8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 25, 2006

Philadelphia Consolidated Holding Corp.

(Exact Name of Registrant as Specified in Charter)

Pennsylvania	0-22280	23-2202671
(State or Other Jurisdiction	(Commission	(IRS Employer’
of Incorporation)	File Number)	Identification No.)

One Bala Plaza, Suite 100, Bala Cynwyd, PA	19004
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (610) 617-7900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	ITEM 2.02     Results of Operations and Financial Condition
	ITEM 5.02     DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS.
	ITEM 9.01     FINANCIAL STATEMENTS AND EXHIBITS.
Signatures
EXHIBIT INDEX
Press Release relating to First Quarter Results for period ended March 31, 2006
First Quarter 2006 Conference Call Presentation
First Quarter 2006 Premiums by Segment
First Quarter 2006 Additional Supplemental Information

ITEM 2.02     Results of Operations and Financial Condition

On April 25, 2006, the registrant conducted a conference call announcing the results of the Company’s operations for the quarter ended March 31, 2006. Also on April 25, 2006 the registrant issued a Press Release concerning its first quarter 2006 results. The Press Release is attached as Exhibit 99.1. The conference call presentation is attached as Exhibit 99.2 to this report. Such exhibits shall be deemed “furnished” for purposes of the Securities Act of 1934, as amended.

The registrant discloses net operating income, a non-GAAP financial measure, which it defines as net income adjusted for after-tax net realized investment gains and losses. Because net operating income is not a term defined by GAAP, the registrant’s net operating income may not be comparable to similarly titled measures reported by other companies. However, the registrant believes that this measure provides useful information to help investors measure the results of its regular business activities. The registrant utilizes net operating income in its budget and planning process and, in part, in measuring actual performance.

ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS.

On April 25, 2006, the Company’s Board of Directors elected: (1) Shaun F. O’Malley as a director of the Company, and Mr. O’Malley was appointed as a member of the Board’s Governance and Nominating Committee and Compensation Committee; and (2) Michael J. Morris as a director of the Company, and Mr. Morris was appointed as the Chairperson of the Board’s Governance and Nominating Committee and as a member of the Audit Committee.

ITEM 9.01     FINANCIAL STATEMENTS AND EXHIBITS.

(a)	Financial Statements of Business Acquired.
	Not applicable.
(b)	Pro Forma Financial Information.
	Not applicable.
(c)	Exhibits.
	Exhibit 99.1 Press Release relating to First Quarter Results for period ended March 31, 2006. Exhibit 99.2 First Quarter 2006 Conference Call Presentation. Exhibit 99.3 First Quarter 2006 Premiums by Segment. Exhibit 99.4 First Quarter 2006 Additional Supplemental Information.

Signatures

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Philadelphia Consolidated Holding Corp. (Registrant)
Dated: April 28, 2006	By:	Craig P. Keller
		Craig P. Keller
		Executive Vice President, Secretary, Treasurer and Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description	Method of Filing
99.1	Press Release relating to First Quarter Results for period ended March 31, 2006	Furnished electronically herewith.
99.2	First Quarter 2006 Conference Call Presentation	Furnished electronically herewith.
99.3	First Quarter 2006 Premiums by Segment	Furnished electronically herewith.
99.4	First Quarter 2006 Additional Supplemental Information	Furnished electronically herewith.

EX-99.1

PHILADELPHIA CONSOLIDATED HOLDING CORP.
FIRST QUARTER RESULTS
MARCH 31, 2006

APRIL 25, 2006 PRESS RELEASE

Bala Cynwyd, PA — Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today reported net income for the quarter ended March 31, 2006 increased 10.3% to $50.3 million ($0.70 diluted earnings per share and $0.73 basic earnings per share) from $45.6 million ($0.64 diluted earnings per share and $0.68 basic earnings per share) for the quarter ended March 31, 2005. After-tax net realized investment gains (losses) were $(0.3) million of losses for the quarter ended March 31, 2006 ($0.00 diluted loss per share) versus $7.0 million of gains ($0.10 diluted earnings per share) for the quarter ended March 31, 2005. Gross written premiums increased 15.0% to $328.0 million from $285.1 million for the quarter ended March 31, 2005, and the combined ratio for the quarter was 79.7% versus 80.4% for the quarter ended March 31, 2005. The Company’s book value per share at March 31, 2006 increased 6.2% to $12.52 from $11.79 at December 31, 2005.

