Exhibit 99.1

PHILADELPHIA CONSOLIDATED HOLDING CORP.
THIRD QUARTER RESULTS
SEPTEMBER 30, 2005

OCTOBER 25, 2005 PRESS RELEASE

Bala Cynwyd, PA – Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today reported net income for the quarter ended September 30, 2005 increased to $35.1 million ($1.43 diluted and $1.53 basic earnings per share) vs. a net loss of $2.1 million ($0.09 diluted and $0.09 basic loss per share) for the same period in 2004. Net income for the quarter ended September 30, 2005 included $0.7 million ($0.03 diluted earnings per share) of after-tax net realized investment gains vs. $0.2 million ($0.01 diluted earnings per share) for the same quarter in 2004. The combined ratio (the sum of the ratio of net loss and loss adjustment expenses incurred and acquisition costs and other underwriting expenses to net earned premiums) for the quarter was 85.6% vs. 108.9% for the same quarter in 2004, and gross written premiums increased to $388.5 million vs. $367.4 million in the third quarter of 2004.

Financial results for the third quarter of 2005 included:

• A $7.3 million pre-tax ($4.8 million after-tax, or $0.20 diluted earnings per share) decrease in net unpaid loss and loss adjustment expenses due to favorable trends in prior years’ claims emergence.

• $17.0 million of pre-tax ($11.1 million after-tax, or $0.45 diluted loss per share) hurricane catastrophe losses, and $1.4 million of pre-tax ($0.9 million after-tax, or $0.04 diluted loss per share) accelerated and reinstatement reinsurance premiums as a result of Hurricanes Dennis, Katrina and Rita.

• A $3.5 million pre-tax ($2.3 million after-tax, or $0.09 diluted loss per share) charge for an insurance related assessment from Citizens Property Insurance Corporation, which was created by the State of Florida to provide insurance to property owners unable to obtain coverage in the private insurance market. This assessment may be recouped through future insurance policy surcharges to Florida insureds.

• A net decrease of $42.8 million in gross written premiums, primarily in the mobile homeowners and certain commercial automobile and professional liability products, due to underwriting factors and policyholders’ decisions to self-insure.

Net income for the nine months ended September 30, 2005 increased 149.0% to $127.8 million ($5.27 diluted and $5.61 basic earnings per share) vs. $51.3 million ($2.21 diluted and $2.32 basic earnings per share) for the same period in 2004. After-tax realized investment gains were $7.9 million ($0.33 diluted earnings per share) vs. $0.6 million ($0.03 diluted earnings per share) for the same period in 2004.

Press Release
October 25, 2005
Page 2

James J. Maguire, Jr., CEO, said, “I am very pleased with the results of this quarter and I commend our employees across the country for continuing to execute at a high level. In the face of a more competitive marketplace and weather-related losses, we continued to post top line growth and excellent underwriting results by remaining selective and disciplined in our approach to writing business. I’m confident that we will see continued opportunities for profitable growth through the balance of this year and into 2006.”

The Company will hold its quarterly conference call to discuss third quarter 2005 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.

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; (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; and (xi) the outcome of industry-wide investigations being conducted by various insurance departments, attorneys-general and other authorities relating to the use of contingent commission arrangements. The Company does not intend to publicly update any forward looking statement, except as may be required by law.

In operation since 1962, Philadelphia Insurance Companies, whose Commercial Lines subsidiaries are rated A+ (Superior) by A.M. Best Company, designs, markets, and underwrites commercial property/casualty, personal lines and professional liability insurance products incorporating value added coverages and services for select industries. Nationally recognized as a member of Wards Top 50 and Forbes 100 Best Mid-Cap Stocks, the organization has 38 offices strategically located across the United States to provide superior local service. For more information about our Company or to review our 2004 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,
	September 30,			December 31,
	2005			2004
	(Unaudited)
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $1,681,276 AND $1,287,094)	$	1,670,815		$	1,299,704
EQUITY SECURITIES AT MARKET (COST $151,857 AND $110,601)		162,283			128,447
TOTAL INVESTMENTS		1,833,098			1,428,151
CASH AND CASH EQUIVALENTS		71,388			195,496
ACCRUED INVESTMENT INCOME		17,248			13,475
PREMIUMS RECEIVABLE		279,367			229,502
PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES		296,422			429,850
DEFERRED INCOME TAXES		34,737			14,396
DEFERRED ACQUISITION COSTS		127,600			91,647
PROPERTY AND EQUIPMENT, NET		23,296			21,281
GOODWILL		25,724			25,724
OTHER ASSETS		35,668			36,134
TOTAL ASSETS	$	2,744,548		$	2,485,656
LIABILITIES AND SHAREHOLDERS’ EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES	$	1,121,377		$	996,667
UNEARNED PREMIUMS		629,649			531,849
TOTAL POLICY LIABILITIES AND ACCRUALS		1,751,026			1,528,516
FUNDS HELD PAYABLE TO REINSURER		41,778			131,119
LOANS PAYABLE		—			33,406
PREMIUMS PAYABLE		52,891			48,111
OTHER LIABILITIES		111,787			100,347
TOTAL LIABILITIES		1,957,482			1,841,499
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, 23,054,869 AND 22,273,917 SHARES ISSUED AND OUTSTANDING		334,269			292,856
NOTES RECEIVABLE FROM SHAREHOLDERS		(8,253	)		(5,465	)
RESTRICTED STOCK DEFERRED COMPENSATION COST		(3,698	)		—
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)		(23	)		19,796
RETAINED EARNINGS		464,771			336,970
TOTAL SHAREHOLDERS’ EQUITY		787,066			644,157
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,744,548		$	2,485,656

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,
	2005			2004			2005			2004
REVENUE:
NET EARNED PREMIUMS	$	244,770		$	187,845		$	714,661		$	548,830
NET INVESTMENT INCOME		16,979			10,896			45,843			31,669
NET REALIZED INVESTMENT GAIN		1,097			268			12,191			985
OTHER INCOME		600			719			1,380			2,930
TOTAL REVENUE		263,446			199,728			774,075			584,414
LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES		162,254			760,267			459,111			1,027,473
NET REINSURANCE RECOVERIES		(20,395	)		(612,498	)		(74,979	)		(676,144	)
NET LOSS AND LOSS ADJUSTMENT EXPENSES		141,859			147,769			384,132			351,329
ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES		67,542			56,863			189,316			155,489
OTHER OPERATING EXPENSES		5,142			1,674			15,091			6,085
TOTAL LOSSES AND EXPENSES		214,543			206,306			588,539			512,903
INCOME (LOSS) BEFORE INCOME TAXES		48,903			(6,578	)		185,536			71,511
INCOME TAX EXPENSE (BENEFIT):
CURRENT		13,544			(1,541	)		67,404			24,222
DEFERRED		269			(2,942	)		(9,669	)		(4,043	)
TOTAL INCOME TAX EXPENSE (BENEFIT)		13,813			(4,483	)		57,735			20,179
NET INCOME (LOSS)	$	35,090		$	(2,095	)	$	127,801		$	51,332
PER AVERAGE SHARE DATA:
BASIC EARNINGS (LOSS) PER SHARE	$	1.53		$	(0.09	)	$	5.61		$	2.32
DILUTED EARNINGS (LOSS) PER SHARE	$	1.43		$	(0.09	)	$	5.27		$	2.21
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING		23,002,804			22,230,729			22,795,492			22,120,481
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING		1,456,038			1,132,451			1,460,359			1,120,535
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING		24,458,842			23,363,180			24,255,851			23,241,016