Philadelphia Consolidated Holding (PHLY) 8-K Results of Operations and Financial Condition

PHILADELPHIA INSURANCE COMPANIES
ADDITIONAL SUPPLEMENTAL INFORMATION
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(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 Twelve Months Ended				For The Three Months Ended				For The Twelve Months Ended
	December 31,					December 31,				December 31,				December 31,
PRODUCTS	2006		2005			2006		2005		2006		2005		2006			2005
COMMERCIAL LINES	$	93,562	$	94,818		$	343,575	$	375,590	$	69,264	$	57,724	$	262,999		$	216,955
SPECIALTY LINES		34,882		18,579			109,462		93,824		16,547		13,511		65,218			46,941
PERSONAL LINES		2,642		6,477			15,175		34,592		3,087		10,582		17,366			35,117
TOTAL	$	131,086	$	119,874		$	468,212	$	504,006	$	88,898	$	81,817	$	345,583		$	299,013
WHOLE ACCOUNT NET QUOTA SHARE REINSURANCE COMMUTATIONS		0		0			0		0		0		0		(31,804	)		(64,283	)
TOTAL NET LOSS AND LOSS ADJUSTMENT EXPENSES	$	131,086	$	119,874		$	468,212	$	504,006	$	88,898	$	81,817	$	313,779		$	234,730
Net Loss & Lae Reserves @ December 31, 2006			$	1,095,429
Taxable Equivalent Yield @ December 31, 2006				5.4	%
Portfolio Duration @ December 31, 2006				4.6
Book Value Per Common Share @ December 31, 2006			$	16.48
Shares Repurchased During the Three Months Ended December 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 twelve months ended December 31, 2006 and 2005, respectively.