Exhibit 99.2
Statistical Supplement
Second Quarter
2007
PMA Capital Corporation | |||||||||
| Statistical Supplement | |||||||||
| Second Quarter - 2007 | |||||||||
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; Balance Sheet Impact of Commutations - Run-off Operations | 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 | |||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | Quarter | |||||||||||||||||||
Gross Premiums Written by Segment: | ||||||||||||||||||||||||
| PMA Insurance Group | $ | 99,328 | $ | 133,903 | $ | 89,484 | $ | 164,720 | $ | 115,418 | 16.2 | % | ||||||||||||
| Run-off Operations | 960 | 526 | 102 | 1,507 | 1,994 | NM | ||||||||||||||||||
| Corporate & Other | (213 | ) | (158 | ) | (157 | ) | (156 | ) | (160 | ) | 24.9 | % | ||||||||||||
| Gross premiums written | $ | 100,075 | $ | 134,271 | $ | 89,429 | $ | 166,071 | $ | 117,252 | 17.2 | % | ||||||||||||
Net Premiums Written by Segment: | ||||||||||||||||||||||||
| PMA Insurance Group | $ | 85,639 | $ | 107,795 | $ | 66,873 | $ | 125,893 | $ | 81,816 | -4.5 | % | ||||||||||||
| Run-off Operations | 527 | 701 | 309 | 1,495 | 1,994 | NM | ||||||||||||||||||
| Corporate & Other | (213 | ) | (158 | ) | (157 | ) | (156 | ) | (160 | ) | 24.9 | % | ||||||||||||
| Net premiums written | $ | 85,953 | $ | 108,338 | $ | 67,025 | $ | 127,232 | $ | 83,650 | -2.7 | % | ||||||||||||
Major Components of Net Income (Loss): | ||||||||||||||||||||||||
| Pre-tax operating income (loss) by segment: | ||||||||||||||||||||||||
| PMA Insurance Group | $ | 6,671 | $ | 8,351 | $ | 5,721 | $ | 11,723 | $ | 8,400 | 25.9 | % | ||||||||||||
| Run-off Operations | 428 | 174 | 485 | (738 | ) | (707 | ) | NM | ||||||||||||||||
| Corporate & Other | (6,128 | ) | (5,016 | ) | (5,282 | ) | (5,309 | ) | (5,129 | ) | 16.3 | % | ||||||||||||
| Pre-tax operating income | 971 | 3,509 | 924 | 5,676 | 2,564 | NM | ||||||||||||||||||
| Net realized investment losses | (1,978 | ) | (799 | ) | (26 | ) | (430 | ) | (1,754 | ) | 11.3 | % | ||||||||||||
| Pre-tax income (loss) | (1,007 | ) | 2,710 | 898 | 5,246 | 810 | NM | |||||||||||||||||
| Income tax expense (benefit) | (245 | ) | 1,209 | 67 | 1,900 | 319 | NM | |||||||||||||||||
| Net income (loss) | $ | (762 | ) | $ | 1,501 | $ | 831 | $ | 3,346 | $ | 491 | NM | ||||||||||||
| After-tax operating income | $ | 524 | $ | 2,020 | $ | 848 | $ | 3,626 | $ | 1,631 | NM | |||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||||
| Net income (loss) | $ | (0.02 | ) | $ | 0.05 | $ | 0.03 | $ | 0.10 | $ | 0.01 | NM | ||||||||||||
| Less the impact of: | ||||||||||||||||||||||||
| Realized losses after tax | (0.04 | ) | (0.01 | ) | - | (0.01 | ) | (0.04 | ) | 0.0 | % | |||||||||||||
| After-tax operating income | $ | 0.02 | $ | 0.06 | $ | 0.03 | $ | 0.11 | $ | 0.05 | NM | |||||||||||||
Capitalization: | ||||||||||||||||||||||||
| Debt | $ | 148,303 | $ | 131,561 | $ | 131,211 | $ | 130,822 | $ | 144,629 | -2.5 | % | ||||||||||||
| Shareholders' equity excluding FAS 115 unrealized loss | 417,064 | 418,372 | 425,132 | 424,894 | 420,150 | 0.7 | % | |||||||||||||||||
| Total capitalization excluding FAS 115 unrealized loss | 565,367 | 549,933 | 556,343 | 555,716 | 564,779 | -0.1 | % | |||||||||||||||||
| FAS 115 unrealized loss | (18,733 | ) | (6,169 | ) | (6,039 | ) | (1,084 | ) | (9,179 | ) | 51.0 | % | ||||||||||||
| Total capitalization including FAS 115 unrealized loss | $ | 546,634 | $ | 543,764 | $ | 550,304 | $ | 554,632 | $ | 555,600 | 1.6 | % | ||||||||||||
Book Value Per Share: | ||||||||||||||||||||||||
| Excluding FAS 115 unrealized loss | $ | 12.79 | $ | 12.82 | $ | 13.02 | $ | 13.02 | $ | 13.06 | 2.1 | % | ||||||||||||
| Including FAS 115 unrealized loss | $ | 12.21 | $ | 12.63 | $ | 12.83 | $ | 12.99 | $ | 12.78 | 4.7 | % | ||||||||||||
Debt to Total Capital: | ||||||||||||||||||||||||
| Excluding FAS 115 unrealized loss | 26.2 | % | 23.9 | % | 23.6 | % | 23.5 | % | 25.6 | % | -2.3 | % | ||||||||||||
| Including FAS 115 unrealized loss | 27.1 | % | 24.2 | % | 23.8 | % | 23.6 | % | 26.0 | % | -4.1 | % | ||||||||||||
Interest Coverage: | ||||||||||||||||||||||||
| Income before interest and income taxes | ||||||||||||||||||||||||
| to interest expense | 0.73 | 1.89 | 1.32 | 2.86 | 1.28 | 75.3 | % | |||||||||||||||||
Operating income before interest and income taxes to interest expense | 1.26 | 2.15 | 1.33 | 3.02 | 1.90 | 50.8 | % | |||||||||||||||||
1
PMA Capital Corporation | ||||||||||||
| Selected Financial Data | ||||||||||||
(Dollar Amounts in Thousands, Except Per Share Data) | ||||||||||||
Six | Six | % Change | ||||||||||
Months | Months | Six | ||||||||||
2007 | 2006 | Months | ||||||||||
Gross Premiums Written by Segment: | ||||||||||||
| PMA Insurance Group | $ | 280,138 | $ | 233,065 | 20.2 | % | ||||||
