Exhibit 99.2
Statistical Supplement
Fourth Quarter
2005
PMA Capital Corporation | |||||||||
Statistical Supplement | |||||||||
Fourth Quarter - 2005 | |||||||||
Table of Contents | |||||||||
Page | |||||||||
Consolidated Highlights: | |||||||||
Selected Financial Data - Fourth Quarter | 1 | ||||||||
Selected Financial Data - Year-to-date | 2 | ||||||||
Consolidated Statements of Operations - Per Share Data | 3 | ||||||||
Consolidated Statements of Operations - Fourth 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 - Full Year | 9 | - | 10 | ||||||
Statements of Operations - Consolidating - Fourth 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) | |||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | % Change | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 4th | ||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | Quarter | ||||||||||||||
Net Premiums Written by Segment: | |||||||||||||||||||
PMA Insurance Group | $ | 62,910 | $ | 105,474 | $ | 82,103 | $ | 116,877 | $ | 71,339 | 13.4 | % | |||||||
Run-off Operations | (5,974 | ) | 4,929 | 1,504 | 789 | 3,028 | NM | ||||||||||||
Corporate & Other | (264 | ) | (194 | ) | (220 | ) | (195 | ) | (209 | ) | 20.8 | % | |||||||
Net premiums written | $ | 56,672 | $ | 110,209 | $ | 83,387 | $ | 117,471 | $ | 74,158 | 30.9 | % | |||||||
Major Components of Net Income (Loss): | |||||||||||||||||||
Pre-tax operating income (loss) by segment: | |||||||||||||||||||
PMA Insurance Group | $ | 261 | $ | 6,612 | $ | 4,941 | $ | 6,600 | $ | 3,867 | NM | ||||||||
Run-off Operations | (1,946 | ) | (29,646 | ) | 1,133 | (258 | ) | 1,838 | NM | ||||||||||
Corporate & Other | (5,423 | ) | (6,167 | ) | (5,721 | ) | (5,609 | ) | (6,722 | ) | -24.0 | % | |||||||
Pre-tax operating income (loss) | (7,108 | ) | (29,201 | ) | 353 | 733 | (1,017 | ) | 85.7 | % | |||||||||
Net realized investment gains (losses) | (7,870 | ) | 2,983 | (265 | ) | 483 | (1,084 | ) | 86.2 | % | |||||||||
Pre-tax income (loss) | (14,978 | ) | (26,218 | ) | 88 | 1,216 | (2,101 | ) | 86.0 | % | |||||||||
Income tax expense (benefit) | (4,665 | ) | (5,667 | ) | 71 | 476 | (875 | ) | 81.2 | % | |||||||||
Net income (loss) | $ | (10,313 | ) | $ | (20,551 | ) | $ | 17 | $ | 740 | $ | (1,226 | ) | 88.1 | % | ||||
After-tax operating income (loss) | $ | (5,198 | ) | $ | (22,490 | ) | $ | 189 | $ | 426 | $ | (521 | ) | 90.0 | % | ||||
Diluted Earnings (Loss) Per Share: | |||||||||||||||||||
Net income (loss) | $ | (0.33 | ) | $ | (0.65 | ) | $ | - | $ | 0.02 | $ | (0.04 | ) | 87.9 | % | ||||
Less the impact of: | |||||||||||||||||||
Realized gains (losses) after tax | (0.16 | ) | 0.06 | (0.01 | ) | 0.01 | (0.02 | ) | 87.5 | % | |||||||||
After-tax operating income (loss) | $ | (0.17 | ) | $ | (0.71 | ) | $ | 0.01 | $ | 0.01 | $ | (0.02 | ) | 88.2 | % | ||||
Capitalization: | |||||||||||||||||||
Debt | $ | 210,784 | $ | 208,294 | $ | 208,586 | $ | 216,808 | $ | 196,181 | -6.9 | % | |||||||
Shareholders' equity excluding FAS 115 unrealized gain (loss) | 431,828 | 412,349 | 412,330 | 413,513 | 409,019 | -5.3 | % | ||||||||||||
Total capitalization excluding FAS 115 unrealized gain (loss) | 642,612 | 620,643 | 620,916 | 630,321 | 605,200 | -5.8 | % | ||||||||||||
FAS 115 unrealized gain (loss) | 13,623 | 1,539 | 17,266 | 1,151 | (2,796 | ) | NM | ||||||||||||
Total capitalization including FAS 115 unrealized gain (loss) | $ | 656,235 | $ | 622,182 | $ | 638,182 | $ | 631,472 | $ | 602,404 | -8.2 | % | |||||||
Book Value Per Share: | |||||||||||||||||||
Excluding FAS 115 unrealized gain (loss) | $ | 13.63 | $ | 12.95 | $ | 12.93 | $ | 12.94 | $ | 12.79 | -6.2 | % | |||||||
Including FAS 115 unrealized gain (loss) | $ | 14.06 | $ | 13.00 | $ | 13.47 | $ | 12.98 | $ | 12.70 | -9.7 | % | |||||||
Debt to Total Capital: | |||||||||||||||||||
Excluding FAS 115 unrealized gain (loss) | 32.8 | % | 33.6 | % | 33.6 | % | 34.4 | % | 32.4 | % | -1.2 | % | |||||||
Including FAS 115 unrealized gain (loss) | 32.1 | % | 33.5 | % | 32.7 | % | 34.3 | % | 32.6 | % | 1.6 | % | |||||||
Interest Coverage: | |||||||||||||||||||
Income before interest and income taxes | |||||||||||||||||||
to interest expense | NM | NM | 1.02 | 1.30 | 0.47 | NM | |||||||||||||
Operating income before interest and income taxes | |||||||||||||||||||
to interest expense | NM | NM | 1.09 | 1.18 | 0.75 | NM |
1
PMA Capital Corporation | ||||||||||
Selected Financial Data | ||||||||||
(Dollar Amounts in Thousands, Except Per Share Data) | ||||||||||
Twelve | Twelve | % Change | ||||||||
Months | Months | Twelve | ||||||||
2005 | 2004 | Months | ||||||||
Net Premiums Written by Segment: | ||||||||||
PMA Insurance Group | $ | 375,793 | $ | 377,795 | -0.5 | % | ||||
Run-off Operations | 10,250 | (75,360 | ) | NM | ||||||
Corporate & Other | (818 | ) | (825 | ) | 0.8 | % | ||||
