Pma Capital 8K Announces Third Quarter 2005 Results | PMACA 3 Nov 05

PMA Capital Corporation
Statistical Supplement
Third Quarter - 2005

Table of Contents			Page

*Consolidated Highlights:*
Selected Financial Data - Third Quarter			1
Selected Financial Data - Year-to-date			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Third Quarter			5
Consolidated Statements of Operations - Year-to-date			6
Consolidated Balance Sheets			7
Invested Assets and Net Investment Income; Debt; Balance Sheet Impact of Commutations - Run-off Operations			8

*Segment Information:*
Statements of Operations - Consolidating - Year-to-date			9-10
Statements of Operations - Consolidating - Third Quarter			11-12
Statements of Operations - PMA Insurance Group			13
Insurance Ratios - PMA Insurance Group			14
Statements of Operations - Run-off Operations			15
Statements of Operations - Corporate & Other			16

*Operating Cash Flow Information:*
Operating Cash Flows - Consolidated			17
Operating Cash Flows - PMA Insurance Group			18
Operating Cash Flows - Run-off Operations			19

*Statutory Financial Information:*
Statutory Surplus; Statutory Financial Information - PMA Pool			20

*Other Information:*
Industry Ratings and Market Information			21

*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 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).

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

	3rd			4th			1st			2nd			3rd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			3rd
	2004			2004			2005			2005			2005			Quarter

Net Premiums Written by Segment:
PMA Insurance Group	$	97,637		$	62,910		$	105,474		$	82,103		$	116,877			19.7	%
Run-off Operations		(13,884	)		(5,974	)		4,929			1,504			789			NM
Corporate & Other		(186	)		(264	)		(194	)		(220	)		(195	)		-4.8	%
Net premiums written	$	83,567		$	56,672		$	110,209		$	83,387		$	117,471			40.6	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	3,537		$	261		$	6,612		$	4,941		$	6,600			86.6	%
Run-off Operations		(2,115	)		(1,946	)		(29,646	)		1,133			(258	)		87.8	%
Corporate & Other		(4,982	)		(5,423	)		(6,167	)		(5,721	)		(5,609	)		-12.6	%
Pre-tax operating income (loss)		(3,560	)		(7,108	)		(29,201	)		353			733			NM
Net realized investment gains (losses)		3,515			(7,870	)		2,983			(265	)		483			-86.3	%
Pre-tax income (loss)		(45	)		(14,978	)		(26,218	)		88			1,216			NM
Income tax expense (benefit)		29			(4,665	)		(5,667	)		71			476			NM
Net income (loss)	$	(74	)	$	(10,313	)	$	(20,551	)	$	17		$	740			NM
After-tax operating income (loss)	$	(2,359	)	$	(5,198	)	$	(22,490	)	$	189		$	426			NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	-		$	(0.33	)	$	(0.65	)	$	-		$	0.02			NM
Less the impact of:
Realized gains (losses) after tax		0.08			(0.16	)		0.06			(0.01	)		0.01			-87.5	%
After-tax operating income (loss)	$	(0.08	)	$	(0.17	)	$	(0.71	)	$	0.01		$	0.01			NM

Capitalization:
Debt	$	187,566		$	210,784		$	208,294		$	208,586		$	216,808			15.6	%
Shareholders' equity excluding FAS 115 unrealized gain		442,797			431,828			412,349			412,330			413,513			-6.6	%
Total capitalization excluding FAS 115 unrealized gain		630,363			642,612			620,643			620,916			630,321			0.0	%
FAS 115 unrealized gain		15,350			13,623			1,539			17,266			1,151			-92.5	%
Total capitalization including FAS 115 unrealized gain	$	645,713		$	656,235		$	622,182		$	638,182		$	631,472			-2.2	%

Book Value Per Share:
Excluding FAS 115 unrealized gain	$	13.98		$	13.63		$	12.95		$	12.93		$	12.94			-7.4	%
Including FAS 115 unrealized gain	$	14.46		$	14.06		$	13.00		$	13.47		$	12.98			-10.3	%

Debt to Total Capital:
Excluding FAS 115 unrealized gain		29.8	%		32.8	%		33.6	%		33.6	%		34.4	%		15.4	%
Including FAS 115 unrealized gain		29.0	%		32.1	%		33.5	%		32.7	%		34.3	%		18.3	%

