | ) | $ | 353 | NM | ||||
After-tax operating income (loss) | $ | (1,397 | ) | $ | (2,359 | ) | $ | (5,198 | ) | $ | (22,490 | ) | $ | 189 | NM |
5
Consolidated Statements of Operations | ||||||||||
(In Thousands) | ||||||||||
Six | Six | % Change | ||||||||
Months | Months | Six | ||||||||
2005 | 2004 | Months | ||||||||
Gross Premiums Written | $ | 216,382 | $ | 182,309 | 18.7 | % | ||||
Net Premiums Written | $ | 193,596 | $ | 161,371 | 20.0 | % | ||||
Revenues: | ||||||||||
Net premiums earned | $ | 176,443 | $ | 324,617 | -45.6 | % | ||||
Net investment income | 24,254 | 31,565 | -23.2 | % | ||||||
Net realized investment gains | 2,718 | 10,848 | -74.9 | % | ||||||
Other revenues | 11,131 | 12,695 | -12.3 | % | ||||||
Total revenues | 214,546 | 379,725 | -43.5 | % | ||||||
Expenses: | ||||||||||
Losses and loss adjustment expenses | 157,249 | 229,661 | -31.5 | % | ||||||
Acquisition expenses | 36,654 | 72,203 | -49.2 | % | ||||||
Operating expenses | 36,500 | 50,619 | -27.9 | % | ||||||
Dividends to policyholders | 2,264 | 2,375 | -4.7 | % | ||||||
Interest expense | 8,009 | 5,899 | 35.8 | % | ||||||
Total losses and expenses | 240,676 | 360,757 | -33.3 | % | ||||||
Pre-tax income (loss) | (26,130 | ) | 18,968 | NM | ||||||
Income tax expense (benefit): | ||||||||||
Current | - | 389 | NM | |||||||
Deferred | (5,596 | ) | 6,362 | NM | ||||||
Total income tax expense (benefit) | (5,596 | ) | 6,751 | NM | ||||||
Net income (loss) | $ | (20,534 | ) | $ | 12,217 | NM | ||||
Pre-tax operating income (loss) | $ | (28,848 | ) | $ | 8,120 | NM | ||||
After-tax operating income (loss) | $ | (22,301 | ) | $ | 5,166 | NM |
6
Consolidated Balance Sheets | ||||||||||||||||
(In Thousands) | ||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | ||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | ||||||||||||
Assets: | ||||||||||||||||
Investments in fixed maturities available for sale | $ | 1,469,027 | $ | 1,381,788 | $ | 1,304,086 | $ | 1,283,406 | $ | 1,256,169 | ||||||
Short-term investments | 88,664 | 98,761 | 123,746 | 60,325 | 61,058 | |||||||||||
Short-term investments, loaned securities collateral | 129,999 | 96,606 | - | 102,620 | 90,114 | |||||||||||
Total investments | 1,687,690 | 1,577,155 | 1,427,832 | 1,446,351 | 1,407,341 | |||||||||||
Cash | 66,100 | 48,046 | 35,537 | 49,921 | 30,464 | |||||||||||
Accrued investment income | 17,913 | 16,407 | 15,517 | 15,188 | 14,147 | |||||||||||
Premiums receivable | 249,112 | 219,111 | 197,831 | 208,748 | 183,713 | |||||||||||
Reinsurance receivables | 1,210,765 | 1,170,004 | 1,142,552 | 1,129,507 | 1,129,857 | |||||||||||
Deferred income taxes | 88,250 | 80,541 | 86,501 | 98,714 | 90,301 | |||||||||||
Deferred acquisition costs | 41,321 | 37,800 | 31,426 | 35,138 | 34,655 | |||||||||||
Funds held by reinsureds | 107,804 | 134,978 | 142,064 | 146,674 | 150,078 | |||||||||||
Other assets | 248,578 | 219,536 | 174,725 | 167,200 | 169,028 | |||||||||||
Total assets | $ | 3,717,533 | $ | 3,503,578 | $ | 3,253,985 | $ | 3,297,441 | $ | 3,209,584 | ||||||
Liabilities: | ||||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 2,292,281 | $ | 2,179,900 | $ | 2,111,598 | $ | 2,077,599 | $ | 2,005,386 | ||||||
Unearned premiums | 216,155 | 193,221 | 158,489 | 177,415 | 175,025 | |||||||||||
Debt | 187,566 | 187,566 | 214,467 | 211,769 | 211,853 | |||||||||||
Accounts payable, accrued expenses | ||||||||||||||||
and other liabilities | 277,457 | 254,467 | 196,744 | 196,875 | 188,042 | |||||||||||
Funds held under reinsurance treaties | 162,293 | 127,239 | 121,234 | 112,712 | 105,572 | |||||||||||