Net premiums written | $ | 385,225 | $ | 301,610 | 27.7 | % | ||||
Major Components of Net Income (Loss): | ||||||||||
Pre-tax operating income (loss) by segment: | ||||||||||
PMA Insurance Group | $ | 22,020 | $ | 13,166 | 67.2 | % | ||||
Run-off Operations | (26,933 | ) | 5,509 | NM | ||||||
Corporate & Other | (24,219 | ) | (21,223 | ) | -14.1 | % | ||||
Pre-tax operating loss | (29,132 | ) | (2,548 | ) | NM | |||||
Net realized investment gains | 2,117 | 6,493 | -67.4 | % | ||||||
Pre-tax income (loss) | (27,015 | ) | 3,945 | NM | ||||||
Income tax expense (benefit) | (5,995 | ) | 2,115 | NM | ||||||
Net income (loss) | $ | (21,020 | ) | $ | 1,830 | NM | ||||
After-tax operating loss | $ | (22,396 | ) | $ | (2,391 | ) | NM | |||
Diluted Earnings (Loss) Per Share: | ||||||||||
Net income (loss) | $ | (0.66 | ) | $ | 0.06 | NM | ||||
Less the impact of: | ||||||||||
Realized gains after tax | 0.05 | 0.14 | -64.3 | % | ||||||
After-tax operating loss | $ | (0.71 | ) | $ | (0.08 | ) | NM |
2
PMA Capital Corporation | ||||||||||||||||||||||
Consolidated Statements of Operations - Per Share Data | ||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||
Net income (loss) | $ | (0.33 | ) | $ | (0.65 | ) | $ | - | $ | 0.02 | $ | (0.04 | ) | $ | (0.66 | ) | $ | 0.06 | ||||
Pre-tax operating income (loss) | $ | (0.23 | ) | $ | (0.93 | ) | $ | 0.01 | $ | 0.02 | $ | (0.03 | ) | $ | (0.92 | ) | $ | (0.08 | ) | |||
After-tax operating income (loss) | $ | (0.17 | ) | $ | (0.71 | ) | $ | 0.01 | $ | 0.01 | $ | (0.02 | ) | $ | (0.71 | ) | $ | (0.08 | ) | |||
Diluted weighted average common | ||||||||||||||||||||||
shares outstanding | 31,350,825 | 31,393,684 | 32,015,127 | 32,244,295 | 31,833,384 | 31,682,648 | 31,729,061 | |||||||||||||||
Dividends declared: | ||||||||||||||||||||||
Class A Common stock | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
Actual common shares issued | ||||||||||||||||||||||
and outstanding | 31,676,851 | 31,835,136 | 31,885,541 | 31,956,983 | 31,983,283 | 31,983,283 | 31,676,851 | |||||||||||||||
Class A Common Stock prices: | ||||||||||||||||||||||
High | $ | 10.85 | $ | 10.65 | $ | 9.00 | $ | 9.50 | $ | 9.73 | $ | 10.65 | $ | 10.85 | ||||||||
Low | $ | 6.74 | $ | 7.05 | $ | 5.91 | $ | 7.83 | $ | 7.99 | $ | 5.91 | $ | 4.70 | ||||||||
Close | $ | 10.35 | $ | 8.00 | $ | 8.83 | $ | 8.78 | $ | 9.13 | $ | 9.13 | $ | 10.35 |
3
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4
PMA Capital Corporation | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
(In Thousands) | |||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | % Change | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 4th | ||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | Quarter | ||||||||||||||
Gross Premiums Written | $ | 69,940 | $ | 121,313 | $ | 95,069 | $ | 130,106 | $ | 87,240 | 24.7 | % | |||||||
Net Premiums Written | $ | 56,672 | $ | 110,209 | $ | 83,387 | $ | 117,471 | $ | 74,158 | 30.9 | % | |||||||
Revenues: | |||||||||||||||||||
Net premiums earned | $ | 89,758 | $ | 87,723 | $ | 88,720 | $ | 92,223 | $ | 99,364 | 10.7 | % | |||||||
Net investment income | 12,142 | 11,712 | 12,542 | 12,648 | 11,761 | -3.1 | % | ||||||||||||
Net realized investment gains (losses) | (7,870 | ) | 2,983 | (265 | ) | 483 | (1,084 | ) | 86.2 | % | |||||||||
Other revenues | 12,125 | 6,192 | 4,939 | 6,209 | 6,946 | -42.7 | % | ||||||||||||
Total revenues | 106,155 | 108,610 | 105,936 | 111,563 | 116,987 | 10.2 | % | ||||||||||||
Expenses: | |||||||||||||||||||
Losses and loss adjustment expenses | 70,189 | 93,988 | 63,261 | 68,112 | 69,713 | -0.7 | % | ||||||||||||
Acquisition expenses | 18,935 | 18,671 | 17,983 | 19,691 | 19,536 | 3.2 | % | ||||||||||||
Operating expenses | 20,735 | 17,698 | 18,802 | 17,872 | 23,499 | 13.3 | % | ||||||||||||
Dividends to policyholders | 1,819 | 502 | 1,762 | 567 | 2,343 | 28.8 | % | ||||||||||||
Interest expense | 3,482 | 3,969 | 4,040 | 4,105 | 3,997 | 14.8 | % | ||||||||||||
Loss on debt exchange | 5,973 | - | - | - | - | NM | |||||||||||||
Total losses and expenses | 121,133 | 134,828 | 105,848 | 110,347 | 119,088 | -1.7 | % | ||||||||||||
Pre-tax income (loss) | (14,978 | ) | (26,218 | ) | 88 | 1,216 | (2,101 | ) | 86.0 | % | |||||||||
Income tax expense (benefit): | |||||||||||||||||||
Current | (272 | ) | - | - | - | - | NM | ||||||||||||
Deferred | (4,393 | ) | (5,667 | ) | 71 | 476 | (875 | ) | 80.1 | % | |||||||||
Total income tax expense (benefit) | (4,665 | ) | (5,667 | ) | 71 | 476 | (875 | ) | 81.2 | % | |||||||||
Net income (loss) | $ | (10,313 | ) | $ | (20,551 | ) | $ | 17 | $ | 740 | $ | (1,226 | ) | 88.1 | % | ||||
Pre-tax operating income (loss) | $ | (7,108 | ) | $ | (29,201 | ) | $ | 353 | $ | 733 | $ | (1,017 | ) | 85.7 | % | ||||