James J. Maguire, Jr. CEO said, “In the first quarter, we continued to demonstrate the fundamental strength of our franchise by growing gross premiums 15%, while having a combined ratio of 79.7%. We saw new business opportunities across all business segments, and renewal retention levels remained in the mid 90 percent range. Although competitive in certain areas, pricing levels remain adequate across all lines of business. I believe that with continued execution of our core business principles, we will continue to have outstanding results from our operations.”

The Company will hold its quarterly conference call to discuss first quarter 2006 results today at 3:00 PM EDT. 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

Press Release
April 25, 2006
Page 2

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.

Philadelphia Insurance Companies is a specialty niche Company which markets and underwrites property and casualty insurance products through 38 proprietary underwriting offices across the U.S. of A. For more information about our Company or to review our 2005 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, 2006			December 31,
	(Unaudited)			2005
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $1,841,899 AND $1,778,215)	$	1,808,325		$	1,761,530
EQUITY SECURITIES AT MARKET (COST $215,567 AND $160,926)		236,310			173,455
TOTAL INVESTMENTS		2,044,635			1,934,985
CASH AND CASH EQUIVALENTS		115,479			74,385
ACCRUED INVESTMENT INCOME		18,129			18,095
PREMIUMS RECEIVABLE		264,319			286,778
PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES		327,953			396,248
DEFERRED INCOME TAXES		40,683			31,893
DEFERRED ACQUISITION COSTS		134,495			129,486
PROPERTY AND EQUIPMENT, NET		23,896			23,886
OTHER ASSETS		24,654			32,070
TOTAL ASSETS	$	2,994,243		$	2,927,826
LIABILITIES AND SHAREHOLDERS’ EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES	$	1,270,631		$	1,245,763
UNEARNED PREMIUMS		641,882			631,468
TOTAL POLICY LIABILITIES AND ACCRUALS		1,912,513			1,877,231
FUNDS HELD PAYABLE TO REINSURER		—			39,221
PREMIUMS PAYABLE		60,783			58,839
OTHER LIABILITIES		147,544			136,039
TOTAL LIABILITIES		2,120,840			2,111,330
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, 69,782,270 AND
69,266,016 SHARES ISSUED AND OUTSTANDING		344,381			332,757
NOTES RECEIVABLE FROM SHAREHOLDERS		(6,617	)		(7,217	)
ACCUMULATED OTHER COMPREHENSIVE LOSS		(8,340	)		(2,702	)
RETAINED EARNINGS		543,979			493,658
TOTAL SHAREHOLDERS’ EQUITY		873,403			816,496
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,994,243		$	2,927,826

2005 share information restated to reflect a three-for-one split of the Company’s common stock distributed on March 1, 2006.

