Exhibit 99.2
PMA Capital Corporation | |||||||||
Statistical Supplement | |||||||||
First Quarter - 2009 | |||||||||
Table of Contents | |||||||||
Page | |||||||||
Consolidated Highlights: | |||||||||
Selected Financial Data | 1 | ||||||||
Consolidated Statements of Operations - Per Share Data | 2 | ||||||||
Consolidated Statements of Operations | 3 | ||||||||
Consolidated Balance Sheets | 4 | ||||||||
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Fronting Arrangements; | |||||||||
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group | 5 | ||||||||
Invested Assets and Net Investment Income; Debt | 6 | ||||||||
Segment Information: | |||||||||
Statements of Operations - Consolidating | 7 - 8 | ||||||||
Statements of Operations - PMA Insurance Group | 9 | ||||||||
Insurance Ratios - PMA Insurance Group | 10 | ||||||||
Components of Direct Premiums Written - PMA Insurance Group | 11 | ||||||||
Statements of Operations - Fee-based Business | 12 | ||||||||
Statements of Operations - Corporate & Other | 13 | ||||||||
Statements of Operations - Discontinued Operations | 14 | ||||||||
Operating Cash Flow Information: | |||||||||
Operating Cash Flows - Consolidated | 15 | ||||||||
Operating Cash Flows - PMA Insurance Group | 16 | ||||||||
Operating Cash Flows - Fee-based Business | 17 | ||||||||
Statutory Financial Information: | |||||||||
Statutory Surplus; Statutory Financial Information - PMA Pool | 18 | ||||||||
Other Information: | |||||||||
Industry Ratings and Market Information | 19 | ||||||||
Legend: | |||||||||
NM - Not Meaningful | |||||||||
Operating income, which we define as GAAP net income (loss) excluding net realized investment gains and losses and the results from discontinued operations, is the financial performance measure used by our management and Board of Directors to evaluate and assess the results of our businesses. Net realized investment activity is excluded 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 does not replace net income (loss) as the GAAP measure of our consolidated results of operations. See page 1 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) | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Quarter | |||||||||||||||||||
Direct Premiums Written | $ | 140,431 | $ | 99,092 | $ | 148,193 | $ | 129,713 | $ | 161,965 | 15.3 | % | ||||||||||||
Net Premiums Written | $ | 113,783 | $ | 79,146 | $ | 123,995 | $ | 97,313 | $ | 117,978 | 3.7 | % | ||||||||||||
Revenues: | ||||||||||||||||||||||||
Net premiums earned | $ | 85,596 | $ | 102,920 | $ | 97,974 | $ | 103,727 | $ | 104,930 | 22.6 | % | ||||||||||||
Claims service revenues | 11,952 | 12,937 | 15,696 | 16,785 | 15,684 | 31.2 | % | |||||||||||||||||
Commission income | 4,281 | 2,631 | 2,637 | 2,835 | 3,463 | -19.1 | % | |||||||||||||||||
Net investment income | 9,435 | 9,040 | 8,870 | 8,724 | 8,457 | -10.4 | % | |||||||||||||||||
Net realized investment gains (losses) | 3,518 | (572 | ) | (7,929 | ) | 259 | 749 | -78.7 | % | |||||||||||||||
Other revenues | 146 | 2,214 | 125 | 356 | 176 | 20.5 | % | |||||||||||||||||
Total revenues | $ | 114,928 | $ | 129,170 | $ | 117,373 | $ | 132,686 | $ | 133,459 | 16.1 | % | ||||||||||||
Major Components of Net Income (Loss): | ||||||||||||||||||||||||
Pre-tax operating income (loss) by segment: | ||||||||||||||||||||||||
PMA Insurance Group | $ | 13,619 | $ | 11,341 | $ | 13,325 | $ | 8,428 | $ | 15,187 | 11.5 | % | ||||||||||||
Fee-based Business | 2,186 | 1,201 | 1,929 | 1,889 | 2,013 | -7.9 | % | |||||||||||||||||
Corporate & Other | (5,011 | ) | (5,424 | ) | (5,319 | ) | (4,897 | ) | (5,000 | ) | 0.2 | % | ||||||||||||
Pre-tax operating income | 10,794 | 7,118 | 9,935 | 5,420 | 12,200 | 13.0 | % | |||||||||||||||||
Income tax expense | 3,811 | 2,535 | 3,530 | 1,854 | 4,384 | 15.0 | % | |||||||||||||||||
After-tax operating income | 6,983 | 4,583 | 6,405 | 3,566 | 7,816 | 11.9 | % | |||||||||||||||||
Net realized investment gains (losses) after tax | 2,287 | (372 | ) | (5,154 | ) | 168 | 487 | -78.7 | % | |||||||||||||||
Income from continuing operations | 9,270 | 4,211 | 1,251 | 3,734 | 8,303 | -10.4 | % | |||||||||||||||||
Loss from discontinued operations after tax | (2,439 | ) | (188 | ) | (2,310 | ) | (7,840 | ) | (86 | ) | 96.5 | % | ||||||||||||
Net income (loss) | $ | 6,831 | $ | 4,023 | $ | (1,059 | ) | $ | (4,106 | ) | $ | 8,217 | 20.3 | % | ||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||||
After-tax operating income | $ | 0.22 | $ | 0.14 | $ | 0.20 | $ | 0.11 | $ | 0.24 | 9.1 | % | ||||||||||||
Realized gains (losses) after tax | 0.07 | (0.01 | ) | (0.16 | ) | 0.01 | 0.02 | -71.4 | % | |||||||||||||||
Income from continuing operations | 0.29 | 0.13 | 0.04 | 0.12 | 0.26 | -10.3 | % | |||||||||||||||||