After-tax operating income (loss) | $ | (5,198 | ) | $ | (22,490 | ) | $ | 189 | $ | 426 | $ | (521 | ) | 90.0 | % |
5
PMA Capital Corporation | ||||||||||
Consolidated Statements of Operations | ||||||||||
(In Thousands) | ||||||||||
Twelve | Twelve | % Change | ||||||||
Months | Months | Twelve | ||||||||
2005 | 2004 | Months | ||||||||
Gross Premiums Written | $ | 433,728 | $ | 352,262 | 23.1 | % | ||||
Net Premiums Written | $ | 385,225 | $ | 301,610 | 27.7 | % | ||||
Revenues: | ||||||||||
Net premiums earned | $ | 368,030 | $ | 518,585 | -29.0 | % | ||||
Net investment income | 48,663 | 56,945 | -14.5 | % | ||||||
Net realized investment gains | 2,117 | 6,493 | -67.4 | % | ||||||
Other revenues | 24,286 | 30,701 | -20.9 | % | ||||||
Total revenues | 443,096 | 612,724 | -27.7 | % | ||||||
Expenses: | ||||||||||
Losses and loss adjustment expenses | 295,074 | 380,556 | -22.5 | % | ||||||
Acquisition expenses | 75,881 | 115,225 | -34.1 | % | ||||||
Operating expenses | 77,871 | 89,672 | -13.2 | % | ||||||
Dividends to policyholders | 5,174 | 4,999 | 3.5 | % | ||||||
Interest expense | 16,111 | 12,354 | 30.4 | % | ||||||
Loss on debt exchange | - | 5,973 | NM | |||||||
Total losses and expenses | 470,111 | 608,779 | -22.8 | % | ||||||
Pre-tax income (loss) | (27,015 | ) | 3,945 | NM | ||||||
Income tax expense (benefit): | ||||||||||
Deferred | (5,995 | ) | 2,115 | NM | ||||||
Total income tax expense (benefit) | (5,995 | ) | 2,115 | NM | ||||||
Net income (loss) | $ | (21,020 | ) | $ | 1,830 | NM | ||||
Pre-tax operating loss | $ | (29,132 | ) | $ | (2,548 | ) | NM | |||
After-tax operating loss | $ | (22,396 | ) | $ | (2,391 | ) | NM |
6
PMA Capital Corporation | ||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||
(In Thousands) | ||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | ||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | ||||||||||||
Assets: | ||||||||||||||||
Investments in fixed maturities available for sale | $ | 1,304,086 | $ | 1,283,406 | $ | 1,256,169 | $ | 1,184,301 | $ | 1,049,254 | ||||||
Short-term investments | 123,746 | 60,325 | 61,058 | 67,636 | 57,997 | |||||||||||
Short-term investments, loaned securities collateral | - | 102,620 | 90,114 | 63,751 | - | |||||||||||
Total investments | 1,427,832 | 1,446,351 | 1,407,341 | 1,315,688 | 1,107,251 | |||||||||||
Cash | 35,537 | 49,921 | 30,464 | 43,282 | 30,239 | |||||||||||
Accrued investment income | 15,517 | 15,188 | 14,147 | 13,703 | 11,528 | |||||||||||
Premiums receivable | 197,831 | 208,748 | 183,713 | 212,847 | 197,582 | |||||||||||
Reinsurance receivables | 1,142,552 | 1,129,507 | 1,129,857 | 1,115,953 | 1,094,674 | |||||||||||
Deferred income taxes | 86,501 | 98,714 | 90,301 | 98,568 | 103,656 | |||||||||||
Deferred acquisition costs | 31,426 | 35,138 | 34,655 | 39,432 | 34,236 | |||||||||||
Funds held by reinsureds | 142,064 | 146,674 | 150,078 | 153,064 | 146,374 | |||||||||||
Other assets | 171,042 | 167,200 | 169,028 | 167,192 | 162,505 | |||||||||||
Total assets | $ | 3,250,302 | $ | 3,297,441 | $ | 3,209,584 | $ | 3,159,729 | $ | 2,888,045 | ||||||
Liabilities: | ||||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 2,111,598 | $ | 2,077,599 | $ | 2,005,386 | $ | 1,966,907 | $ | 1,820,043 | ||||||
Unearned premiums | 158,489 | 177,415 | 175,025 | 199,153 | 173,432 | |||||||||||
Debt | 210,784 | 208,294 | 208,586 | 216,808 | 196,181 | |||||||||||
Accounts payable, accrued expenses | ||||||||||||||||
and other liabilities | 196,744 | 200,350 | 191,309 | 198,441 | 209,654 | |||||||||||
Funds held under reinsurance treaties | 121,234 | 112,712 | 105,572 | 96,067 | 78,058 | |||||||||||
Dividends to policyholders | 5,977 | 4,580 | 3,992 | 3,931 | 4,452 | |||||||||||
Payable under securities loan agreements | 25 | 102,603 | 90,118 | 63,758 | 2 | |||||||||||
Total liabilities | 2,804,851 | 2,883,553 | 2,779,988 | 2,745,065 | 2,481,822 | |||||||||||
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 | 213,313 | 189,787 | 189,109 | 188,834 | 187,538 | |||||||||||
Accumulated other comprehensive income (loss) | (1,959 | ) | (14,116 | ) | 1,377 | (14,861 | ) | (22,684 | ) | |||||||
Treasury stock, at cost | (45,573 | ) | (41,752 | ) | (40,734 | ) | (39,305 | ) | (38,779 | ) | ||||||
Unearned restricted stock compensation | (751 | ) | (452 | ) | (577 | ) | (425 | ) | (273 | ) | ||||||
Total shareholders' equity | 445,451 | 413,888 | 429,596 | 414,664 | 406,223 | |||||||||||
Total liabilities and shareholders' equity | $ | 3,250,302 | $ | 3,297,441 | $ | 3,209,584 | $ | 3,159,729 | $ | 2,888,045 |
7
PMA Capital Corporation | ||||||||||||||||||||||
Invested Assets and Net Investment Income | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Total Investments & Cash | ||||||||||||||||||||||
