Pma Capital 8K Announces Second Quarter 2006 Results; Improved Operating Income for Second Quarter and First Six Months of 2006 | PMACA 3 Aug 06

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Second Quarter - 2006

Table of Contents
		Page
*Consolidated Highlights:*
Selected Financial Data - Second Quarter				1
Selected Financial Data - Year-to-date				2
Consolidated Statements of Operations - Per Share Data				3
Consolidated Statements of Operations - Second Quarter				5
Consolidated Statements of Operations - Year-to-date				6
Consolidated Balance Sheets				7
Invested Assets and Net Investment Income; Debt				8

*Segment Information:*
Statements of Operations - Consolidating - Year-to-date		9	-	10
Statements of Operations - Consolidating - Second 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

	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)

	2nd			3rd			4th			1st			2nd			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			2nd
	2005			2005			2005			2006			2006			Quarter

Net Premiums Written by Segment:
PMA Insurance Group	$	82,103		$	116,877		$	71,339		$	113,390		$	85,639			4.3	%
Run-off Operations		1,504			789			3,028			606			527			-65.0	%
Corporate & Other		(220	)		(195	)		(209	)		(168	)		(213	)		3.2	%
Net premiums written	$	83,387		$	117,471		$	74,158		$	113,828		$	85,953			3.1	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	4,941		$	6,600		$	3,867		$	8,141		$	6,671			35.0	%
Run-off Operations		1,133			(258	)		1,838			161			428			-62.2	%
Corporate & Other		(5,721	)		(5,609	)		(6,722	)		(6,139	)		(6,128	)		-7.1	%
Pre-tax operating income (loss)		353			733			(1,017	)		2,163			971			NM
Net realized investment gains (losses)		(265	)		483			(1,084	)		1,818			(1,978	)		NM
Pre-tax income (loss)		88			1,216			(2,101	)		3,981			(1,007	)		NM
Income tax expense (benefit)		71			476			(875	)		1,500			(245	)		NM
Net income (loss)	$	17		$	740		$	(1,226	)	$	2,481		$	(762	)		NM
After-tax operating income (loss)	$	189		$	426		$	(521	)	$	1,299		$	524			NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	-		$	0.02		$	(0.04	)	$	0.08		$	(0.02	)		NM
Less the impact of:
Realized gains (losses) after tax		(0.01	)		0.01			(0.02	)		0.04			(0.04	)		NM
After-tax operating income (loss)	$	0.01		$	0.01		$	(0.02	)	$	0.04		$	0.02			100.0	%

Capitalization:
Debt	$	208,586		$	216,808		$	196,181		$	189,181		$	148,303			-28.9	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		412,330			413,513			409,019			413,516			417,064			1.1	%
Total capitalization excluding FAS 115 unrealized gain (loss)		620,916			630,321			605,200			602,697			565,367			-8.9	%
FAS 115 unrealized gain (loss)		17,266			1,151			(2,796	)		(13,941	)		(18,733	)		NM
Total capitalization including FAS 115 unrealized gain (loss)	$	638,182		$	631,472		$	602,404		$	588,756		$	546,634			-14.3	%

Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	12.93		$	12.94		$	12.79		$	12.83		$	12.79			-1.1	%
Including FAS 115 unrealized gain (loss)	$	13.47		$	12.98		$	12.70		$	12.39		$	12.21			-9.4	%

Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		33.6	%		34.4	%		32.4	%		31.4	%		26.2	%		-22.0	%
Including FAS 115 unrealized gain (loss)		32.7	%		34.3	%		32.6	%		32.1	%		27.1	%		-17.1	%

Interest Coverage:
Income before interest and income taxes
to interest expense		1.02			1.30			0.47			2.03			0.73			-28.4	%

Operating income before interest and income taxes
to interest expense		1.09			1.18			0.75			1.56			1.26			15.6	%

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

	Six			Six			% Change
	Months			Months			Six
	2006			2005			Months

Net Premiums Written by Segment:
PMA Insurance Group	$	199,029		$	187,577			6.1	%
Run-off Operations		1,133			6,433			-82.4	%
Corporate & Other		(381	)		(414	)		8.0	%
Net premiums written	$	199,781		$	193,596			3.2	%

Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	14,812		$	11,553			28.2	%
Run-off Operations		589			(28,513	)		NM
Corporate & Other		(12,267	)		(11,888	)		-3.2	%
Pre-tax operating income (loss)		3,134			(28,848	)		NM
Net realized investment gains (losses)		(160	)		2,718			NM
Pre-tax income (loss)		2,974			(26,130	)		NM
Income tax expense (benefit)		1,255			(5,596	)		NM
Net income (loss)	$	1,719		$	(20,534	)		NM
After-tax operating income (loss)	$	1,823		$	(22,301	)		NM

Diluted Earnings (Loss) Per Share:
Net income (loss)	$	0.05		$	(0.65	)		NM
Less the impact of:
Realized gains (losses) after tax		(0.01	)		0.06			NM
After-tax operating income (loss)	$	0.06		$	(0.71	)		NM

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data

	2nd		3rd		4th			1st		2nd			Six		Six
	Quarter		Quarter		Quarter			Quarter		Quarter			Months		Months
	2005		2005		2005			2006		2006			2006		2005

Diluted Earnings (Loss) Per Share:

Net income (loss)	$	-	$	0.02	$	(0.04	)	$	0.08	$	(0.02	)	$	0.05	$	(0.65	)

Pre-tax operating income (loss)	$	0.01	$	0.02	$	(0.03	)	$	0.07	$	0.03		$	0.10	$	(0.91	)

After-tax operating income (loss)	$	0.01	$	0.01	$	(0.02	)	$	0.04	$	0.02		$	0.06	$	(0.71	)

Diluted weighted average common
shares outstanding		32,015,127		32,244,295		31,833,384			32,405,934		32,132,618			32,540,905		31,559,468


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

Actual common shares issued
and outstanding		31,885,541		31,956,983		31,983,283			32,239,288		32,613,234			32,613,234		31,885,541


Class A Common Stock prices:
High	$	9.00	$	9.50	$	9.73		$	10.43	$	10.49		$	10.49	$	10.65
Low	$	5.91	$	7.83	$	7.99		$	8.68	$	9.24		$	8.68	$	5.91
Close	$	8.83	$	8.78	$	9.13		$	10.18	$	10.30		$	10.30	$	8.83

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PMA Capital Corporation
Consolidated Statements of Operations
(In Thousands)

	2nd			3rd		4th			1st		2nd			% Change
	Quarter			Quarter		Quarter			Quarter		Quarter			2nd
	2005			2005		2005			2006		2006			Quarter

Gross Premiums Written	$	95,069		$	130,106	$	87,240		$	133,967	$	100,075			5.3	%

Net Premiums Written	$	83,387		$	117,471	$	74,158		$	113,828	$	85,953			3.1	%

Revenues:
Net premiums earned	$	88,720		$	92,223	$	99,364		$	91,659	$	94,922			7.0	%
Net investment income		12,542			12,648		11,761			11,400		11,058			-11.8	%
Net realized investment gains (losses)		(265	)		483		(1,084	)		1,818		(1,978	)		NM
Other revenues		4,939			6,209		6,946			7,104		7,286			47.5	%
Total revenues		105,936			111,563		116,987			111,981		111,288			5.1	%

Expenses:
Losses and loss adjustment expenses		63,261			68,112		69,713			65,393		66,379			4.9	%
Acquisition expenses		17,983			19,691		19,536			17,325		19,552			8.7	%
Operating expenses		18,802			17,872		23,499			19,987		21,580			14.8	%
Dividends to policyholders		1,762			567		2,343			1,422		1,011			-42.6	%
Interest expense		4,040			4,105		3,997			3,873		3,773			-6.6	%
Total losses and expenses		105,848			110,347		119,088			108,000		112,295			6.1	%

Pre-tax income (loss)		88			1,216		(2,101	)		3,981		(1,007	)		NM

Income tax expense (benefit):
Current		-			-		-			-		-			NM
Deferred		71			476		(875	)		1,500		(245	)		NM

Total income tax expense (benefit)		71			476		(875	)		1,500		(245	)		NM

Net income (loss)	$	17		$	740	$	(1,226	)	$	2,481	$	(762	)		NM

Pre-tax operating income (loss)	$	353		$	733	$	(1,017	)	$	2,163	$	971			NM

After-tax operating income (loss)	$	189		$	426	$	(521	)	$	1,299	$	524			NM

PMA Capital Corporation
Consolidated Statements of Operations
(In Thousands)