Loss from discontinued operations after tax | (0.08 | ) | - | (0.07 | ) | (0.25 | ) | - | NM | |||||||||||||||
Net income (loss) | $ | 0.21 | $ | 0.13 | $ | (0.03 | ) | $ | (0.13 | ) | $ | 0.26 | 23.8 | % | ||||||||||
Capitalization: | ||||||||||||||||||||||||
Debt | $ | 129,790 | $ | 129,790 | $ | 129,380 | $ | 129,380 | $ | 129,380 | -0.3 | % | ||||||||||||
Shareholders' equity excluding FAS 115 unrealized gain (loss) | 381,255 | 387,761 | 380,107 | 365,547 | 374,007 | -1.9 | % | |||||||||||||||||
Total capitalization excluding FAS 115 unrealized gain (loss) | 511,045 | 517,551 | 509,487 | 494,927 | 503,387 | -1.5 | % | |||||||||||||||||
FAS 115 unrealized gain (loss) | 2,464 | (7,166 | ) | (22,113 | ) | (20,891 | ) | (22,737 | ) | NM | ||||||||||||||
Total capitalization including FAS 115 unrealized gain (loss) | $ | 513,509 | $ | 510,385 | $ | 487,374 | $ | 474,036 | $ | 480,650 | -6.4 | % | ||||||||||||
Book Value Per Share: | ||||||||||||||||||||||||
Excluding FAS 115 unrealized gain (loss) | $ | 12.00 | $ | 12.14 | $ | 11.89 | $ | 11.44 | $ | 11.61 | -3.3 | % | ||||||||||||
Including FAS 115 unrealized gain (loss) | $ | 12.08 | $ | 11.92 | $ | 11.20 | $ | 10.78 | $ | 10.91 | -9.7 | % | ||||||||||||
Debt to Total Capital: | ||||||||||||||||||||||||
Excluding FAS 115 unrealized gain (loss) | 25.4 | % | 25.1 | % | 25.4 | % | 26.1 | % | 25.7 | % | 1.2 | % | ||||||||||||
Including FAS 115 unrealized gain (loss) | 25.3 | % | 25.4 | % | 26.5 | % | 27.3 | % | 26.9 | % | 6.3 | % | ||||||||||||
Interest Coverage: | ||||||||||||||||||||||||
Income from continuing operations before | ||||||||||||||||||||||||
interest and income taxes to interest expense | 6.14 | 3.44 | 1.73 | 3.12 | 6.17 | 0.5 | % | |||||||||||||||||
Operating income from continuing operations before interest and income taxes to interest expense | 4.87 | 3.65 | 4.63 | 3.03 | 5.87 | 20.5 | % |
1
PMA Capital Corporation | ||||||||||||||||||||
Consolidated Statements of Operations - Per Share Data | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||
Pre-tax operating income | $ | 0.34 | $ | 0.22 | $ | 0.31 | $ | 0.17 | $ | 0.38 | ||||||||||
After-tax operating income | $ | 0.22 | $ | 0.14 | $ | 0.20 | $ | 0.11 | $ | 0.24 | ||||||||||
Income from continuing operations | $ | 0.29 | $ | 0.13 | $ | 0.04 | $ | 0.12 | $ | 0.26 | ||||||||||
Loss from discontinued operations after tax | (0.08 | ) | - | (0.07 | ) | (0.25 | ) | - | ||||||||||||
Net income (loss) | $ | 0.21 | $ | 0.13 | $ | (0.03 | ) | $ | (0.13 | ) | $ | 0.26 | ||||||||
Diluted weighted average common | ||||||||||||||||||||
shares outstanding | 31,942,896 | 32,132,576 | 32,200,554 | 31,968,555 | 32,020,346 | |||||||||||||||
Dividends declared: | ||||||||||||||||||||
Class A Common Stock | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Actual common shares issued | ||||||||||||||||||||
and outstanding | 31,765,817 | 31,940,651 | 31,965,806 | 31,965,806 | 32,211,133 | |||||||||||||||
Class A Common Stock prices: | ||||||||||||||||||||
High | $ | 9.14 | $ | 10.23 | $ | 12.00 | $ | 9.47 | $ | 7.20 | ||||||||||
Low | $ | 7.45 | $ | 8.24 | $ | 8.00 | $ | 3.46 | $ | 3.50 | ||||||||||
Close | $ | 8.54 | $ | 9.21 | $ | 8.82 | $ | 7.08 | $ | 4.17 |
2
PMA Capital Corporation | ||||||||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Quarter | |||||||||||||||||||
Gross Premiums Written | $ | 143,541 | $ | 101,659 | $ | 151,498 | $ | 132,217 | $ | 164,070 | 14.3 | % | ||||||||||||
Net Premiums Written | $ | 113,783 | $ | 79,146 | $ | 123,995 | $ | 97,313 | $ | 117,978 | 3.7 | % | ||||||||||||
Revenues: | ||||||||||||||||||||||||
Net premiums earned | $ | 85,596 | $ | 102,920 | $ | 97,974 | $ | 103,727 | $ | 104,930 | 22.6 | % | ||||||||||||
Claims service revenues | 11,952 | 12,937 | 15,696 | 16,785 | 15,684 | 31.2 | % | |||||||||||||||||
Commission income | 4,281 | 2,631 | 2,637 | 2,835 | 3,463 | -19.1 | % | |||||||||||||||||
Net investment income | 9,435 | 9,040 | 8,870 | 8,724 | 8,457 | -10.4 | % | |||||||||||||||||
Net realized investment gains (losses) | 3,518 | (572 | ) | (7,929 | ) | 259 | 749 | -78.7 | % | |||||||||||||||
Other revenues | 146 | 2,214 | 125 | 356 | 176 | 20.5 | % | |||||||||||||||||
Total revenues | 114,928 | 129,170 | 117,373 | 132,686 | 133,459 | 16.1 | % | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Losses and loss adjustment expenses | 59,922 | 71,572 | 68,660 | 70,671 | 75,775 | 26.5 | % | |||||||||||||||||
Acquisition expenses | 14,692 | 19,524 | 15,898 | 16,521 | 17,198 | 17.1 | % | |||||||||||||||||
Operating expenses | 22,333 | 27,347 | 26,906 | 34,379 | 24,385 | 9.2 | % | |||||||||||||||||
Dividends to policyholders | 882 | 1,493 | 1,169 | 2,762 | 646 | -26.8 | % | |||||||||||||||||
Interest expense | 2,787 | 2,688 | 2,734 | 2,674 | 2,506 | -10.1 | % | |||||||||||||||||
