Key Developments: PMA Capital Corporation (PMACA.O)
5.69USD
9 Feb 2010
$0.07 (+1.25%)
$5.62
$5.69
$5.89
$5.63
107,214
92,038
$7.44
$3.50
Latest Key Developments
PMA Capital Corporation Closes Sale Of Its Run Off Operations
PMA Capital Corporation announced that it has received regulatory approval from the Pennsylvania Insurance Department for the sale of PMA Capital Insurance Company, its former reinsurance and excess and surplus lines company. The Company also announced that it executed an Amended and Restated Stock Purchase Agreement with Armour Reinsurance Group Limited for the sale of the Run off Operations and closed on that sale. Under the terms of the Amended Agreement, the Company received $100,000 for the shares of the Run off Operations and agreed to contribute $13 million to the Run off Operations and enter into two capital support agreements. The capital contribution included cash of $3 million and a note payable in two equal installments of $5 million in 2010 and 2011. The capital support agreements may require the Company to make payments to the Run off Operations in the event its payments on claims in the excess workers` compensation and certain excess liability (occurrence) lines of business exceed certain pre-established limits. Such support is limited to an amount not to exceed $46 million and any payments with respect to the supported lines of business are not expected to commence until 2018 and may extend to 2052. Generally Accepted Accounting Principles require guarantees to be recorded at fair value at inception, which the Company estimates is approximately $13 million for the capital support agreements.
PMA Capital Corporation Announces Resignation Of William E. Hitselberger As CFO-Form 8-K
PMA Capital Corporation reported in its Form 8-K that on November 10, 2009, it was notified by William E. Hitselberger, its Executive Vice President and Chief Financial Officer (CFO), that he was resigning from the Company effective December 8, 2009 to accept a position at another insurance company. John M. Cochrane, Senior Vice President Finance, will be appointed interim CFO and principal accounting officer effective December 8, 2009.
PMA Capital Corporation Declares Dividend
PMA Capital Corporation announced that it has declared a dividend of one preferred stock purchase right for each outstanding common share as of the close of business on August 17, 2009.
PMA Capital Corporation Issues Q4, FY 2008 Guidance
PMA Capital Corporation announced that for fourth quarter of 2008, it expects to report operating income, which it defines as net income (loss) excluding net realized investment gains (losses) and results from discontinued operations, of between $0.10 and $0.12 per share and between $0.66 and $0.68 per share for fiscal 2008. The Company expects to report revenue and operating income growth at each of its ongoing operating segments for both the fourth quarter and full year 2008, compared to the same periods in 2007, as the combined ratio at The PMA Insurance Group should continue to improve and its Fee-based Business should continue to experience strong revenue growth. The Company also expects to report a net loss per share of between $0.11 and $0.15 for the fourth quarter of 2008 and net income of between $0.16 and $0.20 per share for fiscal 2008. According to Reuters Estimates, analysts were expecting the Company to report revenues of $124 million and EPS of $0.13 for fourth quarter of 2008; revenues of $486 million and EPS of $0.66 for fiscal 2008.
PMA Capital Corporation Completes Acquisition of Webster Risk Services
PMA Capital Corporation announced the completion of its acquisition of Webster Risk Services, a Connecticut-based provider of Third Party Administration (TPA) services, from Webster Financial Corporation. Webster Risk Services, which will be renamed PMA Management Corp. of New England, Inc., is well known for its expertise in providing risk management and TPA services to healthcare and public entity customers primarily in the Connecticut and New York markets. Under the terms of the transaction, PMA Capital paid $5.9 million in cash for Webster Risk Services, which included certain price adjustments at closing.
PMA Capital Corporation Signs Stock Purchase Agreement To Sell Its Run Off Operations
PMA Capital Corporation announced that it has executed a definitive stock purchase agreement to sell its Run-off Operations to Armour Reinsurance Group Limited, a Bermuda-based corporation. Armour Reinsurance Group Limited is an indirectly wholly owned subsidiary of Brevan Howard P&C Master Fund Limited, a Cayman-based fund which specializes in insurance and reinsurance investments. Under the terms of the agreement, the Company will receive $10 million in cash and a $10 million promissory note, subject to certain adjustments at closing. The promissory note is also subject to certain downward adjustments based on the future development of the business' loss reserves over the next five years. Keefe, Bruyette & Woods, Inc. served as the financial advisor for PMA Capital in this transaction.
PMA Capital Corporation Issues Q4 2007 EPS Guidance Below Analysts' Estimates; Issues FY 2007 EPS Guidance In Line With Analysts' Estimates
PMA Capital Corporation announced that for fourth quarter of 2007, it expects operating income of $0.09-$0.02 per share and net income per share of $(1.18)-$0.03. For fiscal 2007, it expects operating income of $0.45-$0.14 per share and net income of $(1.32)-$0.12 per share. According to Reuters Estimates, analysts were expecting the Company to report non-GAAP EPS of $0.06 for fourth quarter of 2007; non-GAAP EPS of $0.10 for fiscal 2008.
PMA Capital Corporation Engages Keefe, Bruyette & Woods, Inc. To Assist in Strategic Evaluation of Run-off Operations
PMA Capital Corporation announced that it has engaged Keefe, Bruyette & Woods, Inc. to assist in its evaluation of strategic options with respect to its run-off operations at PMA Capital Insurance Company. These operations consist solely of the Company's discontinued reinsurance and excess and surplus lines businesses and do not relate to the ongoing operations of The PMA Insurance Group. The Company said strategic options include a sale of the run-off operations.
PMA Capital Corporation Acquires Midlands Management Corporation
PMA Capital Corporation announced the acquisition of Midlands Management Corporation (Midlands), an Oklahoma City based managing general agent, program administrator and provider of Third Party Administrator (TPA) services. Under the terms of the transaction, the Company will pay $19.8 million in cash at the closing of the transaction, subject to certain price adjustments for net worth at closing, with the ultimate purchase price of the transaction ranging from $22.8 million to $44.5 million. The final purchase price will be based on Midlands' ability to achieve EBITDA growth for its business over the next four years.
PMA Capital Corporation's PMA Insurance Group Enters Into Agreement To Provide Midwest Insurance Companies With California Workers' Compensation Products
The PMA Insurance Group (PMA), part of PMA Capital Corporation, announced that is has entered into an agreement with Midwest Insurance Companies (Midwest), in which Midwest will underwrite workers' compensation policies in California utilizing PMA's filed workers' compensation forms and rates. The agreement between PMA and Midwest is effective as of September 1, 2006.
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