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Executives

Joseph Barnholt - Asst VP, Fin and Tax Reporting, IR

James J. Maguire, Jr. - President and CEO

Christopher J. Maguire - EVP and Chief Underwriting Officer

Craig P. Keller - EVP, Secretary, Treasurer, and CFO

Sean S. Sweeney - EVP and Chief Marketing Officer

Analysts

Michael Grasher - Piper Jaffray & Co

Amit Kumar - Fox-Pitt, Kelton

Alison Jacobowitz - Merrill Lynch

Philadelphia Consolidated Holding Corp. (PHLY) Q1 FY08 Earnings Call April 24, 2008 3:00 PM ET

Operator

Good day, everyone, and welcome to today's Philadelphia Consolidated Holding Corp. First Quarter 2008 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Joe Barnholt, Director of Investor Relations. Please go ahead, sir.

Joseph Barnholt - Asst Vice President, Fin and Tax Reporting, Investor Relations

Thank you.

I would also like to welcome you to Philadelphia Insurance Companies first quarter 2008 earnings conference call. Please be advised that certain information included in this presentation and other statements or materials published by the company are not historical facts, but are forward-looking statements as defined by the Private Securities Litigation Reforms Act of 1995.

Please refer to the company's annual report on Form 10-K for the year ended December 31st, 2007, and its past and future filings and reports filed with the Securities and Exchange Commission for a description of the business environment in which the company operates and the important factors that may affect its business. Philadelphia Consolidated Holding Corp. does not intend to publicly update any forward-looking statement except as may be required by law.

I would now like to introduce the members of our management team who are joining me this afternoon. First of all, I would like to introduce Jamie Maguire, our President and CEO, who I will turn the conference over to shortly. Also joining me is Sean Sweeney, Executive Vice President and Chief Marketing Officer, Craig Keller, Executive Vice President and Chief Financial Officer and Chris Maguire, Executive Vice President and Chief Underwriting Officer.

A replay of today's conference call will be available from 5:00 p.m. today until May 8th, 2008. You can access the replay by visiting our website, phly.com. Additionally, our supplemental financial information has been posted on our website. In order to access this information, click on Investor Center followed by Reports. Please feel free to contact me with any follow-up questions or requests. My direct dial number is area code 610-617-7626, and my e-mail address is jbarnholt@phlyins.com.

I now will turn the conference over to Jamie Maguire, our President and CEO.

James J. Maguire, Jr. - President and Chief Executive Officer

Thank you, Joe, and good afternoon, everyone.

I think we had another great quarter here, first quarter of 2008. I want to welcome everyone on the conference call and those of you listening in over the web. I hope you’ve had a chance to go through our press release and the supplemental financial information that Joe mentioned, as well as the presentation that I am about to go through at phly.com.

Just in opening, I just want to thank our employees for the great teamwork this quarter. It's a very, very competitive market out there. I think we have shown a lot of camaraderie and a lot of teamwork and discipline to risk select the best business and I think I am about to go through some of the financials that bare that out.

Page three of the presentation is the agenda that I am going to go through, the financial highlights for the first quarter, drivers of the future, our expectations for 2008, and I will take your questions.

Page four, some first quarter highlights. We announced $443.1 million of gross written premium in the quarter. This is a 12.4% increase over this time last year. We had good growth across all geographic sectors, all regions of the country, primarily in the mid-teens to upper-teens. We had a couple single-digit growers in the Mid-Atlantic, Metro and North Central regions, but all in all I am pretty pleased with the geographic spread of our business.

We also had some contributions from new products in the quarter, $13.7 million of new production from new products versus $1 million this time last year. We saw growth in the affordable housing sector, $7.4 million of premium. And the campground and RV parks, we had $1.1 million of gross written premiums, fitness trainer professional of about $800,000, and then we saw some special events accounts about $700,000 special event account from the quarter.

In the quarter, we had $7.4 million of after-tax realized losses as a result of an accounting issue and impairment on our equity securities, which we did not see this time last year. We also had a very strong combined ratio in the quarter 81.1% versus 77.6% this time last year. If you normalize the loss ratios for redundancy, we had 4.1 point this time last year, which would equate to a 51.3% loss ratio in 2007 versus 1.5 points redundancy for this quarter, which will equate to 52.5% loss ratio, so clearly very good in the competitive environment to deliver this type of profitable underwriting.