| Run-off Operations | 3,501 | 1,358 | NM | |||||||||
| Corporate & Other | (316 | ) | (381 | ) | 17.1 | % | ||||||
| Gross premiums written | $ | 283,323 | $ | 234,042 | 21.1 | % | ||||||
Net Premiums Written by Segment: | ||||||||||||
| PMA Insurance Group | $ | 207,709 | $ | 199,029 | 4.4 | % | ||||||
| Run-off Operations | 3,489 | 1,133 | NM | |||||||||
| Corporate & Other | (316 | ) | (381 | ) | 17.1 | % | ||||||
| Net premiums written | $ | 210,882 | $ | 199,781 | 5.6 | % | ||||||
Major Components of Net Income: | ||||||||||||
| Pre-tax operating income (loss) by segment: | ||||||||||||
| PMA Insurance Group | $ | 20,123 | $ | 14,812 | 35.9 | % | ||||||
| Run-off Operations | (1,445 | ) | 589 | NM | ||||||||
| Corporate & Other | (10,438 | ) | (12,267 | ) | 14.9 | % | ||||||
| Pre-tax operating income | 8,240 | 3,134 | NM | |||||||||
| Net realized investment losses | (2,184 | ) | (160 | ) | NM | |||||||
| Pre-tax income | 6,056 | 2,974 | NM | |||||||||
| Income tax expense | 2,219 | 1,255 | 76.8 | % | ||||||||
| Net income | $ | 3,837 | $ | 1,719 | NM | |||||||
| After-tax operating income | $ | 5,257 | $ | 1,823 | NM | |||||||
Diluted Earnings Per Share: | ||||||||||||
| Net income | $ | 0.12 | $ | 0.05 | NM | |||||||
| Less the impact of: | ||||||||||||
| Realized losses after tax | (0.04 | ) | (0.01 | ) | NM | |||||||
| After-tax operating income | $ | 0.16 | $ | 0.06 | NM | |||||||
2
PMA Capital Corporation | ||||||||||||||||||||||||||||
| Consolidated Statements of Operations - Per Share Data | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||||||||
| Net income (loss) | $ | (0.02 | ) | $ | 0.05 | $ | 0.03 | $ | 0.10 | $ | 0.01 | $ | 0.12 | $ | 0.05 | |||||||||||||
| Pre-tax operating income | $ | 0.03 | $ | 0.11 | $ | 0.03 | $ | 0.17 | $ | 0.08 | $ | 0.25 | $ | 0.10 | ||||||||||||||
| After-tax operating income | $ | 0.02 | $ | 0.06 | $ | 0.03 | $ | 0.11 | $ | 0.05 | $ | 0.16 | $ | 0.06 | ||||||||||||||
| Diluted weighted average common | ||||||||||||||||||||||||||||
| shares outstanding | 32,132,618 | 32,922,643 | 32,916,423 | 32,900,397 | 32,838,046 | 32,872,801 | 32,540,905 | |||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||||||
| Class A Common Stock | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
| Actual common shares | ||||||||||||||||||||||||||||
| issued and outstanding | 32,613,234 | 32,646,689 | 32,659,194 | 32,630,669 | 32,163,072 | 32,163,072 | 32,613,234 | |||||||||||||||||||||
Class A Common Stock prices: | ||||||||||||||||||||||||||||
High | $ | 10.49 | $ | 10.75 | $ | 10.15 | $ | 9.77 | $ | 11.40 | $ | 11.40 | $ | 10.49 | ||||||||||||||
Low | $ | 9.24 | $ | 8.60 | $ | 8.60 | $ | 8.40 | $ | 9.12 | $ | 8.40 | $ | 8.68 | ||||||||||||||
Close | $ | 10.30 | $ | 8.82 | $ | 9.22 | $ | 9.39 | $ | 10.69 | $ | 10.69 | $ | 10.30 | ||||||||||||||
3
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4
PMA Capital Corporation | ||||||||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 2nd | |||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | Quarter | |||||||||||||||||||
Gross Premiums Written | $ | 100,075 | $ | 134,271 | $ | 89,429 | $ | 166,071 | $ | 117,252 | 17.2 | % | ||||||||||||
Net Premiums Written | $ | 85,953 | $ | 108,338 | $ | 67,025 | $ | 127,232 | $ | 83,650 | -2.7 | % | ||||||||||||
Revenues: | ||||||||||||||||||||||||
| Net premiums earned | $ | 94,922 | $ | 95,284 | $ | 88,316 | $ | 95,032 | $ | 97,531 | 2.7 | % | ||||||||||||
| Net investment income | 11,058 | 10,747 | 10,333 | 10,525 | 11,125 | 0.6 | % | |||||||||||||||||
| Net realized investment losses | (1,978 | ) | (799 | ) | (26 | ) | (430 | ) | (1,754 | ) | 11.3 | % | ||||||||||||
| Other revenues | 7,286 | 6,624 | 7,107 | 7,787 | 7,614 | 4.5 | % | |||||||||||||||||
| Total revenues | 111,288 | 111,856 | 105,730 | 112,914 | 114,516 | 2.9 | % | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
| Losses and loss adjustment expenses | 66,379 | 66,754 | 60,695 | 67,026 | 68,150 | 2.7 | % | |||||||||||||||||
| Acquisition expenses | 19,552 | 19,811 | 17,825 | 19,138 | 19,013 | -2.8 | % | |||||||||||||||||
| Operating expenses | 21,580 | 18,953 | 22,966 | 17,066 | 21,653 | 0.3 | % | |||||||||||||||||
| Dividends to policyholders | 1,011 | 589 | 510 | 1,622 | 2,047 | NM | ||||||||||||||||||
| Interest expense | 3,773 | 3,039 | 2,836 | 2,816 | 2,843 | -24.6 | % | |||||||||||||||||
| Total losses and expenses | 112,295 | 109,146 | 104,832 | 107,668 | 113,706 | 1.3 | % | |||||||||||||||||
| Pre-tax income (loss) | (1,007 | ) | 2,710 | 898 | 5,246 | 810 | NM | |||||||||||||||||
| Income tax expense (benefit): | ||||||||||||||||||||||||
| Current | - | - | - | - | 200 | NM | ||||||||||||||||||
| Deferred | (245 | ) | 1,209 | 67 | 1,900 | 119 | NM | |||||||||||||||||
| �� | ||||||||||||||||||||||||