Interest Coverage:
Income before interest and income taxes
to interest expense		0.98			NM			NM			1.02			1.30			32.7	%

Operating income before interest and income
taxes to interest expense		NM			NM			NM			1.09			1.18			NM

PMA Capital Corporation

Selected Financial Data

(Dollar Amounts in Thousands, Except Per Share Data)

	Nine			Nine			% Change
	Months			Months			Nine
	2005			2004			Months

Net Premiums Written by Segment:
PMA Insurance Group	$	304,454		$	314,885			-3.3	%
Run-off Operations		7,222			(69,386	)		NM
Corporate & Other		(609	)		(561	)		-8.6	%
Net premiums written	$	311,067		$	244,938			27.0	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	18,153		$	12,905			40.7	%
Run-off Operations		(28,771	)		7,455			NM
Corporate & Other		(17,497	)		(15,800	)		-10.7	%
Pre-tax operating income (loss)		(28,115	)		4,560			NM
Net realized investment gains		3,201			14,363			-77.7	%
Pre-tax income (loss)		(24,914	)		18,923			NM
Income tax expense (benefit)		(5,120	)		6,780			NM
Net income (loss)	$	(19,794	)	$	12,143			NM
After-tax operating income (loss)	$	(21,875	)	$	2,807			NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	(0.63	)	$	0.38			NM
Less the impact of:
Realized gains after tax		0.06			0.26			-76.9	%
After-tax operating income (loss)	$	(0.69	)	$	0.12			NM

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

	3rd			4th			1st			2nd		3rd		Nine			Nine
	Quarter			Quarter			Quarter			Quarter		Quarter		Months			Months
	2004			2004			2005			2005		2005		2005			2004

Diluted Earnings (Loss) Per Share:

Net income (loss)	$	-		$	(0.33	)	$	(0.65	)	$	-	$	0.02	$	(0.63	)	$	0.38

Pre-tax operating income (loss)	$	(0.11	)	$	(0.23	)	$	(0.93	)	$	0.01	$	0.02	$	(0.89	)	$	0.20

After-tax operating income (loss)	$	(0.08	)	$	(0.17	)	$	(0.71	)	$	0.01	$	0.01	$	(0.69	)	$	0.12

Diluted weighted average common
shares outstanding		31,350,825			31,350,825			31,393,684			32,015,127		32,244,295		31,631,850			36,903,965


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

Actual common shares issued
and outstanding		31,681,751			31,676,851			31,835,136			31,885,541		31,956,983		31,956,983			31,681,751


Class A Common Stock prices:
High	$	9.16		$	10.85		$	10.65		$	9.00	$	9.50	$	10.65		$	9.16
Low	$	5.70		$	6.74		$	7.05		$	5.91	$	7.83	$	5.91		$	4.78
Close	$	7.55		$	10.35		$	8.00		$	8.83	$	8.78	$	8.78		$	7.55

This Page Intentionally Left Blank

PMA Capital Corporation
Consolidated Statements of Operations
(In Thousands)


	3rd			4th			1st			2nd			3rd		% Change
	Quarter			Quarter			Quarter			Quarter			Quarter		3rd
	2004			2004			2005			2005			2005		Quarter

Gross Premiums Written	$	100,013		$	69,940		$	121,313		$	95,069		$	130,106		30.1	%

Net Premiums Written	$	83,567		$	56,672		$	110,209		$	83,387		$	117,471		40.6	%

Revenues:
Net premiums earned	$	104,210		$	89,758		$	87,723		$	88,720		$	92,223		-11.5	%
Net investment income		13,238			12,142			11,712			12,542			12,648		-4.5	%
Net realized investment gains (losses)		3,515			(7,870	)		2,983			(265	)		483		-86.3	%
Other revenues		5,881			12,125			6,192			4,939			6,209		5.6	%
Total revenues		126,844			106,155			108,610			105,936			111,563		-12.0	%

Expenses:
Losses and loss adjustment expenses		80,706			70,189			93,988			63,261			68,112		-15.6	%
Acquisition expenses		24,087			18,935			18,671			17,983			19,691		-18.3	%
Operating expenses		18,318			20,735			17,698			18,802			17,872		-2.4	%
Dividends to policyholders		805			1,819			502			1,762			567		-29.6	%
Interest expense		2,973			3,482			3,969			4,040			4,105		38.1	%
Loss on debt exchange		-			5,973			-			-			-		NM
Total losses and expenses		126,889			121,133			134,828			105,848			110,347		-13.0	%

