Pma Capital (PMACA) 8-K PMA Capital Reports Fourth Quarter and Full Year 2009 Results

Exhibit 99.2

PMA Capital Corporation
Statistical Supplement
Fourth Quarter - 2009
Table of Contents
		Page
Consolidated Highlights:
Selected Financial Data - Fourth Quarter			1
Selected Financial Data - Full Year			2
Consolidated Statements of Operations - Per Share Data			3
Consolidated Statements of Operations - Fourth Quarter			5
Consolidated Statements of Operations - Full Year			6
Consolidated Balance Sheets			7
Assets and Liabilities of Discontinued Operations; Selected Balance Sheet Items - Fronting Arrangements;
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group			8
Invested Assets and Net Investment Income; Debt			9
Segment Information:
Statements of Operations - Consolidating - Full Year		11 - 12
Statements of Operations - Consolidating - Fourth Quarter		13 - 14
Statements of Operations - PMA Insurance Group			15
Insurance Ratios - PMA Insurance Group			16
Components of Direct Premiums Written - PMA Insurance Group			17
Statements of Operations - Fee-based Business			18
Statements of Operations - Corporate & Other			19
Statements of Operations - Discontinued Operations			20
Operating Cash Flow Information:
Operating Cash Flows - Consolidated			21
Operating Cash Flows - PMA Insurance Group			22
Operating Cash Flows - Fee-based Business			23
Statutory Financial Information:
Statutory Surplus; Statutory Financial Information - PMA Pool			24
Other Information:
Industry Ratings and Market Information			25
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 pages 1 and 2 for reconciliations of operating results by segment to GAAP net income (loss).

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	4th			1st			2nd			3rd			4th			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			4th
	2008			2009			2009			2009			2009			Quarter
Direct Premiums Written	$	129,713		$	161,965		$	108,994		$	161,965		$	118,272			-8.8	%
Net Premiums Written	$	97,313		$	117,978		$	80,302		$	119,259		$	84,366			-13.3	%
Revenues:
Net premiums earned	$	103,727		$	104,930		$	106,949		$	102,428		$	100,464			-3.1	%
Claims service revenues		16,785			15,684			16,835			17,112			17,998			7.2	%
Commission income		2,835			3,463			2,117			2,747			2,515			-11.3	%
Net investment income		8,724			8,457			9,561			9,522			9,336			7.0	%
Net realized investment gains (losses)		259			749			(472	)		795			(558	)	NM
Other revenues		356			176			190			259			458			28.7	%
Total revenues	$	132,686		$	133,459		$	135,180		$	132,863		$	130,213			-1.9	%
Major Components of Net Income (Loss):
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	8,428		$	15,187		$	9,965		$	13,616		$	4,282			-49.2	%
Fee-based Business		1,889			2,013			1,525			1,574			2,096			11.0	%
Corporate & Other		(4,897	)		(5,000	)		(5,167	)		(4,768	)		(4,192	)		14.4	%
Pre-tax operating income		5,420			12,200			6,323			10,422			2,186			-59.7	%
Income tax expense (benefit)		1,854			4,384			2,249			3,690			(19,680	)	NM
After-tax operating income		3,566			7,816			4,074			6,732			21,866		NM
Net realized investment gains (losses) after tax		168			487			(307	)		517			(363	)	NM
Income from continuing operations		3,734			8,303			3,767			7,249			21,503		NM
Loss from discontinued operations after tax		(7,840	)		(86	)		(1,165	)		(40	)		(18,318	)	NM
Net income (loss)	$	(4,106	)	$	8,217		$	2,602		$	7,209		$	3,185		NM
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	0.11		$	0.24		$	0.13		$	0.21		$	0.68		NM
Realized gains (losses) after tax		0.01			0.02			(0.01	)		0.01			(0.01	)	NM
Income from continuing operations		0.12			0.26			0.12			0.22			0.67		NM
Loss from discontinued operations after tax		(0.25	)		-			(0.04	)		-			(0.57	)	NM
Net income (loss)	$	(0.13	)	$	0.26		$	0.08		$	0.22		$	0.10		NM
Capitalization:
Debt	$	129,380		$	129,380		$	129,380		$	129,380		$	143,380			10.8	%
Shareholders' equity excluding FAS 115 unrealized gain (loss)		365,547			374,007			377,505			384,958			392,005			7.2	%
Total capitalization excluding FAS 115 unrealized gain (loss)		494,927			503,387			506,885			514,338			535,385			8.2	%
FAS 115 unrealized gain (loss)		(20,891	)		(22,737	)		(8,507	)		14,214			9,792		NM
Total capitalization including FAS 115 unrealized gain (loss)	$	474,036		$	480,650		$	498,378		$	528,552		$	545,177			15.0	%
Book Value Per Share:
Excluding FAS 115 unrealized gain (loss)	$	11.44		$	11.61		$	11.71		$	11.94		$	12.15			6.2	%
Including FAS 115 unrealized gain (loss)	$	10.78		$	10.91		$	11.45		$	12.38		$	12.46			15.6	%
Debt to Total Capital:
Excluding FAS 115 unrealized gain (loss)		26.1	%		25.7	%		25.5	%		25.2	%		26.8	%		2.7	%
Including FAS 115 unrealized gain (loss)		27.3	%		26.9	%		26.0	%		24.5	%		26.3	%		-3.7	%
Interest Coverage:
Income from continuing operations before interest
and income taxes to interest expense		3.12			6.17			3.36			5.63			1.68			-46.2	%
Operating income from continuing operations before
interest and income taxes to interest expense		3.03			5.87			3.55			5.30			1.92			-36.6	%

