Attached files
file | filename |
---|---|
8-K - PMA CAPITAL CORPORATION FORM 8-K - PMA CAPITAL CORP | pma8k.htm |
EX-99.1 - EXHIBIT 99.1 - PMA CAPITAL CORP | ex99-1.htm |
Exhibit 99.2
PMA
Capital Corporation
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Statistical
Supplement
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Third
Quarter - 2009
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Table of Contents
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Page
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Consolidated
Highlights:
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Selected
Financial Data - Third Quarter
|
1 | |||
Selected
Financial Data - Year-to-date
|
2 | |||
Consolidated
Statements of Operations - Per Share Data
|
3 | |||
Consolidated
Statements of Operations - Third Quarter
|
5 | |||
Consolidated
Statements of Operations - Year-to-date
|
6 | |||
Consolidated
Balance Sheets
|
7 | |||
Assets
and Liabilities of Discontinued Operations; Selected Balance Sheet Items -
Fronting Arrangements;
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Rollforward
of Deferred Policy Acquisition Costs - PMA Insurance Group
|
8 | |||
Invested
Assets and Net Investment Income; Debt
|
9 | |||
Segment
Information:
|
||||
Statements
of Operations - Consolidating - Year-to-date
|
11 - 12 | |||
Statements
of Operations - Consolidating - Third 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:
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Operating
Cash Flows - Consolidated
|
21 | |||
Operating
Cash Flows - PMA Insurance Group
|
22 | |||
Operating
Cash Flows - Fee-based Business
|
23 | |||
Statutory
Financial Information:
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Statutory
Surplus; Statutory Financial Information - PMA Pool
|
24 | |||
Other
Information:
|
||||
Industry
Ratings and Market Information
|
25 | |||
Legend:
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NM
- Not Meaningful
|
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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)
|
||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
%
Change
|
|||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
3rd
|
|||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
Quarter
|
|||||||||||||||||||
Direct
Premiums Written
|
$ | 148,193 | $ | 129,713 | $ | 161,965 | $ | 108,994 | $ | 161,965 | 9.3 | % | ||||||||||||
Net
Premiums Written
|
$ | 123,995 | $ | 97,313 | $ | 117,978 | $ | 80,302 | $ | 119,259 | -3.8 | % | ||||||||||||
Revenues:
|
||||||||||||||||||||||||
Net
premiums earned
|
$ | 97,974 | $ | 103,727 | $ | 104,930 | $ | 106,949 | $ | 102,428 | 4.5 | % | ||||||||||||
Claims
service revenues
|
15,696 | 16,785 | 15,684 | 16,835 | 17,112 | 9.0 | % | |||||||||||||||||
Commission
income
|
2,637 | 2,835 | 3,463 | 2,117 | 2,747 | 4.2 | % | |||||||||||||||||
Net
investment income
|
8,870 | 8,724 | 8,457 | 9,561 | 9,522 | 7.4 | % | |||||||||||||||||
Net
realized investment gains (losses)
|
(7,929 | ) | 259 | 749 | (472 | ) | 795 |
NM
|
||||||||||||||||
Other
revenues
|
125 | 356 | 176 | 190 | 259 |
NM
|
||||||||||||||||||
Total
revenues
|
$ | 117,373 | $ | 132,686 | $ | 133,459 | $ | 135,180 | $ | 132,863 | 13.2 | % | ||||||||||||
Major
Components of Net Income (Loss):
|
||||||||||||||||||||||||
Pre-tax
operating income (loss) by segment:
|
||||||||||||||||||||||||
PMA
Insurance Group
|
$ | 13,325 | $ | 8,428 | $ | 15,187 | $ | 9,965 | $ | 13,616 | 2.2 | % | ||||||||||||
Fee-based
Business
|
1,929 | 1,889 | 2,013 | 1,525 | 1,574 | -18.4 | % | |||||||||||||||||
Corporate
& Other
|
(5,319 | ) | (4,897 | ) | (5,000 | ) | (5,167 | ) | (4,768 | ) | 10.4 | % | ||||||||||||
Pre-tax
operating income
|
9,935 | 5,420 | 12,200 | 6,323 | 10,422 | 4.9 | % | |||||||||||||||||
Income
tax expense
|
3,530 | 1,854 | 4,384 | 2,249 | 3,690 | 4.5 | % | |||||||||||||||||
After-tax
operating income
|
6,405 | 3,566 | 7,816 | 4,074 | 6,732 | 5.1 | % | |||||||||||||||||
Net
realized investment gains (losses) after tax
|
(5,154 | ) | 168 | 487 | (307 | ) | 517 |
NM
|
||||||||||||||||
Income
from continuing operations
|
1,251 | 3,734 | 8,303 | 3,767 | 7,249 |
NM
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||||||||||||||||||
Loss
from discontinued operations after tax
|
(2,310 | ) | (7,840 | ) | (86 | ) | (1,165 | ) | (40 | ) | 98.3 | % | ||||||||||||
Net
income (loss)
|
$ | (1,059 | ) | $ | (4,106 | ) | $ | 8,217 | $ | 2,602 | $ | 7,209 |
NM
|
|||||||||||
Diluted
Earnings (Loss) Per Share:
|
||||||||||||||||||||||||
After-tax
operating income
|
$ | 0.20 | $ | 0.11 | $ | 0.24 | $ | 0.13 | $ | 0.21 | 5.0 | % | ||||||||||||
Realized
gains (losses) after tax
|
(0.16 | ) | 0.01 | 0.02 | (0.01 | ) | 0.01 |
NM
|
||||||||||||||||
Income
from continuing operations
|
0.04 | 0.12 | 0.26 | 0.12 | 0.22 |
NM
|
||||||||||||||||||
Loss
from discontinued operations after tax
|
(0.07 | ) | (0.25 | ) | - | (0.04 | ) | - |
NM
|
|||||||||||||||
Net
income (loss)
|
$ | (0.03 | ) | $ | (0.13 | ) | $ | 0.26 | $ | 0.08 | $ | 0.22 |
NM
|
|||||||||||
Capitalization:
|
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Debt
|
$ | 129,380 | $ | 129,380 | $ | 129,380 | $ | 129,380 | $ | 129,380 | 0.0 | % | ||||||||||||
Shareholders'
equity excluding FAS 115 unrealized gain (loss)
|
380,107 | 365,547 | 374,007 | 377,505 | 384,958 | 1.3 | % | |||||||||||||||||
Total
capitalization excluding FAS 115 unrealized gain (loss)
|
509,487 | 494,927 | 503,387 | 506,885 | 514,338 | 1.0 | % | |||||||||||||||||
FAS
115 unrealized gain (loss)
|
(22,113 | ) | (20,891 | ) | (22,737 | ) | (8,507 | ) | 14,214 |
NM
|
||||||||||||||
Total
capitalization including FAS 115 unrealized gain (loss)
|
$ | 487,374 | $ | 474,036 | $ | 480,650 | $ | 498,378 | $ | 528,552 | 8.4 | % | ||||||||||||
Book
Value Per Share:
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||||||||||||||||||||||||
Excluding
FAS 115 unrealized gain (loss)
|
$ | 11.89 | $ | 11.44 | $ | 11.61 | $ | 11.71 | $ | 11.94 | 0.4 | % | ||||||||||||
Including
FAS 115 unrealized gain (loss)
|
$ | 11.20 | $ | 10.78 | $ | 10.91 | $ | 11.45 | $ | 12.38 | 10.5 | % | ||||||||||||
Debt
to Total Capital:
|
||||||||||||||||||||||||
Excluding
FAS 115 unrealized gain (loss)
|
25.4 | % | 26.1 | % | 25.7 | % | 25.5 | % | 25.2 | % | -0.8 | % | ||||||||||||
Including
FAS 115 unrealized gain (loss)
|
26.5 | % | 27.3 | % | 26.9 | % | 26.0 | % | 24.5 | % | -7.5 | % | ||||||||||||