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,
	2006			2005
REVENUE:
NET EARNED PREMIUMS	$	276,546		$	236,755
NET INVESTMENT INCOME		20,062			13,491
NET REALIZED INVESTMENT GAIN (LOSS)		(394	)		10,798
OTHER INCOME		491			480
TOTAL REVENUE		296,705			261,524
LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES		162,024			154,464
NET REINSURANCE RECOVERIES		(18,359	)		(27,993	)
NET LOSS AND LOSS ADJUSTMENT EXPENSES		143,665			126,471
ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES		77,017			63,948
OTHER OPERATING EXPENSES		2,332			3,939
TOTAL LOSSES AND EXPENSES		223,014			194,358
INCOME BEFORE INCOME TAXES		73,691			67,166
INCOME TAX EXPENSE (BENEFIT):
CURRENT		29,124			24,275
DEFERRED		(5,754	)		(2,680	)
TOTAL INCOME TAX EXPENSE		23,370			21,595
NET INCOME	$	50,321		$	45,571
PER AVERAGE SHARE DATA:
BASIC EARNINGS PER SHARE	$	0.73		$	0.68
DILUTED EARNINGS PER SHARE	$	0.70		$	0.64
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING		69,377,774			67,273,227
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING		2,982,230			4,310,019
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING		72,360,004			71,583,246

2005 share information restated to reflect a three-for-one split of the Company’s common stock distributed on March 1, 2006.

EX-99.2

Philadelphia Consolidated Holding Corp. Founded 1962

Certain information included in this presentation and other statements or materials published or to be published by the Company are not historical facts but are forward- looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new and existing products, expectations for market segment and growth, and similar matters. 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; (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.

AGENDA First Quarter 2006 Financial Highlights Financial Results Segment Information Investment Portfolio Selected Operating Statistics Drivers of Future Growth 2006 Expectations Q&A

First Quarter Highlights (in millions, except share and per share data) For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2006 2005 Change Gross Written Premiums $328.0 $285.1 15.0% Net Earned Premiums (1) $276.5 $236.8 16.8% Net Investment Income $20.1 $13.5 48.9% Net Income (1) $50.3 $45.6 10.3% After Tax Net Realized Gain (Loss) $(0.3) $7.0 Loss & LAE Ratio 51.9% 53.4% Expense Ratio 27.8% 27.0% Combined Ratio 79.7% 80.4% Diluted Earnings Per Share (2) $0.70 $0.64 9.4% After Tax Realized Investment Gain (Loss) Per Share (2) $0.00 $0.10 Weighted Average Shares & Share Equivalents Outstanding (2) 72,360,004 71,583,246 Quota share reinsurance agreements were entered into effective April 1, 2003 and January 1, 2004 whereby $0 million and $18.8 million of net earned premium and $0 million and $8.9 million in loss and loss adjustment expenses were ceded, $0 million and $8.4 million in ceding commission was earned and diluted earnings per share were decreased by $0 and $0.02 during the first quarter of 2006 and 2005, respectively. 2. 2005 share data restated to reflect a three-for-one split of the Company's common stock distributed on March 1, 2006.

First Quarter Highlights (in millions, except per share data) For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2006 2005 Net Operating Income $50.6 $38.6 A-T Realized Investment Gains (Losses) $(0.3) $7.0 Net Income $50.3 $45.6 Diluted Operating Earnings Per Share (1) $0.70 $0.54 A-T Realized Investment Gains (Losses) Per Share (1) $0.00 $0.10 Diluted Earnings Per Share (1) $0.70 $0.64 Net Loss and Loss Adjustment Expense Ratio 51.9% 53.4% Acquisition and Underwriting Expense Ratio 27.8% 27.0% Combined Ratio 79.7% 80.4% 1. 2005 share data restated to reflect a three-for-one split of the Company's common stock distributed on March 1, 2006.

First Quarter Highlights (in millions, except share and per share data) March 31, 2006 December 31, 2005 % Increase Total Shareholders' Equity $873.4 $816.5 7.0% Book Value per Share (1) $12.52 $11.79 6.2% Shares Outstanding (1) 69,782,270 69,266,016 0.7% ROE (2) 20.9% 21.2% 2005 share data restated to reflect a three-for-one split of the Company's common stock distributed on March 1, 2006. Return on tangible equity excluding other comprehensive income (loss). March 31, 2006 ROE calculated on trailing twelve months basis.