1

PMA Capital Corporation
Selected Financial Data
(Dollar Amounts in Thousands, Except Per Share Data)
	Twelve			Twelve			% Change
	Months			Months			Twelve
	2009			2008			Months
Direct Premiums Written	$	551,196		$	517,429			6.5	%
Net Premiums Written	$	401,905		$	414,237			-3.0	%
Revenues:
Net premiums earned	$	414,771		$	390,217			6.3	%
Claims service revenues		67,629			57,370			17.9	%
Commission income		10,842			12,384			-12.5	%
Net investment income		36,876			36,069			2.2	%
Net realized investment gains (losses)		514			(4,724	)	NM
Other revenues		1,083			2,841			-61.9	%
Total revenues	$	531,715		$	494,157			7.6	%
Major Components of Net Income:
Pre-tax operating income (loss) by segment:
PMA Insurance Group	$	43,050		$	46,713			-7.8	%
Fee-based Business		7,208			7,205			0.0	%
Corporate & Other		(19,127	)		(20,651	)		7.4	%
Pre-tax operating income		31,131			33,267			-6.4	%
Income tax expense (benefit)		(9,357	)		11,730		NM
After-tax operating income		40,488			21,537			88.0	%
Net realized investment gains (losses) after tax		334			(3,071	)	NM
Income from continuing operations		40,822			18,466		NM
Loss from discontinued operations after tax		(19,609	)		(12,777	)		-53.5	%
Net income	$	21,213		$	5,689		NM
Diluted Earnings (Loss) Per Share:
After-tax operating income	$	1.26		$	0.67			88.1	%
Realized gains (losses) after tax		0.01			(0.09	)	NM
Income from continuing operations		1.27			0.58		NM
Loss from discontinued operations after tax		(0.61	)		(0.40	)		-52.5	%
Net income	$	0.66		$	0.18		NM

2

PMA Capital Corporation
Consolidated Statements of Operations - Per Share Data
	4th			1st		2nd			3rd		4th			Twelve			Twelve
	Quarter			Quarter		Quarter			Quarter		Quarter			Months			Months
	2008			2009		2009			2009		2009			2009			2008
Diluted Earnings (Loss) Per Share:
Pre-tax operating income	$	0.17		$	0.38	$	0.20		$	0.32	$	0.07		$	0.97		$	1.04
After-tax operating income	$	0.11		$	0.24	$	0.13		$	0.21	$	0.68		$	1.26		$	0.67
Income from continuing operations	$	0.12		$	0.26	$	0.12		$	0.22	$	0.67		$	1.27		$	0.58
Loss from discontinued operations after tax		(0.25	)		-		(0.04	)		-		(0.57	)		(0.61	)		(0.40	)
Net income (loss)	$	(0.13	)	$	0.26	$	0.08		$	0.22	$	0.10		$	0.66		$	0.18
Diluted weighted average common
shares outstanding		31,968,555			32,020,346		32,231,391			32,244,469		32,250,573			32,186,402			32,038,781
Dividends declared:
Class A Common Stock	$	-		$	-	$	-		$	-	$	-		$	-		$	-
Actual common shares issued
and outstanding		31,965,806			32,211,133		32,238,944			32,241,620		32,251,120			32,251,120			31,965,806
Class A Common Stock prices:
High	$	9.47		$	7.20	$	5.35		$	6.33	$	7.44		$	7.44		$	12.00
Low	$	3.46		$	3.50	$	3.70		$	4.27	$	4.64		$	3.50		$	3.46
Close	$	7.08		$	4.17	$	4.55		$	5.69	$	6.30		$	6.30		$	7.08

3

This Page Intentionally Left Blank

4

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			4th
	2008			2009			2009			2009			2009			Quarter
Gross Premiums Written	$	132,217		$	164,070		$	113,424		$	164,339		$	119,433			-9.7	%
Net Premiums Written	$	97,313		$	117,978		$	80,302		$	119,259		$	84,366			-13.3	%
Revenues:
Net premiums earned	$	103,727		$	104,930		$	106,949		$	102,428		$	100,464			-3.1	%
Claims service revenues		16,785			15,684			16,835			17,112			17,998			7.2	%
Commission income		2,835			3,463			2,117			2,747			2,515			-11.3	%
Net investment income		8,724			8,457			9,561			9,522			9,336			7.0	%
Net realized investment gains (losses)		259			749			(472	)		795			(558	)	NM
Other revenues		356			176			190			259			458			28.7	%
Total revenues		132,686			133,459			135,180			132,863			130,213			-1.9	%
Expenses:
Losses and loss adjustment expenses		70,671			75,775			73,494			70,158			71,783			1.6	%
Acquisition expenses		16,521			17,198			19,508			16,046			17,282			4.6	%
Operating expenses		34,379			24,385			31,540			30,235			34,213			-0.5	%
Dividends to policyholders		2,762			646			2,311			2,786			2,918			5.6	%
Interest expense		2,674			2,506			2,476			2,421			2,389			-10.7	%
Total losses and expenses		127,007			120,510			129,329			121,646			128,585			1.2	%
Pre-tax income		5,679			12,949			5,851			11,217			1,628			-71.3	%
Income tax expense (benefit):
Current		(211	)		244			265			220			(412	)		-95.3	%
Deferred		2,156			4,402			1,819			3,748			(19,463	)	NM
Total income tax expense (benefit)		1,945			4,646			2,084			3,968			(19,875	)	NM
Income from continuing operations		3,734			8,303			3,767			7,249			21,503		NM
Loss from discontinued operations after tax		(7,840	)		(86	)		(1,165	)		(40	)		(18,318	)	NM
Net income (loss)	$	(4,106	)	$	8,217		$	2,602		$	7,209		$	3,185		NM
Pre-tax operating income from continuing operations	$	5,420		$	12,200		$	6,323		$	10,422		$	2,186			-59.7	%
After-tax operating income from continuing operations	$	3,566		$	7,816		$	4,074		$	6,732		$	21,866		NM