Dividends to policyholders | 8,121 | 6,424 | 5,977 | 4,580 | 3,992 | |||||||||||
Payable under securities loan agreements | 129,997 | 96,614 | 25 | 102,603 | 90,118 | |||||||||||
Total liabilities | 3,273,870 | 3,045,431 | 2,808,534 | 2,883,553 | 2,779,988 | |||||||||||
Shareholders' Equity: | ||||||||||||||||
Class A Common stock | 171,090 | 171,090 | 171,090 | 171,090 | 171,090 | |||||||||||
Additional paid-in capital | 109,331 | 109,331 | 109,331 | 109,331 | 109,331 | |||||||||||
Retained earnings | 223,442 | 223,519 | 213,313 | 189,787 | 189,109 | |||||||||||
Accumulated other comprehensive income (loss) | (13,160 | ) | 885 | (1,959 | ) | (14,116 | ) | 1,377 | ||||||||
Notes receivable from officers | (59 | ) | - | - | - | - | ||||||||||
Treasury stock, at cost | (45,261 | ) | (45,474 | ) | (45,573 | ) | (41,752 | ) | (40,734 | ) | ||||||
Unearned restricted stock compensation | (1,720 | ) | (1,204 | ) | (751 | ) | (452 | ) | (577 | ) | ||||||
Total shareholders' equity | 443,663 | 458,147 | 445,451 | 413,888 | 429,596 | |||||||||||
Total liabilities and shareholders' equity | $ | 3,717,533 | $ | 3,503,578 | $ | 3,253,985 | $ | 3,297,441 | $ | 3,209,584 |
7
Invested Assets and Net Investment Income | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Total Investments & Cash | ||||||||||||||||||||||
As reported | $ | 1,753,790 | $ | 1,625,201 | $ | 1,463,369 | $ | 1,496,272 | $ | 1,437,805 | $ | 1,437,805 | $ | 1,753,790 | ||||||||
Less: | ||||||||||||||||||||||
Securities lending activity | 129,997 | 96,614 | 25 | 102,603 | 90,118 | 90,118 | 129,997 | |||||||||||||||
Unrealized gain | 45 | 23,615 | 20,958 | 2,368 | 26,563 | 26,563 | 45 | |||||||||||||||
Total adjusted investments & cash | $ | 1,623,748 | $ | 1,504,972 | $ | 1,442,386 | $ | 1,391,301 | $ | 1,321,124 | $ | 1,321,124 | $ | 1,623,748 | ||||||||
Net Investment Income | ||||||||||||||||||||||
As reported | $ | 14,807 | $ | 13,238 | $ | 12,142 | $ | 11,712 | $ | 12,542 | $ | 24,254 | $ | 31,565 | ||||||||
Funds held: | ||||||||||||||||||||||
Assumed | 109 | 73 | 846 | 187 | 129 | 316 | 96 | |||||||||||||||
Ceded | (3,962 | ) | (2,140 | ) | (1,394 | ) | (2,125 | ) | (1,134 | ) | (3,259 | ) | (6,184 | ) | ||||||||
Total funds held | (3,853 | ) | (2,067 | ) | (548 | ) | (1,938 | ) | (1,005 | ) | (2,943 | ) | (6,088 | ) | ||||||||
Total adjusted investment income | $ | 18,660 | $ | 15,305 | $ | 12,690 | $ | 13,650 | $ | 13,547 | $ | 27,197 | $ | 37,653 | ||||||||
Yield | ||||||||||||||||||||||
As reported | 3.11 | % | 3.13 | % | 3.15 | % | 3.17 | % | 3.42 | % | 3.31 | % | 3.24 | % | ||||||||
Investment portfolio | 4.10 | % | 3.91 | % | 3.44 | % | 3.85 | % | 4.00 | % | 3.93 | % | 4.02 | % | ||||||||
Duration (in years) | 3.4 | 3.6 | 3.6 | 3.8 | 3.9 | 3.9 | 3.4 |
PMA Capital Corporation | |||||||
Debt | |||||||
(Dollars in Thousands) | |||||||
Amount | |||||||
Outstanding | Maturity | ||||||
6.50% convertible debt | $ | 99,140 | 20221 | ||||
Derivative component of 6.50% convertible debt | 10,742 | ||||||
4.25% convertible debt | 655 | 20222 | |||||
8.50% senior notes | 57,500 | 2018 | |||||
Trust preferred debt 3 | 43,816 | 2033 | |||||
Total long-term debt | $ | 211,853 | |||||
1 | Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on June 30, 2009 at 114% of the principal amount. This debt may be converted at any time, at the holder's option, at a current price of $16.368 per share for $84.1 million principal amount and $15.891 per share for $15.0 million principal amount. | ||||||||||||||||
