A.M. Best Comments on the Announced Acquisition of Philadelphia Consolidated Holding Corp. by Tokio Marine Holdings, Inc.

  
    
  
  
    
      A.M. Best Co. has commented that the issuer credit rating (ICR) 
      of “a-” of Philadelphia 
      Consolidated Holding Corp. (Philadelphia Consolidated) (Bala Cynwyd, 
      PA) (NASDAQ: PHLY) is unchanged as a result of the recent announcement 
      that Tokio Marine Holdings, Inc. (Tokio Marine) (Chiyoda-ku, 
      Tokyo, Japan) had entered into a definitive agreement to acquire 
      Philadelphia Consolidated. Additionally, A.M. Best’s 
      financial strength rating (FSR) of A+ (Superior) and ICRs of “aa-”of 
      Philadelphia Insurance Companies (Philadelphia Insurance) and its 
      members and FSR of A- (Excellent) and ICRs of “a-” 
      of Liberty American Insurance Group (Liberty American) and its 
      members are unchanged. Philadelphia Consolidated is the parent holding 
      company of Philadelphia Insurance and Liberty American. The outlook for 
      all ratings is stable. (See below for a detailed listing of the 
      companies and ratings.)
    
    
      The announced acquisition stipulates that Tokio Marine would acquire all 
      outstanding shares of Philadelphia Consolidated for $61.50 per share, in 
      cash. The total transaction value is approximately $4.7 billion. The 
      actual purchase would be made through Tokio Marine’s 
      wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co. 
      Ltd. (Tokyo, Japan).
    
    
      In concurrence with the acquisition, Philadelphia Consolidated is 
      expected to be delisted and its ICR withdrawn. The acquisition is 
      expected to close in fourth quarter 2008 and is subject to the customary 
      regulatory approvals.
    
    
      The ICR of “a-” is 
      unchanged for Philadelphia Consolidated Holding Corp.
    
    
      The FSR of A+ (Superior) and ICRs of “aa-” 
      are unchanged for Philadelphia Insurance Companies and its 
      following members:
    
    
      
        Philadelphia Indemnity Insurance Company
      
      
        Philadelphia Insurance Company
      
    
    
      The FSR of A- (Excellent) and ICRs of “a-” 
      are unchanged for Liberty American Insurance Group and its 
      following members:
    
    
      
        Liberty American Insurance Company
      
      
        Liberty American Select Insurance Company
      
    
    
      For Best’s Ratings, an overview of the rating 
      process and rating methodologies, please visit www.ambest.com/ratings.
    
    
      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.