Interest
Coverage:
|
||||||||||||||||||||||||
Income
from continuing operations before interest
|
||||||||||||||||||||||||
and
income taxes to interest expense
|
1.73 | 3.12 | 6.17 | 3.36 | 5.63 |
NM
|
||||||||||||||||||
Operating
income from continuing operations before
|
||||||||||||||||||||||||
interest
and income taxes to interest expense
|
4.63 | 3.03 | 5.87 | 3.55 | 5.30 | 14.5 | % | |||||||||||||||||
1
PMA
Capital Corporation
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Selected
Financial Data
|
||||||||||||
(Dollar
Amounts in Thousands, Except Per Share Data)
|
||||||||||||
Nine
|
Nine
|
%
Change
|
||||||||||
Months
|
Months
|
Nine
|
||||||||||
2009
|
2008
|
Months
|
||||||||||
Direct
Premiums Written
|
$ | 432,924 | $ | 387,716 | 11.7 | % | ||||||
Net
Premiums Written
|
$ | 317,539 | $ | 316,924 | 0.2 | % | ||||||
Revenues:
|
||||||||||||
Net
premiums earned
|
$ | 314,307 | $ | 286,490 | 9.7 | % | ||||||
Claims
service revenues
|
49,631 | 40,585 | 22.3 | % | ||||||||
Commission
income
|
8,327 | 9,549 | -12.8 | % | ||||||||
Net
investment income
|
27,540 | 27,345 | 0.7 | % | ||||||||
Net
realized investment gains (losses)
|
1,072 | (4,983 | ) |
NM
|
||||||||
Other
revenues
|
625 | 2,485 | -74.8 | % | ||||||||
Total
revenues
|
$ | 401,502 | $ | 361,471 | 11.1 | % | ||||||
Major
Components of Net Income:
|
||||||||||||
Pre-tax
operating income (loss) by segment:
|
||||||||||||
PMA
Insurance Group
|
$ | 38,768 | $ | 38,285 | 1.3 | % | ||||||
Fee-based
Business
|
5,112 | 5,316 | -3.8 | % | ||||||||
Corporate
& Other
|
(14,935 | ) | (15,754 | ) | 5.2 | % | ||||||
Pre-tax
operating income
|
28,945 | 27,847 | 3.9 | % | ||||||||
Income
tax expense
|
10,323 | 9,876 | 4.5 | % | ||||||||
After-tax
operating income
|
18,622 | 17,971 | 3.6 | % | ||||||||
Net
realized investment gains (losses) after tax
|
697 | (3,239 | ) |
NM
|
||||||||
Income
from continuing operations
|
19,319 | 14,732 | 31.1 | % | ||||||||
Loss
from discontinued operations after tax
|
(1,291 | ) | (4,937 | ) | 73.9 | % | ||||||
Net
income
|
$ | 18,028 | $ | 9,795 | 84.1 | % | ||||||
Diluted
Earnings (Loss) Per Share:
|
||||||||||||
After-tax
operating income
|
$ | 0.58 | $ | 0.56 | 3.6 | % | ||||||
Realized
gains (losses) after tax
|
0.02 | (0.10 | ) |
NM
|
||||||||
Income
from continuing operations
|
0.60 | 0.46 | 30.4 | % | ||||||||
Loss
from discontinued operations after tax
|
(0.04 | ) | (0.15 | ) | 73.3 | % | ||||||
Net
income
|
$ | 0.56 | $ | 0.31 | 80.6 | % |
2
PMA
Capital Corporation
|
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Consolidated
Statements of Operations - Per Share Data
|
||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||||||||
Diluted
Earnings (Loss) Per Share:
|
||||||||||||||||||||||||||||
Pre-tax
operating income
|
$ | 0.31 | $ | 0.17 | $ | 0.38 | $ | 0.20 | $ | 0.32 | $ | 0.90 | $ | 0.87 | ||||||||||||||
After-tax
operating income
|
$ | 0.20 | $ | 0.11 | $ | 0.24 | $ | 0.13 | $ | 0.21 | $ | 0.58 | $ | 0.56 | ||||||||||||||
Income
from continuing operations
|
$ | 0.04 | $ | 0.12 | $ | 0.26 | $ | 0.12 | $ | 0.22 | $ | 0.60 | $ | 0.46 | ||||||||||||||
Loss
from discontinued operations after tax
|
(0.07 | ) | (0.25 | ) | - | (0.04 | ) | - | (0.04 | ) | (0.15 | ) | ||||||||||||||||
Net
income (loss)
|
$ | (0.03 | ) | $ | (0.13 | ) | $ | 0.26 | $ | 0.08 | $ | 0.22 | $ | 0.56 | $ | 0.31 | ||||||||||||
Diluted
weighted average common
|
||||||||||||||||||||||||||||
shares
outstanding
|
32,200,554 | 31,968,555 | 32,020,346 | 32,231,391 | 32,244,469 | 32,166,223 | 32,102,465 | |||||||||||||||||||||
Dividends
declared:
|
||||||||||||||||||||||||||||
Class
A Common Stock
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Actual
common shares issued
|
||||||||||||||||||||||||||||
and
outstanding
|
31,965,806 | 31,965,806 | 32,211,133 | 32,238,944 | 32,241,620 | 32,241,620 | 31,965,806 | |||||||||||||||||||||
Class
A Common Stock prices:
|
||||||||||||||||||||||||||||
High
|
$ | 12.00 | $ | 9.47 | $ | 7.20 | $ | 5.35 | $ | 6.33 | $ | 7.20 | $ | 12.00 | ||||||||||||||
Low
|
$ | 8.00 | $ | 3.46 | $ | 3.50 | $ | 3.70 | $ | 4.27 | $ | 3.50 | $ | 7.45 | ||||||||||||||
Close
|
$ | 8.82 | $ | 7.08 | $ | 4.17 | $ | 4.55 | $ | 5.69 | $ | 5.69 | $ | 8.82 | ||||||||||||||
3
|
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This
Page Intentionally Left Blank
|
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4
PMA
Capital Corporation
|
||||||||||||||||||||||||
Consolidated
Statements of Operations
|
||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
%
Change
|
|||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
3rd
|
|||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
Quarter
|
|||||||||||||||||||
Gross
Premiums Written
|
$ | 151,498 | $ | 132,217 | $ | 164,070 | $ | 113,424 | $ | 164,339 | 8.5 | % | ||||||||||||
Net
Premiums Written
|
$ | 123,995 | $ | 97,313 | $ | 117,978 | $ | 80,302 | $ | 119,259 | -3.8 | % | ||||||||||||
Revenues:
|
||||||||||||||||||||||||
Net
premiums earned
|
$ | 97,974 | $ | 103,727 | $ | 104,930 | $ | 106,949 | $ | 102,428 | 4.5 | % | ||||||||||||
Claims
service revenues
|
15,696 | 16,785 | 15,684 | 16,835 | 17,112 | 9.0 | % | |||||||||||||||||
Commission
income
|
2,637 | 2,835 | 3,463 | 2,117 | 2,747 | 4.2 | % | |||||||||||||||||
Net
investment income
|
8,870 | 8,724 | 8,457 | 9,561 | 9,522 | 7.4 | % | |||||||||||||||||
Net
realized investment gains (losses)
|
(7,929 | ) | 259 | 749 | (472 | ) | 795 |
NM
|
||||||||||||||||
Other
revenues
|
125 | 356 | 176 | 190 | 259 |
NM
|
||||||||||||||||||
Total
revenues
|
117,373 | 132,686 | 133,459 | 135,180 | 132,863 | 13.2 | % | |||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Losses
and loss adjustment expenses
|
68,660 | 70,671 | 75,775 | 73,494 | 70,158 | 2.2 | % | |||||||||||||||||
Acquisition
expenses
|
15,898 | 16,521 | 17,198 | 19,508 | 16,046 | 0.9 | % | |||||||||||||||||
Operating
expenses
|
26,906 | 34,379 | 24,385 | 31,540 | 30,235 | 12.4 | % | |||||||||||||||||
Dividends
to policyholders
|
1,169 | 2,762 | 646 | 2,311 | 2,786 |
NM
|
||||||||||||||||||
Interest
expense
|
2,734 | 2,674 | 2,506 | 2,476 | 2,421 | -11.4 | % | |||||||||||||||||
Total
losses and expenses
|
115,367 | 127,007 | 120,510 | 129,329 | 121,646 | 5.4 | % | |||||||||||||||||
Pre-tax
income
|
2,006 | 5,679 | 12,949 | 5,851 | 11,217 |
NM
|
||||||||||||||||||
Income
tax expense (benefit):
|
||||||||||||||||||||||||
Current
|
