Exhibit 99.1

PHILADELPHIA CONSOLIDATED HOLDING CORP.
THIRD QUARTER RESULTS
SEPTEMBER 30, 2003

OCTOBER 23, 2003 PRESS RELEASE

Bala Cynwyd, PA — Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today reported net income for the third quarter ended September 30, 2003 of $21.0 million ($0.92 diluted and $0.96 basic earnings per share) vs. $2.9 million ($0.13 diluted and $0.13 basic earnings per share) for the same period in 2002. The Company’s 2002 third quarter net income included $15.0 million of pre-tax ($9.750 million after tax, or $0.44 diluted loss per share) reserve strengthening for the residual value line of business. Net income for the quarter ended September 30, 2003 included $0.3 million ($0.01 diluted earnings per share) in after tax realized investment gains vs. $0.1 million ($0.01 diluted earnings per share) in after tax realized investment gains for the same quarter in 2002. Gross written premiums increased 36.1% in the quarter to $286.4 million vs. $210.5 million in the same quarter 2002.

Net income for the nine months ended September 30, 2003 increased 68.0% to $37.8 million ($1.68 diluted and $1.73 basic earnings per share) vs. net income of $22.5 million ($1.01 diluted and $1.04 basis earnings per share) for the same period in 2002. Net income for the nine months ended September 30, 2003 included $0.9 million ($0.04 diluted loss per share) in after tax realized investment losses vs. $2.0 million ($0.09 diluted loss per share) in after tax realized investment losses for the same period in 2002. Gross written premiums increased 36.0% for the nine months to $690.6 million vs. $507.7 million for the same period in 2002. The company’s book value per share at September 30, 2003 was $23.71.

James J. Maguire, Jr., President & CEO said, “We continued to have opportunities that meet our risk selection criteria and pricing guidelines. Gross written premiums were up 36% over the same period last year fueled by continued new business opportunities. In addition, renewal retention levels on accounts meeting our renewal standards exceeded 90% for the quarter. Price increases have begun to moderate signaling more capacity and increased competition, but I’m confident in our ability to continue executing at a high level through the balance of this year and into 2004.”

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Press Release
October 23, 2003

The Company will hold its quarterly conference call to discuss third quarter 2003 results today at 3:00 PM EDST. The call is being webcast and may be accessed at the Company’s web site at www.phly.com. The dial-in phone number for the conference call is (800) 915-4836.

This release contains 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 our 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 our reinsurers to pay; and (ix) future terrorist attacks.

Philadelphia Insurance Companies, rated “A+” (Superior) by A.M. Best Company, is a specialty niche Company which markets and underwrites property and casualty insurance products through 36 proprietary underwriting offices across the U.S. of A. For more information about our Company or to review our 2002 annual report, visit our web site at www.phly.com.

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Press Release
October 23, 2003

PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)

				As of
				September 30,			December 31,
				2003			2002
				(Unaudited)
ASSETS
INVESTMENTS:
	FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $1,054,193 AND $832,701)			$	1,074,520		$	854,513
	EQUITY SECURITIES AT MARKET (COST $78,665 AND $51,257)				86,441			54,346
			TOTAL INVESTMENTS		1,160,961			908,859
	CASH AND CASH EQUIVALENTS				90,891			42,002
	ACCRUED INVESTMENT INCOME				10,512			8,571
	PREMIUMS RECEIVABLE				181,861			130,007
	PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES				275,328			151,352
	DEFERRED INCOME TAXES				15,313			7,541
	DEFERRED ACQUISITION COSTS				54,161			61,272
	PROPERTY AND EQUIPMENT, NET				15,182			12,794
	GOODWILL				25,724			25,724
	OTHER ASSETS				8,767			10,212
			TOTAL ASSETS	$	1,838,700		$	1,358,334
		LIABILITIES AND SHAREHOLDERS’ EQUITY
POLICY LIABILITIES AND ACCRUALS:
	UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES			$	593,527		$	445,548
	UNEARNED PREMIUMS				431,791			306,093
			TOTAL POLICY LIABILITIES AND ACCRUALS		1,025,318			751,641
	FUNDS HELD PAYABLE TO REINSURER				90,587			—
	LOANS PAYABLE				49,750			39,113
	PREMIUMS PAYABLE				32,489			33,553
	PAYABLE FOR SECURITY PURCHASE				46,690			6,100
	OTHER LIABILITIES				72,567			50,104
			TOTAL LIABILITIES		1,317,401			880,511
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, 21,984,492 AND 21,868,877 SHARES ISSUED AND OUTSTANDING				280,286			276,945
	NOTES RECEIVABLE FROM SHAREHOLDERS				(6,197	)		(6,407	)
	ACCUMULATED OTHER COMPREHENSIVE INCOME				18,267			16,185
	RETAINED EARNINGS				228,943			191,100
			TOTAL SHAREHOLDERS’ EQUITY		521,299			477,823
			TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,838,700		$	1,358,334

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Press Release
October 23, 2003

PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

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

			For the Three Months						For the Nine Months
			Ended September 30,						Ended September 30,
			2003			2002			2003			2002
REVENUE:
	NET EARNED PREMIUMS		$	142,688		$	106,146		$	412,499		$	295,663
	NET INVESTMENT INCOME			9,173			9,497			28,348			27,727
	NET REALIZED INVESTMENT GAIN (LOSS)			474			199			(1,309	)		(2,935	)
	OTHER INCOME			1,988			419			3,689			435
		TOTAL REVENUE		154,323			116,261			443,227			320,890
LOSSES AND EXPENSES:
	LOSS AND LOSS ADJUSTMENT EXPENSES			100,645			114,325			328,023			252,003
	NET REINSURANCE RECOVERIES			(21,240	)		(35,976	)		(65,232	)		(59,773	)
	NET LOSS AND LOSS ADJUSTMENT EXPENSES			79,405			78,349			262,791			192,230
	ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES			41,542			32,343			120,120			91,221
	OTHER OPERATING EXPENSES			2,668			1,632			5,974			4,570
		TOTAL LOSSES AND EXPENSES		123,615			112,324			388,885			288,021
INCOME BEFORE INCOME TAXES				30,708			3,937			54,342			32,869
INCOME TAX EXPENSE (BENEFIT):
	CURRENT			10,403			2,044			25,392			14,413
	DEFERRED			(678	)		(999	)		(8,893	)		(4,066	)
		TOTAL INCOME TAX EXPENSE		9,725			1,045			16,499			10,347
		NET INCOME	$	20,983		$	2,892		$	37,843		$	22,522
PER AVERAGE SHARE DATA:
	BASIC EARNINGS PER SHARE		$	0.96		$	0.13		$	1.73		$	1.04
	DILUTED EARNINGS PER SHARE		$	0.92		$	0.13		$	1.68		$	1.01
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING				21,913,053			21,625,799			21,879,748			21,577,670
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING				787,627			636,828			681,716			716,017
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING				22,700,680			22,262,627			22,561,464			22,293,687