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EXHIBIT 99.2
[PHILADELPHIA CONSOLIDATED HOLDING CORP. LOGO]
[PHILADELPHIA CONSOLIDATED HOLDING CORP. LETTERHEAD]
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PHILADELPHIA CONSOLIDATED HOLDING CORP.
FIRST QUARTER RESULTS
MARCH 31, 1998
APRIL 16, 1998 PRESS RELEASE
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Bala Cynwyd, PA--Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today
reported net income for the first quarter ended March 31, 1998 increased 25.0%
to $4.5 million ($0.30 diluted earnings per share and $0.37 basic earnings per
share) vs. $3.6 million ($0.25 diluted earnings per share and $0.30 basic
earnings per share) for the same period in 1997. The Company's combined ratio
for the current quarter was 85.7% vs. 86.8% for the same quarter in 1997. Gross
written premiums, excluding involuntary plans, increased 17.2% in the quarter
to $40.3 million vs. $34.4 million in the first quarter 1997. Shareholders'
equity grew to $119.7 million ($9.74 per outstanding common share) as of
3/31/98 from $111.3 million ($9.09 per outstanding common share) at 12/31/97.
Additionally, the insurance subsidiaries' rating was upgraded by A.M. Best
Company to "A+" (Superior) from "A" (Excellent) and Standard & Poor's
reaffirmed its "A" rating for the insurance subsidiaries.
James J. Maguire, Chairman, President & CEO said "The first quarter developed
nicely with 90% retention of existing accounts and a good spread of new
business. The Preferred Agent Program is also developing as planned with four
new contracts executed during the quarter."
Philadelphia Insurance Companies, rated "A+ (Superior)" by A.M. Best Company,
and "A" by Standard & Poor's, markets and underwrites specialty property and
casualty insurance products through 38 proprietary underwriting offices across
the U.S. of A.
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PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
As of
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March 31, December 31,
1998 1997
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(Unaudited)
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET
(AMORTIZED COST $181,518 AND $165,052)...................................... $186,847 $170,678
EQUITY SECURITIES AT MARKET (COST $29,836
AND $29,501)................................................................ 53,205 46,988
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TOTAL INVESTMENTS......................................................... 240,052 217,666
CASH AND CASH EQUIVALENTS..................................................... 8,337 11,933
ACCRUED INVESTMENT INCOME..................................................... 2,488 2,786
PREMIUMS RECEIVABLE........................................................... 16,753 15,269
PREPAID REINSURANCE PREMIUMS AND REINSURANCE
RECEIVABLES................................................................. 18,432 18,573
DEFERRED ACQUISITION COSTS.................................................... 11,932 10,970
PROPERTY AND EQUIPMENT........................................................ 5,901 5,797
OTHER ASSETS.................................................................. 7,250 5,132
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TOTAL ASSETS.............................................................. $311,145 $288,126
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LIABILITIES AND SHAREHOLDERS' EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES...................................... $128,081 $122,430
UNEARNED PREMIUMS............................................................. 44,964 42,116
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TOTAL POLICY LIABILITIES AND ACCRUALS..................................... 173,045 164,546
PAYABLE FOR SECURITY PURCHASES................................................ 4,895 --
OTHER LIABILITIES............................................................. 5,803 7,948
DEFERRED INCOME TAXES......................................................... 6,130 4,348
INCOME TAXES PAYABLE.......................................................... 1,571 --
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TOTAL LIABILITIES.......................................................... 191,444 176,842
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COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
PREFERRED STOCK $.01 PAR VALUE,
10,000,000 SHARES AUTHORIZED,
NONE ISSUED AND OUTSTANDING...............................................
COMMON STOCK, NO PAR VALUE,
50,000,000 SHARES AUTHORIZED, 12,284,870 AND
12,242,431 SHARES ISSUED AND OUTSTANDING.................................. 43,386 42,788
NOTES RECEIVABLE FROM SHAREHOLDERS............................................ (1,752) (1,422)
UNREALIZED INVESTMENT APPRECIATION
(DEPRECIATION), NET OF DEFERRED INCOME TAXES............................... 18,654 15,023
RETAINED EARNINGS............................................................. 59,413 54,895
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TOTAL SHAREHOLDERS' EQUITY................................................ 119,701 111,284
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY................................. $311,145 $288,126
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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,
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1998 1997
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REVENUE:
GROSS EARNED PREMIUMS ........................................ $ 37,466 $ 32,617
CEDED EARNED PREMIUMS ........................................ (10,551) (10,229)
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NET EARNED PREMIUMS .......................................... 26,915 22,388
NET INVESTMENT INCOME ........................................ 2,700 2,211
NET REALIZED INVESTMENT GAIN ................................. 3 28
OTHER INCOME ................................................. 57 57
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TOTAL REVENUE ........................................... 29,675 24,684
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LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES ............................ 16,064 13,385
NET REINSURANCE RECOVERIES ................................... (1,206) (904)
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NET LOSS AND LOSS ADJUSTMENT EXPENSES ........................ 14,858 12,481
ACQUISITION COSTS AND OTHER UNDERWRITING EXPENSES ............ 8,219 6,946
OTHER OPERATING EXPENSES ..................................... 533 523
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TOTAL LOSSES AND EXPENSES ............................... 23,610 19,950
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INCOME BEFORE INCOME TAXES ........................................ 6,065 4,734
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INCOME TAX EXPENSE (BENEFIT):
CURRENT ...................................................... 1,720 1,562
DEFERRED ..................................................... (173) (450)
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TOTAL INCOME TAX EXPENSE ................................ 1,547 1,112
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NET INCOME .............................................. $ 4,518 $ 3,622
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PER AVERAGE SHARE DATA:
BASIC EARNINGS PER SHARE(1) .................................. $0.37 $0.30
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DILUTED EARNINGS PER SHARE(1) ................................ $0.30 $0.25
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WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING(1) ..................... 12,262,983 12,133,216
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING(1) ................. 2,790,988 2,570,174
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WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS OUTSTANDING(1) ...... 15,053,971 14,703,390
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(1) 1997 restated to reflect a two for one split of the Company's common stock
distributed in November 1997.