	Six			Six			% Change
	Months			Months			Six
	2006			2005			Months

Gross Premiums Written	$	234,042		$	216,382			8.2	%

Net Premiums Written	$	199,781		$	193,596			3.2	%

Revenues:
Net premiums earned	$	186,581		$	176,443			5.7	%
Net investment income		22,458			24,254			-7.4	%
Net realized investment gains (losses)		(160	)		2,718			NM
Other revenues		14,390			11,131			29.3	%
Total revenues		223,269			214,546			4.1	%

Expenses:
Losses and loss adjustment expenses		131,772			157,249			-16.2	%
Acquisition expenses		36,877			36,654			0.6	%
Operating expenses		41,567			36,500			13.9	%
Dividends to policyholders		2,433			2,264			7.5	%
Interest expense		7,646			8,009			-4.5	%
Total losses and expenses		220,295			240,676			-8.5	%

Pre-tax income (loss)		2,974			(26,130	)		NM

Income tax expense (benefit):
Current		-			-			NM
Deferred		1,255			(5,596	)		NM

Total income tax expense (benefit)		1,255			(5,596	)		NM

Net income (loss)	$	1,719		$	(20,534	)		NM

Pre-tax operating income (loss)	$	3,134		$	(28,848	)		NM

After-tax operating income (loss)	$	1,823		$	(22,301	)		NM

PMA Capital Corporation
Consolidated Balance Sheets
(In Thousands)

	2nd			3rd			4th			1st			2nd
	Quarter			Quarter			Quarter			Quarter			Quarter
	2005			2005			2005			2006			2006

Assets:
Investments in fixed maturities available for sale	$	1,256,169		$	1,184,301		$	1,049,254		$	994,972		$	913,376
Short-term investments		61,058			67,636			57,997			63,641			70,994
Short-term investments, loaned securities collateral		90,114			63,751			-			9,991			4,771
Total investments		1,407,341			1,315,688			1,107,251			1,068,604			989,141

Cash		30,464			43,282			30,239			13,667			26,004
Accrued investment income		14,147			13,703			11,528			11,395			9,312
Premiums receivable		183,713			212,847			197,582			209,354			205,825
Reinsurance receivables		1,129,857			1,115,953			1,094,674			1,086,830			1,071,332
Deferred income taxes		90,301			98,568			103,656			107,908			110,452
Deferred acquisition costs		34,655			39,432			34,236			39,308			37,336
Funds held by reinsureds		150,078			153,064			146,374			148,512			151,873
Other assets		169,028			167,192			162,505			179,061			171,713
Total assets	$	3,209,584		$	3,159,729		$	2,888,045		$	2,864,639		$	2,772,988

Liabilities:
Unpaid losses and loss adjustment expenses	$	2,005,386		$	1,966,907		$	1,820,043		$	1,776,822		$	1,727,369
Unearned premiums		175,025			199,153			173,432			199,129			189,140
Debt		208,586			216,808			196,181			189,181			148,303
Accounts payable, accrued expenses
and other liabilities		191,309			198,441			209,654			205,114			220,350
Funds held under reinsurance treaties		105,572			96,067			78,058			79,815			79,966
Dividends to policyholders		3,992			3,931			4,452			4,998			4,725
Payable under securities loan agreements		90,118			63,758			2			10,005			4,804
Total liabilities		2,779,988			2,745,065			2,481,822			2,465,064			2,374,657

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			110,042			110,552
Retained earnings		188,532			188,409			187,265			185,393			180,626
Accumulated other comprehensive income (loss)		1,377			(14,861	)		(22,684	)		(33,358	)		(37,630	)
Treasury stock, at cost		(40,734	)		(39,305	)		(38,779	)		(33,592	)		(26,307	)
Total shareholders' equity		429,596			414,664			406,223			399,575			398,331
Total liabilities and shareholders' equity	$	3,209,584		$	3,159,729		$	2,888,045		$	2,864,639		$	2,772,988

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

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2005			2005			2005			2006			2006			2006			2005

