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): October 23, 2008

Philadelphia Consolidated Holding Corp.

(Exact Name of Registrant as Specified in Charter)

Pennsylvania	0-22280	23-2202671
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer’ 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 of 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))

ITEM 2.02	Results of Operations and Financial Condition
	On October 23, 2008, the registrant issued a Press Release concerning its third quarter 2008 results. The Press Release is attached as Exhibit 99.1. Such exhibits shall be deemed “furnished” for purposes of the Securities Act of 1934, as amended.
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 Third Quarter Results for period ended September 30, 2008.
	Exhibit 99.2 Third Quarter 2008 Premiums by Segment.
	Exhibit 99.3 Nine Months 2008 Premiums by Segment.
	Exhibit 99.4 Third Quarter 2008 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: October 23, 2008	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 Third Quarter Results for period ended September 30, 2008	Furnished electronically herewith.
99.2	Third Quarter 2008 Premiums by Segment	Furnished electronically herewith.
99.3	Nine Months 2008 Premiums by Segment	Furnished electronically herewith.
99.4	Third Quarter 2008 Additional Supplemental Information	Furnished electronically herewith.

EX-99.1

PHILADELPHIA CONSOLIDATED HOLDING CORP.
THIRD QUARTER RESULTS
SEPTEMBER 30, 2008

OCTOBER 23, 2008 PRESS RELEASE

Bala Cynwyd, PA — Philadelphia Consolidated Holding Corp. (NASDAQ: PHLY) today reported net income for the quarter ended September 30, 2008 of $50.0 million ($0.68 diluted earnings per share and $0.71 basic earnings per share). This compares to $96.2 million of net income ($1.30 diluted earnings per share and $1.37 basic earnings per share) for the quarter ended September 30, 2007. After-tax net realized investment gains (losses) were $(11.6) million ($0.16 diluted loss per share) for the quarter ended September 30, 2008 compared to $1.8 million ($0.02 diluted earnings per share) for the quarter ended September 30, 2007. Gross written premiums for the quarter ended September 30, 2008 increased 9.8% to $553.9 million from $504.6 million for the quarter ended September 30, 2007, and the combined ratio for the quarter ended September 30, 2008 was 86.0% compared to 68.5% for the quarter ended September 30, 2007. The Company’s book value per share as of September 30, 2008 increased to $22.38 from $21.47 as of December 31, 2007.

Financial results for the quarter ended September 30, 2008 included:

• A $12.2 million pre-tax benefit ($7.9 million after-tax, or $0.11 diluted earnings per share) from a decrease in net unpaid loss and loss adjustment expenses due to favorable trends in prior years’ claim emergence. This benefit compares to a $39.5 million pre-tax benefit ($25.7 million after-tax, or $0.35 diluted earnings per share) recognized in the quarter ended September 30, 2007 from a decrease in net unpaid loss and loss adjustment expenses due to favorable trends in prior years’ claims emergence.

• $21.7 million of pre-tax losses ($14.1 million after-tax, or $0.19 diluted loss per share) resulting from losses attributable to Hurricane Ike, and $5.1 million of pre-tax expense ($3.3 million after-tax, or $0.04 diluted loss per share) resulting from accelerated and reinstatement ceded premium expense relating to Hurricane Ike.

• A $7.4 million pre-tax non-cash realized investment loss ($4.8 million after-tax, or $0.07 diluted loss per share) resulting from the other than temporary impairment evaluation for the Company’s direct holdings of fixed maturity securities issued by Lehman Brothers Holdings Inc. and its subsidiaries (“Lehman”).

• An $11.4 million pre-tax non-cash realized investment loss ($7.4 million after-tax, or $0.10 diluted loss per share) resulting from other than temporary impairment evaluations related to the Company’s equity holdings.