| Total income tax expense (benefit) | (245 | ) | 1,209 | 67 | 1,900 | 319 | NM | |||||||||||||||||
| Net income (loss) | $ | (762 | ) | $ | 1,501 | $ | 831 | $ | 3,346 | $ | 491 | NM | ||||||||||||
| Pre-tax operating income | $ | 971 | $ | 3,509 | $ | 924 | $ | 5,676 | $ | 2,564 | NM | |||||||||||||
| After-tax operating income | $ | 524 | $ | 2,020 | $ | 848 | $ | 3,626 | $ | 1,631 | NM | |||||||||||||
5
PMA Capital Corporation | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||
Six | Six | % Change | ||||||||||
Months | Months | Six | ||||||||||
2007 | 2006 | Months | ||||||||||
Gross Premiums Written | $ | 283,323 | $ | 234,042 | 21.1 | % | ||||||
Net Premiums Written | $ | 210,882 | $ | 199,781 | 5.6 | % | ||||||
Revenues: | ||||||||||||
| Net premiums earned | $ | 192,563 | $ | 186,581 | 3.2 | % | ||||||
| Net investment income | 21,650 | 22,458 | -3.6 | % | ||||||||
| Net realized investment losses | (2,184 | ) | (160 | ) | NM | |||||||
| Other revenues | 15,401 | 14,390 | 7.0 | % | ||||||||
| Total revenues | 227,430 | 223,269 | 1.9 | % | ||||||||
Expenses: | ||||||||||||
| Losses and loss adjustment expenses | 135,176 | 131,772 | 2.6 | % | ||||||||
| Acquisition expenses | 38,151 | 36,877 | 3.5 | % | ||||||||
| Operating expenses | 38,719 | 41,567 | -6.9 | % | ||||||||
| Dividends to policyholders | 3,669 | 2,433 | 50.8 | % | ||||||||
| Interest expense | 5,659 | 7,646 | -26.0 | % | ||||||||
| Total losses and expenses | 221,374 | 220,295 | 0.5 | % | ||||||||
| Pre-tax income | 6,056 | 2,974 | NM | |||||||||
| Income tax expense: | ||||||||||||
| Current | 200 | - | NM | |||||||||
| Deferred | 2,019 | 1,255 | 60.9 | % | ||||||||
| Total income tax expense | 2,219 | 1,255 | 76.8 | % | ||||||||
| Net income | $ | 3,837 | $ | 1,719 | NM | |||||||
| Pre-tax operating income | $ | 8,240 | $ | 3,134 | NM | |||||||
| After-tax operating income | $ | 5,257 | $ | 1,823 | NM | |||||||
6
PMA Capital Corporation | ||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | ||||||||||||||||
Assets: | ||||||||||||||||||||
| Investments in fixed maturities available for sale | $ | 913,376 | $ | 904,074 | $ | 871,951 | $ | 735,048 | $ | 733,083 | ||||||||||
| Investments in fixed maturities trading | - | - | - | 122,669 | 84,714 | |||||||||||||||
| Short-term investments | 70,994 | 59,227 | 86,448 | 93,385 | 100,788 | |||||||||||||||
| Short-term investments, loaned securities collateral | 4,771 | - | - | - | - | |||||||||||||||
| Total investments | 989,141 | 963,301 | 958,399 | 951,102 | 918,585 | |||||||||||||||
| Cash | 26,004 | 30,387 | 14,105 | 9,924 | 8,494 | |||||||||||||||
| Accrued investment income | 9,312 | 10,993 | 9,351 | 5,407 | 5,469 | |||||||||||||||
| Premiums receivable | 205,825 | 218,126 | 207,771 | 257,445 | 253,215 | |||||||||||||||
| Reinsurance receivables | 1,071,332 | 1,069,153 | 1,039,979 | 1,042,478 | 1,051,269 | |||||||||||||||
| Prepaid reinsurance premiums | 4,851 | 20,618 | 26,730 | 41,410 | 42,435 | |||||||||||||||
| Deferred income taxes, net | 110,452 | 102,986 | 100,019 | 97,565 | 101,696 | |||||||||||||||
| Deferred acquisition costs | 37,336 | 40,384 | 36,239 | 41,726 | 37,889 | |||||||||||||||
| Funds held by reinsureds | 151,873 | 133,222 | 130,214 | 132,926 | 102,519 | |||||||||||||||
| Other assets | 166,862 | 164,286 | 143,600 | 148,022 | 157,416 | |||||||||||||||
| Total assets | $ | 2,772,988 | $ | 2,753,456 | $ | 2,666,407 | $ | 2,728,005 | $ | 2,678,987 | ||||||||||
Liabilities: | ||||||||||||||||||||
| Unpaid losses and loss adjustment expenses | $ | 1,727,369 | $ | 1,690,483 | $ | 1,634,865 | $ | 1,620,952 | $ | 1,563,324 | ||||||||||
| Unearned premiums | 189,140 | 217,506 | 202,973 | 249,689 | 235,356 | |||||||||||||||
| Debt | 148,303 | 131,561 | 131,211 | 130,822 | 144,629 | |||||||||||||||
| Accounts payable, accrued expenses | ||||||||||||||||||||
| and other liabilities | 215,918 | 208,854 | 191,540 | 195,228 | 214,240 | |||||||||||||||
| Reinsurance funds held and balances payable | 84,398 | 88,105 | 82,275 | 103,021 | 106,288 | |||||||||||||||
| Dividends to policyholders | 4,725 | 4,744 | 4,450 | 4,483 | 4,179 | |||||||||||||||
| Payable under securities loan agreements | 4,804 | - | - | - | - | |||||||||||||||
| Total liabilities | 2,374,657 | 2,341,253 | 2,247,314 | 2,304,195 | 2,268,016 | |||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
| Class A Common Stock | 171,090 | 171,090 | 171,090 | 171,090 | 171,090 | |||||||||||||||
| Additional paid-in capital | 110,552 | 111,116 | 109,922 | 110,527 | 110,318 | |||||||||||||||
| Retained earnings | 180,626 | 181,719 | 184,216 | 183,611 | 183,019 | |||||||||||||||
| Accumulated other comprehensive loss | (37,630 | ) | (26,010 | ) | (20,624 | ) | (15,675 | ) | (23,569 | ) | ||||||||||