5

PMA Capital Corporation
Consolidated Statements of Operations
(Dollar Amounts in Thousands)
	Twelve			Twelve			% Change
	Months			Months			Twelve
	2009			2008			Months
Gross Premiums Written	$	561,266		$	528,915			6.1	%
Net Premiums Written	$	401,905		$	414,237			-3.0	%
Revenues:
Net premiums earned	$	414,771		$	390,217			6.3	%
Claims service revenues		67,629			57,370			17.9	%
Commission income		10,842			12,384			-12.5	%
Net investment income		36,876			36,069			2.2	%
Net realized investment gains (losses)		514			(4,724	)	NM
Other revenues		1,083			2,841			-61.9	%
Total revenues		531,715			494,157			7.6	%
Expenses:
Losses and loss adjustment expenses		291,210			270,825			7.5	%
Acquisition expenses		70,034			66,635			5.1	%
Operating expenses		120,373			110,965			8.5	%
Dividends to policyholders		8,661			6,306			37.3	%
Interest expense		9,792			10,883			-10.0	%
Total losses and expenses		500,070			465,614			7.4	%
Pre-tax income		31,645			28,543			10.9	%
Income tax expense (benefit):
Current		317			705			-55.0	%
Deferred		(9,494	)		9,372		NM
Total income tax expense (benefit)		(9,177	)		10,077		NM
Income from continuing operations		40,822			18,466		NM
Loss from discontinued operations after tax		(19,609	)		(12,777	)		-53.5	%
Net income	$	21,213		$	5,689		NM
Pre-tax operating income from continuing operations	$	31,131		$	33,267			-6.4	%
After-tax operating income from continuing operations	$	40,488		$	21,537			88.0	%

6

PMA Capital Corporation
Consolidated Balance Sheets
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Assets:
Investments in fixed maturities available for sale	$	719,048		$	714,202		$	737,606		$	817,089		$	791,355
Short-term investments		45,066			58,273			38,103			62,004			41,072
Other investments		8,127			13,832			21,073			22,669			30,226
Total investments		772,241			786,307			796,782			901,762			862,653
Cash		10,501			11,767			10,163			13,887			11,059
Accrued investment income		6,513			6,500			7,221			6,918			7,352
Premiums receivable		235,893			257,380			236,663			246,871			238,650
Reinsurance receivables		826,126			830,962			855,161			807,245			827,458
Prepaid reinsurance premiums		29,579			41,314			37,271			40,883			35,788
Deferred income taxes, net		138,514			135,496			126,397			110,358			139,782
Deferred acquisition costs		40,938			44,857			39,364			42,583			39,124
Funds held by reinsureds		51,754			54,166			54,312			56,623			58,935
Intangible assets		30,348			29,668			30,165			29,961			29,757
Other assets		116,646			119,361			123,460			126,015			112,181
Assets of discontinued operations		243,663			235,265			208,272			192,431			-
Total assets	$	2,502,716		$	2,553,043		$	2,525,231		$	2,575,537		$	2,362,739
Liabilities:
Unpaid losses and loss adjustment expenses	$	1,242,258		$	1,256,435		$	1,271,089		$	1,259,940		$	1,269,685
Unearned premiums		247,415			272,200			241,508			261,952			240,759
Debt		129,380			129,380			129,380			129,380			143,380
Accounts payable, accrued expenses
and other liabilities		216,266			219,189			222,359			250,304			249,787
Reinsurance funds held and balances payable		44,177			59,074			53,327			52,914			51,331
Dividends to policyholders		6,862			7,224			6,022			6,177			6,000
Liabilities of discontinued operations		271,702			258,271			232,548			215,698			-
Total liabilities		2,158,060			2,201,773			2,156,233			2,176,365			1,960,942
Shareholders' Equity:
Class A Common Stock		171,090			171,090			171,090			171,090			171,090
Additional paid-in capital		112,921			111,953			112,264			112,349			111,841
Retained earnings		140,184			143,291			145,500			152,670			155,747
Accumulated other comprehensive loss		(49,876	)		(51,497	)		(36,814	)		(13,947	)		(14,060	)
Treasury stock, at cost		(29,663	)		(23,567	)		(23,042	)		(22,990	)		(22,821	)
Total shareholders' equity		344,656			351,270			368,998			399,172			401,797
Total liabilities and shareholders' equity	$	2,502,716		$	2,553,043		$	2,525,231		$	2,575,537		$	2,362,739