Page 5 some of the operating highlights. Operating income grew by 8%, $70.1 million versus $64.9 million in the quarter. I mentioned the impairment losses of $7.4 million after-tax. So, our net income in the quarter, $62.7 million versus $66 million this time last year. That equates to diluted operating earnings per share of $0.96 compared to $0.87 in the first quarter of 2007, and again our combined ratio of 81.1% versus 77.6% first quarter of 2007. Some balance sheet items on page 6, shareholders equity is now just over $1.5 billion, our book value per share is $21.90. We have just over 71 million shares outstanding and the trailing 12-month return on shareholders equity is 22.7%.

Page 7, some notable items in the quarter, we reported $62.7 million of net income. We had favorable prior year reserve development, which I’ll go into in a minute of $3.8 million after-tax, and then I mentioned the impairment from our equity portfolio of $7.5 million after-tax.

Page 8, the favorable development on prior accident years, primarily came from general liability lines although we did see favorable development in some of our professional and commercial property lines as well, but most of the development, favorable development for prior accident years came from general liability.

Page 9, our gross written premiums by segment, you can see we had very strong growth in our commercial line segment 15.1%. This is most of what we do. Specialty lines, our professional liability segment grew 13.8% and then our personal line segment, the Liberty American Group, we declined the premium writing there by 29.1%, so the aggregate total growth quarter-over-quarter 12.4%.

Page 10, looking at the commercial line segment, as I mentioned, it's about 81% of our total gross written premiums, 24% compound annual growth rate the last five years, and a 15% quarter-over-quarter growth. We saw good growth in a few product lines. Condominium association package grew by 34% to $48 million in the quarter, religious organizations package 54% growth to $23 million, our day care product 22% to $11 million, golf centers about 41% growth to $5 million, and then our collector vehicle program through Grundy grew 26% to $7.6 million. So clearly, we have got a lot of good spread from a products standpoint, and we are seeing lot of opportunities and lot of growth potential in those products. I mentioned the new products for this segment, the affordable housing $7 million, campgrounds and RV parks at $1.1 million, and fitness trainers of $800,000.

Page 11, the specialty line segment, the professional liability segment of the company, about 15.6% of our quarter’s gross written premium, 17% growth over the last five years and about 14% quarter-over-quarter growth. We saw growth in our miscellaneous professional liability product, 20% quarter-over-quarter at $18 million. And our private company D&O product, we grew that by 17% to $14 million. And our non-profit D&O, we grew by 12% to $20 million. So, we are getting good growth in the small professional liability segments. A new product that we have launched early last year was the Business Owner's Policy, the BOP policy. We did $2.2 million of that product in the first quarter from virtually a dead start this time last year.

Page 12, our investment portfolio continues to be very conservatively managed. We've been able to side step the whole credit quality, subprime issue, and we remain unaffected as a result of what's happened in the marketplace. The portfolio value right now is just over $3 billion, $3.2 billion. The average credit quality for our fixed income portfolio was AA+. Our portfolio duration 5.2-years and a 5.5% taxable equivalent yield on these securities. Our equity securities continue to be managed by four outside managers, a value, a growth, a small cap, and an international manager. We have roughly $310 million of market value for our equities.

Page 13, our structured securities investment portfolio, the key takeaway here is that in the middle of the slide, we have roughly $24 million of Alt-A and subprime, securities in our portfolio. All these are AAA rated, their first cash flow tranches, the weighted average life of these portfolio... of these securities is 2.3 years. They are all [inaudible], we’ve had no rating downgrades, and this represents a very small percentage of our overall portfolio, and they continue to perform and are not a credit concern to us.

Page 14, our investment income, we have had a compound annual growth in investment income of about 26% over the last five years. Quarter-over-quarter, we had about 19% growth in our investment income. We had $162 million of cash flow in the quarter and we put the new money to work at about 4.4% taxable equivalent yield. At the bottom, you can see our effective tax rate quarter-over-quarter dropped from 22.8% to 21% reflecting our focus on investing in municipal securities.

Page 15, some select operating metrics from the company. We continue to hold on to our business, and this business is what's made us profitable in the past. We have held on to 94% of our renewals in the commercial line segment, 96% of our renewals in the specialty line segment. From a rate change stand point, from a pricing standpoint, we are seeing more competition, a 4.7% decrease in commercial lines, 2.1% decrease in specialty lines, which in looking at the market data, I think compares favorably with the market and reflects the fact we are niche, we are smaller, account less than a 100,000 in premium. As a result, the rate changes in the price competition is not as severe as it is on larger accounts. New business growth in the quarter was up 2.4% to 31,626 accounts.

