PMA Capital Corp. (PMACA) announced that it received regulatory approval from the Pennsylvania Insurance Department for the sale of PMA Capital Insurance Co, its former reinsurance and excess and surplus lines company, which was placed in run-off in 2003.
The company also announced that it executed an Amended and Restated Stock Purchase Agreement with Armour Reinsurance Group Ltd. for the sale of the run-off operations and closed on that sale. The company received $100 thousand 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 company expects to record an after-tax charge of approximately $17 million, or $0.52 per share, with the closing of the transaction.
Vincent Donnelly, President and CEO, said, "The divestiture of this business removes a source of the volatility and uncertainty that negatively affected our results over the past several years".
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.