| Treasury stock, at cost | (26,307 | ) | (25,712 | ) | (25,511 | ) | (25,743 | ) | (29,887 | ) | ||||||||||
| Total shareholders' equity | 398,331 | 412,203 | 419,093 | 423,810 | 410,971 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,772,988 | $ | 2,753,456 | $ | 2,666,407 | $ | 2,728,005 | $ | 2,678,987 | ||||||||||
7
PMA Capital Corporation | ||||||||||||||||||||||||||||
| Invested Assets and Net Investment Income | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||||||
Total Investments & Cash | ||||||||||||||||||||||||||||
| As reported | $ | 1,015,145 | $ | 993,688 | $ | 972,504 | $ | 961,026 | $ | 927,079 | $ | 927,079 | $ | 1,015,145 | ||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Securities lending activity | 4,804 | - | - | - | - | - | 4,804 | |||||||||||||||||||||
| Unrealized loss | (28,820 | ) | (9,490 | ) | (9,291 | ) | (1,668 | ) | (14,121 | ) | (14,121 | ) | (28,820 | ) | ||||||||||||||
Unrealized loss and accrued income - trading | - | - | - | (5,858 | ) | (5,282 | ) | (5,282 | ) | - | ||||||||||||||||||
| Total adjusted investments & cash | $ | 1,039,161 | $ | 1,003,178 | $ | 981,795 | $ | 968,552 | $ | 946,482 | $ | 946,482 | $ | 1,039,161 | ||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||
| As reported | $ | 11,058 | $ | 10,747 | $ | 10,333 | $ | 10,525 | $ | 11,125 | $ | 21,650 | $ | 22,458 | ||||||||||||||
| Funds held: | ||||||||||||||||||||||||||||
| Assumed | 537 | 185 | 160 | 246 | 212 | 458 | 872 | |||||||||||||||||||||
| Ceded | (1,643 | ) | (1,482 | ) | (1,374 | ) | (1,560 | ) | (931 | ) | (2,491 | ) | (3,162 | ) | ||||||||||||||
| Total funds held | (1,106 | ) | (1,297 | ) | (1,214 | ) | (1,314 | ) | (719 | ) | (2,033 | ) | (2,290 | ) | ||||||||||||||
| Total adjusted investment income | $ | 12,164 | $ | 12,044 | $ | 11,547 | $ | 11,839 | $ | 11,844 | $ | 23,683 | $ | 24,748 | ||||||||||||||
Yield | ||||||||||||||||||||||||||||
| As reported | 4.22 | % | 4.28 | % | 4.20 | % | 4.35 | % | 4.71 | % | 4.54 | % | 4.17 | % | ||||||||||||||
| Investment portfolio | 4.56 | % | 4.72 | % | 4.65 | % | 4.86 | % | 4.95 | % | 4.91 | % | 4.53 | % | ||||||||||||||
Duration (in years) | 3.5 | 3.4 | 3.3 | 3.3 | 3.7 | 3.7 | 3.5 | |||||||||||||||||||||
PMA Capital Corporation | ||||||||
| Debt | ||||||||
(Dollar Amounts in Thousands) | ||||||||
| Amount | ||||||||
| Outstanding | Maturity | |||||||
| 6.50% convertible debt | $ | 12,693 | 2022 | 1 | ||||
| Derivative component of 6.50% convertible debt | 2,356 | |||||||
| 4.25% convertible debt | 455 | 2022 | 2 | |||||
| 8.50% senior notes | 54,900 | 2018 | ||||||
Junior subordinated debt 3 | 64,435 | 2033 - 2037 | ||||||
Surplus notes 4 | 10,000 | 2035 | ||||||
| Unamortized debt discount | (210 | ) | ||||||
| Total long-term debt | $ | 144,629 | ||||||
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. | |||||||||||||||
2 | Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 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 9.30% as of June 30, 2007. | |||||||||||||||
4 | Interest rate on surplus notes is 9.86% as of June 30, 2007. | |||||||||||||||
PMA Capital Corporation | ||||||||||||
| Balance Sheet Impact of Commutations - Run-off Operations | ||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||
| �� | ||||||||||||
| 2nd Quarter and Six Months 2007 | ||||||||||||
Assets | Assumed | Ceded | Total | |||||||||
| Funds held by reinsureds | $ | (32,813 | ) | $ | - | $ | (32,813 | ) | ||||
Liabilities | Assumed | Ceded | Total | |||||||||
| Unpaid loss and loss adjustment expenses | $ | (28,243 | ) | $ | - | $ | (28,243 | ) | ||||
| Other liabilities | (7,586 | ) | - | (7,586 | ) | |||||||
8
PMA Capital Corporation | |||||||||||||||||
| Statements of Operations - Consolidating | |||||||||||||||||
| Six Months Ended June 30, 2007 | |||||||||||||||||
(Dollar Amounts in Thousands) | |||||||||||||||||
PMA | |||||||||||||||||
Insurance | Corporate | Run-off | |||||||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||||||
Gross Premiums Written | $ | 280,138 | $ | (316 | ) | $ | 3,501 | $ | 283,323 | ||||||||
Net Premiums Written | $ | 207,709 | $ | (316 | ) | $ | 3,489 | $ | 210,882 | ||||||||
Revenues: | |||||||||||||||||
| Net premiums earned | $ | 191,169 | $ | (316 | ) | $ | 1,710 | $ | 192,563 | ||||||||
| Net investment income | 19,415 | (222 | ) | 2,457 | 21,650 | ||||||||||||
| Other revenues | 15,262 | 139 | - | 15,401 | |||||||||||||
| Operating revenues | 225,846 | (399 | ) | 4,167 | 229,614 | ||||||||||||
Losses and Expenses: | |||||||||||||||||
| Losses and loss adjustment expenses | 133,884 | - | 1,292 | 135,176 | |||||||||||||
| Acquisition expenses | 37,538 | - | 613 | 38,151 | |||||||||||||
| Operating expenses | 30,132 | 4,880 | 3,707 | 38,719 | |||||||||||||
| Dividends to policyholders | 3,669 | - | - | 3,669 | |||||||||||||