765 | (211 | ) | 244 | 265 | 220 | -71.2 | % | ||||||||||||||||
Deferred
|
(10 | ) | 2,156 | 4,402 | 1,819 | 3,748 |
NM
|
|||||||||||||||||
Total
income tax expense
|
755 | 1,945 | 4,646 | 2,084 | 3,968 |
NM
|
||||||||||||||||||
Income
from continuing operations
|
1,251 | 3,734 | 8,303 | 3,767 | 7,249 |
NM
|
||||||||||||||||||
Loss
from discontinued operations after tax
|
(2,310 | ) | (7,840 | ) | (86 | ) | (1,165 | ) | (40 | ) | 98.3 | % | ||||||||||||
Net
income (loss)
|
$ | (1,059 | ) | $ | (4,106 | ) | $ | 8,217 | $ | 2,602 | $ | 7,209 |
NM
|
|||||||||||
Pre-tax
operating income from continuing operations
|
$ | 9,935 | $ | 5,420 | $ | 12,200 | $ | 6,323 | $ | 10,422 | 4.9 | % | ||||||||||||
After-tax
operating income from continuing operations
|
$ | 6,405 | $ | 3,566 | $ | 7,816 | $ | 4,074 | $ | 6,732 | 5.1 | % | ||||||||||||
5
PMA
Capital Corporation
|
||||||||||||
Consolidated
Statements of Operations
|
||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||
Nine
|
Nine
|
%
Change
|
||||||||||
Months
|
Months
|
Nine
|
||||||||||
2009
|
2008
|
Months
|
||||||||||
Gross
Premiums Written
|
$ | 441,833 | $ | 396,698 | 11.4 | % | ||||||
Net
Premiums Written
|
$ | 317,539 | $ | 316,924 | 0.2 | % | ||||||
Revenues:
|
||||||||||||
Net
premiums earned
|
$ | 314,307 | $ | 286,490 | 9.7 | % | ||||||
Claims
service revenues
|
49,631 | 40,585 | 22.3 | % | ||||||||
Commission
income
|
8,327 | 9,549 | -12.8 | % | ||||||||
Net
investment income
|
27,540 | 27,345 | 0.7 | % | ||||||||
Net
realized investment gains (losses)
|
1,072 | (4,983 | ) |
NM
|
||||||||
Other
revenues
|
625 | 2,485 | -74.8 | % | ||||||||
Total
revenues
|
401,502 | 361,471 | 11.1 | % | ||||||||
Expenses:
|
||||||||||||
Losses
and loss adjustment expenses
|
219,427 | 200,154 | 9.6 | % | ||||||||
Acquisition
expenses
|
52,752 | 50,114 | 5.3 | % | ||||||||
Operating
expenses
|
86,160 | 76,586 | 12.5 | % | ||||||||
Dividends
to policyholders
|
5,743 | 3,544 | 62.0 | % | ||||||||
Interest
expense
|
7,403 | 8,209 | -9.8 | % | ||||||||
Total
losses and expenses
|
371,485 | 338,607 | 9.7 | % | ||||||||
Pre-tax
income
|
30,017 | 22,864 | 31.3 | % | ||||||||
Income
tax expense:
|
||||||||||||
Current
|
729 | 916 | -20.4 | % | ||||||||
Deferred
|
9,969 | 7,216 | 38.2 | % | ||||||||
Total
income tax expense
|
10,698 | 8,132 | 31.6 | % | ||||||||
Income
from continuing operations
|
19,319 | 14,732 | 31.1 | % | ||||||||
Loss
from discontinued operations after tax
|
(1,291 | ) | (4,937 | ) | 73.9 | % | ||||||
Net
income
|
$ | 18,028 | $ | 9,795 | 84.1 | % | ||||||
Pre-tax
operating income from continuing operations
|
$ | 28,945 | $ | 27,847 | 3.9 | % | ||||||
After-tax
operating income from continuing operations
|
$ | 18,622 | $ | 17,971 | 3.6 | % |
6
PMA
Capital Corporation
|
||||||||||||||||||||
Consolidated
Balance Sheets
|
||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
||||||||||||||||
Assets:
|
||||||||||||||||||||
Investments
in fixed maturities available for sale
|
$ | 701,738 | $ | 719,048 | $ | 714,202 | $ | 737,606 | $ | 817,089 | ||||||||||
Short-term
investments
|
89,766 | 45,066 | 58,273 | 38,103 | 62,004 | |||||||||||||||
Other
investments
|
8,247 | 8,127 | 13,832 | 21,073 | 22,669 | |||||||||||||||
Total
investments
|
799,751 | 772,241 | 786,307 | 796,782 | 901,762 | |||||||||||||||
Cash
|
12,502 | 10,501 | 11,767 | 10,163 | 13,887 | |||||||||||||||
Accrued
investment income
|
6,104 | 6,513 | 6,500 | 7,221 | 6,918 | |||||||||||||||
Premiums
receivable
|
226,709 | 235,893 | 257,380 | 236,663 | 246,871 | |||||||||||||||
Reinsurance
receivables
|
824,512 | 826,126 | 830,962 | 855,161 | 807,245 | |||||||||||||||
Prepaid
reinsurance premiums
|
23,051 | 29,579 | 41,314 | 37,271 | 40,883 | |||||||||||||||
Deferred
income taxes, net
|
131,132 | 138,514 | 135,496 | 126,397 | 110,358 | |||||||||||||||
Deferred
acquisition costs
|
43,317 | 40,938 | 44,857 | 39,364 | 42,583 | |||||||||||||||
Funds
held by reinsureds
|
49,292 | 51,754 | 54,166 | 54,312 | 56,623 | |||||||||||||||
Intangible
assets
|
30,518 | 30,348 | 29,668 | 30,165 | 29,961 | |||||||||||||||
Other
assets
|
142,672 | 116,646 | 119,361 | 123,460 | 126,015 | |||||||||||||||
Assets
of discontinued operations
|
309,607 | 243,663 | 235,265 | 208,272 | 192,431 | |||||||||||||||
Total
assets
|
$ | 2,599,167 | $ | 2,502,716 | $ | 2,553,043 | $ | 2,525,231 | $ | 2,575,537 | ||||||||||
Liabilities:
|
||||||||||||||||||||
Unpaid
losses and loss adjustment expenses
|
$ | 1,247,069 | $ | 1,242,258 | $ | 1,256,435 | $ | 1,271,089 | $ | 1,259,940 | ||||||||||
Unearned
premiums
|
247,302 | 247,415 | 272,200 | 241,508 | 261,952 | |||||||||||||||
Debt
|
129,380 | 129,380 | 129,380 | 129,380 | 129,380 | |||||||||||||||
Accounts
payable, accrued expenses
|
||||||||||||||||||||
and
other liabilities
|
247,196 | 216,266 | 219,189 | 222,359 | 250,304 | |||||||||||||||
Reinsurance
funds held and balances payable
|
34,185 | 44,177 | 59,074 | 53,327 | 52,914 | |||||||||||||||
Dividends
to policyholders
|
5,150 | 6,862 | 7,224 | 6,022 | 6,177 | |||||||||||||||
Liabilities
of discontinued operations
|
330,891 | 271,702 | 258,271 | 232,548 | 215,698 | |||||||||||||||
Total
liabilities
|
2,241,173 | 2,158,060 | 2,201,773 | 2,156,233 | 2,176,365 | |||||||||||||||
Shareholders'
Equity:
|
||||||||||||||||||||
Class
A Common Stock
|
171,090 | 171,090 | 171,090 | 171,090 | 171,090 | |||||||||||||||
Additional
paid-in capital
|
112,427 | 112,921 | 111,953 | 112,264 | 112,349 | |||||||||||||||
Retained
earnings
|
144,286 | 140,184 | 143,291 | 145,500 | 152,670 | |||||||||||||||
Accumulated
other comprehensive loss
|
(40,149 | ) | (49,876 | ) | (51,497 | ) | (36,814 | ) | (13,947 | ) | ||||||||||
Treasury
stock, at cost
|
(29,660 | ) | (29,663 | ) | (23,567 | ) | (23,042 | ) | (22,990 | ) | ||||||||||
Total
shareholders' equity
|
357,994 | 344,656 | 351,270 | 368,998 | 399,172 | |||||||||||||||
Total
liabilities and shareholders' equity
|
$ | 2,599,167 | $ | 2,502,716 | $ | 2,553,043 | $ | 2,525,231 | $ | 2,575,537 | ||||||||||
7
PMA
Capital Corporation
|
||||||||||||||||||||
Assets
and Liabilities of Discontinued Operations
|
||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
||||||||||||||||
Assets
|
||||||||||||||||||||
Investments
|
$ | 160,240 | $ | 146,033 | $ | 137,317 | $ | 110,736 | $ | 100,296 | ||||||||||
Cash
|
692 | 1,371 | 85 | 1,271 | 494 | |||||||||||||||
Reinsurance
receivables
|
134,133 | 94,956 | 93,120 | 89,361 | 81,887 | |||||||||||||||
