PHILADELPHIA CONSOLIDATED HOLDING CORP.
FIRST QUARTER RESULTS
MARCH 31, 2004

APRIL 22, 2004 PRESS RELEASE

Bala Cynwyd, PA – Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today reported net income for the quarter ended March 31, 2004 increased 89.3% to $25.0 million ($1.08 diluted and $1.14 basic earnings per share) vs. $13.2 million ($0.59 diluted and $0.61 basic earnings per share) for the same period in 2003. Net income for the quarter ended March 31, 2004 included $1.2 million ($0.05 diluted gain per share) of after tax net realized investment gains vs. $0.7 million ($0.03 diluted loss per share) of after tax net realized investment losses for the same quarter in 2003. Gross written premiums increased 30.6% to $252.4 million vs. $193.3 million in the first quarter of 2003, and the combined ratio for the quarter was 85.1% vs. 92.2% for the same quarter in 2003.

James J. Maguire, Jr. CEO said, “The 30% quarter over quarter increase in gross written premiums came by way of high renewal retention, rate increases and unit count increases on new business. This profitable growth does impact the Company’s capital needs and effective January 1, 2004 we placed a 10% quota share reinsurance agreement covering all of our commercial and specialty lines of business. We believe reinsurance remains the best means of maintaining acceptable operating leverage with respect to our capital levels. Diluted earnings per share for the first quarter ended March 31, 2004 were lowered by $0.05 as a result of the quota share reinsurance agreements effective for the years 2003 and 2004.”

Press Release
April 22, 2004
Page 2

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 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 2003 annual report, visit our web site at www.phly.com.

PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)

	As of
	March 31,			December 31,
	2004			2003
	(Unaudited)
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $1,162,540 AND $1,066,523)	$	1,186,934		$	1,081,694
EQUITY SECURITIES AT MARKET (COST $99,939 AND $79,813)		111,125			90,358
TOTAL INVESTMENTS		1,298,059			1,172,052
CASH AND CASH EQUIVALENTS		64,743			73,942
ACCRUED INVESTMENT INCOME		12,195			11,008
PREMIUMS RECEIVABLE		165,281			179,509
PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES		287,208			292,157
DEFERRED INCOME TAXES		15,169			19,176
DEFERRED ACQUISITION COSTS		69,357			56,288
PROPERTY AND EQUIPMENT, NET		18,027			16,821
GOODWILL		25,724			25,724
OTHER ASSETS		19,314			22,354
TOTAL ASSETS	$	1,975,077		$	1,869,031
LIABILITIES AND SHAREHOLDERS’ EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES	$	673,535		$	627,086
UNEARNED PREMIUMS		433,809			422,589
TOTAL POLICY LIABILITIES AND ACCRUALS		1,107,344			1,049,675
FUNDS HELD PAYABLE TO REINSURER		115,353			110,011
LOANS PAYABLE		47,079			48,482
PREMIUMS PAYABLE		39,887			35,044
OTHER LIABILITIES		88,959			82,083
TOTAL LIABILITIES		1,398,622			1,325,295
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, 22,033,897 AND 22,007,552 SHARES ISSUED AND OUTSTANDING		281,951			281,088
NOTES RECEIVABLE FROM SHAREHOLDERS		(5,046	)		(5,444	)
ACCUMULATED OTHER COMPREHENSIVE INCOME		23,127			16,715
RETAINED EARNINGS		276,423			251,377
TOTAL SHAREHOLDERS’ EQUITY		576,455			543,736
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,975,077		$	1,869,031

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,
	2004			2003
REVENUE:
NET EARNED PREMIUMS	$	168,784		$	148,362
NET INVESTMENT INCOME		9,973			9,805
NET REALIZED INVESTMENT GAIN (LOSS)		1,778			(1,133	)
OTHER INCOME		1,382			661
TOTAL REVENUE		181,917			157,695
LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES		130,686			103,085
NET REINSURANCE RECOVERIES		(34,443	)		(12,725	)
NET LOSS AND LOSS ADJUSTMENT EXPENSES		96,243			90,360
ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES		47,354			46,420
OTHER OPERATING EXPENSES		1,769			1,674
TOTAL LOSSES AND EXPENSES		145,366			138,454
INCOME BEFORE INCOME TAXES		36,551			19,241
INCOME TAX EXPENSE (BENEFIT):
CURRENT		10,950			7,764
DEFERRED		555			(1,756	)
TOTAL INCOME TAX EXPENSE		11,505			6,008
NET INCOME	$	25,046		$	13,233
PER AVERAGE SHARE DATA:
BASIC EARNINGS PER SHARE	$	1.14		$	0.61
DILUTED EARNINGS PER SHARE	$	1.08		$	0.59
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING		22,018,270			21,865,269
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING		1,082,611			562,552
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING		23,100,881			22,427,821