Total Investments & Cash
As reported	$	1,437,805		$	1,358,970		$	1,137,490		$	1,082,271		$	1,015,145		$	1,015,145		$	1,437,805
Less:
Securities lending activity		90,118			63,758			2			10,005			4,804			4,804			90,118
Unrealized gain (loss)		26,563			1,771			(4,302	)		(21,448	)		(28,820	)		(28,820	)		26,563
Total adjusted investments & cash	$	1,321,124		$	1,293,441		$	1,141,790		$	1,093,714		$	1,039,161		$	1,039,161		$	1,321,124

Net Investment Income
As reported	$	12,542		$	12,648		$	11,761		$	11,400		$	11,058		$	22,458		$	24,254
Funds held:
Assumed		129			535			545			335			537			872			316
Ceded		(1,871	)		(1,694	)		(1,897	)		(1,519	)		(1,643	)		(3,162	)		(4,308	)
Total funds held		(1,742	)		(1,159	)		(1,352	)		(1,184	)		(1,106	)		(2,290	)		(3,992	)

Total adjusted investment income	$	14,284		$	13,807		$	13,113		$	12,584		$	12,164		$	24,748		$	28,246

Yield
As reported		3.42	%		3.62	%		3.77	%		4.11	%		4.22	%		4.17	%		3.31	%
Investment portfolio		4.21	%		4.22	%		4.31	%		4.50	%		4.56	%		4.53	%		4.08	%

Duration (in years)		3.9			3.7			3.7			3.7			3.5			3.5			3.9

PMA Capital Corporation
Debt
(Dollars in Thousands)


		Amount
		Outstanding			Maturity
	6.50% convertible debt	$	32,165		2022¹
	Derivative component of 6.50% convertible debt		4,953
	4.25% convertible debt		655		2022²
	8.50% senior notes		57,500		2018
	Junior subordinated debt³		43,816		2033
	Surplus notes ⁴		10,000		2035
	Unamortized debt discount		(786	)
	Total long-term debt	$	148,303

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 $29.7 million principal amount and $15.891 per share for $2.5 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 junior subordinated debt is 9.39% as of June 30, 2006.
⁴	Interest rate on surplus notes is 9.63% as of June 30, 2006.

PMA Capital Corporation
Statements of Operations - Consolidating
Six Months Ended June 30, 2006
(In Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	233,065	$	(381	)	$	1,358		$	234,042

Net Premiums Written	$	199,029	$	(381	)	$	1,133		$	199,781

Revenues:
Net premiums earned	$	186,024	$	(381	)	$	938		$	186,581
Net investment income		17,312		(463	)		5,609			22,458
Other revenues		14,239		151			-			14,390
Operating revenues		217,575		(693	)		6,547			223,429

Losses and Expenses:
Losses and loss adjustment expenses		132,201		-			(429	)		131,772
Acquisition expenses		37,142		-			(265	)		36,877
Operating expenses		30,518		4,397			6,652			41,567
Dividends to policyholders		2,433		-			-			2,433
Total losses and expenses		202,294		4,397			5,958			212,649

Operating income (loss) before income taxes
and interest expense		15,281		(5,090	)		589			10,780

Interest expense		469		7,177			-			7,646

Pre-tax operating income (loss)	$	14,812	$	(12,267	)	$	589			3,134

Net realized investment losses										(160	)

Pre-tax income									$	2,974

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

PMA Capital Corporation
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	)

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

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended June 30, 2006
(In Thousands)

	PMA
	Insurance		Corporate			Run-off
	Group		& Other¹			Operations			Consolidated

Gross Premiums Written	$	99,328	$	(213	)	$	960		$	100,075

Net Premiums Written	$	85,639	$	(213	)	$	527		$	85,953

Revenues:
Net premiums earned	$	94,803	$	(213	)	$	332		$	94,922
Net investment income		8,753		(103	)		2,408			11,058
Other revenues		7,165		121			-			7,286
Operating revenues		110,721		(195	)		2,740			113,266

Losses and Expenses:
Losses and loss adjustment expenses		67,682		-			(1,303	)		66,379
Acquisition expenses		18,923		-			629			19,552
Operating expenses		16,193		2,401			2,986			21,580
Dividends to policyholders		1,011		-			-			1,011
Total losses and expenses		103,809		2,401			2,312			108,522

Operating income (loss) before income taxes
and interest expense		6,912		(2,596	)		428			4,744

Interest expense		241		3,532			-			3,773

Pre-tax operating income (loss)	$	6,671	$	(6,128	)	$	428			971

Net realized investment losses										(1,978	)