2 | Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 2006, 2008, 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. | ||||||||||||||||
3 | Weighted average interest rate on trust preferred debt is 7.47% as of June 30, 2005. |
PMA Capital Corporation | ||||||||||
Balance Sheet Impact of Commutations - Run-off Operations | ||||||||||
(Dollars in Thousands) | ||||||||||
2nd Quarter 2005 | ||||||||||
Liabilities | Assumed | Ceded | Total | |||||||
Unpaid loss and loss adjustment expenses | $ | (1,200 | ) | $ | - | $ | (1,200 | ) | ||
Six Months 2005 | ||||||||||
Liabilities | Assumed | Ceded | Total | |||||||
Unpaid loss and loss adjustment expenses | $ | (5,393 | ) | $ | - | $ | (5,393 | ) |
8
Statements of Operations - Consolidating | |||||||||||||
Six Months Ended June 30, 2005 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 209,952 | $ | (414 | ) | $ | 6,844 | $ | 216,382 | ||||
Net Premiums Written | $ | 187,577 | $ | (414 | ) | $ | 6,433 | $ | 193,596 | ||||
Revenues: | |||||||||||||
Net premiums earned | $ | 170,241 | $ | (414 | ) | $ | 6,616 | $ | 176,443 | ||||
Net investment income | 15,257 | 528 | 8,469 | 24,254 | |||||||||
Other revenues | 10,871 | 260 | - | 11,131 | |||||||||
Operating revenues | 196,369 | 374 | 15,085 | 211,828 | |||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 123,549 | - | 33,700 | 157,249 | |||||||||
Acquisition expenses | 34,021 | - | 2,633 | 36,654 | |||||||||
Operating expenses | 24,982 | 4,253 | 7,265 | 36,500 | |||||||||
Dividends to policyholders | 2,264 | - | - | 2,264 | |||||||||
Total losses and expenses | 184,816 | 4,253 | 43,598 | 232,667 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 11,553 | (3,879 | ) | (28,513 | ) | (20,839 | ) | ||||||
Interest expense | - | 8,009 | - | 8,009 | |||||||||
Pre-tax operating income (loss) | $ | 11,553 | $ | (11,888 | ) | $ | (28,513 | ) | (28,848 | ) | |||
Net realized investment gains | 2,718 | ||||||||||||
Pre-tax loss | $ | (26,130 | ) | ||||||||||
1 | Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. |
9
Statements of Operations - Consolidating | ||||||||||||||||
Six Months Ended June 30, 2004 | ||||||||||||||||
(In Thousands) | ||||||||||||||||
PMA | ||||||||||||||||
Insurance | Corporate | Run-off | ||||||||||||||
Group | & Other1 | Operations | Consolidated | |||||||||||||
Gross Premiums Written | $ | 240,886 | $ | (375 | ) | $ | (58,202 | ) | $ | 182,309 | ||||||
Net Premiums Written | $ | 217,248 | $ | (375 | ) | $ | (55,502 | ) | $ | 161,371 | ||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 249,938 | $ | (375 | ) | $ | 75,054 | $ | 324,617 | |||||||
Net investment income | 16,392 | 617 | 14,556 | 31,565 | ||||||||||||
Other revenues | 12,401 | 294 | - | 12,695 | ||||||||||||
Operating revenues | 278,731 | 536 | 89,610 | 368,877 | ||||||||||||
Losses and Expenses: | ||||||||||||||||
Losses and loss adjustment expenses | 186,903 | - | 42,758 | 229,661 | ||||||||||||
Acquisition expenses | 45,652 | - | 26,551 | 72,203 | ||||||||||||
Operating expenses | 34,433 | 5,455 | 10,731 | 50,619 | ||||||||||||
Dividends to policyholders | 2,375 | - | - | 2,375 | ||||||||||||
Total losses and expenses | 269,363 | 5,455 | 80,040 | 354,858 | ||||||||||||
Operating income (loss) before income taxes | ||||||||||||||||
and interest expense | 9,368 | (4,919 | ) | 9,570 | 14,019 | |||||||||||
Interest expense | - | 5,899 | - | 5,899 | ||||||||||||
Pre-tax operating income (loss) | $ | 9,368 | $ | (10,818 | ) | $ | 9,570 | 8,120 | ||||||||
Net realized investment gains | 10,848 | |||||||||||||||
Pre-tax income | $ | 18,968 | ||||||||||||||
