Philadelphia Consolidated Holding Corp. First Quarter Results March 31, 2008

BALA CYNWYD, Pa., April 24  /PRNewswire-FirstCall/ -- Philadelphia Consolidated Holding Corp. (NASDAQ:PHLY) today reported net income for the quarter ended March 31, 2008 of $62.7 million ($0.86 diluted earnings per share and $0.89 basic earnings per share). This compares to $66.0 million of net income ($0.89 diluted earnings per share and $0.94 basic earnings per share) for the quarter ended March 31, 2007. After-tax net realized investment gains (losses) were $(7.4) million ($0.10 diluted loss per share) for the quarter ended March 31, 2008 versus $1.1 million ($0.02 diluted earnings per share) for the quarter ended March 31, 2007. Gross written premiums for the quarter ended March 31, 2008 increased 12.4% to $443.1 million from $394.1 million for the quarter ended March 31, 2007, and the combined ratio for the quarter ended March 31, 2008 was 81.1% compared to 77.6% for the quarter ended March 31, 2007. The Company's book value per share as of March 31, 2008 increased to $21.90 from $21.47 as of December 31, 2007.

  Financial results for the quarter ended March 31, 2008 included:

  -- A $5.9 million pre-tax benefit ($3.8 million after-tax, or $0.05
     diluted earnings per share) from a decrease in net unpaid loss and loss
     adjustment expenses due to favorable trends in prior years' claim
     emergence. This benefit compares to a $12.9 million pre-tax benefit
     ($8.4 million after-tax, or $0.11 diluted earnings per share)
     recognized in the quarter ended March 31, 2007 from a decrease in net
     unpaid loss and loss adjustment expenses due to favorable trends in
     prior years' claims emergence.

  -- An $11.6 million (pre-tax) non-cash realized investment loss
     ($7.5 million after-tax, or $0.10 diluted loss per share) resulting
     from other than temporary impairment evaluations related to the
     Company's equity holdings.




James J. Maguire, Jr., CEO, said: "In spite of a soft pricing environment, we continue to find new business opportunities across most of our product lines. In addition, we renewed in excess of 94% of quoted accounts in our Commercial & Specialty Lines segments. We remain disciplined in our underwriting process, as evidenced by our 81.1% combined ratio for the quarter. I thank our 1,400+ employees for continuing to execute at a high level, and I remain optimistic about our prospects for continued, profitable growth."

The Company also announced today that its Board of Directors has authorized a $50.0 million increase in its common stock repurchase program. This $50.0 million authorization is in addition to the $2.1 million remaining under the previous aggregate $75.3 million authorizations. Purchases may be made from time to time in the open market based on stock price, market conditions and other factors. During the first quarter of 2008 the Company repurchased 1,353,200 shares of its common stock for an aggregate purchase price of $42.9 million under the previously announced authorizations.

The Company will hold its quarterly conference call to discuss first quarter 2008 results today at 3:00 PM EDST. The call will be webcast and may be accessed at the Company's website at http://www.phly.com/. The dial-in phone number for the conference call is [phone].

Forward-Looking Information

This release may contain forward-looking statements that are based on management's estimates, assumptions and projections. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company provides the following cautionary remarks regarding important factors which, among others, could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, results of the Company's business, and the other matters referred to above include, but are not limited to: (i) changes in the business environment in which the Company operates, including inflation and interest rates; (ii) changes in taxes, governmental laws, and regulations; (iii) competitive product and pricing activity; (iv) difficulties of managing growth profitably; (v) claims development and the adequacy of the Company's liability for unpaid loss and loss adjustment expenses; (vi) severity of natural disasters and other catastrophe losses; (vii) adequacy of reinsurance coverage which may be obtained by the Company; (viii) ability and willingness of the Company's reinsurers to pay; (ix) future terrorist attacks; and (x) the outcome of the Securities and Exchange Commission's industry-wide investigation relating to the use of non-traditional insurance products, including finite risk reinsurance arrangements. The Company does not intend to publicly update any forward looking statement, except as may be required by law.

In operation since 1962, PHLY designs, markets, and underwrites commercial property/casualty and professional liability insurance products incorporating value added coverages and services for select industries. Philadelphia Consolidated Holding Corp., whose commercial lines insurance subsidiaries are rated A+ (Superior) by A.M. Best Company and A1 for insurance financial strength by Moody's Investors Service, is nationally recognized as a member of Ward's Top 50, Forbes' Platinum 400 list of America's Best Big Companies and Forbes' 100 Best Mid-Cap Stocks in America. The Company has 46 offices strategically located across the United States to provide superior local service.

         PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEETS
                    (IN THOUSANDS, EXCEPT SHARE DATA)

                                                       As of
                                         March 31, 2008    December 31,
                                           (Unaudited)         2007
  ASSETS
  INVESTMENTS:
    FIXED MATURITIES AVAILABLE FOR
     SALE AT MARKET (AMORTIZED COST
     $2,745,827 AND $2,639,471)            $2,766,054       $2,659,197
    EQUITY SECURITIES AT MARKET (COST
     $323,474 AND $322,877)                   331,041          356,026
      TOTAL INVESTMENTS                     3,097,095        3,015,223

  CASH AND CASH EQUIVALENTS                   113,105          106,342
  ACCRUED INVESTMENT INCOME                    28,213           24,964
  PREMIUMS RECEIVABLE                         385,997          378,217
  PREPAID REINSURANCE PREMIUMS AND
   REINSURANCE RECEIVABLES                    269,805          280,110
  DEFERRED INCOME TAXES                        59,399           42,855
  DEFERRED ACQUISITION COSTS                  186,579          184,446
  PROPERTY AND EQUIPMENT, NET                  25,539           26,330
  OTHER ASSETS                                 79,957           41,451
      TOTAL ASSETS                         $4,245,689       $4,099,938

  LIABILITIES AND SHAREHOLDERS' EQUITY
  POLICY LIABILITIES AND ACCRUALS:
    UNPAID LOSS AND LOSS ADJUSTMENT
     EXPENSES                              $1,504,575       $1,431,933
    UNEARNED PREMIUMS                         861,663          847,485
      TOTAL POLICY LIABILITIES
       AND ACCRUALS                         2,366,238        2,279,418
  PREMIUMS PAYABLE                             74,011           97,674
  OTHER LIABILITIES                           245,696          175,373
      TOTAL LIABILITIES                     2,685,945        2,552,465

  COMMITMENTS AND CONTINGENCIES

  SHAREHOLDERS' EQUITY:
    PREFERRED STOCK, $.01 PAR VALUE,
     10,000,000 SHARES AUTHORIZED,
     NONE ISSUED AND OUTSTANDING                    -                -
    COMMON STOCK, NO PAR VALUE,
     100,000,000 SHARES AUTHORIZED,
     71,216,436 AND 72,087,287 SHARES
     ISSUED AND OUTSTANDING                   388,144          423,379
    NOTES RECEIVABLE FROM SHAREHOLDERS        (18,462)         (19,595)
    ACCUMULATED OTHER COMPREHENSIVE INCOME     18,066           34,369
    RETAINED EARNINGS                       1,171,996        1,109,320
      TOTAL SHAREHOLDERS' EQUITY            1,559,744        1,547,473
      TOTAL LIABILITIES AND SHAREHOLDERS'
       EQUITY                              $4,245,689       $4,099,938



         PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF OPERATIONS
             (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                               (Unaudited)

                                            For the Three Months
                                               Ended March 31,
                                             2008          2007
  REVENUE:
    NET EARNED PREMIUMS                    $379,388      $318,718
    NET INVESTMENT INCOME                    32,005        26,973
    NET REALIZED INVESTMENT GAIN (LOSS)     (11,394)        1,757
    OTHER INCOME                              1,353           830
      TOTAL REVENUE                         401,352       348,278

  LOSSES AND EXPENSES:
    LOSS AND LOSS ADJUSTMENT EXPENSES       223,386       160,519
    NET REINSURANCE RECOVERIES              (29,967)      (10,014)
    NET LOSS AND LOSS ADJUSTMENT EXPENSES   193,419       150,505
    ACQUISITION COSTS AND OTHER
     UNDERWRITING EXPENSES                  114,156        96,904
    OTHER OPERATING EXPENSES                  3,589         3,155
      TOTAL LOSSES AND EXPENSES             311,164       250,564

  INCOME BEFORE INCOME TAXES                 90,188        97,714

  INCOME TAX EXPENSE (BENEFIT):
    CURRENT                                  35,278        36,819
    DEFERRED                                 (7,766)       (5,085)
      TOTAL INCOME TAX EXPENSE               27,512        31,734
      NET INCOME                            $62,676       $65,980
  PER AVERAGE SHARE DATA:
    NET INCOME - BASIC                        $0.89         $0.94
    NET INCOME - DILUTED                      $0.86         $0.89
  WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING                           70,448,471    70,148,787
  WEIGHTED-AVERAGE SHARE EQUIVALENTS
   OUTSTANDING                            2,581,468     4,054,030
  WEIGHTED-AVERAGE SHARES AND SHARE
   EQUIVALENTS OUTSTANDING               73,029,939    74,202,817


DATASOURCE: Philadelphia Consolidated Holding Corp.



CONTACT:  Investor Relations, Joseph Barnholt, Assistant Vice President

of Philadelphia Consolidated Holding Corp., [phone],





Web site:  http://www.phly.com/ 

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