PHILADELPHIA CONSOLIDATED HOLDING CORP.
FIRST QUARTER RESULTS
MARCH 31, 2007

APRIL 26, 2007 PRESS RELEASE

Bala Cynwyd, PA – Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today reported net income for the quarter ended March 31, 2007 increased 31.2% to $66.0 million ($0.89 diluted earnings per share and $0.94 basic earnings per share) from $50.3 million ($0.70 diluted earnings per share and $0.73 basic earnings per share) for the quarter ended March 31, 2006. After-tax net realized investment gains (losses) were $1.1 million of gains for the quarter ended March 31, 2007 ($0.02 diluted income per share) versus $(0.3) million of losses ($0.00 diluted loss per share) for the quarter ended March 31, 2006. Gross written premiums increased 20.2% to $394.1 million from $328.0 million for the quarter ended March 31, 2006, and the combined ratio for the quarter was 77.6% versus 79.7% for the quarter ended March 31, 2006. The Company’s book value per share at March 31, 2007 increased 6.7% to $17.58 from $16.48 at December 31, 2006.

Financial results for the first quarter of 2007 included:

• A $12.9 million pre-tax ($8.4 million after-tax, or $0.11 diluted earnings per share) benefit from a decrease in net unpaid loss and loss adjustment expenses due to favorable trends in prior years’ claims emergence.

• Weather-related case incurred property losses of $16.9 million pre-tax ($11.0 million after-tax, or $0.15 diluted loss per share), compared to weather-related case incurred property losses of $6.6 million pre-tax ($4.3 million after-tax, or $0.06 diluted loss per share) for the quarter ended March 31, 2006.

James J. Maguire, Jr., CEO, said: “As a result of our differentiated sales model, we continued to see ample new business opportunities during the quarter which met our pricing and underwriting standards. Our combined ratio of 77.6% is indicative of continued vigilance in our underwriting and risk selection process. In the face of more competition, we continued to keep most of our commercial renewal business, as retention levels exceeded 90% of quoted accounts. New products contributed approximately $15 million to premium growth in the quarter, an indication that we continue to successfully diversify and broaden our product offerings. I thank our talented employees for executing at a high level during the quarter, and I remain optimistic that we will achieve our targeted goals for the balance of the year. ”

The Company will hold its quarterly conference call to discuss first quarter 2007 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) 289-0544.

Press Release
April 26, 2007
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 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, PHLY designs, markets, and underwrites commercial property/casualty, personal lines and professional liability insurance products incorporating value added coverages and services for select industries. The Company, whose commercial and personal lines subsidiaries are rated A+ (Superior), and A- (Excellent), respectively, by A.M. Best Company, is nationally recognized as a member of Ward’s Top 50 and Forbes’ Platinum 400 list of America’s Best Big Companies. The organization has 41 offices strategically located across the United States to provide superior local service.

CONTACT: Investor Relations: Joseph Barnholt, Assistant Vice President, +1-610-617-7626, jbarnholt@phlyins.com.

PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)

	As of
	March 31, 2007			December 31,
	(Unaudited)			2006
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $2,286,438 AND $2,136,231)	$	2,282,135		$	2,129,609
EQUITY SECURITIES AT MARKET (COST $277,422 AND $259,184)		331,859			304,033
TOTAL INVESTMENTS		2,613,994			2,433,642
CASH AND CASH EQUIVALENTS		138,896			108,671
ACCRUED INVESTMENT INCOME		22,416			20,083
PREMIUMS RECEIVABLE		327,295			346,836
PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES		261,843			272,798
DEFERRED INCOME TAXES		27,575			26,657
DEFERRED ACQUISITION COSTS		165,216			158,805
PROPERTY AND EQUIPMENT, NET		26,498			26,999
OTHER ASSETS		51,815			44,046
TOTAL ASSETS	$	3,635,548		$	3,438,537
LIABILITIES AND SHAREHOLDERS’ EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES	$	1,330,657		$	1,283,238
UNEARNED PREMIUMS		775,859			759,358
TOTAL POLICY LIABILITIES AND ACCRUALS		2,106,516			2,042,596
PREMIUMS PAYABLE		67,322			66,827
OTHER LIABILITIES		209,873			161,847
TOTAL LIABILITIES		2,383,711			2,271,270
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, 71,211,963 AND 70,848,482 SHARES ISSUED AND OUTSTANDING		386,731			376,986
NOTES RECEIVABLE FROM SHAREHOLDERS		(15,968	)		(17,074	)
ACCUMULATED OTHER COMPREHENSIVE INCOME		32,587			24,848
RETAINED EARNINGS		848,487			782,507
TOTAL SHAREHOLDERS’ EQUITY		1,251,837			1,167,267
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,635,548		$	3,438,537

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,
	2007			2006
REVENUE:
NET EARNED PREMIUMS	$	318,718		$	276,546
NET INVESTMENT INCOME		26,973			20,062
NET REALIZED INVESTMENT GAIN (LOSS)		1,757			(394	)
OTHER INCOME		830			491
TOTAL REVENUE		348,278			296,705
LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES		160,519			162,024
NET REINSURANCE RECOVERIES		(10,014	)		(18,359	)
NET LOSS AND LOSS ADJUSTMENT EXPENSES		150,505			143,665
ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES		96,904			77,017
OTHER OPERATING EXPENSES		3,155			2,332
TOTAL LOSSES AND EXPENSES		250,564			223,014
INCOME BEFORE INCOME TAXES		97,714			73,691
INCOME TAX EXPENSE (BENEFIT):
CURRENT		36,819			29,124
DEFERRED		(5,085	)		(5,754	)
TOTAL INCOME TAX EXPENSE		31,734			23,370
NET INCOME	$	65,980		$	50,321
PER AVERAGE SHARE DATA:
NET INCOME — BASIC	$	0.94		$	0.73
NET INCOME — DILUTED	$	0.89		$	0.70
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING		70,148,787			69,377,774
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING		4,054,030			2,982,230
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING		74,202,817			72,360,004