Gross Written Premiums by Segment (in millions) For the Quarters For the Quarters For the Quarters Ended March 31, Ended March 31, Ended March 31, % 2006 2005 Increase Segment Commercial Lines $243.0 $210.0 15.7% Specialty Lines 58.1 53.6 8.4% Personal Lines 26.9 21.5 25.1% Total $328.0 $285.1 15.0%

Commercial Lines Segment 74.1% of 1st Quarter 2006 GWP CAGR 2000-2005 = 32.0% 15.7% Q/Q Growth Gross Written Premiums 2000 2001 2002 2003 2004 2005 QTD 3/31/05 QTD 3/31/06 Commercial Package 239.5 316 473 662.3 874 960.3 210 243 $239.5 $316.0 (in millions) $874.0 $473.0 $662.3 $210.0 $243.0 $960.3

Specialty Lines Segment (Professional Liability) 2000 2001 2002 2003 2004 2005 QTD 3/31/05 QTD 3/31/06 68.2 79.3 110.2 154.1 184.4 205.3 53.6 58.1 17.7% of 1st Quarter 2006 GWP CAGR 2000-2005 = 24.7% 8.4% Q/Q Growth Gross Written Premiums (in millions)

Gross Written Premiums 2000 2001 2002 2003 2004 2005 QTD 3/31/05 QTD 3/31/06 Dwelling/Fire 54.2 78.3 80.5 89.6 112.9 99.3 21.5 26.9 $54.2 $78.3 8.2% of 1st Quarter 2006 GWP CAGR 2000-2005 = 12.9% 25.1% Q/Q increase Personal Lines $99.3 (in millions) $80.5 $89.6 $112.9 $21.5 $26.9

High Quality Investment Portfolio Portfolio market value - $2,133.7mm Fixed income securities Average quality AAA Portfolio duration 4.2 years 5.0% taxable equivalent yield Quality long-term growth stocks As of March 31, 2006 Municipal Bonds 0.379 CMO 0.11 MBS 0.155 Other Structured Securities 0.082 Corporate Bonds 0.105 Common Stock 0.108 All Other 0.019 Cash Equivalents 0.042 Municipal Bonds CMO MBS Other Structured Securities Corporate Bonds Common Stock All Other Cash Equivalents

Net Investment Income 2000 2001 2002 2003 2004 2005 QTD 3/31/05 QTD 3/31/06 25.8 32.4 37.5 38.8 43.5 63.7 13.5 20.1 (in millions) 5 Year CAGR: 19.8% Effective Tax Rat e 27.0% 30.1% 28.3% 23.4% 20.2% 21.5% 20.5% 22.6% Q/Q Change 48.9%

Selected Operating Statistics Operating Statistics Renewal Retention (Quoted) Commercial Lines - 95.0% Specialty Lines - 91.4% Personal Lines - 93.0% Rate Increases Commercial Lines - 0.6% (Q/Q) Specialty Lines - (0.8%) (Q/Q) Personal Lines - 7.4% (Q/Q) New Business Growth (Count), excluding Personal Lines 1st QTR: 05 - 7,689 1st QTR: 06 - 7,895 2.7% increase

Selected Operating Statistics Preferred Agents Total Count - 157 Total GWP Growth - $20.4 million (Q/Q); 29.0% increase Renewal Retention (Quoted) - 88.2% New Business 2006 - $16.1 million GWP; 38.1% increase Employee Statistics Total Employee Count - 1,163 Total GWP Per Employee - $1.1 million Turnover (Q/Q) - 14.6%

Drivers of Future Growth National presence - 38 offices / Mixed marketing New product offerings -Sports & Fitness Niche Disruption in the industry Regulatory Actions ? Rating downgrades Experienced management / underwriting & pricing discipline Advanced technology - lower expenses and improved process A+ (Superior) rating - Flight to quality Preferred agent program - 15% premium growth

2006 Expectations 2006 Operating EPS Range: $2.70 - $2.77 Organic Growth - approximating 15.0% Combined Ratio - Low 80's Renewal retention levels approximating 90% Investment environment in transition Increased competition