| Total losses and expenses | 205,223 | 4,880 | 5,612 | 215,715 | |||||||||||||
| Operating income (loss) before income taxes | |||||||||||||||||
| and interest expense | 20,623 | (5,279 | ) | (1,445 | ) | 13,899 | |||||||||||
| Interest expense | 500 | 5,159 | - | 5,659 | |||||||||||||
| Pre-tax operating income (loss) | $ | 20,123 | $ | (10,438 | ) | $ | (1,445 | ) | 8,240 | ||||||||
| Net realized investment losses | (2,184 | ) | |||||||||||||||
| Pre-tax income | $ | 6,056 | |||||||||||||||
1 Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. | |||||||||||||||||
9
PMA Capital Corporation | |||||||||||||||||
| Statements of Operations - Consolidating | |||||||||||||||||
| Six Months Ended June 30, 2006 | |||||||||||||||||
(Dollar Amounts 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 | |||||||||||||||
1 Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. | |||||||||||||||||
10
PMA Capital Corporation | |||||||||||||||||
| Statements of Operations - Consolidating | |||||||||||||||||
| Three Months Ended June 30, 2007 | |||||||||||||||||
(Dollar Amounts in Thousands) | |||||||||||||||||
PMA | |||||||||||||||||
Insurance | Corporate | Run-off | |||||||||||||||
Group | & Other1 | Operations | Consolidated | ||||||||||||||
Gross Premiums Written | $ | 115,418 | $ | (160 | ) | $ | 1,994 | $ | 117,252 | ||||||||
| �� | |||||||||||||||||
Net Premiums Written | $ | 81,816 | $ | (160 | ) | $ | 1,994 | $ | 83,650 | ||||||||
Revenues: | |||||||||||||||||
| Net premiums earned | $ | 97,174 | $ | (160 | ) | $ | 517 | $ | 97,531 | ||||||||
| Net investment income | 9,711 | (43 | ) | 1,457 | 11,125 | ||||||||||||
| Other revenues | 7,582 | 32 | - | 7,614 | |||||||||||||
| Operating revenues | 114,467 | (171 | ) | 1,974 | 116,270 | ||||||||||||
Losses and Expenses: | |||||||||||||||||
| Losses and loss adjustment expenses | 67,965 | - | 185 | 68,150 | |||||||||||||
| Acquisition expenses | 18,759 | - | 254 | 19,013 | |||||||||||||
| Operating expenses | 17,045 | 2,366 | 2,242 | 21,653 | |||||||||||||
| Dividends to policyholders | 2,047 | - | - | 2,047 | |||||||||||||
| Total losses and expenses | 105,816 | 2,366 | 2,681 | 110,863 | |||||||||||||
| Operating income (loss) before income taxes | |||||||||||||||||
| and interest expense | 8,651 | (2,537 | ) | (707 | ) | 5,407 | |||||||||||
| Interest expense | 251 | 2,592 | - | 2,843 | |||||||||||||
| Pre-tax operating income (loss) | $ | 8,400 | $ | (5,129 | ) | $ | (707 | ) | 2,564 | ||||||||
| Net realized investment losses | (1,754 | ) | |||||||||||||||
| Pre-tax income | $ | 810 | |||||||||||||||
1 Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. | |||||||||||||||||
11
PMA Capital Corporation | |||||||||||||||||
| Statements of Operations - Consolidating | |||||||||||||||||
| Three Months Ended June 30, 2006 | |||||||||||||||||
(Dollar Amounts 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 | ) | ||||||||||||||
1 Corporate & Other includes the effect of eliminating transactions between the Insurance Operations. | |||||||||||||||||
12
PMA Capital Corporation | ||||||||||||||||||||||||||||||||||||
| Statements of Operations - PMA Insurance Group | ||||||||||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2006 | 3rd Quarter 2006 | 4th Quarter 2006 | 1st Quarter 2007 | 2nd Quarter 2007 | Six Months 2007 | Six Months 2006 | % Change 2nd Quarter | % Change Six Months | ||||||||||||||||||||||||||||
Gross Premiums Written | $ | 99,328 | $ | 133,903 | $ | 89,484 | $ | 164,720 | $ | 115,418 | $ | 280,138 | $ | 233,065 | 16.2 | % | 20.2 | % | ||||||||||||||||||
Net Premiums Written | $ | 85,639 | $ | 107,795 | $ | 66,873 | $ | 125,893 | $ | 81,816 | $ | 207,709 | $ | 199,029 | -4.5 | % | 4.4 | % | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
| Net premiums earned | $ | 94,803 | $ | 94,696 | $ | 87,379 | $ | 93,995 | $ | 97,174 | $ | 191,169 | $ | 186,024 | 2.5 | % | 2.8 | % | ||||||||||||||||||
| Net investment income | 8,753 | 8,998 | 9,190 | 9,704 | 9,711 | 19,415 | 17,312 | 10.9 | % | 12.1 | % | |||||||||||||||||||||||||
| Other revenues | 7,165 | 6,573 | 7,065 | 7,680 | 7,582 | 15,262 | 14,239 | 5.8 | % | 7.2 | % | |||||||||||||||||||||||||
| Total revenues | 110,721 | 110,267 | 103,634 | 111,379 | 114,467 | 225,846 | 217,575 | 3.4 | % | 3.8 | % | |||||||||||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | 67,682 | 68,255 | 61,841 | 65,919 | 67,965 | 133,884 | 132,201 | 0.4 | % | 1.3 | % | |||||||||||||||||||||||||
| Acquisition expenses | 18,923 | 19,098 | 17,486 | 18,779 | 18,759 | 37,538 | 37,142 | -0.9 | % | 1.1 | % | |||||||||||||||||||||||||
| Operating expenses | 16,193 | 13,720 | 17,821 | 13,087 | 17,045 | 30,132 | 30,518 | 5.3 | % | -1.3 | % | |||||||||||||||||||||||||
| Dividends to policyholders | 1,011 | 589 | 510 | 1,622 | 2,047 | 3,669 | 2,433 | NM | 50.8 | % | ||||||||||||||||||||||||||