7

PMA Capital Corporation
Assets and Liabilities of Discontinued Operations
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Assets
Investments	$	146,033		$	137,317		$	110,736		$	100,296		$	-
Cash		1,371			85			1,271			494			-
Reinsurance receivables		94,956			93,120			89,361			81,887			-
Other assets		1,303			4,743			6,904			9,754			-
Assets of discontinued operations	$	243,663		$	235,265		$	208,272		$	192,431		$	-
Liabilities
Unpaid losses and loss adjustment expenses	$	247,442		$	235,568		$	206,743		$	193,051		$	-
Other liabilities		24,260			22,703			25,805			22,647			-
Liabilities of discontinued operations	$	271,702		$	258,271		$	232,548		$	215,698		$	-
PMA Capital Corporation
Selected Balance Sheet Items - Fronting Arrangements
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Assets
Premiums receivable	$	25,796		$	38,833		$	36,670		$	33,337		$	38,756
Reinsurance receivables		47,280			50,175			53,675			58,107			59,579
Prepaid reinsurance premiums		16,048			24,884			23,072			20,346			20,685
Deferred acquisition costs		748			1,269			1,081			902			964
Other assets		6,723			6,818			7,269			6,684			7,161
Liabilities
Unpaid losses and loss adjustment expenses	$	49,494		$	53,087		$	57,367		$	62,642		$	65,165
Unearned premiums		19,667			29,430			26,866			23,512			24,073
Reinsurance funds held and balances payable		20,965			31,237			26,951			23,138			27,176
Other liabilities		10,116			11,392			12,081			12,620			14,481
PMA Capital Corporation
Rollforward of Deferred Policy Acquisition Costs - PMA Insurance Group
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th
	Quarter			Quarter			Quarter			Quarter			Quarter
	2008			2009			2009			2009			2009
Balance Sheet
Balance, beginning of period	$	43,317		$	40,938		$	44,857		$	39,364		$	42,583
Policy acquisition costs deferred		14,170			21,136			14,036			19,312			13,849
Amortization of policy acquisition costs		(16,549	)		(17,217	)		(19,529	)		(16,093	)		(17,308	)
Net change		(2,379	)		3,919			(5,493	)		3,219			(3,459	)
Balance, end of period	$	40,938		$	44,857		$	39,364		$	42,583		$	39,124

8

PMA Capital Corporation
Invested Assets and Net Investment Income
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			Twelve			Twelve
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2009			2009			2009			2009			2009			2008
Total Investments & Cash
As reported	$	782,742		$	798,074		$	806,945		$	915,649		$	873,712		$	873,712		$	782,742
Less:
Unrealized gain (loss) on
fixed maturities available for sale		(30,758	)		(33,799	)		(13,563	)		19,501			12,201			12,201			(30,758	)
Unrealized gain (loss) on other investments		(1,382	)		(1,181	)		475			2,367			2,863			2,863			(1,382	)
Total adjusted investments & cash		814,882			833,054			820,033			893,781			858,648			858,648			814,882
Net Investment Income
As reported	$	8,724		$	8,457		$	9,561		$	9,522		$	9,336		$	36,876		$	36,069
Less:
Interest on funds held		(479	)		(288	)		(511	)		(463	)		(406	)		(1,668	)		(2,159	)
Total adjusted investment income	$	9,203		$	8,745		$	10,072		$	9,985		$	9,742		$	38,544		$	38,228
Yield
As reported		4.38	%		4.28	%		4.77	%		4.42	%		4.17	%		4.41	%		4.45	%
Investment portfolio		4.43	%		4.25	%		4.87	%		4.66	%		4.45	%		4.57	%		4.63	%
Duration (in years)		3.2			3.5			4.3			4.2			4.3			4.3			3.2

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
	Notes payable		14,000	2010 - 20113
	Surplus notes 2		10,000	2035
	4.25% convertible debt		45	20224
	Total long-term debt	$	143,380

1	Weighted average interest rate on junior subordinated debt is 4.20% as of December 31, 2009.
2	Interest rate on surplus notes is 4.78% as of December 31, 2009.
3	Notes payable are for capital contributions to our former Run-off Operations, of which $4 million is payable in March 2010, $5 million in June 2010 and $5 million in June 2011.
4	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.

9

This Page Intentionally Left Blank

10

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2009
(Dollar Amounts in Thousands)
	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated
Gross Premiums Written	$	561,856	$	-	$	(590	)	$	561,266
Net Premiums Written	$	402,495	$	-	$	(590	)	$	401,905
Revenues:
Net premiums earned	$	415,361	$	-	$	(590	)	$	414,771
Claims service revenues		-		68,751		(1,122	)		67,629
Commission income		-		10,956		(114	)		10,842
Net investment income		36,690		344		(158	)		36,876
Other revenues		166		781		136			1,083
Total operating revenues		452,217		80,832		(1,848	)		531,201
Losses and Expenses:
Losses and loss adjustment expenses		291,210		-		-			291,210
Acquisition expenses		70,147		-		(113	)		70,034
Operating expenses		38,585		73,624		8,164			120,373
Dividends to policyholders		8,661		-		-			8,661
Total losses and expenses		408,603		73,624		8,051			490,278
Operating income (loss) before income taxes
and interest expense		43,614		7,208		(9,899	)		40,923
Interest expense		564		-		9,228			9,792
Pre-tax operating income (loss)	$	43,050	$	7,208	$	(19,127	)		31,131
Net realized investment gains									514
Pre-tax income								$	31,645

