Philadelphia Consolidated Holding Corp. Comments on Impact of Hurricane Rita

20 October 2005

Philadelphia
Consolidated Holding Corp. (Nasdaq: PHLY) today reported its initial estimate
of losses attributable to Hurricane Rita. Although claims information is
preliminary, the Company estimates its net after-tax losses to be
approximately $3.3 million. Such after-tax losses may change due to the
preliminary nature of the information currently available. The Company
further announced that the catastrophe losses due to Hurricane Rita impacted
its commercial lines book of business.
As a result of utilizing certain catastrophe reinsurance coverage in
connection with this hurricane event, the Company will recognize approximately
$0.2 million, after-tax, in accelerated catastrophe reinsurance premium
expense during the third quarter 2005.
The Company's catastrophe reinsurance programs in place after Hurricane
Rita provide $288.0 million in excess of a $3.5 million per occurrence
retention for the Company's personal lines catastrophe losses and
$90.0 million in excess of a $10.0 million per occurrence retention for its
commercial lines catastrophe losses. These catastrophe reinsurance programs
provide catastrophe reinsurance coverage through May 31, 2006.

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.

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 2004 annual report, visit our web site at
http://www.phly.com.