| Total losses and expenses | 103,809 | 101,662 | 97,658 | 99,407 | 105,816 | 205,223 | 202,294 | 1.9 | % | 1.4 | % | |||||||||||||||||||||||||
| Operating income before income taxes | ||||||||||||||||||||||||||||||||||||
| and interest expense | 6,912 | 8,605 | 5,976 | 11,972 | 8,651 | 20,623 | 15,281 | 25.2 | % | 35.0 | % | |||||||||||||||||||||||||
| Interest expense | 241 | 254 | 255 | 249 | 251 | 500 | 469 | 4.1 | % | 6.6 | % | |||||||||||||||||||||||||
| Pre-tax operating income | $ | 6,671 | $ | 8,351 | $ | 5,721 | $ | 11,723 | $ | 8,400 | $ | 20,123 | $ | 14,812 | 25.9 | % | 35.9 | % | ||||||||||||||||||
13
PMA Capital Corporation | ||||||||||||||||||||||||||||||||||||||
| Insurance Ratios - PMA Insurance Group | ||||||||||||||||||||||||||||||||||||||
2nd Quarter 2006 | 3rd Quarter 2006 | 4th Quarter 2006 | 1st Quarter 2007 | 2nd Quarter 2007 | Six Months 2007 | Six Months 2006 | Point Chg. 2nd Quarter Better (Worse) | Point Chg. Six Months Better (Worse) | ||||||||||||||||||||||||||||||
Ratios - GAAP Basis: | ||||||||||||||||||||||||||||||||||||||
| Loss and LAE ratio | 71.4 | % | 72.1 | % | 70.8 | % | 70.1 | % | 69.9 | % | 70.0 | % | 71.1 | % | 1.5 | 1.1 | ||||||||||||||||||||||
| Expense ratio: | ||||||||||||||||||||||||||||||||||||||
| Acquisition expenses | 20.0 | % | 20.2 | % | 20.0 | % | 20.0 | % | 19.3 | % | 19.6 | % | 20.0 | % | 0.7 | 0.4 | ||||||||||||||||||||||
Operating expenses1 | 10.0 | %2 | 8.1 | %2 | 12.9 | %2 | 6.4 | % | 10.3 | % | 8.4 | % | 9.3 | %2 | (0.3 | ) | 0.9 | |||||||||||||||||||||
| Total expense ratio | 30.0 | % | 28.3 | % | 32.9 | % | 26.4 | % | 29.6 | % | 28.0 | % | 29.3 | % | 0.4 | 1.3 | ||||||||||||||||||||||
| Policyholders' dividend ratio | 1.1 | % | 0.6 | % | 0.6 | % | 1.7 | % | 2.1 | % | 1.9 | % | 1.3 | % | (1.0 | ) | (0.6 | ) | ||||||||||||||||||||
| Combined ratio | 102.5 | %2 | 101.0 | %2 | 104.3 | %2 | 98.2 | % | 101.6 | % | 99.9 | % | 101.7 | %2 | 0.9 | 1.8 | ||||||||||||||||||||||
| Net investment income ratio | -9.2 | % | -9.5 | % | -10.5 | % | -10.3 | % | -10.0 | % | -10.2 | % | -9.3 | % | 0.8 | 0.9 | ||||||||||||||||||||||
| Operating ratio | 93.3 | % | 91.5 | % | 93.8 | % | 87.9 | % | 91.6 | % | 89.7 | % | 92.4 | % | 1.7 | 2.7 | ||||||||||||||||||||||
1 The operating expense ratio equals insurance-related operating expenses divided by net premiums earned. Insurance-related operating expenses were $9.5 million, $7.7 million, $11.3 million, $6.0 million and $9.9 million for the second, third and fourth quarters of 2006 and the first and second quarters of 2007, respectively. | ||||||||||||||||||
2 Certain reclassifications between insurance-related and non-insurance related expenses of prior period amounts have been made to conform to the current year presentation. These reclassifications had no impact on the previously reported full year 2006 ratios. | ||||||||||||||||||
14
PMA Capital Corporation | ||||||||||||||||||||||||||||||||||||
| Statements of Operations - Run-off Operations | ||||||||||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||||||||||
2nd Quarter 2006 | 3rd Quarter 2006 | 4th Quarter 2006 | 1st Quarter 2007 | 2nd Quarter 2007 | Six Months 2007 | Six Months 2006 | % Change 2nd Quarter | % Change Six Months | ||||||||||||||||||||||||||||
Gross Premiums Written | $ | 960 | $ | 526 | $ | 102 | $ | 1,507 | $ | 1,994 | $ | 3,501 | $ | 1,358 | NM | NM | ||||||||||||||||||||
Net Premiums Written | $ | 527 | $ | 701 | $ | 309 | $ | 1,495 | $ | 1,994 | $ | 3,489 | $ | 1,133 | NM | NM | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
| Net premiums earned | $ | 332 | $ | 746 | $ | 1,094 | $ | 1,193 | $ | 517 | $ | 1,710 | $ | 938 | 55.7 | % | �� | 82.3 | % | |||||||||||||||||
| Net investment income | 2,408 | 1,695 | 1,392 | 1,000 | 1,457 | 2,457 | 5,609 | -39.5 | % | -56.2 | % | |||||||||||||||||||||||||
| Total revenues | 2,740 | 2,441 | 2,486 | 2,193 | 1,974 | 4,167 | 6,547 | -28.0 | % | -36.4 | % | |||||||||||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||||||||||
| Losses and loss adjustment expenses | (1,303 | ) | (1,501 | ) | (1,146 | ) | 1,107 | 185 | 1,292 | (429 | ) | NM | NM | |||||||||||||||||||||||
| Acquisition expenses | 629 | 713 | 339 | 359 | 254 | 613 | (265 | ) | -59.6 | % | NM | |||||||||||||||||||||||||
| Operating expenses | 2,986 | 3,055 | 2,808 | 1,465 | 2,242 | 3,707 | 6,652 | -24.9 | % | -44.3 | % | |||||||||||||||||||||||||
| Total losses and expenses | 2,312 | 2,267 | 2,001 | 2,931 | 2,681 | 5,612 | 5,958 | 16.0 | % | -5.8 | % | |||||||||||||||||||||||||
| Pre-tax operating income (loss) | $ | 428 | $ | 174 | $ | 485 | $ | (738 | ) | $ | (707 | ) | $ | (1,445 | ) | $ | 589 | NM | NM | |||||||||||||||||
15
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 | ||||||||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2006 | Quarter | Months | ||||||||||||||||||||||||||||