Total losses and expenses | 100,616 | 122,624 | 115,367 | 127,007 | 120,510 | 19.8 | % | |||||||||||||||||
Pre-tax income | 14,312 | 6,546 | 2,006 | 5,679 | 12,949 | -9.5 | % | |||||||||||||||||
Income tax expense (benefit): | ||||||||||||||||||||||||
Current | - | 151 | 765 | (211 | ) | 244 | NM | |||||||||||||||||
Deferred | 5,042 | 2,184 | (10 | ) | 2,156 | 4,402 | -12.7 | % | ||||||||||||||||
Total income tax expense | 5,042 | 2,335 | 755 | 1,945 | 4,646 | -7.9 | % | |||||||||||||||||
Income from continuing operations | 9,270 | 4,211 | 1,251 | 3,734 | 8,303 | -10.4 | % | |||||||||||||||||
Loss from discontinued operations after tax | (2,439 | ) | (188 | ) | (2,310 | ) | (7,840 | ) | (86 | ) | 96.5 | % | ||||||||||||
Net income (loss) | $ | 6,831 | $ | 4,023 | $ | (1,059 | ) | $ | (4,106 | ) | $ | 8,217 | 20.3 | % | ||||||||||
Pre-tax operating income from continuing operations | $ | 10,794 | $ | 7,118 | $ | 9,935 | $ | 5,420 | $ | 12,200 | 13.0 | % | ||||||||||||
After-tax operating income from continuing operations | $ | 6,983 | $ | 4,583 | $ | 6,405 | $ | 3,566 | $ | 7,816 | 11.9 | % |
3
PMA Capital Corporation | ||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments in fixed maturities available for sale | $ | 719,570 | $ | 730,466 | $ | 701,738 | $ | 719,048 | $ | 714,202 | ||||||||||
Short-term investments | 79,184 | 60,891 | 89,766 | 45,066 | 58,273 | |||||||||||||||
Other investments | 7,752 | 8,009 | 8,247 | 8,127 | 13,832 | |||||||||||||||
Total investments | 806,506 | 799,366 | 799,751 | 772,241 | 786,307 | |||||||||||||||
Cash | 14,552 | 10,557 | 12,502 | 10,501 | 11,767 | |||||||||||||||
Accrued investment income | 5,462 | 5,762 | 6,104 | 6,513 | 6,500 | |||||||||||||||
Premiums receivable | 239,783 | 215,030 | 226,709 | 235,893 | 257,380 | |||||||||||||||
Reinsurance receivables | 818,789 | 817,182 | 824,512 | 826,126 | 830,962 | |||||||||||||||
Prepaid reinsurance premiums | 28,977 | 21,414 | 23,051 | 29,579 | 41,314 | |||||||||||||||
Deferred income taxes, net | 116,342 | 117,983 | 131,132 | 138,514 | 135,496 | |||||||||||||||
Deferred acquisition costs | 42,547 | 38,739 | 43,317 | 40,938 | 44,857 | |||||||||||||||
Funds held by reinsureds | 44,622 | 46,980 | 49,292 | 51,754 | 54,166 | |||||||||||||||
Intangible assets | 22,589 | 30,013 | 30,518 | 30,348 | 29,668 | |||||||||||||||
Other assets | 106,405 | 116,418 | 142,672 | 116,646 | 119,361 | |||||||||||||||
Assets of discontinued operations | 348,921 | 317,189 | 309,607 | 243,663 | 235,265 | |||||||||||||||
Total assets | $ | 2,595,495 | $ | 2,536,633 | $ | 2,599,167 | $ | 2,502,716 | $ | 2,553,043 | ||||||||||
Liabilities: | ||||||||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 1,227,287 | $ | 1,240,224 | $ | 1,247,069 | $ | 1,242,258 | $ | 1,256,435 | ||||||||||
Unearned premiums | 250,981 | 219,643 | 247,302 | 247,415 | 272,200 | |||||||||||||||
Debt | 129,790 | 129,790 | 129,380 | 129,380 | 129,380 | |||||||||||||||
Accounts payable, accrued expenses | ||||||||||||||||||||
and other liabilities | 191,029 | 193,342 | 247,196 | 216,266 | 219,189 | |||||||||||||||
Reinsurance funds held and balances payable | 39,287 | 31,947 | 34,185 | 44,177 | 59,074 | |||||||||||||||
Dividends to policyholders | 5,845 | 5,459 | 5,150 | 6,862 | 7,224 | |||||||||||||||
Liabilities of discontinued operations | 367,557 | 335,633 | 330,891 | 271,702 | 258,271 | |||||||||||||||
Total liabilities | 2,211,776 | 2,156,038 | 2,241,173 | 2,158,060 | 2,201,773 | |||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
Class A Common Stock | 171,090 | 171,090 | 171,090 | 171,090 | 171,090 | |||||||||||||||
Additional paid-in capital | 111,588 | 111,754 | 112,427 | 112,921 | 111,953 | |||||||||||||||
Retained earnings | 143,418 | 145,638 | 144,286 | 140,184 | 143,291 | |||||||||||||||
Accumulated other comprehensive loss | (8,917 | ) | (17,743 | ) | (40,149 | ) | (49,876 | ) | (51,497 | ) | ||||||||||
Treasury stock, at cost | (33,460 | ) | (30,144 | ) | (29,660 | ) | (29,663 | ) | (23,567 | ) | ||||||||||
Total shareholders' equity | 383,719 | 380,595 | 357,994 | 344,656 | 351,270 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 2,595,495 | $ | 2,536,633 | $ | 2,599,167 | $ | 2,502,716 | $ | 2,553,043 |
4
PMA Capital Corporation | ||||||||||||||||||||
Assets and Liabilities of Discontinued Operations | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments | $ | 186,466 | $ | 172,732 | $ | 160,240 | $ | 146,033 | $ | 137,317 | ||||||||||
Cash | 10,305 | 726 | 692 | 1,371 | 85 | |||||||||||||||
Reinsurance receivables | 144,994 | 136,212 | 134,133 | 94,956 | 93,120 | |||||||||||||||
Other assets | 7,156 | 7,519 | 14,542 | 1,303 | 4,743 | |||||||||||||||
Assets of discontinued operations | $ | 348,921 | $ | 317,189 | $ | 309,607 | $ | 243,663 | $ | 235,265 | ||||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 317,165 | $ | 289,190 | $ | 281,386 | $ | 247,442 | $ | 235,568 | ||||||||||