Other
assets
|
14,542 | 1,303 | 4,743 | 6,904 | 9,754 | |||||||||||||||
Assets
of discontinued operations
|
$ | 309,607 | $ | 243,663 | $ | 235,265 | $ | 208,272 | $ | 192,431 | ||||||||||
Liabilities
|
||||||||||||||||||||
Unpaid
losses and loss adjustment expenses
|
$ | 281,386 | $ | 247,442 | $ | 235,568 | $ | 206,743 | $ | 193,051 | ||||||||||
Other
liabilities
|
49,505 | 24,260 | 22,703 | 25,805 | 22,647 | |||||||||||||||
Liabilities
of discontinued operations
|
$ | 330,891 | $ | 271,702 | $ | 258,271 | $ | 232,548 | $ | 215,698 | ||||||||||
PMA
Capital Corporation
|
||||||||||||||||||||
Selected
Balance Sheet Items - Fronting Arrangements
|
||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||
2008 | 2008 | 2009 | 2009 | 2009 | ||||||||||||||||
Assets
|
||||||||||||||||||||
Premiums
receivable
|
$ | 8,087 | $ | 25,796 | $ | 38,833 | $ | 36,670 | $ | 33,337 | ||||||||||
Reinsurance
receivables
|
44,668 | 47,280 | 50,175 | 53,675 | 58,107 | |||||||||||||||
Prepaid
reinsurance premiums
|
5,020 | 16,048 | 24,884 | 23,072 | 20,346 | |||||||||||||||
Deferred
acquisition costs
|
79 | 748 | 1,269 | 1,081 | 902 | |||||||||||||||
Other
assets
|
6,315 | 6,723 | 6,818 | 7,269 | 6,684 | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Unpaid
losses and loss adjustment expenses
|
$ | 46,301 | $ | 49,494 | $ | 53,087 | $ | 57,367 | $ | 62,642 | ||||||||||
Unearned
premiums
|
5,845 | 19,667 | 29,430 | 26,866 | 23,512 | |||||||||||||||
Reinsurance
funds held and balances payable
|
6,126 | 20,965 | 31,237 | 26,951 | 23,138 | |||||||||||||||
Other
liabilities
|
7,459 | 10,116 | 11,392 | 12,081 | 12,620 | |||||||||||||||
PMA
Capital Corporation
|
||||||||||||||||||||
Rollforward
of Deferred Policy Acquisition Costs - PMA Insurance
Group
|
||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||
2008 | 2008 | 2009 | 2009 | 2009 | ||||||||||||||||
Balance Sheet
|
||||||||||||||||||||
Balance,
beginning of period
|
$ | 38,739 | $ | 43,317 | $ | 40,938 | $ | 44,857 | $ | 39,364 | ||||||||||
Policy
acquisition costs deferred
|
20,501 | 14,170 | 21,136 | 14,036 | 19,312 | |||||||||||||||
Amortization
of policy acquisition costs
|
(15,923 | ) | (16,549 | ) | (17,217 | ) | (19,529 | ) | (16,093 | ) | ||||||||||
Net
change
|
4,578 | (2,379 | ) | 3,919 | (5,493 | ) | 3,219 | |||||||||||||
Balance,
end of period
|
$ | 43,317 | $ | 40,938 | $ | 44,857 | $ | 39,364 | $ | 42,583 | ||||||||||
|
||||||||||||||||||||
8
PMA
Capital Corporation
|
||||||||||||||||||||||||||||
Invested
Assets and Net Investment Income
|
||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||||||||
Total
Investments & Cash
|
||||||||||||||||||||||||||||
As
reported
|
$ | 812,253 | $ | 782,742 | $ | 798,074 | $ | 806,945 | $ | 915,649 | $ | 915,649 | $ | 812,253 | ||||||||||||||
Less:
|
||||||||||||||||||||||||||||
Unrealized
gain (loss) on
|
||||||||||||||||||||||||||||
fixed
maturities available for sale
|
(33,148 | ) | (30,758 | ) | (33,799 | ) | (13,563 | ) | 19,501 | 19,501 | (33,148 | ) | ||||||||||||||||
Unrealized gain (loss) on other investments | (872 | ) | (1,382 | ) | (1,181 | ) | 475 | 2,367 | 2,367 | (872 | ) | |||||||||||||||||
Total
adjusted investments & cash
|
$ | 846,273 | $ | 814,882 | $ | 833,054 | $ | 820,033 | $ | 893,781 | $ | 893,781 | $ | 846,273 | ||||||||||||||
Net
Investment Income
|
||||||||||||||||||||||||||||
As
reported
|
$ | 8,870 | $ | 8,724 | $ | 8,457 | $ | 9,561 | $ | 9,522 | $ | 27,540 | $ | 27,345 | ||||||||||||||
Less:
|
||||||||||||||||||||||||||||
Interest
on funds held
|
(616 | ) | (479 | ) | (288 | ) | (511 | ) | (463 | ) | (1,262 | ) | (1,680 | ) | ||||||||||||||
Total
adjusted investment income
|
$ | 9,486 | $ | 9,203 | $ | 8,745 | $ | 10,072 | $ | 9,985 | $ | 28,802 | $ | 29,025 | ||||||||||||||
Yield
|
||||||||||||||||||||||||||||
As
reported
|
4.37 | % | 4.38 | % | 4.28 | % | 4.77 | % | 4.42 | % | 4.45 | % | 4.45 | % | ||||||||||||||
Investment
portfolio
|
4.55 | % | 4.43 | % | 4.25 | % | 4.87 | % | 4.66 | % | 4.57 | % | 4.68 | % | ||||||||||||||
Duration
(in years)
|
3.6 | 3.2 | 3.5 | 4.3 | 4.2 | 4.2 | 3.6 | |||||||||||||||||||||
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 | 2022 3 | ||||||
Total
long-term debt
|
$ | 129,380 | ||||||
1
|
Weighted
average interest rate on junior subordinated debt is 4.34% as of September
30, 2009.
|
||||||||||||||||
2
|
Interest
rate on surplus notes is 4.98% as of September 30,
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.
|
||||||||||||||||
9
This
Page Intentionally Left Blank
|
|||||
10
PMA
Capital Corporation
|
|||||||||||||||||
Statements
of Operations - Consolidating
|
|||||||||||||||||
Nine
Months Ended September 30, 2009
|
|||||||||||||||||
(Dollar
Amounts in Thousands)
|
|||||||||||||||||
PMA
|
|||||||||||||||||
Insurance
|
Fee-based
|
Corporate
|
|||||||||||||||
Group
|
Business
|
&
Other1
|
Consolidated
|
||||||||||||||
Gross
Premiums Written
|
$ | 442,281 | $ | - | $ | (448 | ) | $ | 441,833 | ||||||||
Net
Premiums Written
|
$ | 317,987 | $ | - | $ | (448 | ) | $ | 317,539 | ||||||||
Revenues:
|
|||||||||||||||||
Net
premiums earned
|
$ | 314,755 | $ | - | $ | (448 | ) | $ | 314,307 | ||||||||
Claims
service revenues
|
- | 50,515 | (884 | ) | 49,631 | ||||||||||||
Commission
income
|
- | 8,384 | (57 | ) | 8,327 | ||||||||||||
Net
investment income
|
27,383 | 329 | (172 | ) | 27,540 | ||||||||||||
Other
revenues
|
- | 573 | 52 | 625 | |||||||||||||
Total operating revenues | 342,138 | 59,801 | (1,509 | ) | 400,430 | ||||||||||||
Losses
and Expenses:
|
|||||||||||||||||
Losses
and loss adjustment expenses
|
219,427 | - | - | 219,427 | |||||||||||||
Acquisition
expenses
|
52,839 | - | (87 | ) | 52,752 | ||||||||||||
Operating
expenses
|
24,923 | 54,689 | 6,548 | 86,160 | |||||||||||||
Dividends
to policyholders
|
5,743 | - | - | 5,743 | |||||||||||||
Total losses and expenses | 302,932 | 54,689 | 6,461 | 364,082 | |||||||||||||
Operating
income (loss) before income taxes
|
|||||||||||||||||
and interest expense |
|
39,206 | 5,112 | (7,970 | ) | 36,348 | |||||||||||
Interest
expense
|
438 | - | 6,965 | 7,403 | |||||||||||||
Pre-tax
operating income (loss)
|
$ | 38,768 | $ | 5,112 | $ | (14,935 | ) | 28,945 | |||||||||
Net
realized investment gains
|
1,072 | ||||||||||||||||
Pre-tax
income
|
$ | 30,017 | |||||||||||||||
1
|
Corporate
& Other includes the effect of eliminating transactions between the
operating segments.