As reported | $ | 1,463,369 | $ | 1,496,272 | $ | 1,437,805 | $ | 1,358,970 | $ | 1,137,490 | $ | 1,137,490 | $ | 1,463,369 | ||||||||
Less: | ||||||||||||||||||||||
Securities lending activity | 25 | 102,603 | 90,118 | 63,758 | 2 | 2 | 25 | |||||||||||||||
Unrealized gain (loss) | 20,958 | 2,368 | 26,563 | 1,771 | (4,302 | ) | (4,302 | ) | 20,958 | |||||||||||||
Total adjusted investments & cash | $ | 1,442,386 | $ | 1,391,301 | $ | 1,321,124 | $ | 1,293,441 | $ | 1,141,790 | $ | 1,141,790 | $ | 1,442,386 | ||||||||
Net Investment Income | ||||||||||||||||||||||
As reported | $ | 12,142 | $ | 11,712 | $ | 12,542 | $ | 12,648 | $ | 11,761 | $ | 48,663 | $ | 56,945 | ||||||||
Funds held: | ||||||||||||||||||||||
Assumed | 846 | 187 | 129 | 535 | 545 | 1,396 | 1,015 | |||||||||||||||
Ceded | (2,026 | ) | (2,437 | ) | (1,871 | ) | (1,694 | ) | (1,897 | ) | (7,899 | ) | (11,909 | ) | ||||||||
Total funds held | (1,180 | ) | (2,250 | ) | (1,742 | ) | (1,159 | ) | (1,352 | ) | (6,503 | ) | (10,894 | ) | ||||||||
Total adjusted investment income | $ | 13,322 | $ | 13,962 | $ | 14,284 | $ | 13,807 | $ | 13,113 | $ | 55,166 | $ | 67,839 | ||||||||
Yield | ||||||||||||||||||||||
As reported | 3.15 | % | 3.17 | % | 3.42 | % | 3.62 | % | 3.77 | % | 3.53 | % | 3.18 | % | ||||||||
Investment portfolio | 3.62 | % | 3.94 | % | 4.21 | % | 4.22 | % | 4.31 | % | 4.19 | % | 4.02 | % | ||||||||
Duration (in years) | 3.6 | 3.8 | 3.9 | 3.7 | 3.7 | 3.7 | 3.6 |
PMA Capital Corporation | |||||||
Debt | |||||||
(Dollars in Thousands) | |||||||
Amount | |||||||
Outstanding | Maturity | ||||||
6.50% convertible debt | $ | 73,435 | 20221 | ||||
Derivative component of 6.50% convertible debt | 12,881 | ||||||
4.25% convertible debt | 655 | 20222 | |||||
8.50% senior notes | 57,500 | 2018 | |||||
Trust preferred debt 3 | 43,816 | 2033 | |||||
Surplus notes 4 | 10,000 | 2035 | |||||
Unamortized debt discount | (2,106 | ) | |||||
Total long-term debt | $ | 196,181 |
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 $68.4 million principal amount and $15.891 per share for $5.0 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 8.53% as of December 31, 2005. | |||||||||||||||
4 | Interest rate on surplus notes is 8.76% as of December 31, 2005. |
PMA Capital Corporation | ||||||||||
Balance Sheet Impact of Commutations - Run-off Operations | ||||||||||
(Dollars in Thousands) | ||||||||||
4th Quarter 2005 | ||||||||||
Assets | Assumed | Ceded | Total | |||||||
Funds held by reinsureds | $ | (4,163 | ) | $ | - | $ | (4,163 | ) | ||
Liabilities | Assumed | Ceded | Total | |||||||
Unpaid loss and loss adjustment expenses | $ | (75,907 | ) | $ | - | $ | (75,907 | ) | ||
Other liabilities | (3,347 | ) | - | (3,347 | ) | |||||
Twelve Months 2005 | ||||||||||
Assets | Assumed | Ceded | Total | |||||||
Funds held by reinsureds | $ | (4,163 | ) | $ | - | $ | (4,163 | ) | ||
Liabilities | Assumed | Ceded | Total | |||||||
Unpaid loss and loss adjustment expenses | $ | (85,384 | ) | $ | - | $ | (85,384 | ) | ||
Funds held under reinsurance treaties | (219 | ) | - | (219 | ) | |||||
Other liabilities | (3,347 | ) | - | (3,347 | ) |
8
PMA Capital Corporation | |||||||||||||
Statements of Operations - Consolidating | |||||||||||||
Year Ended December 31, 2005 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 421,605 | $ | (818 | ) | $ | 12,941 | $ | 433,728 | ||||
Net Premiums Written | $ | 375,793 | $ | (818 | ) | $ | 10,250 | $ | 385,225 | ||||
Revenues: | |||||||||||||
Net premiums earned | $ | 358,642 | $ | (818 | ) | $ | 10,206 | $ | 368,030 | ||||
Net investment income | 31,745 | 580 | 16,338 | 48,663 | |||||||||
Other revenues | 23,880 | 406 | - | 24,286 | |||||||||
Operating revenues | 414,267 | 168 | 26,544 | 440,979 | |||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 260,276 | - | 34,798 | 295,074 | |||||||||
Acquisition expenses | 71,298 | - | 4,583 | 75,881 | |||||||||
Operating expenses | 55,273 | 8,502 | 14,096 | 77,871 | |||||||||
Dividends to policyholders | 5,174 | - | - | 5,174 | |||||||||
Total losses and expenses | 392,021 | 8,502 | 53,477 | 454,000 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 22,246 | (8,334 | ) | (26,933 | ) | (13,021 | ) | ||||||
Interest expense | 226 | 15,885 | - | 16,111 | |||||||||
Pre-tax operating income (loss) | $ | 22,020 | $ | (24,219 | ) | $ | (26,933 | ) | (29,132 | ) | |||
Net realized investment gains | 2,117 | ||||||||||||
Pre-tax loss | $ | (27,015 | ) |
1 | Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. |
9
PMA Capital Corporation | |||||||||||||
Statements of Operations - Consolidating | |||||||||||||
Year Ended December 31, 2004 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 423,054 | $ | (825 | ) | $ | (69,967 | ) | $ | 352,262 | |||
Net Premiums Written | $ | 377,795 | $ | (825 | ) | $ | (75,360 | ) | $ | 301,610 | |||
