BALA CYNWYD, Pa., June 19 /PRNewswire-FirstCall/ -- Philadelphia Consolidated Holding Corp. today reported its initial loss estimates for the following weather events:
-- Hail, tornado and wind losses which occurred in Minnesota, Nebraska, Kansas and Oklahoma during the period May 22, 2008 through May 26, 2008, and
-- Hail, tornado and wind losses which occurred in Illinois, Indiana, Kansas, Minnesota, Nebraska, and Oklahoma during the period May 29, 2008 through June 1, 2008.
Although claims information is preliminary, the Company estimates its net pre-tax losses related to these events to be approximately $10.0 million for each of these two events (a total of approximately $20.0 million). The Company estimates a total reduction of second quarter net income as a result of these events of $13.0 million ($0.18 per diluted share).
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; and (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. The Company does not intend to publicly update any forward looking statement, except as may be required by law.
In operation since 1962, PHLY designs, markets, and underwrites commercial property/casualty and professional liability insurance products incorporating value added coverages and services for select industries. The Company, whose commercial lines insurance subsidiaries are rated A+ (Superior) by A.M. Best Company and A1 for insurance financial strength by Moody's Investors Services, is nationally recognized as a member of Ward's Top 50, Forbes' Platinum 400 list of America's Best Big Companies and Forbes' 100 Best Mid-Cap Stocks in America. The organization has 47 offices strategically located across the United States to provide superior service.