|
11
PMA
Capital Corporation
|
||||||||||||||||
Statements
of Operations - Consolidating
|
||||||||||||||||
Nine
Months Ended September 30, 2008
|
||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||
PMA
|
||||||||||||||||
Insurance
|
Fee-based
|
Corporate
|
||||||||||||||
Group
|
Business
|
&
Other1
|
Consolidated
|
|||||||||||||
Gross
Premiums Written
|
$ | 397,069 | $ | - | $ | (371 | ) | $ | 396,698 | |||||||
Net
Premiums Written
|
$ | 317,295 | $ | - | $ | (371 | ) | $ | 316,924 | |||||||
Revenues:
|
||||||||||||||||
Net
premiums earned
|
$ | 286,861 | $ | - | $ | (371 | ) | $ | 286,490 | |||||||
Claims
service revenues
|
- | 41,272 | (687 | ) | 40,585 | |||||||||||
Commission
income
|
- | 9,587 | (38 | ) | 9,549 | |||||||||||
Net
investment income
|
26,818 | 397 | 130 | 27,345 | ||||||||||||
Other
revenues
|
2,120 | 275 | 90 | 2,485 | ||||||||||||
Total
operating revenues
|
315,799 | 51,531 | (876 | ) | 366,454 | |||||||||||
Losses
and Expenses:
|
||||||||||||||||
Losses
and loss adjustment expenses
|
200,154 | - | - | 200,154 | ||||||||||||
Acquisition
expenses
|
50,152 | - | (38 | ) | 50,114 | |||||||||||
Operating
expenses
|
23,071 | 46,215 | 7,300 | 76,586 | ||||||||||||
Dividends
to policyholders
|
3,544 | - | - | 3,544 | ||||||||||||
Total
losses and expenses
|
276,921 | 46,215 | 7,262 | 330,398 | ||||||||||||
Operating
income (loss) before income taxes
|
||||||||||||||||
and
interest expense
|
38,878 | 5,316 | (8,138 | ) | 36,056 | |||||||||||
Interest
expense
|
593 | - | 7,616 | 8,209 | ||||||||||||
Pre-tax
operating income (loss)
|
$ | 38,285 | $ | 5,316 | $ | (15,754 | ) | 27,847 | ||||||||
Net
realized investment losses
|
(4,983 | ) | ||||||||||||||
Pre-tax
income
|
$ | 22,864 | ||||||||||||||
1
|
Corporate
& Other includes the effect of eliminating transactions between the
operating segments.
|
||||||||
12
PMA
Capital Corporation
|
||||||||||||||||
Statements
of Operations - Consolidating
|
||||||||||||||||
Three
Months Ended September 30, 2009
|
||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||
PMA
|
||||||||||||||||
Insurance
|
Fee-based
|
Corporate
|
||||||||||||||
Group
|
Business
|
&
Other1
|
Consolidated
|
|||||||||||||
Gross
Premiums Written
|
$ | 164,497 | $ | - | $ | (158 | ) | $ | 164,339 | |||||||
Net
Premiums Written
|
$ | 119,417 | $ | - | $ | (158 | ) | $ | 119,259 | |||||||
Revenues:
|
||||||||||||||||
Net
premiums earned
|
$ | 102,586 | $ | - | $ | (158 | ) | $ | 102,428 | |||||||
Claims
service revenues
|
- | 17,398 | (286 | ) | 17,112 | |||||||||||
Commission
income
|
- | 2,777 | (30 | ) | 2,747 | |||||||||||
Net
investment income
|
9,415 | 142 | (35 | ) | 9,522 | |||||||||||
Other
revenues
|
- | 236 | 23 | 259 | ||||||||||||
Total
operating revenues
|
112,001 | 20,553 | (486 | ) | 132,068 | |||||||||||
Losses
and Expenses:
|
||||||||||||||||
Losses
and loss adjustment expenses
|
70,158 | - | - | 70,158 | ||||||||||||
Acquisition
expenses
|
16,093 | - | (47 | ) | 16,046 | |||||||||||
Operating
expenses
|
9,213 | 18,979 | 2,043 | 30,235 | ||||||||||||
Dividends
to policyholders
|
2,786 | - | - | 2,786 | ||||||||||||
Total
losses and expenses
|
98,250 | 18,979 | 1,996 | 119,225 | ||||||||||||
Operating
income (loss) before income taxes
|
||||||||||||||||
and
interest expense
|
13,751 | 1,574 | (2,482 | ) | 12,843 | |||||||||||
Interest
expense
|
135 | - | 2,286 | 2,421 | ||||||||||||
Pre-tax
operating income (loss)
|
$ | 13,616 | $ | 1,574 | $ | (4,768 | ) | 10,422 | ||||||||
Net
realized investment gains
|
795 | |||||||||||||||
Pre-tax
income
|
$ | 11,217 | ||||||||||||||
1
|
Corporate
& Other includes the effect of eliminating transactions between the
operating segments.
|
||||||||
13
PMA
Capital Corporation
|
||||||||||||||||
Statements
of Operations - Consolidating
|
||||||||||||||||
Three
Months Ended September 30, 2008
|
||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||
PMA
|
||||||||||||||||
Insurance
|
Fee-based
|
Corporate
|
||||||||||||||
Group
|
Business
|
&
Other1
|
Consolidated
|
|||||||||||||
Gross
Premiums Written
|
$ | 151,620 | $ | - | $ | (122 | ) | $ | 151,498 | |||||||
Net
Premiums Written
|
$ | 124,117 | $ | - | $ | (122 | ) | $ | 123,995 | |||||||
Revenues:
|
||||||||||||||||
Net
premiums earned
|
$ | 98,096 | $ | - | $ | (122 | ) | $ | 97,974 | |||||||
Claims
service revenues
|
- | 15,951 | (255 | ) | 15,696 | |||||||||||
Commission
income
|
- | 2,662 | (25 | ) | 2,637 | |||||||||||
Net
investment income
|
8,776 | 118 | (24 | ) | 8,870 | |||||||||||
Other
revenues
|
- | 91 | 34 | 125 | ||||||||||||
Total
operating revenues
|
106,872 | 18,822 | (392 | ) | 125,302 | |||||||||||
Losses
and Expenses:
|
||||||||||||||||
Losses
and loss adjustment expenses
|
68,660 | - | - | 68,660 | ||||||||||||
Acquisition
expenses
|
15,923 | - | (25 | ) | 15,898 | |||||||||||
Operating
expenses
|
7,604 | 16,893 | 2,409 | 26,906 | ||||||||||||
Dividends
to policyholders
|
1,169 | - | - | 1,169 | ||||||||||||
Total
losses and expenses
|
93,356 | 16,893 | 2,384 | 112,633 | ||||||||||||
Operating
income (loss) before income taxes
|
||||||||||||||||
and
interest expense
|
13,516 | 1,929 | (2,776 | ) | 12,669 | |||||||||||
Interest
expense
|
191 | - | 2,543 | 2,734 | ||||||||||||
Pre-tax
operating income (loss)
|
$ | 13,325 | $ | 1,929 | $ | (5,319 | ) | 9,935 | ||||||||
Net
realized investment losses
|
(7,929 | ) | ||||||||||||||
Pre-tax
income
|
$ | 2,006 | ||||||||||||||
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)
|
||||||||||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
%
Change
|
%
Change
|
||||||||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
3rd
|
Nine
|
||||||||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
Quarter
|
Months
|
||||||||||||||||||||||||||||
Gross
Premiums Written
|
$ | 151,620 | $ | 132,340 | $ | 164,218 | $ | 113,566 | $ | 164,497 | $ | 442,281 | $ | 397,069 | 8.5 | % | 11.4 | % | ||||||||||||||||||
Net
Premiums Written
|
$ | 124,117 | $ | 97,436 | $ | 118,126 | $ | 80,444 | $ | 119,417 | $ | 317,987 | $ | 317,295 | -3.8 | % | 0.2 | % | ||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Net
premiums earned
|
$ | 98,096 | $ | 103,850 | $ | 105,078 | $ | 107,091 | $ | 102,586 | $ | 314,755 | $ | 286,861 | 4.6 | % | 9.7 | % | ||||||||||||||||||
Net
investment income
|
8,776 | 8,613 | 8,466 | 9,502 | 9,415 | 27,383 | 26,818 | 7.3 | % | 2.1 | % | |||||||||||||||||||||||||
Other
revenues
|
- | 18 | - | - | - | - | 2,120 |
NM
|
NM
|
|||||||||||||||||||||||||||
Total
operating revenues
|
106,872 | 112,481 | 113,544 | 116,593 | 112,001 | 342,138 | 315,799 | 4.8 | % | 8.3 | % | |||||||||||||||||||||||||
Losses
and Expenses:
|
||||||||||||||||||||||||||||||||||||
Losses
and loss adjustment expenses
|
68,660 | 70,671 | 75,775 | 73,494 | 70,158 | 219,427 | 200,154 | 2.2 | % | 9.6 | % | |||||||||||||||||||||||||
Acquisition
expenses
|
15,923 | 16,549 | 17,217 | 19,529 | 16,093 | 52,839 | 50,152 | 1.1 | % | 5.4 | % | |||||||||||||||||||||||||
Operating
expenses
|
7,604 | 13,875 | 4,559 | 11,151 | 9,213 | 24,923 | 23,071 | 21.2 | % | 8.0 | % | |||||||||||||||||||||||||
Dividends
to policyholders
|
1,169 | 2,762 | 646 | 2,311 | 2,786 | 5,743 | 3,544 |
NM
|
62.0 | % | ||||||||||||||||||||||||||
Total
losses and expenses
|
93,356 | 103,857 | 98,197 | 106,485 | 98,250 | 302,932 | 276,921 | 5.2 | % | 9.4 | % | |||||||||||||||||||||||||
Operating
income before income taxes
|
||||||||||||||||||||||||||||||||||||
and
interest expense
|
13,516 | 8,624 | 15,347 | 10,108 | 13,751 | 39,206 | 38,878 | 1.7 | % | 0.8 | % | |||||||||||||||||||||||||
Interest
expense
|
191 | 196 | 160 | 143 | 135 | 438 | 593 | -29.3 | % | -26.1 | % | |||||||||||||||||||||||||
Pre-tax
operating income
|
$ | 13,325 | $ | 8,428 | $ | 15,187 | $ | 9,965 | $ | 13,616 | $ | 38,768 | $ | 38,285 | 2.2 | % | 1.3 | % | ||||||||||||||||||
15
PMA
Capital Corporation
|
||||||||||||||||||||||||||||||||||||
Insurance
Ratios - PMA Insurance Group
|
||||||||||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
Point
Chg.