Pre-tax loss									$	(1,007	)

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

PMA Capital Corporation
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

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

PMA Capital Corporation
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
	2005		2005		2005		2006		2006		2006		2005		Quarter			Months

Gross Premiums Written	$	93,680	$	129,163	$	82,490	$	133,737	$	99,328	$	233,065	$	209,952		6.0	%		11.0	%

Net Premiums Written	$	82,103	$	116,877	$	71,339	$	113,390	$	85,639	$	199,029	$	187,577		4.3	%		6.1	%

Revenues:
Net premiums earned	$	85,541	$	92,214	$	96,187	$	91,221	$	94,803	$	186,024	$	170,241		10.8	%		9.3	%
Net investment income		7,716		8,160		8,328		8,559		8,753		17,312		15,257		13.4	%		13.5	%
Other revenues		4,906		6,172		6,837		7,074		7,165		14,239		10,871		46.0	%		31.0	%
Total revenues		98,163		106,546		111,352		106,854		110,721		217,575		196,369		12.8	%		10.8	%

Losses and Expenses:
Losses and loss adjustment expenses		61,331		67,995		68,732		64,519		67,682		132,201		123,549		10.4	%		7.0	%
Acquisition expenses		17,254		18,279		18,998		18,219		18,923		37,142		34,021		9.7	%		9.2	%
Operating expenses		12,875		13,100		17,191		14,325		16,193		30,518		24,982		25.8	%		22.2	%
Dividends to policyholders		1,762		567		2,343		1,422		1,011		2,433		2,264		-42.6	%		7.5	%
Total losses and expenses		93,222		99,941		107,264		98,485		103,809		202,294		184,816		11.4	%		9.5	%

Operating income before income taxes
and interest expense		4,941		6,605		4,088		8,369		6,912		15,281		11,553		39.9	%		32.3	%

Interest expense		-		5		221		228		241		469		-		NM			NM

Pre-tax operating income	$	4,941	$	6,600	$	3,867	$	8,141	$	6,671	$	14,812	$	11,553		35.0	%		28.2	%

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group

	2nd Quarter 2005			3rd Quarter 2005			4th Quarter 2005			1st Quarter 2006			2nd Quarter 2006			Six Months 2006			Six Months 2005			Point Chg. 2nd Quarter Better (Worse)			Point Chg. Six Months Better (Worse)

Ratios - GAAP Basis:


Loss and LAE ratio		71.7	%		73.7	%		71.5	%		70.7	%		71.4	%		71.1	%		72.6	%		0.3			1.5

Expense ratio:
Acquisition expenses		20.2	%		19.8	%		19.8	%		20.0	%		20.0	%		20.0	%		20.0	%		0.2			-
Operating expenses¹		10.3	%		9.2	%		12.5	%		9.8	%		10.4	%		10.1	%		9.9	%		(0.1	)		(0.2	)
Total expense ratio		30.5	%		29.0	%		32.3	%		29.8	%		30.4	%		30.1	%		29.9	%		0.1			(0.2	)

Policyholders' dividend ratio		2.1	%		0.6	%		2.4	%		1.6	%		1.1	%		1.3	%		1.3	%		1.0			-
Combined ratio		104.3	%		103.3	%		106.2	%		102.1	%		102.9	%		102.5	%		103.8	%		1.4			1.3

Net investment income ratio		-9.0	%		-8.8	%		-8.7	%		-9.4	%		-9.2	%		-9.3	%		-9.0	%		0.2			0.3
Operating ratio		95.3	%		94.5	%		97.5	%		92.7	%		93.7	%		93.2	%		94.8	%		1.6			1.6

The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $8.9 million, $8.4 million, $12.1 million, $8.9 million and $10.0 million for the second, third and fourth quarters of 2005 and the first and second quarters of 2006, respectively.