Net income for the nine months ended September 30, 2008 was $165.6 million ($2.27 diluted earnings per share and $2.36 basic earnings per share). This compares to $256.6 million of net income ($3.46 diluted earnings per share and $3.65 basic earnings per share) for the nine months ended September 30, 2007. After-tax net realized investment gains (losses) were $(26.5) million ($0.36 diluted loss per share) for the nine months ended September 30, 2008 compared to $21.2

Press Release
October 23, 2008
Page 2

million ($0.29 diluted earnings per share) for the nine months ended September 30, 2007. Gross written premiums for the nine months ended September 30, 2008 increased 11.2% to $1,442.2 million from $1,297.3 million for the nine months ended September 30, 2007, and the combined ratio for the nine months ended September 30, 2008 was 84.5% compared to 73.3% for the nine months ended September 30, 2007.

Financial results for the nine months ended September 30, 2008 included:

• A $36.6 million pre-tax benefit ($23.8 million after-tax, or $0.33 diluted earnings per share) from a decrease in net unpaid loss and loss adjustment expenses due to favorable trends in prior years’ claim emergence. This benefit compares to a $73.2 million pre-tax benefit ($47.6 million after-tax, or $0.64 diluted earnings per share) recognized in the nine months ended September 30, 2007 from a decrease in net unpaid loss and loss adjustment expenses due to favorable trends in prior years’ claims emergence.

• $20.6 million of pre-tax losses ($13.4 million after-tax, or $0.18 diluted loss per share) resulting from hail, tornado and wind losses which occurred in Minnesota, Nebraska, Kansas and Oklahoma during the period of May 22, 2008 through May 26, 2008, and which occurred in Illinois, Indiana, Kansas, Minnesota, Nebraska and Oklahoma during the period of May 29, 2008 through June 1, 2008.

• The Hurricane Ike losses and related accelerated and reinstatement ceded premium expense as referred to above.

• The non-cash realized investment loss resulting from the other than temporary impairment evaluation for Lehman as referred to above.

• A $34.7 million pre-tax non-cash realized investment loss ($22.6 million after-tax, or $0.31 diluted loss per share) resulting from other than temporary impairment evaluations related to the Company’s equity holdings.

James J. Maguire, Jr., CEO, said: “In the wake of turbulent economic times and disruption in the insurance industry, we continued to produce superior earnings through profitable underwriting and conservative investment practices. In the quarter, net written premiums grew by over 12%, with the month of September growing by over 20%. This premium growth was achieved while maintaining a very impressive 86% combined ratio in the quarter. Though competition persisted in most of our niches, we retained approximately 93% of our renewals and saw $19 million from new products. Customers and agents are more focused now than ever before on aligning themselves with a high quality, reputable insurer. After our recently announced merger with Tokio Marine Holdings closes, which I expect to occur in the fourth quarter of this year, PHLY will be better positioned than ever to capitalize on this market uncertainty and will further solidify our position as a premier U.S. insurer.”

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

Press Release
October 23, 2008
Page 3

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; and (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. 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 and professional liability insurance products incorporating value added coverages and services for select industries. The Company, whose commercial lines insurance subsidiaries are rated A+ (Superior) by A.M. Best Company and A1 for insurance financial strength by Moody’s Investors Service, is nationally recognized as a member of Ward’s Top 50, Forbes’ Platinum 400 list of America’s Best Big Companies and Forbes’ 100 Best Mid-Cap Stocks in America. The organization has 47 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
	September 30,			December 31,
	2008			2007
	(Unaudited)
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $2,863,583 AND $2,639,471)	$	2,778,992		$	2,659,197
EQUITY SECURITIES AT MARKET (COST $357,918 AND $322,877)		352,053			356,026
TOTAL INVESTMENTS		3,131,045			3,015,223
CASH AND CASH EQUIVALENTS		152,050			106,342
ACCRUED INVESTMENT INCOME		31,249			24,964
PREMIUMS RECEIVABLE		433,958			378,217
PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES		376,263			280,110
DEFERRED INCOME TAXES		115,303			42,855
DEFERRED ACQUISITION COSTS		205,838			184,446
PROPERTY AND EQUIPMENT, NET		20,870			26,330
OTHER ASSETS		349,879			41,451
TOTAL ASSETS	$	4,816,455		$	4,099,938
LIABILITIES AND SHAREHOLDERS’ EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES	$	1,733,936		$	1,431,933
UNEARNED PREMIUMS		962,472			847,485
TOTAL POLICY LIABILITIES AND ACCRUALS		2,696,408			2,279,418
PREMIUMS PAYABLE		97,196			97,674
OTHER LIABILITIES		416,079			175,373
TOTAL LIABILITIES		3,209,683			2,552,465
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
PREFERRED STOCK, $.01 PAR VALUE, 10,000,000 SHARES AUTHORIZED, NONE ISSUED AND OUTSTANDING		—			—
COMMON STOCK, NO PAR VALUE, 125,000,000 SHARES AUTHORIZED, 71,783,778 AND 72,087,287 SHARES ISSUED AND OUTSTANDING		412,184			423,379
NOTES RECEIVABLE FROM SHAREHOLDERS		(21,487	)		(19,595	)
ACCUMULATED OTHER COMPREHENSIVE INCOME		(58,796	)		34,369
RETAINED EARNINGS		1,274,871			1,109,320
TOTAL SHAREHOLDERS’ EQUITY		1,606,772			1,547,473
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,816,455		$	4,099,938