|
Point
Chg.
|
||||||||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
3rd
Quarter
|
Nine
Months
|
||||||||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
Better
(Worse)
|
Better
(Worse)
|
||||||||||||||||||||||||||||
Ratios
- GAAP Basis:
|
||||||||||||||||||||||||||||||||||||
Loss
and LAE ratio
|
70.0 | % | 68.1 | % | 72.1 | % | 68.6 | % | 68.4 | % | 69.7 | % | 69.8 | % | 1.6 | 0.1 | ||||||||||||||||||||
Expense
ratio:
|
||||||||||||||||||||||||||||||||||||
Acquisition
expenses
|
16.2 | % | 15.9 | % | 16.4 | % | 18.2 | % | 15.7 | % | 16.8 | % | 17.5 | % | 0.5 | 0.7 | ||||||||||||||||||||
Operating
expenses
|
7.8 | % | 13.3 | % | 4.4 | % | 10.4 | % | 9.0 | % | 7.9 | % | 8.0 | % | (1.2 | ) | 0.1 | |||||||||||||||||||
Total
expense ratio
|
24.0 | % | 29.2 | % | 20.8 | % | 28.6 | % | 24.7 | % | 24.7 | % | 25.5 | % | (0.7 | ) | 0.8 | |||||||||||||||||||
Policyholders'
dividend ratio
|
1.2 | % | 2.7 | % | 0.6 | % | 2.2 | % | 2.7 | % | 1.8 | % | 1.2 | % | (1.5 | ) | (0.6 | ) | ||||||||||||||||||
Combined
ratio
|
95.2 | % | 100.0 | % | 93.5 | % | 99.4 | % | 95.8 | % | 96.2 | % | 96.5 | % | (0.6 | ) | 0.3 | |||||||||||||||||||
Net
investment income ratio
|
-8.9 | % | -8.3 | % | -8.1 | % | -8.9 | % | -9.2 | % | -8.7 | % | -9.3 | % | 0.3 | (0.6 | ) | |||||||||||||||||||
Operating
ratio
|
86.3 | % | 91.7 | % | 85.4 | % | 90.5 | % | 86.6 | % | 87.5 | % | 87.2 | % | (0.3 | ) | (0.3 | ) | ||||||||||||||||||
16
PMA
Capital Corporation
|
||||||||||||||||||||||||
Components
of Direct Premiums Written - PMA Insurance Group
|
||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Nine
|
Twelve
|
|||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
|||||||||||||||||||
2007
|
2007
|
2007
|
2007
|
2007
|
2007
|
|||||||||||||||||||
Direct
premium production
|
$ | 143,389 | $ | 96,316 | $ | 137,144 | $ | 83,103 | $ | 376,849 | $ | 459,952 | ||||||||||||
Fronting
premiums
|
18,401 | 14,936 | 13,707 | 12,796 | 47,044 | 59,840 | ||||||||||||||||||
Premium
adjustments
|
(859 | ) | (134 | ) | (4,149 | ) | (4,327 | ) | (5,142 | ) | (9,469 | ) | ||||||||||||
Direct
premiums written
|
$ | 160,931 | $ | 111,118 | $ | 146,702 | $ | 91,572 | $ | 418,751 | $ | 510,323 | ||||||||||||
1st
|
2nd
|
3rd
|
4th
|
Nine
|
Twelve
|
|||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
|||||||||||||||||||
2008 | 2008 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||||||
Direct
premium production
|
$ | 146,608 | $ | 96,736 | $ | 150,547 | $ | 112,296 | $ | 393,891 | $ | 506,187 | ||||||||||||
Fronting
premiums
|
8,143 | 2,113 | 2,776 | 21,800 | 13,032 | 34,832 | ||||||||||||||||||
Premium
adjustments
|
(14,198 | ) | 370 | (5,008 | ) | (4,261 | ) | (18,836 | ) | (23,097 | ) | |||||||||||||
Direct
premiums written
|
$ | 140,553 | $ | 99,219 | $ | 148,315 | $ | 129,835 | $ | 388,087 | $ | 517,922 | ||||||||||||
1st
|
2nd
|
3rd
|
Nine
|
|||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Months
|
|||||||||||||||||||||
2009 | 2009 | 2009 | 2009 | |||||||||||||||||||||
Direct
premium production
|
$ | 147,367 | $ | 102,212 | $ | 154,754 | $ | 404,333 | ||||||||||||||||
Fronting
premiums
|
19,622 | 9,677 | 10,890 | 40,189 | ||||||||||||||||||||
Premium
adjustments
|
(4,876 | ) | (2,753 | ) | (3,521 | ) | (11,150 | ) | ||||||||||||||||
Direct
premiums written
|
$ | 162,113 | $ | 109,136 | $ | 162,123 | $ | 433,372 | ||||||||||||||||
17
PMA
Capital Corporation
|
||||||||||||||||||||||||||||||||||||
Statements
of Operations - Fee-based Business
|
||||||||||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
%
Change
|
%
Change
|
||||||||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
3rd
|
Nine
|
||||||||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
Quarter
|
Months
|
||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Claims
service revenues
|
$ | 15,951 | $ | 17,029 | $ | 15,995 | $ | 17,122 | $ | 17,398 | $ | 50,515 | $ | 41,272 | 9.1 | % | 22.4 | % | ||||||||||||||||||
Commission
income
|
2,662 | 2,848 | 3,475 | 2,132 | 2,777 | 8,384 | 9,587 | 4.3 | % | -12.5 | % | |||||||||||||||||||||||||
Net
investment income
|
118 | 143 | 86 | 101 | 142 | 329 | 397 | 20.3 | % | -17.1 | % | |||||||||||||||||||||||||
Other
revenues
|
91 | 59 | 170 | 167 | 236 | 573 | 275 |
NM
|
NM
|
|||||||||||||||||||||||||||
Total
operating revenues
|
18,822 | 20,079 | 19,726 | 19,522 | 20,553 | 59,801 | 51,531 | 9.2 | % | 16.0 | % | |||||||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||||||||||
Operating
expenses
|
16,893 | 18,190 | 17,713 | 17,997 | 18,979 | 54,689 | 46,215 | 12.3 | % | 18.3 | % | |||||||||||||||||||||||||
Total
expenses
|
16,893 | 18,190 | 17,713 | 17,997 | 18,979 | 54,689 | 46,215 | 12.3 | % | 18.3 | % | |||||||||||||||||||||||||
Pre-tax
operating income
|
$ | 1,929 | $ | 1,889 | $ | 2,013 | $ | 1,525 | $ | 1,574 | $ | 5,112 | $ | 5,316 | -18.4 | % | -3.8 | % | ||||||||||||||||||
18
PMA
Capital Corporation
|
||||||||||||||||||||||||||||||||||||
Statements
of Operations - Corporate & Other
|
||||||||||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
%
Change
|
%
Change
|