Pre-tax income (loss)		(45	)		(14,978	)		(26,218	)		88			1,216		NM

Income tax expense (benefit):
Current		(117	)		(272	)		-			-			-		NM
Deferred		146			(4,393	)		(5,667	)		71			476		NM

Total income tax expense (benefit)		29			(4,665	)		(5,667	)		71			476		NM

Net income (loss)	$	(74	)	$	(10,313	)	$	(20,551	)	$	17		$	740		NM

Pre-tax operating income (loss)	$	(3,560	)	$	(7,108	)	$	(29,201	)	$	353		$	733		NM

After-tax operating income (loss)	$	(2,359	)	$	(5,198	)	$	(22,490	)	$	189		$	426		NM

PMA Capital Corporation
Consolidated Statements of Operations
(In Thousands)

	Nine			Nine		% Change
	Months			Months		Nine
	2005			2004		Months

Gross Premiums Written	$	346,488		$	282,322		22.7	%

Net Premiums Written	$	311,067		$	244,938		27.0	%

Revenues:
Net premiums earned	$	268,666		$	428,827		-37.3	%
Net investment income		36,902			44,803		-17.6	%
Net realized investment gains		3,201			14,363		-77.7	%
Other revenues		17,340			18,576		-6.7	%
Total revenues		326,109			506,569		-35.6	%

Expenses:
Losses and loss adjustment expenses		225,361			310,367		-27.4	%
Acquisition expenses		56,345			96,290		-41.5	%
Operating expenses		54,372			68,937		-21.1	%
Dividends to policyholders		2,831			3,180		-11.0	%
Interest expense		12,114			8,872		36.5	%
Total losses and expenses		351,023			487,646		-28.0	%

Pre-tax income (loss)		(24,914	)		18,923		NM

Income tax expense (benefit):
Current		-			272		NM
Deferred		(5,120	)		6,508		NM

Total income tax expense (benefit)		(5,120	)		6,780		NM

Net income (loss)	$	(19,794	)	$	12,143		NM

Pre-tax operating income (loss)	$	(28,115	)	$	4,560		NM

After-tax operating income (loss)	$	(21,875	)	$	2,807		NM

PMA Capital Corporation
Consolidated Balance Sheets
(In Thousands)

	3rd			4th			1st			2nd			3rd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2004			2004			2005			2005			2005

Assets:
Investments in fixed maturities available for sale	$	1,381,788		$	1,304,086		$	1,283,406		$	1,256,169		$	1,184,301
Short-term investments		98,761			123,746			60,325			61,058			67,636
Short-term investments, loaned securities collateral		96,606			-			102,620			90,114			63,751
Total investments		1,577,155			1,427,832			1,446,351			1,407,341			1,315,688

Cash		48,046			35,537			49,921			30,464			43,282
Accrued investment income		16,407			15,517			15,188			14,147			13,703
Premiums receivable		219,111			197,831			208,748			183,713			212,847
Reinsurance receivables		1,170,004			1,142,552			1,129,507			1,129,857			1,115,953
Deferred income taxes		80,541			86,501			98,714			90,301			98,568
Deferred acquisition costs		37,800			31,426			35,138			34,655			39,432
Funds held by reinsureds		134,978			142,064			146,674			150,078			153,064
Other assets		219,536			171,042			167,200			169,028			167,192
Total assets	$	3,503,578		$	3,250,302		$	3,297,441		$	3,209,584		$	3,159,729

Liabilities:
Unpaid losses and loss adjustment expenses	$	2,179,900		$	2,111,598		$	2,077,599		$	2,005,386		$	1,966,907
Unearned premiums		193,221			158,489			177,415			175,025			199,153
Debt		187,566			210,784			208,294			208,586			216,808
Accounts payable, accrued expenses
and other liabilities		254,467			196,744			200,350			191,309			198,441
Funds held under reinsurance treaties		127,239			121,234			112,712			105,572			96,067
Dividends to policyholders		6,424			5,977			4,580			3,992			3,931
Payable under securities loan agreements		96,614			25			102,603			90,118			63,758
Total liabilities		3,045,431			2,804,851			2,883,553			2,779,988			2,745,065