Other liabilities | 50,392 | 46,443 | 49,505 | 24,260 | 22,703 | |||||||||||||||
Liabilities of discontinued operations | $ | 367,557 | $ | 335,633 | $ | 330,891 | $ | 271,702 | $ | 258,271 | ||||||||||
PMA Capital Corporation | ||||||||||||||||||||
Selected Balance Sheet Items - Fronting Arrangements | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Assets | ||||||||||||||||||||
Premiums receivable | $ | 22,714 | $ | 11,145 | $ | 8,087 | $ | 25,796 | $ | 38,833 | ||||||||||
Reinsurance receivables | 37,711 | 42,691 | 44,668 | 47,280 | 50,175 | |||||||||||||||
Prepaid reinsurance premiums | 16,956 | 8,513 | 5,020 | 16,048 | 24,884 | |||||||||||||||
Deferred acquisition costs | 189 | 61 | 79 | 748 | 1,269 | |||||||||||||||
Other assets | 7,285 | 6,234 | 6,315 | 6,723 | 6,818 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Unpaid losses and loss adjustment expenses | $ | 38,739 | $ | 44,078 | $ | 46,301 | $ | 49,494 | $ | 53,087 | ||||||||||
Unearned premiums | 18,500 | 9,555 | 5,845 | 19,667 | 29,430 | |||||||||||||||
Reinsurance funds held and balances payable | 16,510 | 8,047 | 6,126 | 20,965 | 31,237 | |||||||||||||||
Other liabilities | 11,564 | 8,586 | 7,459 | 10,116 | 11,392 | |||||||||||||||
PMA Capital Corporation | ||||||||||||||||||||
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Balance, beginning of period | $ | 37,404 | $ | 42,547 | $ | 38,739 | $ | 43,317 | $ | 40,938 | ||||||||||
Policy acquisition costs deferred | 19,835 | 15,729 | 20,501 | 14,170 | 21,136 | |||||||||||||||
Amortization of policy acquisition costs | (14,692 | ) | (19,537 | ) | (15,923 | ) | (16,549 | ) | (17,217 | ) | ||||||||||
Net change | 5,143 | (3,808 | ) | 4,578 | (2,379 | ) | 3,919 | |||||||||||||
Balance, end of period | $ | 42,547 | $ | 38,739 | $ | 43,317 | $ | 40,938 | $ | 44,857 |
5
PMA Capital Corporation | ||||||||||||||||||||
Invested Assets and Net Investment Income | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Total Investments & Cash | ||||||||||||||||||||
As reported | $ | 821,058 | $ | 809,923 | $ | 812,253 | $ | 782,742 | $ | 798,074 | ||||||||||
Less: | ||||||||||||||||||||
Unrealized gain (loss) on | ||||||||||||||||||||
fixed maturities available for sale | 4,024 | (10,663 | ) | (33,148 | ) | (30,758 | ) | (33,799 | ) | |||||||||||
Unrealized loss on other investments | (233 | ) | (362 | ) | (872 | ) | (1,382 | ) | (1,181 | ) | ||||||||||
Total adjusted investments & cash | $ | 817,267 | $ | 820,948 | $ | 846,273 | $ | 814,882 | $ | 833,054 | ||||||||||
Net Investment Income | ||||||||||||||||||||
As reported | $ | 9,435 | $ | 9,040 | $ | 8,870 | $ | 8,724 | $ | 8,457 | ||||||||||
Less: | ||||||||||||||||||||
Interest on funds held | (506 | ) | (558 | ) | (616 | ) | (479 | ) | (288 | ) | ||||||||||
Total adjusted investment income | $ | 9,941 | $ | 9,598 | $ | 9,486 | $ | 9,203 | $ | 8,745 | ||||||||||
Yield | ||||||||||||||||||||
As reported | 4.57 | % | 4.43 | % | 4.37 | % | 4.38 | % | 4.28 | % | ||||||||||
Investment portfolio | 4.84 | % | 4.69 | % | 4.55 | % | 4.43 | % | 4.25 | % | ||||||||||
Duration (in years) | 3.8 | 3.8 | 3.6 | 3.2 | 3.5 | |||||||||||||||
PMA Capital Corporation | ||||||||||||
Debt | ||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||
Amount | ||||||||||||
Outstanding | Maturity | |||||||||||
Junior subordinated debt 1 | $ | 64,435 | 2033 - 2037 | |||||||||
8.50% senior notes | 54,900 | 2018 | ||||||||||
Surplus notes 2 | 10,000 | 2035 | ||||||||||
4.25% convertible debt | 45 | 20223 | ||||||||||
Total long-term debt | $ | 129,380 | ||||||||||
1 | Weighted average interest rate on junior subordinated debt is 5.21% as of March 31, 2009. | |||||||||||
2 | Interest rate on surplus notes is 5.67% as of March 31, 2009. | |||||||||||
3 | Holders of this debt, at their option, may require us to repurchase all or a portion of their debentures on September 30, 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. |
6
PMA Capital Corporation | ||||||||||||||||
Statements of Operations - Consolidating | ||||||||||||||||
Three Months Ended March 31, 2009 | ||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||
PMA | ||||||||||||||||
Insurance | Fee-based | Corporate | ||||||||||||||
Group | Business | & Other1 | Consolidated | |||||||||||||
Gross Premiums Written | $ | 164,218 | $ | - | $ | (148 | ) | $ | 164,070 | |||||||
Net Premiums Written | $ | 118,126 | $ | - | $ | (148 | ) | $ | 117,978 | |||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 105,078 | $ | - | $ | (148 | ) | $ | 104,930 | |||||||
Claims service revenues | - | 15,995 | (311 | ) | 15,684 | |||||||||||
Commission income | - | 3,475 | (12 | ) | 3,463 | |||||||||||
