PMA Capital Auto Insurance Review

This PMA Capital Auto Insurance Review recaps information about Blue Bell, Pennsylvania-headquartered PMA Capital Insurance Company. PMA Capital is a wholly-owned operating unit of PMA Companies, Inc.

PMA Companies’ ultimate parent is Chicago-based Old Republic International Corporation. Shares of Old Republic International Corporation trade on the New York Stock Exchange (Symbol: ORI). The company operates as PMA Companies and PMA Insurance Group.  Try our FREE quote comparison tool on our website!!

 PMA Capital Auto Insurance Overview

PMA Capital Insurance was organized in 1981 and incorporated in the state of Pennsylvania. PMA has been insuring mid-Atlantic clients since the turn of the twentieth century. PMA writes commercial property & casualty insurance lines (including auto insurance to commercial auto and vehicle fleets) as well as multi-peril and workers’ comp policies. PMA seeks substantial clients, and targets mid-market to large companies with whom to do business. The company seeks to provide a full-spectrum of risk management solutions to clients.  Although PMA is not the best auto insurance company for individuals, there are many auto insurance companies that offer low auto insurance costs to their customers.

Clients of the company include industrial companies to healthcare, nursing, and rehabilitation facilities.

PMA distributes commercial insurance solutions through a network of independent insurance agents/brokers and financial institutions such as banks, credit unions, and other insurance companies.

PMA Capital Auto Insurance Acquisition by Old Republic International Corporation

PMA Capital was acquired by Old Republic International Corporation in 2010 via a stock and bond merger transaction of approximately $370 million. The acquisition expanded the property & casualty insurer parent’s range of operations and strengthened the financial balance sheets of both companies.

The company maintains a highly liquid portfolio of fixed maturity bonds. The company invests only in A-rated securities (by Standard & Poor’s and Moody’s).

Old Republic International operates approximately 125 operating subsidiaries throughout North America. The company’s focus insurance products include property & casualty insurance (workers’ compensation, commercial truck insurance lines, and general commercial liability products and services). The company was founded in 1969, and employs approximately 8,000 people.

The company’s Mortgage Guaranty unit guarantees the underwriting of mostly commercial mortgages. The company’s Title Insurance unit insures the work of title insurers.

The company’s property & liability insurance lines of business are among the top 50 in the United States.

During the mortgage crisis of 2008 and 2009, the company experienced a high volume of mortgage insurance claims. Strength of the company’s other commercial insurance lines lessened the impact of mortgage and title insurance losses. In addition, the company’s conservative debt load helped the Old Republic International Corporation to weather the financial storm.

The company reported net negative income of approximately $580 million in 2008. By 2009, the company trimmed its net negative income to about $100 million.

ORI reported sales of $4.1 billion in fiscal 2010, or a 7.86% 2010 vs. 2009 sales growth rate. The company’s 2010 net income was approximately $30.1 million. Dun & Bradstreet rates Old Republic International Corporation as a medium-risk vendor.

Major Old Republic International Corporation units include Old Republic General Insurance Group, Inc. (BITCO Corporation; Chiccago Underwriting Group; International Business & Mercantile Insurance Holdings; Old Republic Insured Credit Services; Employers General Insurance); Old Republic Title Insurance Group (Asset Discovery, Inc.; Lex Terrae, Ltd.; Kasparnet, Inc.; Old Republic Title Holding Company); and Old Republic Mortgage Guaranty Group (Republic Mortgage Insurance Company; Republic Mortgage Insurance Company of North Carolina; Republic Mortgage Insurance Company of Florida; RMIC).

PMA Capital Auto Insurance and Other Insurance Products

Commercial auto insurance lines represent approximately 20% of PMA’s annual revenues. Approximately 70% of the company’s revenues are generated by the sales of workers’ compensation policies. The company’s largest markets are the states of New York, Pennsylvania, California, and New Jersey.

Remaining revenues are generated by the company’s third-party claims administrator businesses, Midlands Management and PMA Management. These companies assist self-insured commercial clients in the execution of process and oversight.

PMA acquired both third-party administrators in 2007. Webster Management was renamed PMA Management in 2008.

In 2009, PMA sold some of its operations in run-off, including surplus & excess business insurance lines and a reinsurance business. These businesses were structured in run-off after the year 2000. In anticipation of the eventual loss, the company placed a $40 million reserve/impairment on the balance sheet in 2007.  Start saving big by using our FREE quote comparison today!!

PMA Capital Auto Insurance Competitive Marketplace

PMA and its parent company compete most directly on a national basis with Farmers Group, The Travelers Companies, and First American Insurance. The company competes on a regional basis with The Hartford, Chubb Insurance, W. R. Berkley, AXA, Unum, AIG, Berkshire Hathaway, CNA Financial, Allianz, ACE Limited, Progressive, Investors Title, Kingsway, Fidelity National, ING, AEGON, PMI Group, Radian Group, and Stewart Information Services.

PMA Capital Auto Insurance Review Conclusion

If you’re an individual or family looking for auto insurance discounts, you won’t find PMA Companies the best fit for your needs. The company seeks to serve larger commercial clients, and cheap auto insurance isn’t the primary insurance product written by the company for these companies. For this reason, we give PMA two out of five possible stars.