Revenues: | |||||||||||||
Net premiums earned | $ | 442,343 | $ | (825 | ) | $ | 77,067 | $ | 518,585 | ||||
Net investment income | 30,984 | 1,306 | 24,655 | 56,945 | |||||||||
Other revenues | 23,768 | 6,933 | - | 30,701 | |||||||||
Operating revenues | 497,095 | 7,414 | 101,722 | 606,231 | |||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 331,181 | - | 49,375 | 380,556 | |||||||||
Acquisition expenses | 86,078 | - | 29,147 | 115,225 | |||||||||
Operating expenses | 61,671 | 10,310 | 17,691 | 89,672 | |||||||||
Dividends to policyholders | 4,999 | - | - | 4,999 | |||||||||
Total losses and expenses | 483,929 | 10,310 | 96,213 | 590,452 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 13,166 | (2,896 | ) | 5,509 | 15,779 | ||||||||
Interest expense | - | 12,354 | - | 12,354 | |||||||||
Loss on debt exchange | - | 5,973 | - | 5,973 | |||||||||
Pre-tax operating income (loss) | $ | 13,166 | $ | (21,223 | ) | $ | 5,509 | (2,548 | ) | ||||
Net realized investment gains | 6,493 | ||||||||||||
Pre-tax income | $ | 3,945 |
1 | Corporate & Other includes the effect of eliminating transactions between the various Insurance Operations. |
10
PMA Capital Corporation | |||||||||||||
Statements of Operations - Consolidating | |||||||||||||
Three Months Ended December 31, 2005 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 82,490 | $ | (209 | ) | $ | 4,959 | $ | 87,240 | ||||
Net Premiums Written | $ | 71,339 | $ | (209 | ) | $ | 3,028 | $ | 74,158 | ||||
Revenues: | |||||||||||||
Net premiums earned | $ | 96,187 | $ | (209 | ) | $ | 3,386 | $ | 99,364 | ||||
Net investment income | 8,328 | (219 | ) | 3,652 | 11,761 | ||||||||
Other revenues | 6,837 | 109 | - | 6,946 | |||||||||
Operating revenues | 111,352 | (319 | ) | 7,038 | 118,071 | ||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 68,732 | - | 981 | 69,713 | |||||||||
Acquisition expenses | 18,998 | - | 538 | 19,536 | |||||||||
Operating expenses | 17,191 | 2,627 | 3,681 | 23,499 | |||||||||
Dividends to policyholders | 2,343 | - | - | 2,343 | |||||||||
Total losses and expenses | 107,264 | 2,627 | 5,200 | 115,091 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 4,088 | (2,946 | ) | 1,838 | 2,980 | ||||||||
Interest expense | 221 | 3,776 | - | 3,997 | |||||||||
Pre-tax operating income (loss) | $ | 3,867 | $ | (6,722 | ) | $ | 1,838 | (1,017 | ) | ||||
Net realized investment losses | (1,084 | ) | |||||||||||
Pre-tax loss | $ | (2,101 | ) |
1 | Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. |
11
PMA Capital Corporation | |||||||||||||
Statements of Operations - Consolidating | |||||||||||||
Three Months Ended December 31, 2004 | |||||||||||||
(In Thousands) | |||||||||||||
PMA | |||||||||||||
Insurance | Corporate | Run-off | |||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||
Gross Premiums Written | $ | 72,380 | $ | (264 | ) | $ | (2,176 | ) | $ | 69,940 | |||
Net Premiums Written | $ | 62,910 | $ | (264 | ) | $ | (5,974 | ) | $ | 56,672 | |||
Revenues: | |||||||||||||
Net premiums earned | $ | 89,373 | $ | (264 | ) | $ | 649 | $ | 89,758 | ||||
Net investment income | 6,509 | 418 | 5,215 | 12,142 | |||||||||
Other revenues | 5,511 | 6,614 | - | 12,125 | |||||||||
Operating revenues | 101,393 | 6,768 | 5,864 | 114,025 | |||||||||
Losses and Expenses: | |||||||||||||
Losses and loss adjustment expenses | 66,284 | - | 3,905 | 70,189 | |||||||||
Acquisition expenses | 18,550 | - | 385 | 18,935 | |||||||||
Operating expenses | 14,479 | 2,736 | 3,520 | 20,735 | |||||||||
Dividends to policyholders | 1,819 | - | - | 1,819 | |||||||||
Total losses and expenses | 101,132 | 2,736 | 7,810 | 111,678 | |||||||||
Operating income (loss) before income taxes | |||||||||||||
and interest expense | 261 | 4,032 | (1,946 | ) | 2,347 | ||||||||
Interest expense | - | 3,482 | - | 3,482 | |||||||||
Loss on debt exchange | - | 5,973 | - | 5,973 | |||||||||
Pre-tax operating income (loss) | $ | 261 | $ | (5,423 | ) | $ | (1,946 | ) | (7,108 | ) | |||
Net realized investment losses | (7,870 | ) | |||||||||||
Pre-tax loss | $ | (14,978 | ) |
1 | Corporate & Other includes the effect of eliminating transactions between the various Insurance Operations. |
12
PMA Capital Corporation | ||||||||||||||||||||||||||||
Statements of Operations - PMA Insurance Group | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | % Change | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | 4th | Twelve | ||||||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | Quarter | Months | ||||||||||||||||||||
Gross Premiums Written | $ | 72,380 | $ | 116,272 | $ | 93,680 | $ | 129,163 | $ | 82,490 | $ | 421,605 | $ | 423,054 | 14.0 | % | -0.3 | % | ||||||||||
Net Premiums Written | $ | 62,910 | $ | 105,474 | $ | 82,103 | $ | 116,877 | $ | 71,339 | $ | 375,793 | $ | 377,795 | 13.4 | % | -0.5 | % | ||||||||||