1 Corporate & Other includes the effect of eliminating transactions between the operating segments.

11

PMA Capital Corporation
Statements of Operations - Consolidating
Year Ended December 31, 2008
(Dollar Amounts in Thousands)
	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated
Gross Premiums Written	$	529,409	$	-	$	(494	)	$	528,915
Net Premiums Written	$	414,731	$	-	$	(494	)	$	414,237
Revenues:
Net premiums earned	$	390,711	$	-	$	(494	)	$	390,217
Claims service revenues		-		58,301		(931	)		57,370
Commission income		-		12,435		(51	)		12,384
Net investment income		35,431		540		98			36,069
Other revenues		2,138		334		369			2,841
Total operating revenues		428,280		71,610		(1,009	)		498,881
Losses and Expenses:
Losses and loss adjustment expenses		270,825		-		-			270,825
Acquisition expenses		66,701		-		(66	)		66,635
Operating expenses		36,946		64,405		9,614			110,965
Dividends to policyholders		6,306		-		-			6,306
Total losses and expenses		380,778		64,405		9,548			454,731
Operating income (loss) before income taxes
and interest expense		47,502		7,205		(10,557	)		44,150
Interest expense		789		-		10,094			10,883
Pre-tax operating income (loss)	$	46,713	$	7,205	$	(20,651	)		33,267
Net realized investment losses									(4,724	)
Pre-tax income								$	28,543

1 Corporate & Other includes the effect of eliminating transactions between the operating segments.

12

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2009
(Dollar Amounts in Thousands)
	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated
Gross Premiums Written	$	119,575	$	-	$	(142	)	$	119,433
Net Premiums Written	$	84,508	$	-	$	(142	)	$	84,366
Revenues:
Net premiums earned	$	100,606	$	-	$	(142	)	$	100,464
Claims service revenues		-		18,236		(238	)		17,998
Commission income		-		2,572		(57	)		2,515
Net investment income		9,307		15		14			9,336
Other revenues		166		208		84			458
Total operating revenues		110,079		21,031		(339	)		130,771
Losses and Expenses:
Losses and loss adjustment expenses		71,783		-		-			71,783
Acquisition expenses		17,308		-		(26	)		17,282
Operating expenses		13,662		18,935		1,616			34,213
Dividends to policyholders		2,918		-		-			2,918
Total losses and expenses		105,671		18,935		1,590			126,196
Operating income (loss) before income taxes
and interest expense		4,408		2,096		(1,929	)		4,575
Interest expense		126		-		2,263			2,389
Pre-tax operating income (loss)	$	4,282	$	2,096	$	(4,192	)		2,186
Net realized investment losses									(558	)
Pre-tax income								$	1,628

1 Corporate & Other includes the effect of eliminating transactions between the operating segments.

13

PMA Capital Corporation
Statements of Operations - Consolidating
Three Months Ended December 31, 2008
(Dollar Amounts in Thousands)
	PMA
	Insurance		Fee-based		Corporate
	Group		Business		& Other1			Consolidated
Gross Premiums Written	$	132,340	$	-	$	(123	)	$	132,217
Net Premiums Written	$	97,436	$	-	$	(123	)	$	97,313
Revenues:
Net premiums earned	$	103,850	$	-	$	(123	)	$	103,727
Claims service revenues		-		17,029		(244	)		16,785
Commission income		-		2,848		(13	)		2,835
Net investment income		8,613		143		(32	)		8,724
Other revenues		18		59		279			356
Total operating revenues		112,481		20,079		(133	)		132,427
Losses and Expenses:
Losses and loss adjustment expenses		70,671		-		-			70,671
Acquisition expenses		16,549		-		(28	)		16,521
Operating expenses		13,875		18,190		2,314			34,379
Dividends to policyholders		2,762		-		-			2,762
Total losses and expenses		103,857		18,190		2,286			124,333
Operating income (loss) before income taxes
and interest expense		8,624		1,889		(2,419	)		8,094
Interest expense		196		-		2,478			2,674
Pre-tax operating income (loss)	$	8,428	$	1,889	$	(4,897	)		5,420
Net realized investment gains									259
Pre-tax income								$	5,679

1 Corporate & Other includes the effect of eliminating transactions between the operating segments.

14

PMA Capital Corporation
Statements of Operations - PMA Insurance Group
(Dollar Amounts in Thousands)
	4th		1st		2nd		3rd		4th		Twelve		Twelve		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		4th			Twelve
	2008		2009		2009		2009		2009		2009		2008		Quarter			Months
Gross Premiums Written	$	132,340	$	164,218	$	113,566	$	164,497	$	119,575	$	561,856	$	529,409		-9.6	%		6.1	%
Net Premiums Written	$	97,436	$	118,126	$	80,444	$	119,417	$	84,508	$	402,495	$	414,731		-13.3	%		-3.0	%
Revenues:
Net premiums earned	$	103,850	$	105,078	$	107,091	$	102,586	$	100,606	$	415,361	$	390,711		-3.1	%		6.3	%
Net investment income		8,613		8,466		9,502		9,415		9,307		36,690		35,431		8.1	%		3.6	%
Other revenues		18		-		-		-		166		166		2,138	NM				-92.2	%
Total operating revenues		112,481		113,544		116,593		112,001		110,079		452,217		428,280		-2.1	%		5.6	%
Losses and Expenses:
Losses and loss adjustment expenses		70,671		75,775		73,494		70,158		71,783		291,210		270,825		1.6	%		7.5	%
Acquisition expenses		16,549		17,217		19,529		16,093		17,308		70,147		66,701		4.6	%		5.2	%
Operating expenses		13,875		4,559		11,151		9,213		13,662		38,585		36,946		-1.5	%		4.4	%
Dividends to policyholders		2,762		646		2,311		2,786		2,918		8,661		6,306		5.6	%		37.3	%
Total losses and expenses		103,857		98,197		106,485		98,250		105,671		408,603		380,778		1.7	%		7.3	%
Operating income before income taxes
and interest expense		8,624		15,347		10,108		13,751		4,408		43,614		47,502		-48.9	%		-8.2	%
Interest expense		196		160		143		135		126		564		789		-35.7	%		-28.5	%
Pre-tax operating income	$	8,428	$	15,187	$	9,965	$	13,616	$	4,282	$	43,050	$	46,713		-49.2	%		-7.8	%