Net investment income | 8,466 | 86 | (95 | ) | 8,457 | |||||||||||
Other revenues | - | 170 | 6 | 176 | ||||||||||||
Total operating revenues | 113,544 | 19,726 | (560 | ) | 132,710 | |||||||||||
Losses and Expenses: | ||||||||||||||||
Losses and loss adjustment expenses | 75,775 | - | - | 75,775 | ||||||||||||
Acquisition expenses | 17,217 | - | (19 | ) | 17,198 | |||||||||||
Operating expenses | 4,559 | 17,713 | 2,113 | 24,385 | ||||||||||||
Dividends to policyholders | 646 | - | - | 646 | ||||||||||||
Total losses and expenses | 98,197 | 17,713 | 2,094 | 118,004 | ||||||||||||
Operating income (loss) before income taxes | ||||||||||||||||
and interest expense | 15,347 | 2,013 | (2,654 | ) | 14,706 | |||||||||||
Interest expense | 160 | - | 2,346 | 2,506 | ||||||||||||
Pre-tax operating income (loss) | $ | 15,187 | $ | 2,013 | $ | (5,000 | ) | 12,200 | ||||||||
Net realized investment gains | 749 | |||||||||||||||
Pre-tax income | $ | 12,949 | ||||||||||||||
1 | Corporate & Other includes the effect of eliminating transactions between the operating segments. |
7
PMA Capital Corporation | ||||||||||||||||
Statements of Operations - Consolidating | ||||||||||||||||
Three Months Ended March 31, 2008 | ||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||
PMA | ||||||||||||||||
Insurance | Fee-based | Corporate | ||||||||||||||
Group | Business | & Other1 | Consolidated | |||||||||||||
Gross Premiums Written | $ | 143,663 | $ | - | $ | (122 | ) | $ | 143,541 | |||||||
Net Premiums Written | $ | 113,905 | $ | - | $ | (122 | ) | $ | 113,783 | |||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 85,718 | $ | - | $ | (122 | ) | $ | 85,596 | |||||||
Claims service revenues | - | 12,108 | (156 | ) | 11,952 | |||||||||||
Commission income | - | 4,281 | - | 4,281 | ||||||||||||
Net investment income | 9,099 | 161 | 175 | 9,435 | ||||||||||||
Other revenues | - | 102 | 44 | 146 | ||||||||||||
Total operating revenues | 94,817 | 16,652 | (59 | ) | 111,410 | |||||||||||
Losses and Expenses: | ||||||||||||||||
Losses and loss adjustment expenses | 59,922 | - | - | 59,922 | ||||||||||||
Acquisition expenses | 14,692 | - | - | 14,692 | ||||||||||||
Operating expenses | 5,488 | 14,466 | 2,379 | 22,333 | ||||||||||||
Dividends to policyholders | 882 | - | - | 882 | ||||||||||||
Total losses and expenses | 80,984 | 14,466 | 2,379 | 97,829 | ||||||||||||
Operating income (loss) before income taxes | ||||||||||||||||
and interest expense | 13,833 | 2,186 | (2,438 | ) | 13,581 | |||||||||||
Interest expense | 214 | - | 2,573 | 2,787 | ||||||||||||
Pre-tax operating income (loss) | $ | 13,619 | $ | 2,186 | $ | (5,011 | ) | 10,794 | ||||||||
Net realized investment gains | 3,518 | |||||||||||||||
Pre-tax income | $ | 14,312 | ||||||||||||||
1 | Corporate & Other includes the effect of eliminating transactions between the operating segments. |
8
PMA Capital Corporation | ||||||||||||||||||||||||
Statements of Operations - PMA Insurance Group | ||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Quarter | |||||||||||||||||||
Gross Premiums Written | $ | 143,663 | $ | 101,786 | $ | 151,620 | $ | 132,340 | $ | 164,218 | 14.3 | % | ||||||||||||
Net Premiums Written | $ | 113,905 | $ | 79,273 | $ | 124,117 | $ | 97,436 | $ | 118,126 | 3.7 | % | ||||||||||||
Revenues: | ||||||||||||||||||||||||
Net premiums earned | $ | 85,718 | $ | 103,047 | $ | 98,096 | $ | 103,850 | $ | 105,078 | 22.6 | % | ||||||||||||
Net investment income | 9,099 | 8,943 | 8,776 | 8,613 | 8,466 | -7.0 | % | |||||||||||||||||
Other revenues | - | 2,120 | - | 18 | - | NM | ||||||||||||||||||
Total operating revenues | 94,817 | 114,110 | 106,872 | 112,481 | 113,544 | 19.8 | % | |||||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||
Losses and loss adjustment expenses | 59,922 | 71,572 | 68,660 | 70,671 | 75,775 | 26.5 | % | |||||||||||||||||
Acquisition expenses | 14,692 | 19,537 | 15,923 | 16,549 | 17,217 | 17.2 | % | |||||||||||||||||
Operating expenses | 5,488 | 9,979 | 7,604 | 13,875 | 4,559 | -16.9 | % | |||||||||||||||||
Dividends to policyholders | 882 | 1,493 | 1,169 | 2,762 | 646 | -26.8 | % | |||||||||||||||||
Total losses and expenses | 80,984 | 102,581 | 93,356 | 103,857 | 98,197 | 21.3 | % | |||||||||||||||||
Operating income before income taxes | ||||||||||||||||||||||||
and interest expense | 13,833 | 11,529 | 13,516 | 8,624 | 15,347 | 10.9 | % | |||||||||||||||||
Interest expense | 214 | 188 | 191 | 196 | 160 | -25.2 | % | |||||||||||||||||
Pre-tax operating income | $ | 13,619 | $ | 11,341 | $ | 13,325 | $ | 8,428 | $ | 15,187 | 11.5 | % |
9
PMA Capital Corporation | ||||||||||||||||||||||||
Insurance Ratios - PMA Insurance Group | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | Point Chg. | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st Quarter | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Better (Worse) | |||||||||||||||||||