Revenues: | ||||||||||||||||||||||||||||
Net premiums earned | $ | 89,373 | $ | 84,700 | $ | 85,541 | $ | 92,214 | $ | 96,187 | $ | 358,642 | $ | 442,343 | 7.6 | % | -18.9 | % | ||||||||||
Net investment income | 6,509 | 7,541 | 7,716 | 8,160 | 8,328 | 31,745 | 30,984 | 27.9 | % | 2.5 | % | |||||||||||||||||
Other revenues | 5,511 | 5,965 | 4,906 | 6,172 | 6,837 | 23,880 | 23,768 | 24.1 | % | 0.5 | % | |||||||||||||||||
Total revenues | 101,393 | 98,206 | 98,163 | 106,546 | 111,352 | 414,267 | 497,095 | 9.8 | % | -16.7 | % | |||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 66,284 | 62,218 | 61,331 | 67,995 | 68,732 | 260,276 | 331,181 | 3.7 | % | -21.4 | % | |||||||||||||||||
Acquisition expenses | 18,550 | 16,767 | 17,254 | 18,279 | 18,998 | 71,298 | 86,078 | 2.4 | % | -17.2 | % | |||||||||||||||||
Operating expenses | 14,479 | 12,107 | 12,875 | 13,100 | 17,191 | 55,273 | 61,671 | 18.7 | % | -10.4 | % | |||||||||||||||||
Dividends to policyholders | 1,819 | 502 | 1,762 | 567 | 2,343 | 5,174 | 4,999 | 28.8 | % | 3.5 | % | |||||||||||||||||
Total losses and expenses | 101,132 | 91,594 | 93,222 | 99,941 | 107,264 | 392,021 | 483,929 | 6.1 | % | -19.0 | % | |||||||||||||||||
Operating income before income taxes | ||||||||||||||||||||||||||||
and interest expense | 261 | 6,612 | 4,941 | 6,605 | 4,088 | 22,246 | 13,166 | NM | 69.0 | % | ||||||||||||||||||
Interest expense | - | - | - | 5 | 221 | 226 | - | NM | NM | |||||||||||||||||||
Pre-tax operating income | $ | 261 | $ | 6,612 | $ | 4,941 | $ | 6,600 | $ | 3,867 | $ | 22,020 | $ | 13,166 | NM | 67.2 | % |
13
PMA Capital Corporation | ||||||||||||||||||||||||||||
Insurance Ratios - PMA Insurance Group | ||||||||||||||||||||||||||||
4th Quarter 2004 | 1st Quarter 2005 | 2nd Quarter 2005 | 3rd Quarter 2005 | 4th Quarter 2005 | Twelve Months 2005 | Twelve Months 2004 | Point Chg. 4th Quarter Better (Worse) | Point Chg. Twelve Months Better (Worse) | ||||||||||||||||||||
Ratios - GAAP Basis: | ||||||||||||||||||||||||||||
Loss and LAE ratio | 74.2 | % | 73.5 | % | 71.7 | % | 73.7 | % | 71.5 | % | 72.6 | % | 74.9 | % | 2.7 | 2.3 | ||||||||||||
Expense ratio: | ||||||||||||||||||||||||||||
Acquisition expenses | 20.8 | % | 19.8 | % | 20.2 | % | 19.8 | % | 19.8 | % | 19.9 | % | 19.5 | % | 1.0 | (0.4 | ) | |||||||||||
Operating expenses 1 | 11.5 | % | 9.5 | % | 10.3 | % | 9.2 | % | 12.5 | % | 10.4 | % | 9.9 | % | (1.0 | ) | (0.5 | ) | ||||||||||
Total expense ratio | 32.3 | % | 29.3 | % | 30.5 | % | 29.0 | % | 32.3 | % | 30.3 | % | 29.4 | % | - | (0.9 | ) | |||||||||||
Policyholders' dividend ratio | 2.0 | % | 0.6 | % | 2.1 | % | 0.6 | % | 2.4 | % | 1.4 | % | 1.1 | % | (0.4 | ) | (0.3 | ) | ||||||||||
Combined ratio | 108.5 | % | 103.4 | % | 104.3 | % | 103.3 | % | 106.2 | % | 104.3 | % | 105.4 | % | 2.3 | 1.1 | ||||||||||||
Net investment income ratio | -7.3 | % | -8.9 | % | -9.0 | % | -8.8 | % | -8.7 | % | -8.9 | % | -7.0 | % | 1.4 | 1.9 | ||||||||||||
Operating ratio | 101.2 | % | 94.5 | % | 95.3 | % | 94.5 | % | 97.5 | % | 95.4 | % | 98.4 | % | 3.7 | 3.0 |
1 | The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $10.3 million, $8.0 million, $8.9 million, $8.4 million and $12.1 million for the fourth quarter of 2004 and the first, second, third and fourth quarters of 2005, respectively. | ||||||||||||||||||||
14
PMA Capital Corporation | ||||||||||||||||||||||||||||
Statements of Operations - Run-off Operations | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | % Change | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | 4th | Twelve | ||||||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | Quarter | Months | ||||||||||||||||||||
Gross Premiums Written | $ | (2,176 | ) | $ | 5,235 | $ | 1,609 | $ | 1,138 | $ | 4,959 | $ | 12,941 | $ | (69,967 | ) | NM | NM | ||||||||||
Net Premiums Written | $ | (5,974 | ) | $ | 4,929 | $ | 1,504 | $ | 789 | $ | 3,028 | $ | 10,250 | $ | (75,360 | ) | NM | NM | ||||||||||
Revenues: | ||||||||||||||||||||||||||||
Net premiums earned | $ | 649 | $ | 3,217 | $ | 3,399 | $ | 204 | $ | 3,386 | $ | 10,206 | $ | 77,067 | NM | -86.8 | % | |||||||||||
Net investment income | 5,215 | 3,900 | 4,569 | 4,217 | 3,652 | 16,338 | 24,655 | -30.0 | % | -33.7 | % | |||||||||||||||||
Total revenues | 5,864 | 7,117 | 7,968 | 4,421 | 7,038 | 26,544 | 101,722 | 20.0 | % | -73.9 | % | |||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||
Losses and loss adjustment expenses | 3,905 | 31,770 | 1,930 | 117 | 981 | 34,798 | 49,375 | -74.9 | % | -29.5 | % | |||||||||||||||||
Acquisition expenses | 385 | 1,904 | 729 | 1,412 | 538 | 4,583 | 29,147 | 39.7 | % | -84.3 | % | |||||||||||||||||
Operating expenses | 3,520 | 3,089 | 4,176 | 3,150 | 3,681 | 14,096 | 17,691 | 4.6 | % | -20.3 | % | |||||||||||||||||