||||||||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
3rd
|
Nine
|
||||||||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
Quarter
|
Months
|
||||||||||||||||||||||||||||
Gross
Premiums Written
|
$ | (122 | ) | $ | (123 | ) | $ | (148 | ) | $ | (142 | ) | $ | (158 | ) | $ | (448 | ) | $ | (371 | ) | -29.5 | % | -20.8 | % | |||||||||||
Net
Premiums Written
|
$ | (122 | ) | $ | (123 | ) | $ | (148 | ) | $ | (142 | ) | $ | (158 | ) | $ | (448 | ) | $ | (371 | ) | -29.5 | % | -20.8 | % | |||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Net
premiums earned
|
$ | (122 | ) | $ | (123 | ) | $ | (148 | ) | $ | (142 | ) | $ | (158 | ) | $ | (448 | ) | $ | (371 | ) | -29.5 | % | -20.8 | % | |||||||||||
Claims
service revenues
|
(255 | ) | (244 | ) | (311 | ) | (287 | ) | (286 | ) | (884 | ) | (687 | ) | -12.2 | % | -28.7 | % | ||||||||||||||||||
Commission
income
|
(25 | ) | (13 | ) | (12 | ) | (15 | ) | (30 | ) | (57 | ) | (38 | ) | -20.0 | % | -50.0 | % | ||||||||||||||||||
Net
investment income
|
(24 | ) | (32 | ) | (95 | ) | (42 | ) | (35 | ) | (172 | ) | 130 | -45.8 | % |
NM
|
||||||||||||||||||||
Other
revenues
|
34 | 279 | 6 | 23 | 23 | 52 | 90 | -32.4 | % | -42.2 | % | |||||||||||||||||||||||||
Total
operating revenues
|
(392 | ) | (133 | ) | (560 | ) | (463 | ) | (486 | ) | (1,509 | ) | (876 | ) | -24.0 | % | -72.3 | % | ||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||||||||||
Acquisition
expenses
|
(25 | ) | (28 | ) | (19 | ) | (21 | ) | (47 | ) | (87 | ) | (38 | ) | -88.0 | % |
NM
|
|||||||||||||||||||
Operating
expenses
|
2,409 | 2,314 | 2,113 | 2,392 | 2,043 | 6,548 | 7,300 | -15.2 | % | -10.3 | % | |||||||||||||||||||||||||
Total
expenses
|
2,384 | 2,286 | 2,094 | 2,371 | 1,996 | 6,461 | 7,262 | -16.3 | % | -11.0 | % | |||||||||||||||||||||||||
Operating
loss before income taxes
|
||||||||||||||||||||||||||||||||||||
and
interest expense
|
(2,776 | ) | (2,419 | ) | (2,654 | ) | (2,834 | ) | (2,482 | ) | (7,970 | ) | (8,138 | ) | 10.6 | % | 2.1 | % | ||||||||||||||||||
Interest
expense
|
2,543 | 2,478 | 2,346 | 2,333 | 2,286 | 6,965 | 7,616 | -10.1 | % | -8.5 | % | |||||||||||||||||||||||||
Pre-tax
operating loss
|
$ | (5,319 | ) | $ | (4,897 | ) | $ | (5,000 | ) | $ | (5,167 | ) | $ | (4,768 | ) | $ | (14,935 | ) | $ | (15,754 | ) | 10.4 | % | 5.2 | % | |||||||||||
19
PMA
Capital Corporation
|
||||||||||||||||||||||||||||||||||||
Statements
of Operations - Discontinued Operations
|
||||||||||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
%
Change
|
%
Change
|
||||||||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
3rd
|
Nine
|
||||||||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
Quarter
|
Months
|
||||||||||||||||||||||||||||
Gross
Premiums Written
|
$ | 417 | $ | 3 | $ | 466 | $ | 2,093 | $ | 384 | $ | 2,943 | $ | 2,534 | -7.9 | % | 16.1 | % | ||||||||||||||||||
Net
Premiums Written
|
$ | 167 | $ | 2 | $ | (87 | ) | $ | 1,798 | $ | 360 | $ | 2,071 | $ | 2,379 |
NM
|
-12.9 | % | ||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Net
premiums earned
|
$ | 517 | $ | 145 | $ | 617 | $ | 1,673 | $ | (2 | ) | $ | 2,288 | $ | 1,554 |
NM
|
47.2 | % | ||||||||||||||||||
Net
investment income
|
(663 | ) | 1,546 | (878 | ) | (937 | ) | (1,066 | ) | (2,881 | ) | (986 | ) | -60.8 | % |
NM
|
||||||||||||||||||||
Total
operating revenues
|
(146 | ) | 1,691 | (261 | ) | 736 | (1,068 | ) | (593 | ) | 568 |
NM
|
NM
|
|||||||||||||||||||||||
Losses
and Expenses:
|
||||||||||||||||||||||||||||||||||||
Losses
and loss adjustment expenses
|
10,201 | 4,226 | 129 | 1,910 | (175 | ) | 1,864 | 20,031 |
NM
|
-90.7 | % | |||||||||||||||||||||||||
Acquisition
expenses
|
(146 | ) | 339 | 1,199 | 120 | 104 | 1,423 | 107 |
NM
|
NM
|
||||||||||||||||||||||||||
Operating
expenses
|
2,054 | 2,228 | 2,577 | 2,397 | 2,101 | 7,075 | 6,788 | 2.3 | % | 4.2 | % | |||||||||||||||||||||||||
Impairment
charge / valuation adjustment
|
(8,594 | ) | 8,722 | (4,387 | ) | (2,172 | ) | (2,722 | ) | (9,281 | ) | (18,624 | ) | 68.3 | % | 50.2 | % | |||||||||||||||||||
Total
losses and expenses
|
3,515 | 15,515 | (482 | ) | 2,255 | (692 | ) | 1,081 | 8,302 |
NM
|
-87.0 | % | ||||||||||||||||||||||||
Pre-tax
operating income (loss) from discontinued operations
|
(3,661 | ) | (13,824 | ) | 221 | (1,519 | ) | (376 | ) | (1,674 | ) | (7,734 | ) | 89.7 | % | 78.4 | % | |||||||||||||||||||
Income
tax expense (benefit)
|
(1,281 | ) | (4,838 | ) | 77 | (530 | ) | (133 | ) | (586 | ) | (2,707 | ) | 89.6 | % | 78.4 | % | |||||||||||||||||||
After-tax operating income (loss) from discontinued operations | (2,380 | ) | (8,986 | ) | 144 | (989 | ) | (243 | ) | (1,088 | ) | (5,027 | ) | 89.8 | % | 78.4 | % | |||||||||||||||||||
Realized
gains (losses) after tax
|
70 | 1,146 | (230 | ) | (176 | ) | 203 | (203 | ) | 90 |
NM
|
NM
|
||||||||||||||||||||||||
Loss
from discontinued operations
|
$ | (2,310 | ) | $ | (7,840 | ) | $ | (86 | ) | $ | (1,165 | ) | $ | (40 | ) | $ | (1,291 | ) | $ | (4,937 | ) | 98.3 | % | 73.9 | % | |||||||||||
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.