15

PMA Capital Corporation
Insurance Ratios - PMA Insurance Group
	4th Quarter			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Twelve Months			Twelve Months			Point Chg. 4th Quarter Better			Point Chg. Twelve Months Better
	2008			2009			2009			2009			2009			2009			2008			(Worse)			(Worse)
Ratios - GAAP Basis:
Loss and LAE ratio		68.1	%		72.1	%		68.6	%		68.4	%		71.4	%		70.1	%		69.3	%		(3.3	)		(0.8	)
Expense ratio:
Acquisition expenses		15.9	%		16.4	%		18.2	%		15.7	%		17.2	%		16.9	%		17.1	%		(1.3	)		0.2
Operating expenses		13.3	%		4.4	%		10.4	%		9.0	%		13.5	%		9.3	%		9.5	%		(0.2	)		0.2
Total expense ratio		29.2	%		20.8	%		28.6	%		24.7	%		30.7	%		26.2	%		26.6	%		(1.5	)		0.4
Policyholders' dividend ratio		2.7	%		0.6	%		2.2	%		2.7	%		2.9	%		2.1	%		1.6	%		(0.2	)		(0.5	)
Combined ratio		100.0	%		93.5	%		99.4	%		95.8	%		105.0	%		98.4	%		97.5	%		(5.0	)		(0.9	)
Net investment income ratio		-8.3	%		-8.1	%		-8.9	%		-9.2	%		-9.3	%		-8.8	%		-9.1	%		1.0			(0.3	)
Operating ratio		91.7	%		85.4	%		90.5	%		86.6	%		95.7	%		89.6	%		88.4	%		(4.0	)		(1.2	)

16

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			2nd			3rd			4th			Twelve
	Quarter			Quarter			Quarter			Quarter			Months
	2009			2009			2009			2009			2009
Direct premium production	$	147,367		$	102,212		$	154,754		$	108,169		$	512,502
Fronting premiums		19,622			9,677			10,890			14,497			54,686
Premium adjustments		(4,876	)		(2,753	)		(3,521	)		(4,252	)		(15,402	)
Direct premiums written	$	162,113		$	109,136		$	162,123		$	118,414		$	551,786

17

PMA Capital Corporation
Statements of Operations - Fee-based Business
(Dollar Amounts in Thousands)
	4th		1st		2nd		3rd		4th		Twelve		Twelve		% Change			% Change
	Quarter		Quarter		Quarter		Quarter		Quarter		Months		Months		4th			Twelve
	2008		2009		2009		2009		2009		2009		2008		Quarter			Months
Revenues:
Claims service revenues	$	17,029	$	15,995	$	17,122	$	17,398	$	18,236	$	68,751	$	58,301		7.1	%		17.9	%
Commission income		2,848		3,475		2,132		2,777		2,572		10,956		12,435		-9.7	%		-11.9	%
Net investment income		143		86		101		142		15		344		540		-89.5	%		-36.3	%
Other revenues		59		170		167		236		208		781		334	NM			NM
Total operating revenues		20,079		19,726		19,522		20,553		21,031		80,832		71,610		4.7	%		12.9	%
Expenses:
Operating expenses		18,190		17,713		17,997		18,979		18,935		73,624		64,405		4.1	%		14.3	%
Total expenses		18,190		17,713		17,997		18,979		18,935		73,624		64,405		4.1	%		14.3	%
Pre-tax operating income	$	1,889	$	2,013	$	1,525	$	1,574	$	2,096	$	7,208	$	7,205		11.0	%		0.0	%

18

PMA Capital Corporation
Statements of Operations - Corporate & Other
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			Twelve			Twelve			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			4th			Twelve
	2008			2009			2009			2009			2009			2009			2008			Quarter			Months
Gross Premiums Written	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(142	)	$	(590	)	$	(494	)		-15.4	%		-19.4	%
Net Premiums Written	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(142	)	$	(590	)	$	(494	)		-15.4	%		-19.4	%
Revenues:
Net premiums earned	$	(123	)	$	(148	)	$	(142	)	$	(158	)	$	(142	)	$	(590	)	$	(494	)		-15.4	%		-19.4	%
Claims service revenues		(244	)		(311	)		(287	)		(286	)		(238	)		(1,122	)		(931	)		2.5	%		-20.5	%
Commission income		(13	)		(12	)		(15	)		(30	)		(57	)		(114	)		(51	)	NM			NM
Net investment income		(32	)		(95	)		(42	)		(35	)		14			(158	)		98		NM			NM
Other revenues		279			6			23			23			84			136			369			-69.9	%		-63.1	%
Total operating revenues		(133	)		(560	)		(463	)		(486	)		(339	)		(1,848	)		(1,009	)	NM				-83.2	%
Expenses:
Acquisition expenses		(28	)		(19	)		(21	)		(47	)		(26	)		(113	)		(66	)		7.1	%		-71.2	%
Operating expenses		2,314			2,113			2,392			2,043			1,616			8,164			9,614			-30.2	%		-15.1	%
Total expenses		2,286			2,094			2,371			1,996			1,590			8,051			9,548			-30.4	%		-15.7	%
Operating loss before income taxes
and interest expense		(2,419	)		(2,654	)		(2,834	)		(2,482	)		(1,929	)		(9,899	)		(10,557	)		20.3	%		6.2	%
Interest expense		2,478			2,346			2,333			2,286			2,263			9,228			10,094			-8.7	%		-8.6	%
Pre-tax operating loss	$	(4,897	)	$	(5,000	)	$	(5,167	)	$	(4,768	)	$	(4,192	)	$	(19,127	)	$	(20,651	)		14.4	%		7.4	%