Total losses and expenses | 7,810 | 36,763 | 6,835 | 4,679 | 5,200 | 53,477 | 96,213 | -33.4 | % | -44.4 | % | |||||||||||||||||
Pre-tax operating income (loss) | $ | (1,946 | ) | $ | (29,646 | ) | $ | 1,133 | $ | (258 | ) | $ | 1,838 | $ | (26,933 | ) | $ | 5,509 | NM | NM |
15
PMA Capital Corporation | ||||||||||||||||||||||||||||
Statements of Operations - Corporate & Other | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | % Change | % Change | ||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | 4th | Twelve | ||||||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | Quarter | Months | ||||||||||||||||||||
Gross Premiums Written | $ | (264 | ) | $ | (194 | ) | $ | (220 | ) | $ | (195 | ) | $ | (209 | ) | $ | (818 | ) | $ | (825 | ) | 20.8 | % | 0.8 | % | |||
Net Premiums Written | $ | (264 | ) | $ | (194 | ) | $ | (220 | ) | $ | (195 | ) | $ | (209 | ) | $ | (818 | ) | $ | (825 | ) | 20.8 | % | 0.8 | % | |||
Revenues: | ||||||||||||||||||||||||||||
Net premiums earned | $ | (264 | ) | $ | (194 | ) | $ | (220 | ) | $ | (195 | ) | $ | (209 | ) | $ | (818 | ) | $ | (825 | ) | 20.8 | % | 0.8 | % | |||
Net investment income | 418 | 271 | 257 | 271 | (219 | ) | 580 | 1,306 | NM | -55.6 | % | |||||||||||||||||
Other revenues | 6,614 | 227 | 33 | 37 | 109 | 406 | 6,933 | NM | NM | |||||||||||||||||||
Total revenues | 6,768 | 304 | 70 | 113 | (319 | ) | 168 | 7,414 | NM | NM | ||||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||
Operating expenses | 2,736 | 2,502 | 1,751 | 1,622 | 2,627 | 8,502 | 10,310 | -4.0 | % | -17.5 | % | |||||||||||||||||
Total losses and expenses | 2,736 | 2,502 | 1,751 | 1,622 | 2,627 | 8,502 | 10,310 | -4.0 | % | -17.5 | % | |||||||||||||||||
Operating income (loss) before income taxes, | ||||||||||||||||||||||||||||
interest expense, and loss on debt exchange | 4,032 | (2,198 | ) | (1,681 | ) | (1,509 | ) | (2,946 | ) | (8,334 | ) | (2,896 | ) | NM | NM | |||||||||||||
Interest expense | 3,482 | 3,969 | 4,040 | 4,100 | 3,776 | 15,885 | 12,354 | 8.4 | % | 28.6 | % | |||||||||||||||||
Loss on debt exchange | 5,973 | - | - | - | - | - | 5,973 | NM | NM | |||||||||||||||||||
Pre-tax operating loss | $ | (5,423 | ) | $ | (6,167 | ) | $ | (5,721 | ) | $ | (5,609 | ) | $ | (6,722 | ) | $ | (24,219 | ) | $ | (21,223 | ) | -24.0 | % | -14.1 | % |
16
PMA Capital Corporation | ||||||||||||||||||||||
Operating Cash Flows - Consolidated | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Receipts: | ||||||||||||||||||||||
Premiums and other revenues collected | $ | 102,749 | $ | 96,675 | $ | 108,706 | $ | 90,858 | $ | 98,661 | $ | 394,900 | $ | 485,073 | ||||||||
Investment income received | 18,986 | 14,814 | 14,656 | 15,942 | 16,393 | 61,805 | 88,274 | |||||||||||||||
Total receipts | 121,735 | 111,489 | 123,362 | 106,800 | 115,054 | 456,705 | 573,347 | |||||||||||||||
Disbursements: | ||||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||||
Losses and LAE paid - current year | 34,520 | 3,812 | 14,240 | 16,593 | 20,720 | 55,365 | 122,256 | |||||||||||||||
Losses and LAE paid - prior years | 87,203 | 112,312 | 134,182 | 86,329 | 174,212 | 507,035 | 755,306 | |||||||||||||||
Total losses and LAE paid | 121,723 | 116,124 | 148,422 | 102,922 | 194,932 | 562,400 | 877,562 | |||||||||||||||
Insurance operating expenses paid | 28,824 | 38,632 | 39,585 | 39,009 | 27,271 | 144,497 | 201,968 | |||||||||||||||
Policyholders' dividends paid | 765 | 2,115 | 1,284 | 820 | 531 | 4,750 | 5,356 | |||||||||||||||
Interest on corporate debt | 2,371 | 4,387 | 1,987 | 5,327 | 2,197 | 13,898 | 11,607 | |||||||||||||||
Total disbursements | 153,683 | 161,258 | 191,278 | 148,078 | 224,931 | 725,545 | 1,096,493 | |||||||||||||||
Net other | (56,713 | ) | 7,258 | 1,046 | 3,564 | (15,349 | ) | (3,481 | ) | (80,121 | ) | |||||||||||
Net operating cash flows | $ | (88,661 | ) | $ | (42,511 | ) | $ | (66,870 | ) | $ | (37,714 | ) | $ | (125,226 | ) | $ | (272,321 | ) | $ | (603,267 | ) |
17
PMA Capital Corporation | ||||||||||||||||||||||
Operating Cash Flows - PMA Insurance Group | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Receipts: | ||||||||||||||||||||||
Premiums and other revenues collected | $ | 112,258 | $ | 93,148 | $ | 100,170 | $ | 91,212 | $ | 97,910 | $ | 382,440 | $ | 463,337 | ||||||||
Investment income received | 9,851 | 9,404 | 9,682 | 10,262 | 10,606 | 39,954 | 39,540 | |||||||||||||||
Total receipts | 122,109 | 102,552 | 109,852 | 101,474 | 108,516 | 422,394 | 502,877 | |||||||||||||||
Disbursements: | ||||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||||
Losses and LAE paid - current year | 31,304 | 3,810 | 14,233 | 16,584 | 20,720 | 55,347 | 86,446 | |||||||||||||||
Losses and LAE paid - prior years | 31,086 | 72,999 | 69,276 | 55,520 | 43,853 | 241,648 | 226,809 | |||||||||||||||