1 | Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. |
10
Statements of Operations - Consolidating | |||||||||||||
Three Months Ended June 30, 2005 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 93,680 | $ | (220 | ) | $ | 1,609 | $ | 95,069 | ||||
Net Premiums Written | $ | 82,103 | $ | (220 | ) | $ | 1,504 | $ | 83,387 | ||||
Revenues: | |||||||||||||
Net premiums earned | $ | 85,541 | $ | (220 | ) | $ | 3,399 | $ | 88,720 | ||||
Net investment income | 7,716 | 257 | 4,569 | 12,542 | |||||||||
Other revenues | 4,906 | 33 | - | 4,939 | |||||||||
Operating revenues | 98,163 | 70 | 7,968 | 106,201 | |||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 61,331 | - | 1,930 | 63,261 | |||||||||
Acquisition expenses | 17,254 | - | 729 | 17,983 | |||||||||
Operating expenses | 12,875 | 1,751 | 4,176 | 18,802 | |||||||||
Dividends to policyholders | 1,762 | - | - | 1,762 | |||||||||
Total losses and expenses | 93,222 | 1,751 | 6,835 | 101,808 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 4,941 | (1,681 | ) | 1,133 | 4,393 | ||||||||
Interest expense | - | 4,040 | - | 4,040 | |||||||||
Pre-tax operating income (loss) | $ | 4,941 | $ | (5,721 | ) | $ | 1,133 | 353 | |||||
Net realized investment losses | (265 | ) | |||||||||||
Pre-tax income | $ | 88 | |||||||||||
1 | Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. |
11
Statements of Operations - Consolidating | |||||||||||||
Three Months Ended June 30, 2004 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 94,400 | $ | (225 | ) | $ | (69,726 | ) | $ | 24,449 | |||
Net Premiums Written | $ | 81,962 | $ | (225 | ) | $ | (78,864 | ) | $ | 2,873 | |||
Revenues: | |||||||||||||
Net premiums earned | $ | 118,288 | $ | (225 | ) | $ | 285 | $ | 118,348 | ||||
Net investment income | 8,364 | 273 | 6,170 | 14,807 | |||||||||
Other revenues | 5,581 | 291 | - | 5,872 | |||||||||
Operating revenues | 132,233 | 339 | 6,455 | 139,027 | |||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 88,072 | - | (601 | ) | 87,471 | ||||||||
Acquisition expenses | 22,620 | - | 2,348 | 24,968 | |||||||||
Operating expenses | 17,786 | 2,885 | 4,084 | 24,755 | |||||||||
Dividends to policyholders | 946 | - | - | 946 | |||||||||
Total losses and expenses | 129,424 | 2,885 | 5,831 | 138,140 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 2,809 | (2,546 | ) | 624 | 887 | ||||||||
Interest expense | - | 2,960 | - | 2,960 | |||||||||
Pre-tax operating income (loss) | $ | 2,809 | $ | (5,506 | ) | $ | 624 | (2,073 | ) | ||||
Net realized investment gains | 2,248 | ||||||||||||
Pre-tax income | $ | 175 | |||||||||||
1 | Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. |
12
Statements of Operations - PMA Insurance Group | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | % Change | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | 2nd | Six | ||||||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | Quarter | Months | ||||||||||||||||||||
Gross Premiums Written | $ | 94,400 | $ | 109,788 | $ | 72,380 | $ | 116,272 | $ | 93,680 | $ | 209,952 | $ | 240,886 | -0.8 | % | -12.8 | % | ||||||||||
Net Premiums Written | $ | 81,962 | $ | 97,637 | $ | 62,910 | $ | 105,474 | $ | 82,103 | $ | 187,577 | $ | 217,248 | 0.2 | % | -13.7 | % | ||||||||||
Revenues: | ||||||||||||||||||||||||||||
Net premiums earned | $ | 118,288 | $ | 103,032 | $ | 89,373 | $ | 84,700 | $ | 85,541 | $ | 170,241 | $ | 249,938 | -27.7 | % | -31.9 | % | ||||||||||
Net investment income | 8,364 | 8,083 | 6,509 | 7,541 | 7,716 | 15,257 | 16,392 | -7.7 | % | -6.9 | % | |||||||||||||||||
