<PAGE> 1
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): April 22, 1999
Philadelphia Consolidated Holding Corp.
(Exact name of Registrant as specified in its charter)
Pennsylvania 0-22280 23-2202671
(State or other juris- (Commission (IRS Employer
diction of incorporation) File No.) 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
(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 5. OTHER EVENTS.
The Registrant is filing this Current Report on Form 8-K solely
for the purpose of filing the Exhibit listed in Item 7(c) below.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
Exhibit 99.1 Press Release dated April 22, 1999.
SIGNATURE
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)
Date: May 7, 1999 By: /s/ Craig P. Keller
-------------------------------------
Craig P. Keller
Vice President, Secretary and
Chief Financial Officer
2-
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description Method of Filing
- ------- ----------- ----------------
<S> <C> <C>
99.1 Press Release dated April 22, 1999 Filed electronically herewith.
</TABLE>
3-
<PAGE> 1
PHILADELPHIA CONSOLIDATED HOLDING CORP.
FIRST QUARTER RESULTS
March 31, 1999
APRIL 22, 1999 PRESS RELEASE
Bala Cynwyd, PA - Philadelphia Consolidated Holding Corp. (PHLY-NASDAQ) today
reported net operating income for the first quarter ended 03/31/99 increased to
$5.256 million ($0.35 diluted and $0.43 basic operating earnings per share) vs.
$4.516 million ($0.30 diluted and $0.37 basic operating earnings per share) for
the same period in 1998. The Company's combined ratio for the quarter was 87.1%
vs. 85.7% for the same quarter in 1998. Gross written premiums increased 44.1%
in the quarter to $58.1 million vs. $40.3 million in the first quarter 1998. The
first quarter net income, which included pretax realized losses on sale of
securities of $0.5 million, increased to $4.937 million ($0.33 diluted and $0.40
basic earnings per share) vs. $4.518 million ($0.30 diluted and $0.37 basic
earnings per share) for the same period in 1998.
James J. Maguire, Chairman, President & CEO said, "The recently announced
acquisition of the Jerger Company, Inc. is proceeding as anticipated; and we are
hopeful that a closing will take place before the end of the second quarter."
Our first quarter results were in line with our expectations and we continue to
be optimistic about the balance of 1999."
Philadelphia Insurance Companies, rated "A+ (Superior)" by A.M. Best Company,
and "A" by Standard and Poor's, markets and underwrites specialty property and
casualty insurance products through 40 proprietary underwriting offices across
the U.S. of A.
<PAGE> 2
PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
As of
--------------------------
March 31 December 31
1999 1998
----------- -----------
(Unaudited)
<S> <C> <C>
ASSETS
INVESTMENTS:
FIXED MATURITIES AVAILABLE FOR SALE AT MARKET (AMORTIZED COST $289,930 AND $278,557) .......... $ 293,307 $ 283,718
EQUITY SECURITIES AT MARKET (COST $48,761 AND $43,441) ........................................ 79,188 72,768
--------- ---------
TOTAL INVESTMENTS ........................................................................ 372,495 356,486
CASH AND CASH EQUIVALENTS ..................................................................... 29,842 31,573
ACCRUED INVESTMENT INCOME ..................................................................... 3,705 3,771
PREMIUMS RECEIVABLE ........................................................................... 29,122 27,769
PREPAID REINSURANCE PREMIUMS AND REINSURANCE RECEIVABLES ...................................... 25,024 22,892
DEFERRED ACQUISITION COSTS .................................................................... 18,884 16,853
PROPERTY AND EQUIPMENT ........................................................................ 5,433 4,877
OTHER ASSETS .................................................................................. 5,508 4,977
--------- ---------
TOTAL ASSETS ............................................................................. $ 490,013 $ 469,198
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
POLICY LIABILITIES AND ACCRUALS:
UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES ...................................................... $ 156,920 $ 151,150
UNEARNED PREMIUMS ............................................................................. 72,178 64,787
--------- ---------
TOTAL POLICY LIABILITIES AND ACCRUALS .................................................... 229,638 215,937
OTHER LIABILITIES ............................................................................. 12,149 9,463
DEFERRED INCOME TAXES ......................................................................... 6,947 7,410
--------- ---------
TOTAL LIABILITIES .......................................................................... 248,734 232,810
--------- ---------
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES:
COMPANY OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY TRUST
HOLDING SOLELY DEBENTURES OF COMPANY ......................................................... 98,905 98,905
--------- ---------
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, 12,330,825 SHARES ISSUED ............ 44,915 44,796
NOTES RECEIVABLE FROM SHAREHOLDERS ............................................................ (1,477) (1,680)
ACCUMULATED OTHER COMPREHENSIVE INCOME ........................................................ 21,973 22,417
RETAINED EARNINGS ............................................................................. 79,860 74,923
LESS COST OF COMMON STOCK HELD IN TREASURY, 110,980 AND 130,262 SHARES ........................ (2,897) (2,973)
--------- ---------
TOTAL SHAREHOLDERS' EQUITY ............................................................. 142,374 137,483
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ............................................. $ 490,013 $ 469,198
========= =========
</TABLE>
<PAGE> 3
PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
------------------------------
1999 1998
------------ ------------
<S> <C> <C>
REVENUES:
NET WRITTEN PREMIUMS ................................. $ 42,805 $ 29,954
CHANGE IN NET UNEARNED PREMIUM RESERVE (INCREASE) .... (6,041) (3,039)
------------ ------------
NET EARNED PREMIUMS .................................. 36,764 26,915
NET INVESTMENT INCOME ................................ 4,854 2,700
NET REALIZED INVESTMENT GAIN (LOSS) .................. (490) 3
OTHER INCOME ......................................... 57
------------ ------------
TOTAL REVENUE .................................. 41,128 29,675
------------ ------------
LOSSES AND EXPENSES:
LOSS AND LOSS ADJUSTMENT EXPENSES .................... 22,515 16,604
NET REINSURANCE RECOVERIES ........................... (2,253) (1,206)
------------ ------------
NET LOSS AND LOSS ADJUSTMENT EXPENSES ................ 20,262 14,858
ACQUISITION COSTS AND OTHER UNDERWRITING
EXPENSES .......................................... 11,777 8,219
OTHER OPERATING EXPENSES ............................. 519 533
------------ ------------
TOTAL LOSSES AND EXPENSES ........................ 32,558 23,610
------------ ------------
MINORITY INTEREST: DISTRIBUTIONS ON COMPANY OBLIGATED
MANDATORILY REDEEMABLE PREFERRED SECURITIES OF
SUBSIDIARY TRUST ..................................... 1,811
------------ ------------
INCOME BEFORE INCOME TAXES .............................. 6,759 6,065
------------ ------------
INCOME TAX EXPENSE (BENEFIT):
CURRENT .............................................. 2,045 1,720
DEFERRED ............................................. (233) (173)
------------ ------------
TOTAL INCOME TAX EXPENSE ......................... 1,822 1,547
------------ ------------
NET INCOME ....................................... $ 4,937 $ 4,518
------------ ------------
PER AVERAGE SHARE DATA
BASIC EARNINGS PER SHARE ............................. $ 0.40 $ 0.37
============ ============
DILUTED EARNINGS PER SHARE ........................... $ 0.33 $ 0.30
============ ============
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING .............. 12,209,391 12,262,983
WEIGHTED-AVERAGE SHARE EQUIVALENTS OUTSTANDING .......... 2,823,711 2,790,988
------------ ------------
WEIGHTED-AVERAGE SHARES AND SHARE EQUIVALENTS
OUTSTANDING .......................................... 15,033,102 15,053,971
------------ ------------
</TABLE>