Page 16, our preferred agents as of the end of first quarter totaled 217. They contributed about $141 million of gross written premium in the quarter, which is about 32% of the quarter's gross written premium. They had about 89% renewal retention on a quota basis, and they produced about $23 million of gross written premium in the quarter. We are now over 1,400 employees coast-to-coast, but our measure of efficiency, that is the gross written premium per employee has remained at $1.2 million, a good indicator that we are an efficiently run organization. Our turnover remains at 12%, it’s hovered around that range for the last several quarters.

During the first quarter, we bought back roughly 1.3 million shares of stock. We were opportunistic and purchased the stock at a weighted average price of about $31.70, and we spent roughly $43 million to make those purchases. And at this morning's Board meeting, the Board has authorized me to go into the market and continue to repurchase where we see the opportunity, and they've authorized an additional $50 million to do that.

Page 17, drivers of the future are going to remain as the same. We are going to have our national presence. We have 48 offices now, we have added two, one in Omaha and one in Albany. We are going to continue with our mixed marketing approach to distribution, which I think allows us to grow much better and much more profitably than our peer companies. We are going to continue to look at offering new products to complement our core products.

To the extent that there is disruption in the industry, whether by way of regulatory actions or consolidations like with Liberty Mutual and Safeco, we feel we are well positioned to take advantage of any fallout as a result of those disruptions. And we have got a solid management team with a pricing and underwriting discipline, that's generated the results that we've seen over the last several years.

We continue to invest in technology to utilize the web as a platform to lower our expense ratio, and will be doing more in that regard with our agents and with our policyholders. We anticipate an A+ affirmation from A.M. Best here in the next few weeks for 2007, and we are going to look to grow our preferred agent program 15%.

Our expectations for the upcoming year, we have increased our operating earnings per share range by the $0.05 of redundancy that we announced this quarter. So our range is now $3.60 to $3.70, and it contemplates the same catastrophe loss retentions, 10 million for commercial and $3.5 million for personal lines.

We anticipate growing our gross written premiums to 10% to 15%, an action year combined ratio approximating 85%, although we are well below that to the first quarter, renewal retention levels at 87.5% and we exceeded that in this quarter, an investment environment that's in transition, and a competitive pricing environment for most of our products.

At this point, I would like to turn it over for your questions.

Question and Answer

Operator

[Operator Instructions]. We will take our first question today from Mike Grasher.

Michael Grasher - Piper Jaffray & Co

Good Afternoon. Congratulations on another nice quarter.

James J. Maguire, Jr. - President and Chief Executive Officer

Thanks, Michael.

Michael Grasher - Piper Jaffray & Co

I don’t know if this is for Chris or Jim, if he is available, but any change that you are noticing or things you are noticing on the loss cost side?

Christopher J. Maguire - Executive Vice President and Chief Underwriting Officer

This is Chris. With reference to our change in loss costs from a pricing and filing perspective or -- I am not following you there?

Michael Grasher - Piper Jaffray & Co

Just in terms of either, I guess, in terms of your claims, in terms of what you might be seeing there?

James J. Maguire, Jr. - President and Chief Executive Officer

In terms of loss inflation, I think it's probably just tracking with inflation, which is 3% to 4%.

Michael Grasher - Piper Jaffray & Co

Okay. But is there anything that's creating or causing you to maybe take reserves up or change your multiplier in terms of your assumptions around reserving the new business?

James J. Maguire, Jr. - President and Chief Executive Officer

No.

Michael Grasher - Piper Jaffray & Co

Okay. The specialty lines premium, I was just noticing the on a net-written basis the number higher than on the gross, can you walk us through what that is all about?

Craig P. Keller - Executive Vice President, Secretary, Treasurer, & Chief Financial Officer

Yes, Mike, it's Craig. I think what that's all about is our casualty treaty renewed at 1/1. We had a rate reduction for our casualty treaty and it's a own premium based treaty. So, it's an adjustment to lower the rate on the unearned premium reserve that have been stated, which offsets written premium and increases the written premium.