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,
	2008			2007			2008			2007
REVENUE:
NET EARNED PREMIUMS	$	408,512		$	359,149		$	1,180,937		$	1,015,182
NET INVESTMENT INCOME		33,273			30,199			97,577			85,694
NET REALIZED INVESTMENT GAIN (LOSS)		(17,852	)		2,817			(40,759	)		32,638
OTHER INCOME		870			980			5,877			2,660
TOTAL REVENUE		424,803			393,145			1,243,632			1,136,174
LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES		330,726			146,389			820,218			479,142
NET REINSURANCE RECOVERIES		(96,887	)		(1,584	)		(169,690	)		(35,243	)
NET LOSS AND LOSS ADJUSTMENT EXPENSES		233,839			144,805			650,528			443,899
ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES		117,640			101,252			347,275			299,902
OTHER OPERATING EXPENSES		4,314			2,992			12,279			9,128
TOTAL LOSSES AND EXPENSES		355,793			249,049			1,010,082			752,929
INCOME BEFORE INCOME TAXES		69,010			144,096			233,550			383,245
INCOME TAX EXPENSE (BENEFIT):
CURRENT		24,931			53,198			90,281			146,528
DEFERRED		(5,888	)		(5,346	)		(22,282	)		(19,908	)
TOTAL INCOME TAX EXPENSE		19,043			47,852			67,999			126,620
NET INCOME	$	49,967		$	96,244		$	165,551		$	256,625
PER AVERAGE SHARE DATA:
NET INCOME — BASIC	$	0.71		$	1.37		$	2.36		$	3.65
NET INCOME — DILUTED	$	0.68		$	1.30		$	2.27		$	3.46
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING		69,996,068			70,457,765			70,084,248			70,323,834
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING		3,602,386			3,599,654			2,884,758			3,856,902
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING		73,598,454			74,057,419			72,969,006			74,180,736

EX-99.2

PHILADELPHIA INSURANCE COMPANIES
SUMMARY SEGMENT TOTALS
FOR THE THREE MONTHS ENDED SEPTEMBER 2008 AND 2007
(DOLLARS IN THOUSANDS)

	9/30/2008		9/30/2007		2008 VS. 2007			9/30/2008		9/30/2007		2008 VS. 2007
	GROSS		GROSS		%			GROSS		GROSS		%
	WRITTEN		WRITTEN		INCREASE			EARNED		EARNED		INCREASE
	PREMIUMS		PREMIUMS		<DECREASE>			PREMIUMS		PREMIUMS		<DECREASE>
COMMERCIAL LINES		467,627		425,131		10.0	%		379,391		332,756		14.0	%
SPECIALTY LINES		75,073		68,476		9.6	%		65,544		59,984		9.3	%
RUN-OFF (PERSONAL LINES)		11,153		11,021		1.2	%		13,042		18,917		-31.1	%
TOTAL ALL LINES		553,853		504,628		9.8	%		457,977		411,657		11.3	%