19

PMA Capital Corporation
Statements of Operations - Discontinued Operations
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			Twelve			Twelve			% Change			% Change
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months			4th			Twelve
	2008			2009			2009			2009			2009			2009			2008			Quarter			Months
Gross Premiums Written	$	3		$	466		$	2,093		$	384		$	(485	)	$	2,458		$	2,537		NM				-3.1	%
Net Premiums Written	$	2		$	(87	)	$	1,798		$	360		$	(755	)	$	1,316		$	2,381		NM				-44.7	%
Revenues:
Net premiums earned	$	145		$	617		$	1,673		$	(2	)	$	-		$	2,288		$	1,699		NM				34.7	%
Net investment income		1,546			(878	)		(937	)		(1,066	)		6,908			4,027			560		NM			NM
Total operating revenues		1,691			(261	)		736			(1,068	)		6,908			6,315			2,259		NM			NM
Losses and Expenses:
Losses and loss adjustment expenses		4,226			129			1,910			(175	)		33			1,897			24,257			-99.2	%		-92.2	%
Acquisition expenses		339			1,199			120			104			14			1,437			446			-95.9	%	NM
Operating expenses		2,228			2,577			2,397			2,101			4,945			12,020			9,016		NM				33.3	%
Impairment charge / valuation adjustment		8,722			(4,387	)		(2,172	)		(2,722	)		29,673			20,392			(9,902	)	NM			NM
Total losses and expenses		15,515			(482	)		2,255			(692	)		34,665			35,746			23,817		NM				50.1	%
Pre-tax operating income (loss) from discontinued operations		(13,824	)		221			(1,519	)		(376	)		(27,757	)		(29,431	)		(21,558	)	NM				-36.5	%
Income tax expense (benefit)		(4,838	)		77			(530	)		(133	)		(9,715	)		(10,301	)		(7,545	)	NM				-36.5	%
After-tax operating income (loss) from discontinued operations		(8,986	)		144			(989	)		(243	)		(18,042	)		(19,130	)		(14,013	)	NM				-36.5	%
Realized gains (losses) after tax		1,146			(230	)		(176	)		203			(276	)		(479	)		1,236		NM			NM
Loss from discontinued operations	$	(7,840	)	$	(86	)	$	(1,165	)	$	(40	)	$	(18,318	)	$	(19,609	)	$	(12,777	)	NM				-53.5	%

20

PMA Capital Corporation
Operating Cash Flows - Consolidated
(Dollar Amounts in Thousands)
	4th			1st			2nd			3rd			4th			Twelve			Twelve
	Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
	2008			2009			2009			2009			2009			2009			2008
Receipts:
Premiums collected	$	96,678		$	109,089		$	96,214		$	105,816		$	89,289		$	400,408		$	397,057
Claims service, commissions and other revenues		16,251			22,276			18,203			21,658			15,909			78,046			69,171
Investment income received		9,172			9,789			9,164			10,124			9,430			38,507			38,901
Total receipts		122,101			141,154			123,581			137,598			114,628			516,961			505,129
Disbursements:
Losses and LAE paid:
Losses and LAE paid - current year		30,952			5,265			18,874			25,500			35,347			84,986			78,636
Losses and LAE paid - prior years		41,207			61,152			63,486			6,931			49,219			180,788			204,273
Total losses and LAE paid		72,159			66,417			82,360			32,431			84,566			265,774			282,909
Operating expenses paid		37,866			46,907			41,332			43,129			42,596			173,964			169,986
Commissions and premiums paid		580			1,680			2,090			3,270			(4,117	)		2,923			7,006
Policyholders' dividends paid		1,592			863			2,401			1,264			1,633			6,161			6,275
Interest on corporate debt		2,645			2,526			2,437			2,388			2,344			9,695			10,951
Total disbursements		114,842			118,393			130,620			82,482			127,022			458,517			477,127
Net other		(691	)		(629	)		(1,459	)		4,976			3,262			6,150			(406	)
Net operating cash flows from continuing operations		6,568			22,132			(8,498	)		60,092			(9,132	)		64,594			27,596
Net operating cash flows from discontinued operations		(20,948	)		(14,742	)		(25,656	)		(12,549	)		(15,799	)		(68,746	)		(88,757	)
Net operating cash flows	$	(14,380	)	$	7,390		$	(34,154	)	$	47,543		$	(24,931	)		(4,152	)	$	(61,161	)