Michael Grasher - Piper Jaffray & Co

Okay. And then if you could, Jamie, could you take us through or remind us what the rules are around the run-off with the personal lines, I guess why hasn't it accelerated more than what we have experienced?

James J. Maguire, Jr. - President & Chief Executive Officer

Well, we have to adhere to the OIR, the Office of Insurance Regulation in Florida, and we received their approval, I guess, within February… January, excuse me, to go ahead and non-renew the remaining homeowners' policy. So, we have to give proper notice to the homeowners of their non-renewal, which would mean we begin the process in July in earnest and in July of 2009, we will have effectively non-renewed the remaining homeowners' policies.

Michael Grasher - Piper Jaffray & Co

So, as of July of '09, we will not see… it will be gone?

James J. Maguire, Jr. - President & Chief Executive Officer

That's correct.

Michael Grasher - Piper Jaffray & Co

Okay, thank you for that.

Operator

We will take our next question from Amit Kumar.

Amit Kumar - Fox-Pitt, Kelton

Thanks. Three quick questions. I guess just going back to that class-action lawsuit, is there any update on that?

James J. Maguire, Jr. - President and Chief Executive Officer

We are in the process of filing our response on that. We are working with the Council that's based in Miami, which is the venue in which the suit has been brought, a very experienced council with insurance class action. We feel we have very strong defenses and we have to file our response no later than May 15. So, we are in the process of formulating that and that's the update.

Amit Kumar - Fox-Pitt, Kelton

And have you set aside any reserves for that or not?

James J. Maguire, Jr. - President and Chief Executive Officer

No.

Amit Kumar - Fox-Pitt, Kelton

Okay. Moving on, I guess just going back to the reserve release numbers, and I think if I number correctly, there was some adverse development from '07, could you just give some more color on that?

James J. Maguire, Jr. - President and Chief Executive Officer

I think that came from some of our auto liability lines and to a lesser extent property. We just saw an uptick. There is nothing… there is no trend, there is nothing inherent in the business. I think it was a one time sort of aberration in that line of business, so that’s why we saw that.

Amit Kumar - Fox-Pitt, Kelton\

Okay, that's helpful. And moving on, I think in Q1 you had a new acquisition, Gillingham, could you just talk about that a bit?

James J. Maguire, Jr. - President and Chief Executive Officer

Yeah, we are very excited about that. We concluded that acquisition in March, Tom Gillingham and his group came on board. They are very specialized, they are recognized brand in the outdoor recreation and hospitality industry. We came up against them all the time, so it’s nice that we are joining forces with them. It’s roughly $50 million of gross written premium. We feel that we are going to be able to make a real major impact in that market.

Amit Kumar - Fox-Pitt, Kelton

Got it. And I guess just moving on to competition, I know that you mentioned some specific names in the Q4 call, obviously things have changed and we are seeing some of your peers posting adverse numbers, could you just update us as to what you are seeing out there in terms of aggressiveness?

Sean S. Sweeney - Executive Vice President and Chief Marketing Officer

Yeah, it’s Sean. It's very competitive in the larger account area, over 100,000 in the smaller account area. We still are in a position to create good inventory, and I think much to our amazement, a very, very positive situation in the small area... the small or down area.

Amit Kumar - Fox-Pitt, Kelton

That's interesting. Final question, I think in a proxy, you are trying to amend the incorporation and you are trying to increase the number of authorized shares to 125 million from 100 million. Is there something going on, like going forward, or what's the basis for this increase?

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and CFO

Amit, it’s Craig. Yes, there's nothing… there is nothing going on. We had one non-routine item we had to file in our proxy statement. As we just took a look at our organization, we thought it would be advantageous just to increase the number of shares authorized. Since non-routine items have to be filed really with the SEC for their reviews, so it was just a matter of our including that item. So, if there was anything that did come up, we weren’t delayed by having to file with SEC first, but there is no plans behind increasing that number.

James J. Maguire, Jr. - President and Chief Executive Officer

So, it's just housekeeping, is really what it was.

Amit Kumar - Fox-Pitt, Kelton

I though there was an acquisition coming up?

James J. Maguire, Jr. - President and Chief Executive Officer

[inaudible].

Amit Kumar - Fox-Pitt, Kelton

No, that's it. I am done for now, I will re-queue. Thanks so much.

James J. Maguire, Jr. - President and Chief Executive Officer

Fine, thanks.