Gross Premiums Written | $ | (213 | ) | $ | (158 | ) | $ | (157 | ) | $ | (156 | ) | $ | (160 | ) | $ | (316 | ) | $ | (381 | ) | 24.9 | % | 17.1 | % | |||||||||||
Net Premiums Written | $ | (213 | ) | $ | (158 | ) | $ | (157 | ) | $ | (156 | ) | $ | (160 | ) | $ | (316 | ) | $ | (381 | ) | 24.9 | % | 17.1 | % | |||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||
| Net premiums earned | $ | (213 | ) | $ | (158 | ) | $ | (157 | ) | $ | (156 | ) | $ | (160 | ) | $ | (316 | ) | $ | (381 | ) | 24.9 | % | 17.1 | % | |||||||||||
| Net investment income | (103 | ) | 54 | (249 | ) | (179 | ) | (43 | ) | (222 | ) | (463 | ) | 58.3 | % | 52.1 | % | |||||||||||||||||||
| Other revenues | 121 | 51 | 42 | 107 | 32 | 139 | 151 | -73.6 | % | -7.9 | % | |||||||||||||||||||||||||
| Total revenues | (195 | ) | (53 | ) | (364 | ) | (228 | ) | (171 | ) | (399 | ) | (693 | ) | 12.3 | % | 42.4 | % | ||||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||||||||||||||
| Operating expenses | 2,401 | 2,178 | 2,337 | 2,514 | 2,366 | 4,880 | 4,397 | -1.5 | % | 11.0 | % | |||||||||||||||||||||||||
| Total losses and expenses | 2,401 | 2,178 | 2,337 | 2,514 | 2,366 | 4,880 | 4,397 | -1.5 | % | 11.0 | % | |||||||||||||||||||||||||
| Operating loss before income taxes | ||||||||||||||||||||||||||||||||||||
| and interest expense | (2,596 | ) | (2,231 | ) | (2,701 | ) | (2,742 | ) | (2,537 | ) | (5,279 | ) | (5,090 | ) | 2.3 | % | -3.7 | % | ||||||||||||||||||
| Interest expense | 3,532 | 2,785 | 2,581 | 2,567 | 2,592 | 5,159 | 7,177 | -26.6 | % | -28.1 | % | |||||||||||||||||||||||||
| Pre-tax operating loss | $ | (6,128 | ) | $ | (5,016 | ) | $ | (5,282 | ) | $ | (5,309 | ) | $ | (5,129 | ) | $ | (10,438 | ) | $ | (12,267 | ) | 16.3 | % | 14.9 | % | |||||||||||
16
PMA Capital Corporation | ||||||||||||||||||||||||||||
| Operating Cash Flows - Consolidated | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||||||
Receipts: | ||||||||||||||||||||||||||||
| Premiums and other revenues collected | $ | 96,652 | $ | 108,027 | $ | 93,253 | $ | 102,505 | $ | 96,874 | $ | 199,379 | $ | 201,643 | ||||||||||||||
| Investment income received | 14,890 | 11,795 | 13,730 | 13,251 | 12,472 | 25,723 | 30,258 | |||||||||||||||||||||
| Total receipts | 111,542 | 119,822 | 106,983 | 115,756 | 109,346 | 225,102 | 231,901 | |||||||||||||||||||||
Disbursements: | ||||||||||||||||||||||||||||
| Losses and LAE paid: | ||||||||||||||||||||||||||||
| Losses and LAE paid - current year | 17,337 | 17,034 | 22,696 | 4,605 | 15,005 | 19,610 | 20,833 | |||||||||||||||||||||
| Losses and LAE paid - prior years | 92,004 | 65,455 | 90,825 | 85,995 | 90,855 | 176,850 | 184,601 | |||||||||||||||||||||
| Total losses and LAE paid | 109,341 | 82,489 | 113,521 | 90,600 | 105,860 | 196,460 | 205,434 | |||||||||||||||||||||
| Insurance operating expenses paid | 39,618 | 26,899 | 30,327 | 38,826 | 31,657 | 70,483 | 85,821 | |||||||||||||||||||||
| Policyholders' dividends paid | 397 | 451 | 812 | 499 | 1,878 | 2,377 | 643 | |||||||||||||||||||||
| Interest on corporate debt | 2,965 | 3,470 | 2,461 | 3,082 | 2,446 | 5,528 | 7,756 | |||||||||||||||||||||
| Total disbursements | 152,321 | 113,309 | 147,121 | 133,007 | 141,841 | 274,848 | 299,654 | |||||||||||||||||||||
| Net other | 7,406 | (9,204 | ) | 19,380 | 1,024 | (2,788 | ) | (1,764 | ) | (4,962 | ) | |||||||||||||||||
| Net operating cash flows | $ | (33,373 | ) | $ | (2,691 | ) | $ | (20,758 | ) | $ | (16,227 | ) | $ | (35,283 | ) | $ | (51,510 | ) | $ | (72,715 | ) | |||||||
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PMA Capital Corporation | ||||||||||||||||||||||||||||
| Operating Cash Flows - PMA Insurance Group | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||||||
Receipts: | ||||||||||||||||||||||||||||
| Premiums and other revenues collected | $ | 94,320 | $ | 107,102 | $ | 92,720 | $ | 99,923 | $ | 94,993 | $ | 194,916 | $ | 194,060 | ||||||||||||||
| Investment income received | 10,598 | 8,831 | 10,564 | 10,504 | 10,605 | 21,109 | 21,077 | |||||||||||||||||||||
| Total receipts | 104,918 | 115,933 | 103,284 | 110,427 | 105,598 | 216,025 | 215,137 | |||||||||||||||||||||
Disbursements: | ||||||||||||||||||||||||||||
| Losses and LAE paid: | ||||||||||||||||||||||||||||
| Losses and LAE paid - current year | 17,337 | 17,034 | 22,696 | 4,605 | 15,005 | 19,610 | 20,833 | |||||||||||||||||||||
| Losses and LAE paid - prior years | 57,537 | 45,463 | 44,787 | 62,815 | 51,295 | 114,110 | 122,650 | |||||||||||||||||||||
| Total losses and LAE paid | 74,874 | 62,497 | 67,483 | 67,420 | 66,300 | 133,720 | 143,483 | |||||||||||||||||||||
| Insurance operating expenses paid | 35,129 | 24,446 | 26,521 | 35,766 | 30,727 | 66,493 | 77,239 | |||||||||||||||||||||