Other revenues | 5,581 | 5,856 | 5,511 | 5,965 | 4,906 | 10,871 | 12,401 | -12.1 | % | -12.3 | % | |||||||||||||||||
Total revenues | 132,233 | 116,971 | 101,393 | 98,206 | 98,163 | 196,369 | 278,731 | -25.8 | % | -29.5 | % | |||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 88,072 | 77,994 | 66,284 | 62,218 | 61,331 | 123,549 | 186,903 | -30.4 | % | -33.9 | % | |||||||||||||||||
Acquisition expenses | 22,620 | 21,876 | 18,550 | 16,767 | 17,254 | 34,021 | 45,652 | -23.7 | % | -25.5 | % | |||||||||||||||||
Operating expenses | 17,786 | 12,759 | 14,479 | 12,107 | 12,875 | 24,982 | 34,433 | -27.6 | % | -27.4 | % | |||||||||||||||||
Dividends to policyholders | 946 | 805 | 1,819 | 502 | 1,762 | 2,264 | 2,375 | 86.3 | % | -4.7 | % | |||||||||||||||||
Total losses and expenses | 129,424 | 113,434 | 101,132 | 91,594 | 93,222 | 184,816 | 269,363 | -28.0 | % | -31.4 | % | |||||||||||||||||
Pre-tax operating income | $ | 2,809 | $ | 3,537 | $ | 261 | $ | 6,612 | $ | 4,941 | $ | 11,553 | $ | 9,368 | 75.9 | % | 23.3 | % | ||||||||||
13
Insurance Ratios - PMA Insurance Group | ||||||||||||||||||||||||||||
2nd Quarter 2004 | 3rd Quarter 2004 | 4th Quarter 2004 | 1st Quarter 2005 | 2nd Quarter 2005 | Six Months 2005 | Six Months 2004 | Point Chg. 2nd Quarter Better (Worse) | Point Chg. Six Months Better (Worse) | ||||||||||||||||||||
Ratios - GAAP Basis: | ||||||||||||||||||||||||||||
Loss and LAE ratio | 74.5 | % | 75.7 | % | 74.2 | % | 73.5 | % | 71.7 | % | 72.6 | % | 74.8 | % | 2.8 | 2.2 | ||||||||||||
Expense ratio: | ||||||||||||||||||||||||||||
Acquisition expenses | 19.1 | % | 21.2 | % | 20.8 | % | 19.8 | % | 20.2 | % | 20.0 | % | 18.3 | % | (1.1 | ) | (1.7 | ) | ||||||||||
Operating expenses 1 | 11.2 | % | 7.8 | % | 11.5 | % | 9.5 | % | 10.3 | % | 9.9 | % | 10.1 | % | 0.9 | 0.2 | ||||||||||||
Total expense ratio | 30.3 | % | 29.0 | % | 32.3 | % | 29.3 | % | 30.5 | % | 29.9 | % | 28.4 | % | (0.2 | ) | (1.5 | ) | ||||||||||
Policyholders' dividend ratio | 0.8 | % | 0.8 | % | 2.0 | % | 0.6 | % | 2.1 | % | 1.3 | % | 1.0 | % | (1.3 | ) | (0.3 | ) | ||||||||||
Combined ratio | 105.6 | % | 105.5 | % | 108.5 | % | 103.4 | % | 104.3 | % | 103.8 | % | 104.2 | % | 1.3 | 0.4 | ||||||||||||
Net investment income ratio | -7.1 | % | -7.8 | % | -7.3 | % | -8.9 | % | -9.0 | % | -9.0 | % | -6.6 | % | 1.9 | 2.4 | ||||||||||||
Operating ratio | 98.5 | % | 97.7 | % | 101.2 | % | 94.5 | % | 95.3 | % | 94.8 | % | 97.6 | % | 3.2 | 2.8 | ||||||||||||
1 The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $13.2 million, $8.1 million, $10.3 million, $8.0 million and $8.9 million for the second, third and fourth quarters of 2004 and the first and second quarters of 2005, respectively. |
14
Statements of Operations - Run-off Operations | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | % Change | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | 2nd | Six | ||||||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | Quarter | Months | ||||||||||||||||||||
Gross Premiums Written | $ | (69,726 | ) | $ | (9,589 | ) | $ | (2,176 | ) | $ | 5,235 | $ | 1,609 | $ | 6,844 | $ | (58,202 | ) | NM | NM | ||||||||
Net Premiums Written | $ | (78,864 | ) | $ | (13,884 | ) | $ | (5,974 | ) | $ | 4,929 | $ | 1,504 | $ | 6,433 | $ | (55,502 | ) | NM | NM | ||||||||
Revenues: | ||||||||||||||||||||||||||||
Net premiums earned | $ | 285 | $ | 1,364 | $ | 649 | $ | 3,217 | $ | 3,399 | $ | 6,616 | $ | 75,054 | NM | -91.2 | % | |||||||||||
Net investment income | 6,170 | 4,884 | 5,215 | 3,900 | 4,569 | 8,469 | 14,556 | -25.9 | % | -41.8 | % | |||||||||||||||||
