PMACA Pma Capital Corp. (MM)

A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of �a-� of PMA Insurance Group (Blue Bell, PA) and its pooled members, Pennsylvania Manufacturers� Association Insurance Company, Pennsylvania Manufacturers Indemnity Company and Manufacturers Alliance Insurance Company. Concurrently, A.M. Best has affirmed the ICR of �bb� and debt ratings of the parent, PMA Capital Corporation (PMA Capital) (Blue Bell, PA) [NASDAQ: PMACA]. The outlook for all the above ratings is stable. (See link below for a detailed listing of the companies and ratings.) The ratings reflect PMA Insurance Group�s supportive capitalization, improved operating profitability in recent years and strong regional workers� compensation market presence. Partially offsetting these positive rating factors is recent growth in both premium and reserves, which has outpaced growth in surplus, as well as A.M. Best�s concern with the group�s ability to sustain the recent improvement in operating performance given softening market conditions. Also, given that PMA Insurance Group represents PMA Capital�s largest ongoing business segment, the group�s capitalization could potentially be impacted by holding company and debt servicing obligations. Despite these concerns, the outlook reflects A.M. Best�s expectation for solid underwriting performance and continued supportive overall capitalization. For a complete listing of PMA Insurance Group and PMA Capital Corporation�s FSRs, ICRs and debt ratings, please visit www.ambest.com/press/051907pma.pdf. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.