Ratios - GAAP Basis: | ||||||||||||||||||||||||
Loss and LAE ratio | 69.9 | % | 69.4 | % | 70.0 | % | 68.1 | % | 72.1 | % | (2.2 | ) | ||||||||||||
Expense ratio: | ||||||||||||||||||||||||
Acquisition expenses | 17.1 | % | 19.0 | % | 16.2 | % | 15.9 | % | 16.4 | % | 0.7 | |||||||||||||
Operating expenses | 6.5 | % | 9.7 | % | 7.8 | % | 13.3 | % | 4.4 | % | 2.1 | |||||||||||||
Total expense ratio | 23.6 | % | 28.7 | % | 24.0 | % | 29.2 | % | 20.8 | % | 2.8 | |||||||||||||
Policyholders' dividend ratio | 1.0 | % | 1.4 | % | 1.2 | % | 2.7 | % | 0.6 | % | 0.4 | |||||||||||||
Combined ratio | 94.5 | % | 99.5 | % | 95.2 | % | 100.0 | % | 93.5 | % | 1.0 | |||||||||||||
Net investment income ratio | -10.6 | % | -8.7 | % | -8.9 | % | -8.3 | % | -8.1 | % | (2.5 | ) | ||||||||||||
Operating ratio | 83.9 | % | 90.8 | % | 86.3 | % | 91.7 | % | 85.4 | % | (1.5 | ) |
10
PMA Capital Corporation | ||||||||||||||||||||
Components of Direct Premiums Written - PMA Insurance Group | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Months | ||||||||||||||||
2007 | 2007 | 2007 | 2007 | 2007 | ||||||||||||||||
Direct premium production | $ | 143,389 | $ | 96,316 | $ | 137,144 | $ | 83,103 | $ | 459,952 | ||||||||||
Fronting premiums | 18,401 | 14,936 | 13,707 | 12,796 | 59,840 | |||||||||||||||
Premium adjustments | (859 | ) | (134 | ) | (4,149 | ) | (4,327 | ) | (9,469 | ) | ||||||||||
Direct premiums written | $ | 160,931 | $ | 111,118 | $ | 146,702 | $ | 91,572 | $ | 510,323 | ||||||||||
1st | 2nd | 3rd | 4th | Twelve | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Months | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2008 | ||||||||||||||||
Direct premium production | $ | 146,608 | $ | 96,736 | $ | 150,547 | $ | 112,296 | $ | 506,187 | ||||||||||
Fronting premiums | 8,143 | 2,113 | 2,776 | 21,800 | 34,832 | |||||||||||||||
Premium adjustments | (14,198 | ) | 370 | (5,008 | ) | (4,261 | ) | (23,097 | ) | |||||||||||
Direct premiums written | $ | 140,553 | $ | 99,219 | $ | 148,315 | $ | 129,835 | $ | 517,922 | ||||||||||
1st | ||||||||||||||||||||
Quarter | ||||||||||||||||||||
2009 | ||||||||||||||||||||
Direct premium production | $ | 147,367 | ||||||||||||||||||
Fronting premiums | 19,622 | |||||||||||||||||||
Premium adjustments | (4,876 | ) | ||||||||||||||||||
Direct premiums written | $ | 162,113 |
11
PMA Capital Corporation | ||||||||||||||||||||||||
Statements of Operations - Fee-based Business 1 | ||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Quarter | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Claims service revenues | $ | 12,108 | $ | 13,213 | $ | 15,951 | $ | 17,029 | $ | 15,995 | 32.1 | % | ||||||||||||
Commission income | 4,281 | 2,644 | 2,662 | 2,848 | 3,475 | -18.8 | % | |||||||||||||||||
Net investment income | 161 | 118 | 118 | 143 | 86 | -46.6 | % | |||||||||||||||||
Other revenues | 102 | 82 | 91 | 59 | 170 | 66.7 | % | |||||||||||||||||
Total operating revenues | 16,652 | 16,057 | 18,822 | 20,079 | 19,726 | 18.5 | % | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operating expenses | 14,466 | 14,856 | 16,893 | 18,190 | 17,713 | 22.4 | % | |||||||||||||||||
Total expenses | 14,466 | 14,856 | 16,893 | 18,190 | 17,713 | 22.4 | % | |||||||||||||||||
Pre-tax operating income | $ | 2,186 | $ | 1,201 | $ | 1,929 | $ | 1,889 | $ | 2,013 | -7.9 | % | ||||||||||||
1 | Beginning in the third quarter of 2008, the operating results for this segment also include those of PMA Management Corp. of New England, which was acquired by the Company on June 30, 2008. | |||||||||||||
12
PMA Capital Corporation | ||||||||||||||||||||||||
Statements of Operations - Corporate & Other | ||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Quarter | |||||||||||||||||||
Gross Premiums Written | $ | (122 | ) | $ | (127 | ) | $ | (122 | ) | $ | (123 | ) | $ | (148 | ) | -21.3 | % | |||||||
Net Premiums Written | $ | (122 | ) | $ | (127 | ) | $ | (122 | ) | $ | (123 | ) | $ | (148 | ) | -21.3 | % | |||||||
Revenues: | ||||||||||||||||||||||||
Net premiums earned | $ | (122 | ) | $ | (127 | ) | $ | (122 | ) | $ | (123 | ) | $ | (148 | ) | -21.3 | % | |||||||
Claims service revenues | (156 | ) | (276 | ) | (255 | ) | (244 | ) | (311 | ) | -99.4 | % | ||||||||||||
Commission income | - | (13 | ) | (25 | ) | (13 | ) | (12 | ) | NM | ||||||||||||||
Net investment income | 175 | (21 | ) | (24 | ) | (32 | ) | (95 | ) | NM | ||||||||||||||
Other revenues | 44 | 12 | 34 | 279 | 6 | -86.4 | % | |||||||||||||||||
Total operating revenues | (59 | ) | (425 | ) | (392 | ) | (133 | ) | (560 | ) | NM | |||||||||||||
Expenses: | ||||||||||||||||||||||||
Acquisition expenses | - | (13 | ) | (25 | ) | (28 | ) | (19 | ) | NM | ||||||||||||||