21

PMA Capital Corporation
Operating Cash Flows - PMA Insurance Group
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2008			2009			2009			2009			2009			2009			2008
Receipts:
Premiums collected		$	96,678		$	109,089		$	96,214		$	105,816		$	89,289		$	400,408		$	397,057
Investment income received			9,029			9,703			9,062			9,985			9,417			38,167			38,361
	Total receipts		105,707			118,792			105,276			115,801			98,706			438,575			435,418
Disbursements:
Losses and LAE paid:
	Losses and LAE paid - current year		30,952			5,265			18,874			25,500			35,347			84,986			78,636
	Losses and LAE paid - prior years		41,207			61,152			63,486			6,931	1		49,219			180,788	1		204,273
Total losses and LAE paid			72,159			66,417			82,360			32,431			84,566			265,774			282,909
Operating expenses paid			23,391			30,060			27,192			24,079			27,792			109,123			111,132
Policyholders' dividends paid			1,592			863			2,401			1,264			1,633			6,161			6,275
Interest on corporate debt			185			194			144			139			126			603			808
	Total disbursements		97,327			97,534			112,097			57,913			114,117			381,661			401,124
	Net other		(18,635	)		(1,205	)		501			(3,712	)		(11,932	)		(16,348	)		(17,742	)
Net operating cash flows		$	(10,255	)	$	20,053		$	(6,320	)	$	54,176		$	(27,343	)	$	40,566		$	16,552
1	Reduced by $43.9 million received for a commutation with Houston Casualty Company.

22

PMA Capital Corporation
Operating Cash Flows - Fee-based Business
(Dollar Amounts in Thousands)
	4th		1st			2nd			3rd		4th			Twelve			Twelve
	Quarter		Quarter			Quarter			Quarter		Quarter			Months			Months
	2008		2009			2009			2009		2009			2009			2008
Receipts:
Claims service, commissions and other revenues	$	16,251	$	22,276		$	18,203		$	21,658	$	15,909		$	78,046		$	69,171
Investment income received		143		86			102			139		13			340			540
Total receipts		16,394		22,362			18,305			21,797		15,922			78,386			69,711
Disbursements:
Operating expenses paid		14,475		16,847			14,140			19,050		14,804			64,841			58,854
Commissions and premiums paid		580		1,680			2,090			3,270		(4,117	)		2,923			7,006
Total disbursements		15,055		18,527			16,230			22,320		10,687			67,764			65,860
Net other		3,850		(242	)		(3,644	)		4,453		(2,690	)		(2,123	)		2,794
Net operating cash flows	$	5,189	$	3,593		$	(1,569	)	$	3,930	$	2,545		$	8,499		$	6,645

23

PMA Capital Corporation
Statutory Surplus
(Dollar Amounts in Thousands)
	4th		1st		2nd			3rd		4th
	Quarter		Quarter		Quarter			Quarter		Quarter
	2008		2009		2009			2009		20091
PMA Pool 2	$	332,915	$	337,495	$	373,654	3	$	385,111	$	417,330	4
PMA Capital Insurance Company5		34,468		29,252		26,446			30,202		-

PMA Capital Corporation
Statutory Financial Information - PMA Pool 2
(Dollar Amounts in Thousands)
		4th			1st			2nd			3rd			4th			Twelve			Twelve
		Quarter			Quarter			Quarter			Quarter			Quarter			Months			Months
		2008			2009			2009			2009			20091			20091			2008
Net Premiums Written:
	Workers' Compensation	$	87,722		$	101,891		$	72,181		$	102,329		$	72,373		$	348,774		$	370,184
	Other Commercial Lines		8,154			13,487			8,403			8,965			8,167			39,022			36,730
	Total - PMA Pool	$	95,876		$	115,378		$	80,584		$	111,294		$	80,540		$	387,796		$	406,914
Statutory Ratios:
	Loss and LAE ratio		67.7	%		71.6	%		51.8	%		68.9	%		72.8	%		66.1	%		69.0	%
	Underwriting expense ratio		26.9	%		21.1	%		30.7	%		22.0	%		31.3	%		25.5	%		24.8	%
	Policyholders' dividend ratio		3.3	%		1.2	%		1.2	%		1.4	%		1.5	%		1.3	%		1.9	%
	Combined ratio		97.9	%		93.9	%		83.7	%		92.3	%		105.6	%		92.9	%		95.7	%
	Operating ratio		89.5	%		85.8	%		75.0	%		83.5	%		96.3	%		84.2	%		86.6	%

1	Estimated.
2	The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance Insurance Company and Pennsylvania Manufacturers Indemnity Company.
3	The increase in statutory surplus during the second quarter of 2009 related primarily to statutory net income, which included a benefit from the commutation of a reinsurance agreement with an affiliated entity.
4	Includes impact of adoption of Statement of Statutory Accounting Principles No. 10R, "Income Taxes - Revised, A Temporary Replacement of SSAP No. 10."
5	Sold December 24, 2009.

24

PMA Capital Corporation
Industry Ratings and Market Information
Transfer Agent and Registrar:	Inquiries:
American Stock Transfer & Trust Company	John M. Cochrane
Shareholder Relations	Interim Chief Financial Officer
59 Maiden Lane – Plaza Level	610.397.5076
New York, NY 10038	email: john_cochrane@pmagroup.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 2/17/2010):
	A.M. Best	Fitch	Moody's
PMA Pool 1	A-   (4th of 16)	BBB+  (8th of 21)	Baa3  (10th of 21)
1 The PMA Pool is comprised of Pennsylvania Manufacturers' Association Insurance Company, Manufacturers Alliance
Insurance Company and Pennsylvania Manufacturers Indemnity Company.

25