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		223,519			213,313			189,787			189,109			188,834
Accumulated other comprehensive income (loss)		885			(1,959	)		(14,116	)		1,377			(14,861	)
Treasury stock, at cost		(45,474	)		(45,573	)		(41,752	)		(40,734	)		(39,305	)
Unearned restricted stock compensation		(1,204	)		(751	)		(452	)		(577	)		(425	)
Total shareholders' equity		458,147			445,451			413,888			429,596			414,664
Total liabilities and shareholders' equity	$	3,503,578		$	3,250,302		$	3,297,441		$	3,209,584		$	3,159,729

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollars in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005			2005			2004

Total Investments & Cash
As reported	$	1,625,201		$	1,463,369		$	1,496,272		$	1,437,805		$	1,358,970		$	1,358,970		$	1,625,201
Less:
Securities lending activity		96,614			25			102,603			90,118			63,758			63,758			96,614
Unrealized gain		23,615			20,958			2,368			26,563			1,771			1,771			23,615
Total adjusted investments & cash	$	1,504,972		$	1,442,386		$	1,391,301		$	1,321,124		$	1,293,441		$	1,293,441		$	1,504,972

Net Investment Income
As reported	$	13,238		$	12,142		$	11,712		$	12,542		$	12,648		$	36,902		$	44,803
Funds held:
Assumed		73			846			187			129			535			851			169
Ceded		(2,536	)		(2,026	)		(2,437	)		(1,871	)		(1,694	)		(6,002	)		(9,883	)
Total funds held		(2,463	)		(1,180	)		(2,250	)		(1,742	)		(1,159	)		(5,151	)		(9,714	)

Total adjusted investment income	$	15,701		$	13,322		$	13,962		$	14,284		$	13,807		$	42,053		$	54,517

Yield
As reported		3.13	%		3.15	%		3.17	%		3.42	%		3.62	%		3.42	%		3.20	%
Investment portfolio		4.01	%		3.62	%		3.94	%		4.21	%		4.22	%		4.12	%		4.15	%

Duration (in years)		3.6			3.6			3.8			3.9			3.7			3.7			3.6

PMA Capital Corporation
Debt
(Dollars in Thousands)


	Amount
	Outstanding			Maturity
6.50% convertible debt	$	94,640			2022¹
Derivative component of 6.50% convertible debt		13,117
4.25% convertible debt		655			2022²
8.50% senior notes		57,500			2018
Trust preferred debt³		43,816			2033
Surplus notes ⁴		10,000			2035
Unamortized debt discount		(2,920	)
Total long-term debt	$	216,808

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 $10.5 million principal amount.

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.

Weighted average interest rate on trust preferred debt is 8.0% as of September 30, 2005.

⁴

Interest rate on surplus notes is 8.51% as of September 30, 2005.


PMA Capital Corporation
Balance Sheet Impact of Commutations - Run-off Operations
(Dollars in Thousands)

	3rd Quarter 2005
Liabilities		Assumed			Ceded		Total
Unpaid loss and loss adjustment expenses	$	(4,475	)	$	-	$	(4,475	)
Funds held under reinsurance treaties		(219	)		-		(219	)

		Nine Months 2005
Liabilities		Assumed			Ceded		Total
Unpaid loss and loss adjustment expenses	$	(9,477	)	$	-	$	(9,477	)
Funds held under reinsurance treaties		(219	)		-		(219	)

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2005
(In Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	339,115	$	(609	)	$	7,982		$	346,488

Net Premiums Written	$	304,454	$	(609	)	$	7,222		$	311,067

Revenues:
Net premiums earned	$	262,455	$	(609	)	$	6,820		$	268,666
Net investment income		23,417		799			12,686			36,902
Other revenues		17,043		297			-			17,340
Operating revenues		302,915		487			19,506			322,908

Losses and Expenses:
Losses and loss adjustment expenses		191,544		-			33,817			225,361
Acquisition expenses		52,300		-			4,045			56,345
Operating expenses		38,082		5,875			10,415			54,372
Dividends to policyholders		2,831		-			-			2,831
Total losses and expenses		284,757		5,875			48,277			338,909

Operating income (loss) before income taxes
and interest expense		18,158		(5,388	)		(28,771	)		(16,001	)

Interest expense		5		12,109			-			12,114

Pre-tax operating income (loss)	$	18,153	$	(17,497	)	$	(28,771	)		(28,115	)

Net realized investment gains										3,201

Pre-tax loss									$	(24,914	)


¹ Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.