Losses and LAE | 62,390 | 76,809 | 83,509 | 72,104 | 64,573 | 296,995 | 313,255 | |||||||||||||||
Insurance operating expenses paid | 30,639 | 34,238 | 36,988 | 33,988 | 23,305 | 128,519 | 158,191 | |||||||||||||||
Policyholders' dividends paid | 765 | 2,115 | 1,284 | 820 | 531 | 4,750 | 5,356 | |||||||||||||||
Total disbursements | 93,794 | 113,162 | 121,781 | 106,912 | 88,409 | 430,264 | 476,802 | |||||||||||||||
Net other | (21,974 | ) | 13,760 | 2,002 | 6,012 | (18,822 | ) | 2,952 | (30,713 | ) | ||||||||||||
Net operating cash flows | $ | 6,341 | $ | 3,150 | $ | (9,927 | ) | $ | 574 | $ | 1,285 | $ | (4,918 | ) | $ | (4,638 | ) |
18
PMA Capital Corporation | ||||||||||||||||||||||
Operating Cash Flows - Run-off Operations | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2005 | 2005 | 2005 | 2005 | 2005 | 2004 | ||||||||||||||||
Receipts: | ||||||||||||||||||||||
Premiums collected | $ | (9,509 | ) | $ | 3,527 | $ | 8,536 | $ | (354 | ) | $ | 751 | $ | 12,460 | $ | 21,736 | ||||||
Investment income received | 9,135 | 5,410 | 4,974 | 5,680 | 5,787 | 21,851 | 48,734 | |||||||||||||||
Total receipts | (374 | ) | 8,937 | 13,510 | 5,326 | 6,538 | 34,311 | 70,470 | ||||||||||||||
Disbursements: | ||||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||||
Losses and LAE paid - current year | 3,216 | 2 | 7 | 9 | - | 18 | 35,810 | |||||||||||||||
Losses and LAE paid - prior years | 56,117 | 39,313 | 64,906 | 30,809 | 130,359 | 265,387 | 528,497 | |||||||||||||||
Total losses and LAE paid | 59,333 | 39,315 | 64,913 | 30,818 | 130,359 | 265,405 | 564,307 | |||||||||||||||
Insurance operating expenses paid | (1,815 | ) | 4,394 | 2,597 | 5,021 | 3,966 | 15,978 | 43,777 | ||||||||||||||
Total disbursements | 57,518 | 43,709 | 67,510 | 35,839 | 134,325 | 281,383 | 608,084 | |||||||||||||||
Net other | (34,482 | ) | (74 | ) | (4,890 | ) | (1,912 | ) | 4,004 | (2,872 | ) | (45,651 | ) | |||||||||
Net operating cash flows | $ | (92,374 | ) | $ | (34,846 | ) | $ | (58,890 | ) | $ | (32,425 | ) | $ | (123,783 | ) | $ | (249,944 | ) | $ | (583,265 | ) |
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PMA Capital Corporation | ||||||||||||||||
Statutory Surplus | ||||||||||||||||
(In Thousands) | ||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | ||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||
2004 | 2005 | 2005 | 2005 | 20051 | ||||||||||||
PMA Pool 2 | $ | 300,034 | $ | 298,686 | $ | 299,219 | $ | 311,802 | 5 | $ | 315,056 | 4, 5 | ||||
PMA Capital Insurance Company 3 | 224,511 | 218,322 | 215,348 | 210,663 | 204,920 | 4 |
PMA Capital Corporation | ||||||||||||||||||||||
Statutory Financial Information - PMA Pool 2 | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
4th | 1st | 2nd | 3rd | 4th | Twelve | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||
2004 | 2005 | 2005 | 2005 | 20051 | 20051 | 2004 | ||||||||||||||||
Net Premiums Written: | ||||||||||||||||||||||
Workers Compensation & Integrated | ||||||||||||||||||||||
Disability | $ | 54,556 | $ | 94,737 | $ | 70,944 | $ | 101,435 | $ | 63,086 | $ | 330,202 | $ | 306,324 | ||||||||
Other Commercial Lines | 3,700 | 10,787 | 10,998 | 13,487 | 4,723 | 39,995 | 32,852 | |||||||||||||||
Total - PMA Pool | $ | 58,256 | $ | 105,524 | $ | 81,942 | $ | 114,922 | $ | 67,809 | $ | 370,197 | $ | 339,176 | ||||||||
Statutory Ratios: | ||||||||||||||||||||||
Loss and LAE ratio | 75.2 | % | 73.3 | % | 73.0 | % | 73.3 | % | 73.0 | % | 73.1 | % | 75.3 | % | ||||||||
Underwriting expense ratio | 37.5 | % | 25.2 | % | 30.2 | % | 25.1 | % | 32.5 | % | 27.6 | % | 31.9 | % | ||||||||
Policyholders' dividend ratio | 0.4 | % | 0.9 | % | 0.8 | % | 0.8 | % | 1.1 | % | 0.9 | % | 0.7 | % | ||||||||
Combined ratio | 113.1 | % | 99.4 | % | 104.0 | % | 99.2 | % | 106.6 | % | 101.6 | % | 107.9 | % | ||||||||
Operating ratio | 104.2 | % | 91.2 | % | 95.2 | % | 91.2 | % | 98.6 | % | 93.4 | % | 100.5 | % |
1 | Estimated. | |||||||||||||||
2 | The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company. | |||||||||||||||
3 | 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 $135.8 million and $11.4 million for the PMA Pool and PMA Capital Insurance Company, respectively. |
5 | Includes $10 million related to surplus notes. |
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PMA Capital Corporation | ||||||||
Industry Ratings and Market Information | ||||||||
Transfer Agent and Registrar: | | | Inquiries: | ||||||
American Stock Transfer & Trust Company | | | William E. Hitselberger | ||||||
Shareholder Relations | | | Chief Financial Officer | ||||||
59 Maiden Lane – Plaza Level | | | 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 2/21/2006): | ||||||||
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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