Philadelphia Consolidated Posts 38% Q1 Net Income Gain to $10.7 Million

Philadelphia Consolidated Holding Corp. of Bala Cynwyd Pa. reported that its net income for the first quarter ended March 31, 2002 increased 38.4% to $10.7 million from $7.7 million for the same period in 2001.

It also reported that net operating income for the first quarter ended March 31, 2002 increased 71.2% to $10.7 million from $6.2 million last year, while gross written premiums increased 31.3% to $136.5 million from $104.0 million in the first quarter of 2001, and the company’s combined ratio for the quarter was 90.6% vs. 92.6% for the same period last year.

Commenting on the results CEO James J. Maguire stated that, “We had an excellent quarter with additional benefits deriving from increased premium rates, industry capacity and a desire to underwrite with A+ rated companies. We realized some reduction in the operating expense ratio (31.2% vs. 33.8%, quarter over quarter), which was a byproduct primarily of increased written premiums and rate increases, and also resulted from improved processing as a result of our advanced technology.”

Maguire also announced that James J. Maguire Jr. (Jamie),currently Philadelphia Consolidated’s President and COO would assume the additional post of CEO, effective October 1, 2002. The senior Maguire indicated that he would remain as Chairman of the Board.