PMA Capital Corporation
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
	2005		2005			2005		2006			2006			2006			2005			Quarter			Months

Gross Premiums Written	$	1,609	$	1,138		$	4,959	$	398		$	960		$	1,358		$	6,844			-40.3	%		-80.2	%

Net Premiums Written	$	1,504	$	789		$	3,028	$	606		$	527		$	1,133		$	6,433			-65.0	%		-82.4	%

Revenues:
Net premiums earned	$	3,399	$	204		$	3,386	$	606		$	332		$	938		$	6,616			-90.2	%		-85.8	%
Net investment income		4,569		4,217			3,652		3,201			2,408			5,609			8,469			-47.3	%		-33.8	%
Total revenues		7,968		4,421			7,038		3,807			2,740			6,547			15,085			-65.6	%		-56.6	%

Losses and Expenses:
Losses and loss adjustment expenses		1,930		117			981		874			(1,303	)		(429	)		33,700			NM			NM
Acquisition expenses		729		1,412			538		(894	)		629			(265	)		2,633			-13.7	%		NM
Operating expenses		4,176		3,150			3,681		3,666			2,986			6,652			7,265			-28.5	%		-8.4	%
Total losses and expenses		6,835		4,679			5,200		3,646			2,312			5,958			43,598			-66.2	%		-86.3	%

Pre-tax operating income (loss)	$	1,133	$	(258	)	$	1,838	$	161		$	428		$	589		$	(28,513	)		-62.2	%		NM

PMA Capital Corporation
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
	2005			2005			2005			2006			2006			2006			2005			Quarter			Months

Gross Premiums Written	$	(220	)	$	(195	)	$	(209	)	$	(168	)	$	(213	)	$	(381	)	$	(414	)		3.2	%		8.0	%

Net Premiums Written	$	(220	)	$	(195	)	$	(209	)	$	(168	)	$	(213	)	$	(381	)	$	(414	)		3.2	%		8.0	%

Revenues:
Net premiums earned	$	(220	)	$	(195	)	$	(209	)	$	(168	)	$	(213	)	$	(381	)	$	(414	)		3.2	%		8.0	%
Net investment income		257			271			(219	)		(360	)		(103	)		(463	)		528			NM			NM
Other revenues		33			37			109			30			121			151			260			NM			-41.9	%
Total revenues		70			113			(319	)		(498	)		(195	)		(693	)		374			NM			NM

Losses and Expenses:
Operating expenses		1,751			1,622			2,627			1,996			2,401			4,397			4,253			37.1	%		3.4	%
Total losses and expenses		1,751			1,622			2,627			1,996			2,401			4,397			4,253			37.1	%		3.4	%

Operating loss before income taxes
and interest expense		(1,681	)		(1,509	)		(2,946	)		(2,494	)		(2,596	)		(5,090	)		(3,879	)		-54.4	%		-31.2	%

Interest expense		4,040			4,100			3,776			3,645			3,532			7,177			8,009			-12.6	%		-10.4	%

Pre-tax operating loss	$	(5,721	)	$	(5,609	)	$	(6,722	)	$	(6,139	)	$	(6,128	)	$	(12,267	)	$	(11,888	)		-7.1	%		-3.2	%

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

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2005			2005			2005			2006			2006			2006			2005

Receipts:
Premiums and other revenues collected	$	108,706		$	90,858		$	98,661		$	104,991		$	96,652		$	201,643		$	205,381
Investment income received		14,656			15,942			16,393			15,368			14,890			30,258			29,470
Total receipts		123,362			106,800			115,054			120,359			111,542			231,901			234,851

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		14,240			16,593			20,720			3,496			17,337			20,833			18,052
Losses and LAE paid - prior years		134,182			86,329			174,212			92,597			92,004			184,601			246,494
Total losses and LAE paid		148,422			102,922			194,932			96,093			109,341			205,434			264,546
Insurance operating expenses paid		39,585			39,009			27,271			46,203			39,618			85,821			78,217
Policyholders' dividends paid		1,284			820			531			246			397			643			3,399
Interest on corporate debt		1,987			5,327			2,197			4,791			2,965			7,756			6,374
Total disbursements		191,278			148,078			224,931			147,333			152,321			299,654			352,536

Net other		1,046			3,564			(15,349	)		(12,368	)		7,406			(4,962	)		8,304

Net operating cash flows	$	(66,870	)	$	(37,714	)	$	(125,226	)	$	(39,342	)	$	(33,373	)	$	(72,715	)	$	(109,381	)

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

	2nd			3rd		4th			1st			2nd			Six			Six
	Quarter			Quarter		Quarter			Quarter			Quarter			Months			Months
	2005			2005		2005			2006			2006			2006			2005