Operating expenses | 2,379 | 2,512 | 2,409 | 2,314 | 2,113 | -11.2 | % | |||||||||||||||||
Total expenses | 2,379 | 2,499 | 2,384 | 2,286 | 2,094 | -12.0 | % | |||||||||||||||||
Operating loss before income taxes | ||||||||||||||||||||||||
and interest expense | (2,438 | ) | (2,924 | ) | (2,776 | ) | (2,419 | ) | (2,654 | ) | -8.9 | % | ||||||||||||
Interest expense | 2,573 | 2,500 | 2,543 | 2,478 | 2,346 | -8.8 | % | |||||||||||||||||
Pre-tax operating loss | $ | (5,011 | ) | $ | (5,424 | ) | $ | (5,319 | ) | $ | (4,897 | ) | $ | (5,000 | ) | 0.2 | % |
13
PMA Capital Corporation | ||||||||||||||||||||||||
Statements of Operations - Discontinued Operations | ||||||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | % Change | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | 1st | |||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | Quarter | |||||||||||||||||||
Gross Premiums Written | $ | 2,331 | $ | (214 | ) | $ | 417 | $ | 3 | $ | 466 | -80.0 | % | |||||||||||
Net Premiums Written | $ | 2,439 | $ | (227 | ) | $ | 167 | $ | 2 | $ | (87 | ) | NM | |||||||||||
Revenues: | ||||||||||||||||||||||||
Net premiums earned | $ | 1,026 | $ | 11 | $ | 517 | $ | 145 | $ | 617 | -39.9 | % | ||||||||||||
Net investment income | 128 | (451 | ) | (663 | ) | 1,546 | (878 | ) | NM | |||||||||||||||
Total operating revenues | 1,154 | (440 | ) | (146 | ) | 1,691 | (261 | ) | NM | |||||||||||||||
Losses and Expenses: | ||||||||||||||||||||||||
Losses and loss adjustment expenses | 9,280 | 550 | 10,201 | 4,226 | 129 | -98.6 | % | |||||||||||||||||
Acquisition expenses | 85 | 168 | (146 | ) | 339 | 1,199 | NM | |||||||||||||||||
Operating expenses | 2,782 | 1,952 | 2,054 | 2,228 | 2,577 | -7.4 | % | |||||||||||||||||
Impairment charge / valuation adjustment | (6,480 | ) | (3,550 | ) | (8,594 | ) | 8,722 | (4,387 | ) | 32.3 | % | |||||||||||||
Total losses and expenses | 5,667 | (880 | ) | 3,515 | 15,515 | (482 | ) | NM | ||||||||||||||||
Pre-tax operating income (loss) from discontinued operations | (4,513 | ) | 440 | (3,661 | ) | (13,824 | ) | 221 | NM | |||||||||||||||
Income tax expense (benefit) | (1,580 | ) | 154 | (1,281 | ) | (4,838 | ) | 77 | NM | |||||||||||||||
After-tax operating income (loss) from discontinued operations | (2,933 | ) | 286 | (2,380 | ) | (8,986 | ) | 144 | NM | |||||||||||||||
Realized gains (losses) after tax | 494 | (474 | ) | 70 | 1,146 | (230 | ) | NM | ||||||||||||||||
Loss from discontinued operations | $ | (2,439 | ) | $ | (188 | ) | $ | (2,310 | ) | $ | (7,840 | ) | $ | (86 | ) | 96.5 | % | |||||||
Note: The net results from discontinued operations are reported as a separate line item below "Income from continuing operations" in the consolidated statements of operations. |
14
PMA Capital Corporation | ||||||||||||||||||||
Operating Cash Flows - Consolidated | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Receipts: | ||||||||||||||||||||
Premiums collected | $ | 93,222 | $ | 94,883 | $ | 112,274 | $ | 96,678 | $ | 109,089 | ||||||||||
Claims service, commissions and other revenues | 14,097 | 16,180 | 22,643 | 16,251 | 22,276 | |||||||||||||||
Investment income received | 10,623 | 9,418 | 9,688 | 9,172 | 9,789 | |||||||||||||||
Total receipts | 117,942 | 120,481 | 144,605 | 122,101 | 141,154 | |||||||||||||||
Disbursements: | ||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||
Losses and LAE paid - current year | 4,991 | 17,075 | 25,618 | 30,952 | 5,265 | |||||||||||||||
Losses and LAE paid - prior years | 61,577 | 54,638 | 46,851 | 41,207 | 61,152 | |||||||||||||||
Total losses and LAE paid | 66,568 | 71,713 | 72,469 | 72,159 | 66,417 | |||||||||||||||
Operating expenses paid | 44,966 | 43,369 | 43,785 | 37,866 | 46,907 | |||||||||||||||
Commissions and premiums paid | 922 | 2,117 | 3,387 | 580 | 1,680 | |||||||||||||||
Policyholders' dividends paid | 1,138 | 1,882 | 1,663 | 1,592 | 863 | |||||||||||||||
Interest on corporate debt | 2,926 | 2,680 | 2,700 | 2,645 | 2,526 | |||||||||||||||
Total disbursements | 116,520 | 121,761 | 124,004 | 114,842 | 118,393 | |||||||||||||||
Net other | (5,637 | ) | 12,080 | (6,158 | ) | (691 | ) | (629 | ) | |||||||||||
Net operating cash flows from continuing operations | (4,215 | ) | 10,800 | 14,443 | 6,568 | 22,132 | ||||||||||||||
Net operating cash flows from discontinued operations | (31,345 | ) | (23,228 | ) | (13,236 | ) | (20,948 | ) | (14,742 | ) | ||||||||||
Net operating cash flows | $ | (35,560 | ) | $ | (12,428 | ) | $ | 1,207 | $ | (14,380 | ) | $ | 7,390 |
15
PMA Capital Corporation | ||||||||||||||||||||
Operating Cash Flows - PMA Insurance Group | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Receipts: | ||||||||||||||||||||
Premiums collected | $ | 93,222 | $ | 94,883 | $ | 112,274 | $ | 96,678 | $ | 109,089 | ||||||||||