	9/30/2008		9/30/2007		2008 VS. 2007			9/30/2008		9/30/2007		2008 VS. 2007
	NET		NET		%			NET		NET		%
	WRITTEN		WRITTEN		INCREASE			EARNED		EARNED		INCREASE
	PREMIUMS		PREMIUMS		<DECREASE>			PREMIUMS		PREMIUMS		<DECREASE>
COMMERCIAL LINES		425,251		389,299		9.2	%		342,005		303,380		12.7	%
SPECIALTY LINES		72,113		55,929		28.9	%		63,250		48,676		29.9	%
RUN-OFF (PERSONAL LINES)		-815		-2,738		70.2	%		3,257		7,093		-54.1	%
TOTAL ALL LINES		496,549		442,490		12.2	%		408,512		359,149		13.7	%

EX-99.3

PHILADELPHIA INSURANCE COMPANIES
SUMMARY SEGMENT TOTALS
FOR THE NINE MONTHS ENDED SEPTEMBER 2008 AND 2007
(DOLLARS IN THOUSANDS)

	9/30/2008		9/30/2007		2008 VS. 2007			9/30/2008		9/30/2007		2008 VS. 2007
	GROSS		GROSS		%			GROSS		GROSS		%
	WRITTEN		WRITTEN		INCREASE			EARNED		EARNED		INCREASE
	PREMIUMS		PREMIUMS		<DECREASE>			PREMIUMS		PREMIUMS		<DECREASE>
COMMERCIAL LINES		1,190,605		1,058,407		12.5	%		1,095,706		945,953		15.8	%
SPECIALTY LINES		209,403		189,182		10.7	%		190,136		175,141		8.6	%
RUN-OFF (PERSONAL LINES)		42,211		49,666		-15.0	%		41,389		63,677		-35.0	%
TOTAL ALL LINES		1,442,219		1,297,255		11.2	%		1,327,231		1,184,771		12.0	%

	9/30/2008		9/30/2007		2008 VS. 2007			9/30/2008		9/30/2007		2008 VS. 2007
	NET		NET		%			NET		NET		%
	WRITTEN		WRITTEN		INCREASE			EARNED		EARNED		INCREASE
	PREMIUMS		PREMIUMS		<DECREASE>			PREMIUMS		PREMIUMS		<DECREASE>
COMMERCIAL LINES		1,088,051		968,264		12.4	%		995,821		861,927		15.5	%
SPECIALTY LINES		205,772		155,827		32.1	%		177,237		141,969		24.8	%
RUN-OFF (PERSONAL LINES)		7,140		-4,981		243.4	%		7,879		11,286		-30.2	%
TOTAL ALL LINES		1,300,963		1,119,110		16.2	%		1,180,937		1,015,182		16.3	%

EX-99.4

PHILADELPHIA INSURANCE COMPANIES
ADDITIONAL SUPPLEMENTAL INFORMATION
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS )

NET LOSS AND LOSS ADJUSTMENT EXPENSES:

	Net Incurred Loss and Loss Adjustment Expenses									Net Paid Loss and Loss Adjustment Expenses
	For The Three Months Ended					For The Nine Months Ended				For The Three Months Ended				For The Nine Months Ended
	September 30,					September 30,				September 30,				September 30,
PRODUCTS	2008		2007			2008		2007		2008		2007		2008		2007
COMMERCIAL LINES	$	200,510	$	146,416		$	566,596	$	385,122	$	140,097	$	102,266	$	371,137	$	261,412
SPECIALTY LINES		31,579		(3,149	)		79,548		51,651		28,156		15,043		70,890		50,538
RUN-OFF (PERSONAL LINES)		1,750		1,538			4,384		7,126		2,125		2,959		6,775		9,090
TOTAL NET LOSS AND LOSS ADJUSTMENT EXPENSES	$	233,839	$	144,805		$	650,528	$	443,899	$	170,377	$	120,268	$	448,802	$	321,040

Net Loss & Lae Reserves @ September 30, 2008	$	1,463,641
Taxable Equivalent Yield @ September 30, 2008		5.5	%
Portfolio Duration @ September 30, 2008	5.5 yrs
Book Value Per Common Share @ September 30, 2008	$	22.38
Shares Repurchased During the Three Months Ended September 30, 2008		0