PMA Capital Corporation
Statements of Operations - Consolidating
Nine Months Ended September 30, 2004
(In Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	350,674	$	(561	)	$	(67,791	)	$	282,322

Net Premiums Written	$	314,885	$	(561	)	$	(69,386	)	$	244,938

Revenues:
Net premiums earned	$	352,970	$	(561	)	$	76,418		$	428,827
Net investment income		24,475		888			19,440			44,803
Other revenues		18,257		319			-			18,576
Operating revenues		395,702		646			95,858			492,206

Losses and Expenses:
Losses and loss adjustment expenses		264,897		-			45,470			310,367
Acquisition expenses		67,528		-			28,762			96,290
Operating expenses		47,192		7,574			14,171			68,937
Dividends to policyholders		3,180		-			-			3,180
Total losses and expenses		382,797		7,574			88,403			478,774

Operating income (loss) before income taxes
and interest expense		12,905		(6,928	)		7,455			13,432

Interest expense		-		8,872			-			8,872

Pre-tax operating income (loss)	$	12,905	$	(15,800	)	$	7,455			4,560

Net realized investment gains										14,363

Pre-tax income									$	18,923


¹ Corporate & Other includes the effect of eliminating transactions between the various Insurance Operations.

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended September 30, 2005
(In Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	129,163	$	(195	)	$	1,138		$	130,106
.
Net Premiums Written	$	116,877	$	(195	)	$	789		$	117,471

Revenues:
Net premiums earned	$	92,214	$	(195	)	$	204		$	92,223
Net investment income		8,160		271			4,217			12,648
Other revenues		6,172		37			-			6,209
Operating revenues		106,546		113			4,421			111,080

Losses and Expenses:
Losses and loss adjustment expenses		67,995		-			117			68,112
Acquisition expenses		18,279		-			1,412			19,691
Operating expenses		13,100		1,622			3,150			17,872
Dividends to policyholders		567		-			-			567
Total losses and expenses		99,941		1,622			4,679			106,242

Operating income (loss) before income taxes
and interest expense		6,605		(1,509	)		(258	)		4,838

Interest expense		5		4,100			-			4,105

Pre-tax operating income (loss)	$	6,600	$	(5,609	)	$	(258	)		733

Net realized investment gains										483

Pre-tax income									$	1,216


¹ Corporate & Other includes the effect of eliminating transactions between the Insurance Operations.

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended September 30, 2004
(In Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	109,788	$	(186	)	$	(9,589	)	$	100,013
.
Net Premiums Written	$	97,637	$	(186	)	$	(13,884	)	$	83,567

Revenues:
Net premiums earned	$	103,032	$	(186	)	$	1,364		$	104,210
Net investment income		8,083		271			4,884			13,238
Other revenues		5,856		25			-			5,881
Operating revenues		116,971		110			6,248			123,329

Losses and Expenses:
Losses and loss adjustment expenses		77,994		-			2,712			80,706
Acquisition expenses		21,876		-			2,211			24,087
Operating expenses		12,759		2,119			3,440			18,318
Dividends to policyholders		805		-			-			805
Total losses and expenses		113,434		2,119			8,363			123,916

Operating income (loss) before income taxes
and interest expense		3,537		(2,009	)		(2,115	)		(587	)

Interest expense		-		2,973			-			2,973

Pre-tax operating income (loss)	$	3,537	$	(4,982	)	$	(2,115	)		(3,560	)

Net realized investment gains										3,515

Pre-tax loss									$	(45	)


¹ Corporate & Other includes the effect of eliminating transactions between the various Insurance Operations.

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

	3rd		4th		1st		2nd		3rd		Nine		Nine		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		3rd			Nine
	2004		2004		2005		2005		2005		2005		2004		Quarter			Months

Gross Premiums Written	$	109,788	$	72,380	$	116,272	$	93,680	$	129,163	$	339,115	$	350,674		17.6	%		-3.3	%

Net Premiums Written	$	97,637	$	62,910	$	105,474	$	82,103	$	116,877	$	304,454	$	314,885		19.7	%		-3.3	%