Philadelphia Consolidated Holding Corp. Founded 1962

EX-99.3

PHILADELPHIA INSURANCE COMPANIES SUMMARY SEGMENT TOTALS FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005 (IN THOUSANDS)

	3/31/2006		3/31/2005		2006 VS. 2005			3/31/2006		3/31/2005		2006 VS. 2005
	GROSS		GROSS		%			GROSS		GROSS		%
	WRITTEN		WRITTEN		INCREASE			EARNED		EARNED		INCREASE
	PREMIUMS		PREMIUMS		<DECREASE>			PREMIUMS		PREMIUMS		<DECREASE>
COMMERCIAL LINES		243,107		210,010		15.8	%		240,786		213,735		12.7	%
SPECIALTY LINES		58,068		53,635		8.3	%		51,501		47,314		8.8	%
PERSONAL LINES		26,867		21,460		25.2	%		25,341		26,963		-6.0	%
TOTAL ALL LINES		328,042		285,105		15.1	%		317,628		288,012		10.3	%

	3/31/2006		3/31/2005		2006 VS. 2005			3/31/2006		3/31/2005		2006 VS. 2005
	NET		NET		%			NET		NET		%
	WRITTEN		WRITTEN		INCREASE			EARNED		EARNED		INCREASE
	PREMIUMS		PREMIUMS		<DECREASE>			PREMIUMS		PREMIUMS		<DECREASE>
COMMERCIAL LINES		228,119		204,323		11.6	%		224,370		183,718		22.1	%
SPECIALTY LINES		45,428		36,301		25.1	%		39,928		35,385		12.8	%
PERSONAL LINES		14,409		13,162		9.5	%		12,248		17,652		-30.6	%
TOTAL ALL LINES		287,956		253,786		13.5	%		276,546		236,755		16.8	%

EX-99.4

PHILADELPHIA INSURANCE COMPANIES ADDITIONAL SUPPLEMENTAL INFORMATION FOR THE THREE MONTHS ENDED MARCH 31, 2006 (IN THOUSANDS)

NET LOSS AND LOSS ADJUSTMENT EXPENSES:

	Net Incurred Loss and Loss Adjustment Expenses					(1) Net Paid Loss and Loss Adjustment Expenses
	For The Three Months Ended					For The Three Months Ended
	March 31,					March 31,
PRODUCTS	2006		2005			2006			2005
COMMERCIAL LINES	$	110,798	$	90,297		$	62,676		$	56,508
SPECIALTY LINES		26,819		25,832			14,454			12,209
PERSONAL LINES		6,048		10,342			5,191			6,450
TOTAL	$	143,665	$	126,471		$	82,321		$	75,167
WHOLE ACCOUNT NET QUOTA SHARE REINSURANCE COMMUTATIONS		0		0			(31,804	)		(64,283	)
TOTAL NET LOSS AND LOSS ADJUSTMENT EXPENSES	$	143,665	$	126,471		$	50,517		$	10,884
Net Loss & Lae Reserves @ March 31, 2006			$	1,034,143
Taxable Equivalent Yield @ March 31, 2006				5.0	%
Portfolio Duration @ March 31, 2006			4.2 yrs
Book Value Per Common Share @ March 31, 2006			$	12.52
Shares Repurchased During the Three Months Ended March 31, 2006				0

(1) During February 2006 and 2005, the Company entered into Reinsurance Commutation and Release Agreements effective as of January 1, 2006 and 2005 with respect to the 2004 and 2003 Whole Account Net Quota Share Reinsurance contracts. As a result of these commutations, the Company increased its Net Unpaid Loss and Loss Adjustment Expenses and decreased its Net Paid Loss and Loss Adjustment Expenses by $31.8 million and $64.3 million for the three months ended March 31 2006 and 2005, respectively.