Operator

Is that all for you, Mr. Kumar.

Amit Kumar - Fox-Pitt, Kelton

Yes, I am done. Thanks.

Operator

You are welcome. Our next question will come from Alison Jacobowitz.

Alison Jacobowitz - Merrill Lynch

Hi, thanks. Two questions. Can you tell us what the change in the unrealized gains was in the quarter? And then I guess the second question sort of flip sided the other one, a number of companies are looking for US specialty companies. Does it make sense for Phili to look to partner with anybody, just wondered how you’d answer that one?

James J. Maguire, Jr. - President and Chief Executive Officer

I think we are open to exploring partnerships with both domestic and foreign companies. I think we have to keep our eyes open for opportunities. I mean I think that's something that we've talked about and we are considering, looking to move into Canada, looking to move overseas. So I think that’s something that were open to. In terms of the unrealized gains, I am going to let Craig add to that.

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

Other than what’s showing up in our balance sheet, Alison, the change in unrealized?

Alison Jacobowitz - Merrill Lynch

Yes.

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

I mean we have that number. That's our cumulative other comprehensive income in our equity section.

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

Well, I just didn’t see it, okay.

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

That's the change in unrealized [inaudible] up for taxes, but that's the change in unrealized.

Alison Jacobowitz - Merrill Lynch

And you know… and, Jamie, the follow up on the last question, what about something more drastic, even joining another company? Is that something you would entertain?

James J. Maguire, Jr. - President and Chief Executive Officer

I think looking at partnerships, looking at ways to build shareholder value, it is something that we are open to. And if that means partnerships, we’re open to that. If that means bunting arrangements, if that means acquisitions, we are looking to build shareholder value, so we can't really rule anything out.

Alison Jacobowitz - Merrill Lynch

Thanks.

Operator

[Operator Instructions]. And we will go next to Mark Serathan [ph]

Unidentified Analyst

Thank you. What was the impact? Did Gillingham have an impact on the written premiums in the quarter?

James J. Maguire, Jr. - President and Chief Executive Officer

No, it did not. We are just starting to roll that business on. It is probably going to have an effect for the year, but it's going to... we are in the process now of beginning to roll it… it will probably begin in earnest in June.

Unidentified Analyst

Any type of seasonality on that business that we should be aware of?

James J. Maguire, Jr. - President and Chief Executive Officer

No. It’s pretty evenly spread.

Unidentified Analyst

Okay, thanks.

Operator

Our next questions comes from Lin Savage [ph].

Unidentified Analyst

Yes, hi. You mention that you made some... you had a rate reduction in your casualty re-insurance on 1/1. Are there other changes to the terms of retentions of the treaty?

Christopher J. Maguire - Executive Vice President & Chief Underwriting Officer

Yes. Hi, this is Chris Maguire. We increased our retention on the specialty lines, the professional liability from 1 million to 2 million.

Unidentified Analyst

Just in specialty?

Christopher J. Maguire - Executive Vice President & Chief Underwriting Officer

Just in specialty. We had already, we have on our commercial, we take a million on the primary, and then we take a million in the first in the umbrella. So, we end up with two, the equivalent of two there as well.

Unidentified Analyst

Okay. And what kind of reduction did you have on the treaty, rate wise?

Christopher J. Maguire - Executive Vice President & Chief Underwriting Officer

All in, not apples for apples, because we took an increase retention. It was about 25%.

Unidentified Analyst

25%. And like last year, if you look at last year, how many clients you have had? Would that hit, I guess, that extra million layer?

Christopher J. Maguire - Executive Vice President and Chief Underwriting Officer

We can get back to you on that --

Unidentified Analyst

Just roughly, I was just --

James J. Maguire, Jr. - President and Chief Executive Officer

Suffice to say that we looked at the ceded loss ration and it made substantial sense for us to take that retention there.

Unidentified Analyst

Got it.

James J. Maguire, Jr. - President and Chief Executive Officer

I mean that… obviously that was the main driver of wanting to go and take it because it was so profitable to the reinsurer.

Unidentified Analyst

Right. Are you guys able to sort of guesstimate how much of the rate reduction was -- was that increase in retention? How much is there sort of softness in the market?

Christopher J. Maguire - Executive Vice President and Chief Underwriting Officer

It was between 10% and 15%, the softness in the market.