Revenues:	��
Net premiums earned	$	103,032	$	89,373	$	84,700	$	85,541	$	92,214	$	262,455	$	352,970		-10.5	%		-25.6	%
Net investment income		8,083		6,509		7,541		7,716		8,160		23,417		24,475		1.0	%		-4.3	%
Other revenues		5,856		5,511		5,965		4,906		6,172		17,043		18,257		5.4	%		-6.6	%
Total revenues		116,971		101,393		98,206		98,163		106,546		302,915		395,702		-8.9	%		-23.4	%

Losses and Expenses:
Losses and loss adjustment expenses		77,994		66,284		62,218		61,331		67,995		191,544		264,897		-12.8	%		-27.7	%
Acquisition expenses		21,876		18,550		16,767		17,254		18,279		52,300		67,528		-16.4	%		-22.6	%
Operating expenses		12,759		14,479		12,107		12,875		13,100		38,082		47,192		2.7	%		-19.3	%
Dividends to policyholders		805		1,819		502		1,762		567		2,831		3,180		-29.6	%		-11.0	%
Total losses and expenses		113,434		101,132		91,594		93,222		99,941		284,757		382,797		-11.9	%		-25.6	%

Operating income before income taxes
and interest expense		3,537		261		6,612		4,941		6,605		18,158		12,905		86.7	%		40.7	%

Interest expense		-		-		-		-		5		5		-		NM			NM

Pre-tax operating income	$	3,537	$	261	$	6,612	$	4,941	$	6,600	$	18,153	$	12,905		86.6	%		40.7	%

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
	3rd Quarter 2004			4th Quarter 2004			1st Quarter 2005			2nd Quarter 2005			3rd Quarter 2005			Nine Months 2005			Nine Months 2004			Point Chg. 3rd Quarter Better (Worse)			Point Chg. Nine Months Better (Worse)

Ratios - GAAP Basis:


Loss and LAE ratio		75.7	%		74.2	%		73.5	%		71.7	%		73.7	%		73.0	%		75.0	%		2.0			2.0

Expense ratio:
Acquisition expenses		21.2	%		20.8	%		19.8	%		20.2	%		19.8	%		19.9	%		19.1	%		1.4			(0.8	)
Operating expenses¹		7.8	%		11.5	%		9.5	%		10.3	%		9.2	%		9.6	%		9.5	%		(1.4	)		(0.1	)
Total expense ratio		29.0	%		32.3	%		29.3	%		30.5	%		29.0	%		29.5	%		28.6	%		(0.0	)		(0.9	)

Policyholders' dividend ratio		0.8	%		2.0	%		0.6	%		2.1	%		0.6	%		1.1	%		0.9	%		0.2			(0.2	)
Combined ratio		105.5	%		108.5	%		103.4	%		104.3	%		103.3	%		103.6	%		104.5	%		2.2			0.9

Net investment income ratio		-7.8	%		-7.3	%		-8.9	%		-9.0	%		-8.8	%		-8.9	%		-6.9	%		1.0			2.0
Operating ratio		97.7	%		101.2	%		94.5	%		95.3	%		94.5	%		94.7	%		97.6	%		3.2			2.9

The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $8.1 million, $10.3 million, $8.0 million, $8.9 million and $8.4 million for the third and fourth quarters of 2004 and the first, second and third quarters of 2005, respectively.

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

	3rd			4th			1st			2nd		3rd			Nine			Nine			% Change			% Change
	Quarter			Quarter			Quarter			Quarter		Quarter			Months			Months			3rd			Nine
	2004			2004			2005			2005		2005			2005			2004			Quarter			Months

Gross Premiums Written	$	(9,589	)	$	(2,176	)	$	5,235		$	1,609	$	1,138		$	7,982		$	(67,791	)		NM			NM

Net Premiums Written	$	(13,884	)	$	(5,974	)	$	4,929		$	1,504	$	789		$	7,222		$	(69,386	)		NM			NM

Revenues:
Net premiums earned	$	1,364		$	649		$	3,217		$	3,399	$	204		$	6,820		$	76,418			-85.0	%		-91.1	%
Net investment income		4,884			5,215			3,900			4,569		4,217			12,686			19,440			-13.7	%		-34.7	%
Total revenues		6,248			5,864			7,117			7,968		4,421			19,506			95,858			-29.2	%		-79.7	%