Receipts:
Premiums and other revenues collected	$	100,170		$	91,212	$	97,910		$	99,740		$	94,320		$	194,060		$	193,318
Investment income received		9,682			10,262		10,606			10,479			10,598			21,077			19,086
Total receipts		109,852			101,474		108,516			110,219			104,918			215,137			212,404

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		14,233			16,584		20,720			3,496			17,337			20,833			18,043
Losses and LAE paid - prior years		69,276			55,520		43,853			65,113			57,537			122,650			142,275
Total Losses and LAE paid		83,509			72,104		64,573			68,609			74,874			143,483			160,318
Insurance operating expenses paid		36,988			33,988		23,305			42,110			35,129			77,239			71,226
Policyholders' dividends paid		1,284			820		531			246			397			643			3,399
Interest on corporate debt		-			-		80			224			227			451			-
Total disbursements		121,781			106,912		88,489			111,189			110,627			221,816			234,943

Net other		2,002			6,012		(18,742	)		(6,376	)		1,955			(4,421	)		15,762

Net operating cash flows	$	(9,927	)	$	574	$	1,285		$	(7,346	)	$	(3,754	)	$	(11,100	)	$	(6,777	)

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

	2nd			3rd			4th			1st			2nd			Six			Six
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2005			2005			2005			2006			2006			2006			2005

Receipts:
Premiums collected	$	8,536		$	(354	)	$	751		$	5,251		$	2,332		$	7,583		$	12,063
Investment income received		4,974			5,680			5,787			4,889			4,292			9,181			10,384
Total receipts		13,510			5,326			6,538			10,140			6,624			16,764			22,447

Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		7			9			-			-			-			-			9
Losses and LAE paid - prior years		64,906			30,809			130,359			27,484			34,467			61,951			104,219
Total losses and LAE paid		64,913			30,818			130,359			27,484			34,467			61,951			104,228
Insurance operating expenses paid		2,597			5,021			3,966			4,093			4,489			8,582			6,991
Total disbursements		67,510			35,839			134,325			31,577			38,956			70,533			111,219

Net other		(4,890	)		(1,912	)		4,004			1,083			1,775			2,858			(4,964	)

Net operating cash flows	$	(58,890	)	$	(32,425	)	$	(123,783	)	$	(20,354	)	$	(30,557	)	$	(50,911	)	$	(93,736	)

PMA Capital Corporation

Statutory Surplus

(In Thousands)

2nd

3rd

4th

1st

2nd

Quarter

2005

2006

2006¹

PMA Pool ²

299,219

311,802

⁵

315,056

⁵

316,726

⁵

321,114

^4,5

PMA Capital Insurance Company ³

215,348

210,663

204,920

203,261

125,989

^4,6

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
	2005			2005			2005			2006			2006¹			2006¹			2005

Net Premiums Written:
Workers' Compensation & Integrated
Disability	$	70,944		$	101,435		$	63,086		$	100,096		$	76,602		$	176,698		$	165,681
Other Commercial Lines		10,998			13,487			4,723			11,048			6,687			17,735			21,785
Total - PMA Pool	$	81,942		$	114,922		$	67,809		$	111,144		$	83,289		$	194,433		$	187,466

Statutory Ratios:
Loss and LAE ratio		73.0	%		73.3	%		73.0	%		71.5	%		72.5	%		72.0	%		73.2	%
Underwriting expense ratio		30.2	%		25.1	%		32.5	%		24.6	%		31.6	%		27.6	%		27.4	%
Policyholders' dividend ratio		0.8	%		0.8	%		1.1	%		0.9	%		0.1	%		0.5	%		0.9	%
Combined ratio		104.0	%		99.2	%		106.6	%		97.0	%		104.2	%		100.1	%		101.5	%
Operating ratio		95.2	%		91.2	%		98.6	%		88.4	%		96.0	%		91.7	%		93.0	%

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 $141.8 million and $5.9 million for the PMA Pool and PMA Capital Insurance Company, respectively.

⁵

Includes $10 million related to surplus notes.

⁶

In May 2006, PMA Capital Insurance Company paid an extraordinary dividend in the amount of $73.5 million to its parent, PMA Capital Corporation.

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 8/02/2006):

	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.

Pma Capital (PMACA) Inactive 8-KPMA Capital Announces Second Quarter 2006 Results; Improved Operating Income for Second Quarter and First Six Months of 2006