Total revenues | 6,455 | 6,248 | 5,864 | 7,117 | 7,968 | 15,085 | 89,610 | 23.4 | % | -83.2 | % | |||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||
Losses and loss adjustment expenses | (601 | ) | 2,712 | 3,905 | 31,770 | 1,930 | 33,700 | 42,758 | NM | -21.2 | % | |||||||||||||||||
Acquisition expenses | 2,348 | 2,211 | 385 | 1,904 | 729 | 2,633 | 26,551 | -69.0 | % | -90.1 | % | |||||||||||||||||
Operating expenses | 4,084 | 3,440 | 3,520 | 3,089 | 4,176 | 7,265 | 10,731 | 2.3 | % | -32.3 | % | |||||||||||||||||
Total losses and expenses | 5,831 | 8,363 | 7,810 | 36,763 | 6,835 | 43,598 | 80,040 | 17.2 | % | -45.5 | % | |||||||||||||||||
Pre-tax operating income (loss) | $ | 624 | $ | (2,115 | ) | $ | (1,946 | ) | $ | (29,646 | ) | $ | 1,133 | $ | (28,513 | ) | $ | 9,570 | 81.6 | % | NM | |||||||
15
Statements of Operations - Corporate & Other | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | % Change | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | 2nd | Six | ||||||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | Quarter | Months | ||||||||||||||||||||
Gross Premiums Written | $ | (225 | ) | $ | (186 | ) | $ | (264 | ) | $ | (194 | ) | $ | (220 | ) | $ | (414 | ) | $ | (375 | ) | 2.2 | % | -10.4 | % | |||
Net Premiums Written | $ | (225 | ) | $ | (186 | ) | $ | (264 | ) | $ | (194 | ) | $ | (220 | ) | $ | (414 | ) | $ | (375 | ) | 2.2 | % | -10.4 | % | |||
Revenues: | ||||||||||||||||||||||||||||
Net premiums earned | $ | (225 | ) | $ | (186 | ) | $ | (264 | ) | $ | (194 | ) | $ | (220 | ) | $ | (414 | ) | $ | (375 | ) | 2.2 | % | -10.4 | % | |||
Net investment income | 273 | 271 | 418 | 271 | 257 | 528 | 617 | -5.9 | % | -14.4 | % | |||||||||||||||||
Other revenues | 291 | 25 | 6,614 | 227 | 33 | 260 | 294 | -88.7 | % | -11.6 | % | |||||||||||||||||
Total revenues | 339 | 110 | 6,768 | 304 | 70 | 374 | 536 | -79.4 | % | -30.2 | % | |||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||
Operating expenses | 2,885 | 2,119 | 2,736 | 2,502 | 1,751 | 4,253 | 5,455 | -39.3 | % | -22.0 | % | |||||||||||||||||
Total losses and expenses | 2,885 | 2,119 | 2,736 | 2,502 | 1,751 | 4,253 | 5,455 | -39.3 | % | -22.0 | % | |||||||||||||||||
Operating income (loss) before income taxes, | ||||||||||||||||||||||||||||
interest expense, and loss on debt exchange | (2,546 | ) | (2,009 | ) | 4,032 | (2,198 | ) | (1,681 | ) | (3,879 | ) | (4,919 | ) | 34.0 | % | 21.1 | % | |||||||||||
Interest expense | 2,960 | 2,973 | 3,482 | 3,969 | 4,040 | 8,009 | 5,899 | 36.5 | % | 35.8 | % | |||||||||||||||||
Loss on debt exchange | - | - | 5,973 | - | - | - | - | NM | NM | |||||||||||||||||||
Pre-tax operating loss | $ | (5,506 | ) | $ | (4,982 | ) | $ | (5,423 | ) | $ | (6,167 | ) | $ | (5,721 | ) | $ | (11,888 | ) | $ | (10,818 | ) | -3.9 | % | -9.9 | % | |||
16
Operating Cash Flows - Consolidated | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Receipts: | ||||||||||||||||||||||
Premiums and other revenues collected | $ | 103,266 | $ | 91,121 | $ | 101,641 | $ | 95,437 | $ | 109,944 | $ | 205,381 | $ | 289,827 | ||||||||
Investment income received | 26,520 | 20,627 | 18,986 | 14,814 | 14,656 | 29,470 | 48,661 | |||||||||||||||
Total receipts | 129,786 | 111,748 | 120,627 | 110,251 | 124,600 | 234,851 | 338,488 | |||||||||||||||
Disbursements: | ||||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||||
Losses and LAE paid - current year | 37,839 | 43,406 | 34,520 | 3,812 | 14,240 | 18,052 | 44,330 | |||||||||||||||
Losses and LAE paid - prior years | 272,164 | 178,193 | 87,203 | 112,312 | 134,182 | 246,494 | 489,910 | |||||||||||||||