| Policyholders' dividends paid | 397 | 451 | 812 | 499 | 1,878 | 2,377 | 643 | |||||||||||||||||||||
| Interest on corporate debt | 227 | 246 | 255 | 252 | 244 | 496 | 451 | |||||||||||||||||||||
| Total disbursements | 110,627 | 87,640 | 95,071 | 103,937 | 99,149 | 203,086 | 221,816 | |||||||||||||||||||||
| Net other | 1,955 | (1,939 | ) | 4,615 | (4,189 | ) | (8,297 | ) | (12,486 | ) | (4,421 | ) | ||||||||||||||||
| Net operating cash flows | $ | (3,754 | ) | $ | 26,354 | $ | 12,828 | $ | 2,301 | $ | (1,848 | ) | $ | 453 | $ | (11,100 | ) | |||||||||||
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PMA Capital Corporation | ||||||||||||||||||||||||||||
| Operating Cash Flows - Run-off Operations | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 2007 | 2007 | 2006 | ||||||||||||||||||||||
Receipts: | ||||||||||||||||||||||||||||
| Premiums collected | $ | 2,332 | $ | 925 | $ | 533 | $ | 2,582 | $ | 1,881 | $ | 4,463 | $ | 7,583 | ||||||||||||||
| Investment income received | 4,292 | 2,964 | 3,166 | 2,747 | 1,867 | 4,614 | 9,181 | |||||||||||||||||||||
| Total receipts | 6,624 | 3,889 | 3,699 | 5,329 | 3,748 | 9,077 | 16,764 | |||||||||||||||||||||
Disbursements: | ||||||||||||||||||||||||||||
| Losses and LAE paid: | ||||||||||||||||||||||||||||
| Losses and LAE paid - prior years | 34,467 | 19,992 | 46,038 | 23,180 | 39,560 | 62,740 | 61,951 | |||||||||||||||||||||
| Total losses and LAE paid | 34,467 | 19,992 | 46,038 | 23,180 | 39,560 | 62,740 | 61,951 | |||||||||||||||||||||
| Insurance operating expenses paid | 4,489 | 2,453 | 3,806 | 3,060 | 930 | 3,990 | 8,582 | |||||||||||||||||||||
| Total disbursements | 38,956 | 22,445 | 49,844 | 26,240 | 40,490 | 66,730 | 70,533 | |||||||||||||||||||||
| Net other | 1,775 | (5,500 | ) | 8,071 | (1,382 | ) | 1,210 | (172 | ) | 2,858 | ||||||||||||||||||
| Net operating cash flows | $ | (30,557 | ) | $ | (24,056 | ) | $ | (38,074 | ) | $ | (22,293 | ) | $ | (35,532 | ) | $ | (57,825 | ) | $ | (50,911 | ) | |||||||
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PMA Capital Corporation | ||||||||||||||||||||
| Statutory Surplus | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2006 | 2006 | 2006 | 2007 | 20071 | ||||||||||||||||
PMA Pool 2 | $ | 321,114 | $ | 325,242 | $ | 321,245 | $ | 327,379 | $ | 333,118 | 4 | |||||||||
PMA Capital Insurance Company 3 | 125,989 | 123,428 | 121,566 | 117,098 | 75,585 | 4,5 | ||||||||||||||
PMA Capital Corporation | ||||||||||||||||||||||||||||
Statutory Financial Information - PMA Pool 2 | ||||||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||||||
2nd | 3rd | 4th | 1st | 2nd | Six | Six | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Months | Months | ||||||||||||||||||||||
2006 | 2006 | 2006 | 2007 | 20071 | 20071 | 2006 | ||||||||||||||||||||||
| Net Premiums Written: | ||||||||||||||||||||||||||||
| Workers' Compensation | $ | 76,602 | $ | 95,437 | $ | 58,731 | $ | 113,732 | $ | 75,976 | $ | 189,708 | $ | 176,698 | ||||||||||||||
| Other Commercial Lines | 6,687 | 6,067 | 4,637 | 10,258 | 7,359 | 17,617 | 17,735 | |||||||||||||||||||||
| Total - PMA Pool | $ | 83,289 | $ | 101,504 | $ | 63,368 | $ | 123,990 | $ | 83,335 | $ | 207,325 | $ | 194,433 | ||||||||||||||
| Statutory Ratios: | ||||||||||||||||||||||||||||
| Loss and LAE ratio | 72.5 | % | 72.1 | % | 71.3 | % | 71.2 | % | 70.3 | % | 70.8 | % | 72.0 | % | ||||||||||||||
| Underwriting expense ratio | 31.6 | % | 26.3 | % | 37.5 | % | 21.1 | % | 30.2 | % | 24.8 | % | 27.6 | % | ||||||||||||||
| Policyholders' dividend ratio | 0.1 | % | 0.5 | % | 0.6 | % | 0.6 | % | 1.7 | % | 1.1 | % | 0.5 | % | ||||||||||||||
| Combined ratio | 104.2 | % | 98.9 | % | 109.4 | % | 92.9 | % | 102.2 | % | 96.7 | % | 100.1 | % | ||||||||||||||
| Operating ratio | 96.0 | % | 90.5 | % | 99.8 | % | 83.3 | % | 92.4 | % | 87.0 | % | 91.7 | % | ||||||||||||||
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 (deficit) of $153.8 million and ($7.0) million for the PMA Pool and PMA Capital Insurance Company, respectively. | ||||||||||||||
5 | In April 2007, PMA Capital Insurance Company paid an extraordinary dividend in the amount of $37.5 million to its parent, PMA Capital Corporation. | ||||||||||||||
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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 | 610.397.5083 | |||||||
| New York, NY 10038 | e-mail: bhitselberger@pmacapital.com | |||||||
| www.amstock.com | ||||||||
| Investor Relations | ||||||||
Phone Inquiries: | 610.397.5298 | |||||||
| 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 8/1/2007): | ||||||||
A.M. Best | Moody's | |||||||
PMA Pool 1 | A- (4th of 16) | Baa3 (10th 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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