Unidentified Analyst

Okay. Thanks guys.

Operator

We will take our next question from Scott Osborne [ph].

Unidentified Analyst

Thank you and good afternoon. Couple questions, or one question on the equity portfolio impairment charge, if you could give us a little color on that, and also did it relate to one particular manager or spread throughout the floor.

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

Scott, this is Craig. The charge we took was really just a routine other than temporary impairment evaluation that we do. We have certain triggers and when we say equity was almost all our common stock portfolio that if securities are on unrealized position for a period time, we are all actually going to write them down to market. And I think it’s just more of a function of the market conditions that caused the write down. These are holding that our equity managers, our common stock managers are planning to hold in their portfolio, so it’s more just our accounting policy that drove the impairment charge.

James J. Maguire, Jr. - President and Chief Executive Officer

And it was three of the four managers, right?

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

Yeah, three of the four managers.

Unidentified Analyst

Okay so there is no pattern or anything, it’s just a --....

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

No, there is no pattern. I think it's just more indicative what's been happening to the market over the last nine months.

Unidentified Analyst

Thank you all.

Operator

[Operator Instructions]. We will go to a follow up now from Amit Kumar.

Amit Kumar - Fox-Pitt, Kelton

Thanks. I guess just going back to Alison's question, when you talk about in looking overseas, like are there specific classes in mind or specific regions in mind, or maybe even open to a partnership for the Bermudian, can you just may be expand a bit more on your answer?

James J. Maguire, Jr. - President and Chief Executive Officer

I think we would look to take our product over primarily property in the UK and Europe initially to our non-profit package, or health and fitness. [inaudible] franchise, it's a global franchise that we can go over and insure their buildings under generally liability. So, it’d be pretty much is taking our model that we have here in the States, and moving it over across the pond. And we could do that by partnering with our company over there, by acquiring a company over there, so we are looking at all different options.

Craig P. Keller - Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

The other thing in that is, in Canada with Gillingham acquisitions, new branches, fishing [inaudible] guides and outfitters, that's a very big market in the wilderness sector of Canada, so that's an immediate opportunity that we’d certainly like to figure out how to do more business with Gillingham in Canada.

Amit Kumar - Fox-Pitt, Kelton

And how much can that grow to? I thought you said 50 million book, so maybe 100?

James J. Maguire, Jr. - President and Chief Executive Officer

Yes, or beyond. I think it's a very, very big market, and we are looking at 150, maybe 200 million potential.

Amit Kumar - Fox-Pitt, Kelton

Okay. That's all I have, thank you so much.

Operator

And now we will go to a follow-up from Alison Jacobowitz.

Alison Jacobowitz - Merrill Lynch

As I understood it, the expectation was to sort of keep it all and maybe grow it in the single digits, is that… is the 50 million plus the growth included in your 10% to 15% top line forecast for '08? And then I guess sort of implies that it is included now, that maybe you just lowered a little bit the assumptions for the other stuff that was underlying. Is that all correct?

James J. Maguire, Jr. - President and Chief Executive Officer

It's really not contemplated in numbers, no. So, this will be a benefit.

Alison Jacobowitz - Merrill Lynch

Above the 10% to 15% for the year?

James J. Maguire, Jr. - President and Chief Executive Officer

Correct.

Alison Jacobowitz - Merrill Lynch

Perfect. And the 50 million growing at mid-single digits sort of and keeping it all is still accurate, that's the goal, anyway?

James J. Maguire, Jr. - President and Chief Executive Officer

Yes, that's the goal.

Alison Jacobowitz - Merrill Lynch

Thank you.

Operator

[Operator instruction] Mr. Maguire, with no other questions in queue at this time, I will turn it back to you for closing remarks.

James J. Maguire, Jr. - President and Chief Executive Officer

Great. I just want to thank our employees once again for a great quarter. It's obviously a competitive market. Discipline is the keyword here and we've managed to demonstrate that. So, let's stick with that throughout the balance of the year. I want to thank our preferred agents and our producers for your profitable business and your partnership, and then lastly and most importantly, our shareholders and analysts for your support and confidence, and we will talk to you next quarter, thanks.

Operator

Ladies and gentlemen, thank you for your participation. This does conclude today's conference and you may now disconnect your phone line.

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Source: Philadelphia Consolidated Holding Corp. Q1 2008 Earnings Call Transcript
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