Losses and Expenses:
Losses and loss adjustment expenses		2,712			3,905			31,770			1,930		117			33,817			45,470			-95.7	%		-25.6	%
Acquisition expenses		2,211			385			1,904			729		1,412			4,045			28,762			-36.1	%		-85.9	%
Operating expenses		3,440			3,520			3,089			4,176		3,150			10,415			14,171			-8.4	%		-26.5	%
Total losses and expenses		8,363			7,810			36,763			6,835		4,679			48,277			88,403			-44.1	%		-45.4	%

Pre-tax operating income (loss)	$	(2,115	)	$	(1,946	)	$	(29,646	)	$	1,133	$	(258	)	$	(28,771	)		7,455			87.8	%		NM

PMA Capital Corporation
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			3rd			Nine
	2004			2004			2005			2005			2005			2005			2004			Quarter			Months

Gross Premiums Written	$	(186	)	$	(264	)	$	(194	)	$	(220	)	$	(195	)	$	(609	)	$	(561	)		-4.8	%		-8.6	%

Net Premiums Written	$	(186	)	$	(264	)	$	(194	)	$	(220	)	$	(195	)	$	(609	)	$	(561	)		-4.8	%		-8.6	%

Revenues:
Net premiums earned	$	(186	)	$	(264	)	$	(194	)	$	(220	)	$	(195	)	$	(609	)	$	(561	)		-4.8	%		-8.6	%
Net investment income		271			418			271			257			271			799			888			0.0	%		-10.0	%
Other revenues		25			6,614			227			33			37			297			319			48.0	%		-6.9	%
Total revenues		110			6,768			304			70			113			487			646			2.7	%		-24.6	%

Losses and Expenses:
Operating expenses		2,119			2,736			2,502			1,751			1,622			5,875			7,574			-23.5	%		-22.4	%
Total losses and expenses		2,119			2,736			2,502			1,751			1,622			5,875			7,574			-23.5	%		-22.4	%

Operating income (loss) before income taxes,
interest expense, and loss on debt exchange		(2,009	)		4,032			(2,198	)		(1,681	)		(1,509	)		(5,388	)		(6,928	)		24.9	%		22.2	%

Interest expense		2,973			3,482			3,969			4,040			4,100			12,109			8,872			37.9	%		36.5	%

Loss on debt exchange		-			5,973			-			-			-			-			-			NM			NM

Pre-tax operating loss	$	(4,982	)	$	(5,423	)	$	(6,167	)	$	(5,721	)	$	(5,609	)	$	(17,497	)		(15,800	)		-12.6	%		-10.7	%

PMA Capital Corporation
Operating Cash Flows - Consolidated
(In Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005			2005			2004

Receipts:
Premiums and other revenues collected	$	91,121		$	101,641		$	95,437		$	109,944		$	90,858		$	296,239		$	380,948
Investment income received		20,627			18,986			14,814			14,656			15,942			45,412			69,288
Total receipts		111,748			120,627			110,251			124,600			106,800			341,651			450,236

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		43,406			34,520			3,812			14,240			16,593			34,645			87,736
Losses and LAE paid - prior years		178,193			87,203			112,312			134,182			86,329			332,823			668,103
Total losses and LAE paid		221,599			121,723			116,124			148,422			102,922			367,468			755,839
Insurance operating expenses paid		43,228			27,716			37,394			40,823			39,009			117,226			171,768
Policyholders' dividends paid		2,145			765			2,115			1,284			820			4,219			4,591
Interest on corporate debt		3,694			2,371			4,387			1,987			5,327			11,701			9,236
Total disbursements		270,666			152,575			160,020			192,516			148,078			500,614			941,434

Net other		6,997			(56,713	)		7,258			1,046			3,564			11,868			(23,408	)

Net operating cash flows	$	(151,921	)	$	(88,661	)	$	(42,511	)	$	(66,870	)	$	(37,714	)	$	(147,095	)	$	(514,606	)

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(In Thousands)

	3rd			4th			1st		2nd			3rd		Nine			Nine
	Quarter			Quarter			Quarter		Quarter			Quarter		Months			Months
	2004			2004			2005		2005			2005		2005			2004

Receipts:
Premiums and other revenues collected	$	97,543		$	111,150		$	91,910	$	101,408		$	91,212	$	284,530		$	349,703
Investment income received		9,574			9,851			9,404		9,682			10,262		29,348			29,689
Total receipts		107,117			121,001			101,314		111,090			101,474		313,878			379,392