Investment income received | 10,462 | 9,300 | 9,570 | 9,029 | 9,703 | |||||||||||||||
Total receipts | 103,684 | 104,183 | 121,844 | 105,707 | 118,792 | |||||||||||||||
Disbursements: | ||||||||||||||||||||
Losses and LAE paid: | ||||||||||||||||||||
Losses and LAE paid - current year | 4,991 | 17,075 | 25,618 | 30,952 | 5,265 | |||||||||||||||
Losses and LAE paid - prior years | 61,577 | 54,638 | 46,851 | 41,207 | 61,152 | |||||||||||||||
Total losses and LAE paid | 66,568 | 71,713 | 72,469 | 72,159 | 66,417 | |||||||||||||||
Operating expenses paid | 32,454 | 28,756 | 26,531 | 23,391 | 30,060 | |||||||||||||||
Policyholders' dividends paid | 1,138 | 1,882 | 1,663 | 1,592 | 863 | |||||||||||||||
Interest on corporate debt | 245 | 186 | 192 | 185 | 194 | |||||||||||||||
Total disbursements | 100,405 | 102,537 | 100,855 | 97,327 | 97,534 | |||||||||||||||
Net other | (3,412 | ) | 10,964 | (6,659 | ) | (18,635 | ) | (1,205 | ) | |||||||||||
Net operating cash flows | $ | (133 | ) | $ | 12,610 | $ | 14,330 | $ | (10,255 | ) | $ | 20,053 |
16
PMA Capital Corporation | ||||||||||||||||||||
Operating Cash Flows - Fee-based Business 1 | ||||||||||||||||||||
(Dollar Amounts in Thousands) | ||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2009 | ||||||||||||||||
Receipts: | ||||||||||||||||||||
Claims service, commissions and other revenues | $ | 14,097 | $ | 16,180 | $ | 22,643 | $ | 16,251 | $ | 22,276 | ||||||||||
Investment income received | 161 | 118 | 118 | 143 | 86 | |||||||||||||||
Total receipts | 14,258 | 16,298 | 22,761 | 16,394 | 22,362 | |||||||||||||||
Disbursements: | ||||||||||||||||||||
Operating expenses paid | 12,512 | 14,613 | 17,254 | 14,475 | 16,847 | |||||||||||||||
Commissions and premiums paid | 922 | 2,117 | 3,387 | 580 | 1,680 | |||||||||||||||
Total disbursements | 13,434 | 16,730 | 20,641 | 15,055 | 18,527 | |||||||||||||||
Net other | 977 | (3,003 | ) | 970 | 3,850 | (242 | ) | |||||||||||||
Net operating cash flows | $ | 1,801 | $ | (3,435 | ) | $ | 3,090 | $ | 5,189 | $ | 3,593 | |||||||||
1 | Beginning in the third quarter of 2008, the operating cash flows for this segment also include those of PMA Management Corp. of New England, which was acquired by the Company on June 30, 2008. |
17
PMA Capital Corporation | |||||||||||||||||||||
Statutory Surplus | |||||||||||||||||||||
(Dollar Amounts in Thousands) | |||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2008 | 2008 | 2008 | 2008 | 20091 | |||||||||||||||||
PMA Pool 2 | $ | 343,582 | $ | 352,096 | $ | 336,368 | $ | 332,915 | $ | 337,495 | |||||||||||
PMA Capital Insurance Company | 41,099 | 37,838 | 26,143 | 34,468 | 29,252 | ||||||||||||||||
PMA Capital Corporation | |||||||||||||||||||||
Statutory Financial Information - PMA Pool 2 | |||||||||||||||||||||
(Dollar Amounts in Thousands) | |||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
2008 | 2008 | 2008 | 2008 | 20091 | |||||||||||||||||
Net Premiums Written: | |||||||||||||||||||||
Workers' Compensation | $ | 103,018 | $ | 71,998 | $ | 107,446 | $ | 87,722 | $ | 101,891 | |||||||||||
Other Commercial Lines | 10,805 | 9,079 | 8,692 | 8,154 | 13,487 | ||||||||||||||||
Total - PMA Pool | $ | 113,823 | $ | 81,077 | $ | 116,138 | $ | 95,876 | $ | 115,378 | |||||||||||
Statutory Ratios: | |||||||||||||||||||||
Loss and LAE ratio | 69.6 | % | 69.5 | % | 69.4 | % | 67.7 | % | 71.6 | % | |||||||||||
Underwriting expense ratio | 20.3 | % | 32.1 | % | 22.1 | % | 26.9 | % | 21.1 | % | |||||||||||
Policyholders' dividend ratio | 1.4 | % | 1.5 | % | 1.4 | % | 3.3 | % | 1.2 | % | |||||||||||
Combined ratio | 91.3 | % | 103.1 | % | 92.9 | % | 97.9 | % | 93.9 | % | |||||||||||
Operating ratio | 80.7 | % | 94.4 | % | 84.0 | % | 89.5 | % | 85.8 | % | |||||||||||
1 | Estimated. | |
2 | The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company. |
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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 | email: bhitselberger@pmacapital.com | |||||||
www.amstock.com | ||||||||
Investor Relations | ||||||||
Phone Inquiries: | 610.397.5298 | |||||||
800.937.5449 | email: 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 4/29/2009): | ||||||||
A.M. Best | Fitch | Moody's | ||||||
PMA Pool 1 | A- (4th of 16) | BBB+ (8th of 21) | Baa3 (10th of 21) | |||||
PMA Capital Insurance Company 2 | C++ (9th of 16) | Not Rated | Not Rated | |||||
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. On April 1, 2008, we announced that we executed a definitive stock purchase agreement to sell our Run-off Operations to Armour Reinsurance Group Limited. The closing of the sale and transfer of ownership are currently pending approval by the Pennsylvania Insurance Department. | ||||||||
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