Total losses and LAE paid | 310,003 | 221,599 | 121,723 | 116,124 | 148,422 | 264,546 | 534,240 | |||||||||||||||
Insurance operating expenses paid | 54,695 | 43,228 | 27,716 | 37,394 | 40,823 | 78,217 | 128,540 | |||||||||||||||
Policyholders' dividends paid | 873 | 2,145 | 765 | 2,115 | 1,284 | 3,399 | 2,446 | |||||||||||||||
Interest on corporate debt | 1,856 | 3,694 | 2,371 | 4,387 | 1,987 | 6,374 | 5,542 | |||||||||||||||
Total disbursements | 367,427 | 270,666 | 152,575 | 160,020 | 192,516 | 352,536 | 670,768 | |||||||||||||||
Net other | (22,894 | ) | 6,997 | (56,713 | ) | 7,258 | 1,046 | 8,304 | (30,405 | ) | ||||||||||||
Net operating cash flows | $ | (260,535 | ) | $ | (151,921 | ) | $ | (88,661 | ) | $ | (42,511 | ) | $ | (66,870 | ) | $ | (109,381 | ) | $ | (362,685 | ) | |
17
Operating Cash Flows - PMA Insurance Group | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Receipts: | ||||||||||||||||||||||
Premiums and other revenues collected | $ | 123,944 | $ | 97,543 | $ | 111,150 | $ | 91,910 | $ | 101,408 | $ | 193,318 | $ | 252,160 | ||||||||
Investment income received | 9,869 | 9,574 | 9,851 | 9,404 | 9,682 | 19,086 | 20,115 | |||||||||||||||
Total receipts | 133,813 | 107,117 | 121,001 | 101,314 | 111,090 | 212,404 | 272,275 | |||||||||||||||
Disbursements: | ||||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||||
Losses and LAE paid - current year | 19,158 | 29,827 | 31,304 | 3,810 | 14,233 | 18,043 | 25,315 | |||||||||||||||
Losses and LAE paid - prior years | 63,116 | 57,160 | 31,086 | 72,999 | 69,276 | 142,275 | 138,563 | |||||||||||||||
Losses and LAE | 82,274 | 86,987 | 62,390 | 76,809 | 83,509 | 160,318 | 163,878 | |||||||||||||||
Insurance operating expenses paid | 38,931 | 34,600 | 29,531 | 33,000 | 38,226 | 71,226 | 91,576 | |||||||||||||||
Policyholders' dividends paid | 873 | 2,145 | 765 | 2,115 | 1,284 | 3,399 | 2,446 | |||||||||||||||
Total disbursements | 122,078 | 123,732 | 92,686 | 111,924 | 123,019 | 234,943 | 257,900 | |||||||||||||||
Net other | (8,535 | ) | 8,102 | (21,974 | ) | 13,760 | 2,002 | 15,762 | (16,841 | ) | ||||||||||||
Net operating cash flows | $ | 3,200 | $ | (8,513 | ) | $ | 6,341 | $ | 3,150 | $ | (9,927 | ) | $ | (6,777 | ) | $ | (2,466 | ) | ||||
18
Operating Cash Flows - Run-off Operations | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2004 | 2004 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Receipts: | ||||||||||||||||||||||
Premiums collected | $ | (20,678 | ) | $ | (6,422 | ) | $ | (9,509 | ) | $ | 3,527 | $ | 8,536 | $ | 12,063 | $ | 37,667 | |||||
Investment income received | 16,651 | 11,053 | 9,135 | 5,410 | 4,974 | 10,384 | 28,546 | |||||||||||||||
Total receipts | (4,027 | ) | 4,631 | (374 | ) | 8,937 | 13,510 | 22,447 | 66,213 | |||||||||||||
Disbursements: | ||||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||||
Losses and LAE paid - current year | 18,681 | 13,579 | 3,216 | 2 | 7 | 9 | 19,015 | |||||||||||||||
Losses and LAE paid - prior years | 209,048 | 121,033 | 56,117 | 39,313 | 64,906 | 104,219 | 351,347 | |||||||||||||||
Total losses and LAE paid | 227,729 | 134,612 | 59,333 | 39,315 | 64,913 | 104,228 | 370,362 | |||||||||||||||
Insurance operating expenses paid | 15,764 | 8,628 | (1,815 | ) | 4,394 | 2,597 | 6,991 | 36,964 | ||||||||||||||
Total disbursements | 243,493 | 143,240 | 57,518 | 43,709 | 67,510 | 111,219 | 407,326 | |||||||||||||||
Net other | (13,311 | ) | 282 | (34,482 | ) | (74 | ) | (4,890 | ) | (4,964 | ) | (11,451 | ) | |||||||||
Net operating cash flows | $ | (260,831 | ) | $ | (138,327 | ) | $ | (92,374 | ) | $ | (34,846 | ) | $ | (58,890 | ) | $ | (93,736 | ) | $ | (352,564 | ) |