|
|||||||||||||||||||||
20
PMA
Capital Corporation
|
||||||||||||||||||||||||||||
Operating
Cash Flows - Consolidated
|
||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||||||||
Receipts:
|
||||||||||||||||||||||||||||
Premiums
collected
|
$ | 112,274 | $ | 96,678 | $ | 109,089 | $ | 96,214 | $ | 105,816 | $ | 311,119 | $ | 300,379 | ||||||||||||||
Claims
service, commissions and other revenues
|
22,643 | 16,251 | 22,276 | 18,203 | 21,658 | 62,137 | 52,920 | |||||||||||||||||||||
Investment
income received
|
9,688 | 9,172 | 9,789 | 9,164 | 10,124 | 29,077 | 29,729 | |||||||||||||||||||||
Total
receipts
|
144,605 | 122,101 | 141,154 | 123,581 | 137,598 | 402,333 | 383,028 | |||||||||||||||||||||
Disbursements:
|
||||||||||||||||||||||||||||
Losses
and LAE paid:
|
||||||||||||||||||||||||||||
Losses
and LAE paid - current year
|
25,618 | 30,952 | 5,265 | 18,874 | 25,500 | 49,639 | 47,684 | |||||||||||||||||||||
Losses
and LAE paid - prior years
|
46,851 | 41,207 | 61,152 | 63,486 | 6,931 | 131,569 | 163,066 | |||||||||||||||||||||
Total
losses and LAE paid
|
72,469 | 72,159 | 66,417 | 82,360 | 32,431 | 181,208 | 210,750 | |||||||||||||||||||||
Operating
expenses paid
|
43,785 | 37,866 | 46,907 | 41,332 | 43,129 | 131,368 | 132,120 | |||||||||||||||||||||
Commissions
and premiums paid
|
3,387 | 580 | 1,680 | 2,090 | 3,270 | 7,040 | 6,426 | |||||||||||||||||||||
Policyholders'
dividends paid
|
1,663 | 1,592 | 863 | 2,401 | 1,264 | 4,528 | 4,683 | |||||||||||||||||||||
Interest
on corporate debt
|
2,700 | 2,645 | 2,526 | 2,437 | 2,388 | 7,351 | 8,306 | |||||||||||||||||||||
Total
disbursements
|
124,004 | 114,842 | 118,393 | 130,620 | 82,482 | 331,495 | 362,285 | |||||||||||||||||||||
Net
other
|
(6,158 | ) | (691 | ) | (629 | ) | (1,459 | ) | 4,976 | 2,888 | 285 | |||||||||||||||||
Net
operating cash flows from continuing operations
|
14,443 | 6,568 | 22,132 | (8,498 | ) | 60,092 | 73,726 | 21,028 | ||||||||||||||||||||
Net
operating cash flows from discontinued operations
|
(13,236 | ) | (20,948 | ) | (14,742 | ) | (25,656 | ) | (12,549 | ) | (52,947 | ) | (67,809 | ) | ||||||||||||||
Net
operating cash flows
|
$ | 1,207 | $ | (14,380 | ) | $ | 7,390 | $ | (34,154 | ) | $ | 47,543 | $ | 20,779 | $ | (46,781 | ) | |||||||||||
21
PMA
Capital Corporation
|
||||||||||||||||||||||||||||
Operating
Cash Flows - PMA Insurance Group
|
||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||||||||
Receipts:
|
||||||||||||||||||||||||||||
Premiums
collected
|
$ | 112,274 | $ | 96,678 | $ | 109,089 | $ | 96,214 | $ | 105,816 | $ | 311,119 | $ | 300,379 | ||||||||||||||
Investment
income received
|
9,570 | 9,029 | 9,703 | 9,062 | 9,985 | 28,750 | 29,332 | |||||||||||||||||||||
Total
receipts
|
121,844 | 105,707 | 118,792 | 105,276 | 115,801 | 339,869 | 329,711 | |||||||||||||||||||||
Disbursements:
|
||||||||||||||||||||||||||||
Losses
and LAE paid:
|
||||||||||||||||||||||||||||
Losses
and LAE paid - current year
|
25,618 | 30,952 | 5,265 | 18,874 | 25,500 | 49,639 | 47,684 | |||||||||||||||||||||
Losses
and LAE paid - prior years
|
46,851 | 41,207 | 61,152 | 63,486 | 6,931 | 1 | 131,569 | 1 | 163,066 | |||||||||||||||||||
Total
losses and LAE paid
|
72,469 | 72,159 | 66,417 | 82,360 | 32,431 | 181,208 | 210,750 | |||||||||||||||||||||
Operating
expenses paid
|
26,531 | 23,391 | 30,060 | 27,192 | 24,079 | 81,331 | 87,741 | |||||||||||||||||||||
Policyholders'
dividends paid
|
1,663 | 1,592 | 863 | 2,401 | 1,264 | 4,528 | 4,683 | |||||||||||||||||||||
Interest
on corporate debt
|
192 | 185 | 194 | 144 | 139 | 477 | 623 | |||||||||||||||||||||
Total
disbursements
|
100,855 | 97,327 | 97,534 | 112,097 | 57,913 | 267,544 | 303,797 | |||||||||||||||||||||
Net
other
|
(6,659 | ) | (18,635 | ) | (1,205 | ) | 501 | (3,712 | ) | (4,416 | ) | 893 | ||||||||||||||||
Net
operating cash flows
|
$ | 14,330 | $ | (10,255 | ) | $ | 20,053 | $ | (6,320 | ) | $ | 54,176 | $ | 67,909 | $ | 26,807 | ||||||||||||
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)
|
||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009
|
2009
|
2008
|
||||||||||||||||||||||
Receipts:
|
||||||||||||||||||||||||||||
Claims
service, commissions and other revenues
|
$ | 22,643 | $ | 16,251 | $ | 22,276 | $ | 18,203 | $ | 21,658 | $ | 62,137 | $ | 52,920 | ||||||||||||||
Investment
income received
|
118 | 143 | 86 | 102 | 139 | 327 | 397 | |||||||||||||||||||||
Total
receipts
|
22,761 | 16,394 | 22,362 | 18,305 | 21,797 | 62,464 | 53,317 | |||||||||||||||||||||
Disbursements:
|
||||||||||||||||||||||||||||
Operating
expenses paid
|
17,254 | 14,475 | 16,847 | 14,140 | 19,050 | 50,037 | 44,379 | |||||||||||||||||||||
Commissions
and premiums paid
|
3,387 | 580 | 1,680 | 2,090 | 3,270 | 7,040 | 6,426 | |||||||||||||||||||||
Total
disbursements
|
20,641 | 15,055 | 18,527 | 16,230 | 22,320 | 57,077 | 50,805 | |||||||||||||||||||||
Net
other
|
970 | 3,850 | (242 | ) | (3,644 | ) | 4,453 | 567 | (1,056 | ) | ||||||||||||||||||
Net
operating cash flows
|
$ | 3,090 | $ | 5,189 | $ | 3,593 | $ | (1,569 | ) | $ | 3,930 | $ | 5,954 | $ | 1,456 | |||||||||||||
23
PMA
Capital Corporation
|
||||||||||||||||||||
Statutory
Surplus
|
||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||||||
2008
|
2008
|
2009
|
2009
|
2009 1 | ||||||||||||||||
PMA
Pool 2
|
$ | 336,368 | $ | 332,915 | $ | 337,495 | $ | 373,654 | 3 | $ | 385,111 | |||||||||
PMA
Capital Insurance Company
|
26,143 | 34,468 | 29,252 | 26,446 | 30,202 | |||||||||||||||
PMA
Capital Corporation
|
||||||||||||||||||||||||||||
Statutory
Financial Information - PMA Pool 2
|
||||||||||||||||||||||||||||
(Dollar
Amounts in Thousands)
|
||||||||||||||||||||||||||||
3rd
|
4th
|
1st
|
2nd
|
3rd
|
Nine
|
Nine
|
||||||||||||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Months
|
Months
|
||||||||||||||||||||||
2008
|
2008
|
2009
|
2009
|
20091 | 20091 | 2008 | ||||||||||||||||||||||
Net
Premiums Written:
|
||||||||||||||||||||||||||||
Workers'
Compensation
|
$ | 107,446 | $ | 87,722 | $ | 101,891 | $ | 72,181 | $ | 102,329 | $ | 276,401 | $ | 282,462 | ||||||||||||||
Other
Commercial Lines
|
8,692 | 8,154 | 13,487 | 8,403 | 8,965 | 30,855 | 28,576 | |||||||||||||||||||||
Total
- PMA Pool
|
$ | 116,138 | $ | 95,876 | $ | 115,378 | $ | 80,584 | $ | 111,294 | $ | 307,256 | $ | 311,038 | ||||||||||||||
Statutory
Ratios:
|
||||||||||||||||||||||||||||
Loss
and LAE ratio
|
69.4 | % | 67.7 | % | 71.6 | % | 51.8 | % | 68.9 | % | 64.0 | % | 69.5 | % | ||||||||||||||
Underwriting
expense ratio
|
22.1 | % | 26.9 | % | 21.1 | % | 30.7 | % | 22.0 | % | 23.9 | % | 24.1 | % | ||||||||||||||
Policyholders'
dividend ratio
|
1.4 | % | 3.3 | % | 1.2 | % | 1.2 | % | 1.4 | % | 1.3 | % | 1.4 | % | ||||||||||||||
Combined
ratio
|
92.9 | % | 97.9 | % | 93.9 | % | 83.7 | % | 92.3 | % | 89.2 | % | 95.0 | % | ||||||||||||||
Operating
ratio
|
84.0 | % | 89.5 | % | 85.8 | % | 75.0 | % | 83.5 | % | 80.6 | % | 85.7 | % | ||||||||||||||
1
|
Estimated.
|
||||||||||||||||
2
|
The
PMA Pool is comprised of Pennsylvania Manufacturers'
Association Insurance Company, Manufacturers Alliance Insurance Company
and Pennsylvania Manufacturers Indemnity Company.
|
||||||||||||||||
3
|
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.
|
||||||||||||||||
24
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 11/2/2009):
|
||||||||
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.
|
||||||||
25