BALA CYNWYD, Pa., Oct. 23 /PRNewswire-FirstCall/ -- 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 million ($0.29 diluted earnings per share) for the nine months ended
September 30, 2007.