19
Statutory Surplus | ||||||||||||||||
(In Thousands) | ||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | ||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||
2004 | 2004 | 2004 | 2005 | 20051 | ||||||||||||
PMA Pool 2 | $ | 305,074 | $ | 294,587 | $ | 300,034 | $ | 298,686 | $ | 299,219 | 4 | |||||
PMA Capital Insurance Company 3 | 236,247 | 236,443 | 224,511 | 218,322 | 215,348 | 4 |
PMA Capital Corporation | ||||||||||||||||||||||
Statutory Financial Information - PMA Pool 2 | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2004 | 2004 | 2005 | 20051 | 20051 | 2004 | ||||||||||||||||
Net Premiums Written: | ||||||||||||||||||||||
Workers Compensation & Integrated | ||||||||||||||||||||||
Disability | $ | 56,764 | $ | 88,814 | $ | 54,556 | $ | 94,737 | $ | 70,944 | $ | 165,681 | $ | 162,954 | ||||||||
Other Commercial Lines | 8,275 | 8,962 | 3,700 | 10,787 | 10,998 | 21,785 | 20,190 | |||||||||||||||
Total - PMA Pool | $ | 65,039 | $ | 97,776 | $ | 58,256 | $ | 105,524 | $ | 81,942 | $ | 187,466 | $ | 183,144 | ||||||||
Statutory Ratios: | ||||||||||||||||||||||
Loss and LAE ratio | 75.2 | % | 75.9 | % | 75.2 | % | 73.3 | % | 73.0 | % | 73.2 | % | 75.0 | % | ||||||||
Underwriting expense ratio | 39.0 | % | 29.5 | % | 37.5 | % | 25.2 | % | 30.2 | % | 27.4 | % | 31.4 | % | ||||||||
Policyholders' dividend ratio | 0.7 | % | 0.4 | % | 0.4 | % | 0.9 | % | 0.8 | % | 0.9 | % | 1.0 | % | ||||||||
Combined ratio | 114.9 | % | 105.8 | % | 113.1 | % | 99.4 | % | 104.0 | % | 101.5 | % | 107.4 | % | ||||||||
Operating ratio | 107.4 | % | 98.9 | % | 104.2 | % | 91.2 | % | 95.2 | % | 93.0 | % | 100.3 | % | ||||||||
1 | Estimated. | |||||||||||||||
2 | The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company. | |||||||||||||||
3 | In November 2003, we announced our decision to withdraw from the reinsurance business previously served by PMA Capital Insurance Company. The reinsurance business is currently in run-off. | |||||||||||||||
4 | Includes unassigned surplus of $129.9 million and $21.8 million for the PMA Pool and PMA Capital Insurance Company, respectively. |
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Industry Ratings and Market Information | ||||||||
Transfer Agent and Registrar: | Inquiries: | |||||||
American Stock Transfer & Trust Company | William E. Hitselberger | |||||||
Shareholder Relations | Chief Financial Officer | |||||||
59 Maiden Lane – Plaza Level | 215.665.5070 | |||||||
New York, NY 10038 | e-mail: bhitselberger@pmacapital.com | |||||||
www.amstock.com | ||||||||
Phone Inquiries: | Investor Relations | |||||||
800.937.5449 | 215.665.5046 | |||||||
investorrelations@pmacapital.com | ||||||||
Email Inquiries: | ||||||||
info@amstock.com | Company Website: | |||||||
www.pmacapital.com | ||||||||
Securities Listing: | ||||||||
The Corporation's Class A Common Stock is listed | ||||||||
on the NASDAQ Stock Market®. It trades under | ||||||||
the stock symbol: PMACA. | ||||||||
Financial Strength Ratings (as of 7/29/2005): | ||||||||
A.M. Best | Moody's | |||||||
PMA Pool 1 | A- (4th of 16) | Ba1 (11th of 21) | ||||||
PMA Capital Insurance Company 2 | B+ (6th of 16) | B1 (14th of 21) | ||||||
1 The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company. | ||||||||
2 In November 2003, we announced our decision to withdraw from the reinsurance business previously served by PMA Capital Insurance Company. The reinsurance business is in run-off. | ||||||||
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