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		29,827			31,304			3,810		14,233			16,584		34,627			55,142
Losses and LAE paid - prior years		57,160			31,086			72,999		69,276			55,520		197,795			195,723
Losses and LAE		86,987			62,390			76,809		83,509			72,104		232,422			250,865
Insurance operating expenses paid		34,600			29,531			33,000		38,226			33,988		105,214			126,176
Policyholders' dividends paid		2,145			765			2,115		1,284			820		4,219			4,591
Total disbursements		123,732			92,686			111,924		123,019			106,912		341,855			381,632

Net other		8,102			(21,974	)		13,760		2,002			6,012		21,774			(8,739	)

Net operating cash flows	$	(8,513	)	$	6,341		$	3,150	$	(9,927	)	$	574	$	(6,203	)	$	(10,979	)

PMA Capital Corporation
Operating Cash Flows - Run-off Operations
(In Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005			2005			2004

Receipts:
Premiums collected	$	(6,422	)	$	(9,509	)	$	3,527		$	8,536		$	(354	)	$	11,709		$	31,245
Investment income received		11,053			9,135			5,410			4,974			5,680			16,064			39,599
Total receipts		4,631			(374	)		8,937			13,510			5,326			27,773			70,844

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		13,579			3,216			2			7			9			18			32,594
Losses and LAE paid - prior years		121,033			56,117			39,313			64,906			30,809			135,028			472,380
Total losses and LAE paid		134,612			59,333			39,315			64,913			30,818			135,046			504,974
Insurance operating expenses paid		8,628			(1,815	)		4,394			2,597			5,021			12,012			45,592
Total disbursements		143,240			57,518			43,709			67,510			35,839			147,058			550,566

Net other		282			(34,482	)		(74	)		(4,890	)		(1,912	)		(6,876	)		(11,169	)

Net operating cash flows	$	(138,327	)	$	(92,374	)	$	(34,846	)	$	(58,890	)	$	(32,425	)	$	(126,161	)	$	(490,891	)

PMA Capital Corporation

Statutory Surplus

(In Thousands)

3rd

4th

1st

2nd

3rd

Quarter

2004

2005

2005¹

PMA Pool ²

294,587

300,034

298,686

299,219

311,802 ⁴

PMA Capital Insurance Company ³

236,443

224,511

218,322

215,348

210,663 ⁵


PMA Capital Corporation
Statutory Financial Information - PMA Pool ²
(In Thousands)

	3rd			4th			1st			2nd			3rd			Nine			Nine
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2004			2004			2005			2005			2005¹			2005¹			2004

Net Premiums Written:
Workers Compensation & Integrated
Disability	$	88,814		$	54,556		$	94,737		$	70,944		$	101,435		$	267,116		$	251,768
Other Commercial Lines		8,962			3,700			10,787			10,998			13,487			35,272			29,152
Total - PMA Pool	$	97,776		$	58,256		$	105,524		$	81,942		$	114,922		$	302,388		$	280,920

Statutory Ratios:
Loss and LAE ratio		75.9	%		75.2	%		73.3	%		73.0	%		73.3	%		73.2	%		75.3	%
Underwriting expense ratio		29.5	%		37.5	%		25.2	%		30.2	%		25.1	%		26.5	%		30.7	%
Policyholders' dividend ratio		0.4	%		0.4	%		0.9	%		0.8	%		0.8	%		0.9	%		0.8	%
Combined ratio		105.8	%		113.1	%		99.4	%		104.0	%		99.2	%		100.6	%		106.8	%
Operating ratio		98.9	%		104.2	%		91.2	%		95.2	%		91.2	%		92.3	%		99.8	%

Estimated.

The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company.

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 $132.5 million and $10 million related to surplus notes.

⁵

Includes unassigned surplus of $17.1 million.

PMA Capital Corporation
Industry Ratings and Market Information

Transfer Agent and Registrar:				Inquiries:
American Stock Transfer & Trust Company				William E. Hitselberger
Shareholder Relations				Chief Financial Officer
59 Maiden Lane – Plaza Level				215.665.5070
New York, NY 10038				e-mail: bhitselberger@pmacapital.com
www.amstock.com
				Investor Relations
Phone Inquiries:				215.665.5046
800.937.5449				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 10/28/2005):

	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.

Pma Capital (PMACA) Inactive 8-KPMA Capital Announces Third Quarter 2005 Results