<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 10-Q



              [X] Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


                  For the Quarterly Period Ended June 30, 2000


                         COMMISSION FILE NUMBER 0-22280

                     PHILADELPHIA CONSOLIDATED HOLDING CORP.
                     ---------------------------------------
             (Exact name of registrant as specified in its charter)



<TABLE>
<S>                                            <C>
     PENNSYLVANIA                                          23-2202671
     ------------                                          ----------
(State of Incorporation)                       (IRS Employer Identification No.)
</TABLE>

                            ONE BALA PLAZA, SUITE 100
                         BALA CYNWYD, PENNSYLVANIA 19004
                                 (610) 617-7900
                   -------------------------------------------
               (Address, including zip code and telephone number,
       including area code, of registrant's principal executive offices)





Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                 YES [X] NO [ ]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of August 3, 2000.

Common Stock, no par value, 11,935,162 shares outstanding,
<PAGE>   2
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
                                      INDEX

                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000





<TABLE>
<S>                                                                            <C>
Part I - Financial Information


         Consolidated Balance Sheets - June 30, 2000 and
          December 31, 1999                                                      3


         Consolidated Statements of Operations and Comprehensive
           Income - For the three and six months ended
           June 30, 2000 and 1999                                                4


         Consolidated Statements of Changes in Shareholders' Equity -
           For the six months ended June 30, 2000 and year ended
           December 31, 1999                                                     5


         Consolidated Statements of Cash Flows - For the six
           months ended June 30, 2000 and 1999                                   6


         Notes to Consolidated Financial Statements                             7-9


         Management's Discussion and Analysis of Results of Operations and
           Financial Condition                                                 10-14



Part II - Other Information                                                      15


Signatures                                                                       16


Exhibits                                                                         17
</TABLE>




                                       2
<PAGE>   3
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                               As of
                                                                     -------------------------
                                                                      June 30,     December 31,
                                                                       2000           1999
                                                                     ---------     -----------
<S>                                                                  <C>           <C>
                               ASSETS
INVESTMENTS:
   FIXED MATURITIES AVAILABLE FOR SALE AT MARKET
     (AMORTIZED COST $351,751 AND $331,774) ....................     $ 341,664      $ 321,018
   EQUITY SECURITIES AT MARKET (COST $47,390 AND $41,231) ......        81,718         72,768
                                                                     ---------      ---------
       TOTAL INVESTMENTS .......................................       423,382        393,786

   CASH AND CASH EQUIVALENTS ...................................        18,589         26,230
   ACCRUED INVESTMENT INCOME ...................................         5,347          5,027
   PREMIUMS RECEIVABLE .........................................        55,369         49,176
   PREPAID REINSURANCE PREMIUMS AND REINSURANCE
     RECEIVABLES ...............................................        66,777         54,920
   DEFERRED ACQUISITION COSTS ..................................        30,227         26,054
   PROPERTY AND EQUIPMENT ......................................        10,150          9,277
   GOODWILL LESS ACCUMULATED AMORTIZATION OF $3,366 AND $2,620..        28,055         28,801
   OTHER ASSETS ................................................         5,921          5,780
                                                                     ---------      ---------
         TOTAL ASSETS ..........................................     $ 643,817      $ 599,051
                                                                     =========      =========



              LIABILITIES AND SHAREHOLDERS' EQUITY
POLICY LIABILITIES AND ACCRUALS:
   UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES ....................     $ 210,373      $ 188,063
   UNEARNED PREMIUMS ...........................................       127,106        111,606
                                                                     ---------      ---------
       TOTAL POLICY LIABILITIES AND ACCRUALS ...................       337,479        299,669
   PREMIUMS PAYABLE ............................................        23,179         22,223
   OTHER LIABILITIES ...........................................        14,649         14,762
   DEFERRED INCOME TAXES .......................................         1,339          2,052
                                                                     ---------      ---------
         TOTAL LIABILITIES .....................................       376,646        338,706
                                                                     ---------      ---------


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, 13,381,924 SHARES
     ISSUED.....................................................        68,745         68,859
   NOTES RECEIVABLE FROM SHAREHOLDERS ..........................        (1,864)        (2,506)
   ACCUMULATED OTHER COMPREHENSIVE INCOME ......................        15,757         13,507
   RETAINED EARNINGS ...........................................       105,233         93,766
   LESS COST OF COMMON STOCK HELD IN TREASURY,
     1,287,622 AND 791,016 SHARES ..............................       (19,605)       (12,186)
                                                                     ---------      ---------
       TOTAL SHAREHOLDERS' EQUITY ..............................       168,266        161,440
                                                                     ---------      ---------
       TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ..............     $ 643,817      $ 599,051
                                                                     =========      =========
</TABLE>


The accompanying notes are an integral part of the consolidated financial
statements.


                                       3
<PAGE>   4
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                For the Three Months                 For the Six Months
                                                                   Ended June 30,                      Ended June 30,
                                                           ------------------------------      ------------------------------
                                                               2000              1999              2000              1999
                                                           ------------      ------------      ------------      ------------
<S>                                                        <C>               <C>               <C>               <C>
REVENUE:
   NET WRITTEN PREMIUMS ..............................     $     59,684      $     45,482      $    117,812      $     88,287
   CHANGE IN NET UNEARNED PREMIUMS
      (INCREASE) .....................................           (5,393)           (6,329)          (14,894)          (12,370)
                                                           ------------      ------------      ------------      ------------
   NET EARNED PREMIUMS ...............................           54,291            39,153           102,918            75,917
   NET INVESTMENT INCOME .............................            5,832             4,996            12,096             9,850
   NET REALIZED INVESTMENT GAIN ......................              389             5,683               482             5,193
   OTHER INCOME ......................................            2,532                               5,257
                                                           ------------      ------------      ------------      ------------
     TOTAL REVENUE ...................................           63,044            49,832           120,753            90,960
                                                           ------------      ------------      ------------      ------------

LOSSES AND EXPENSES:
   LOSS AND LOSS ADJUSTMENT EXPENSES .................           37,895            24,981            78,141            47,496
   NET REINSURANCE RECOVERIES ........................           (5,922)           (3,366)          (17,928)           (5,619)
                                                           ------------      ------------      ------------      ------------
   NET LOSS AND LOSS ADJUSTMENT EXPENSES .............           31,973            21,615            60,213            41,877
   ACQUISITION COSTS AND OTHER
        UNDERWRITING EXPENSES ........................           17,317            12,087            34,036            23,864
   OTHER OPERATING EXPENSES ..........................            3,431               777             6,241             1,296
                                                           ------------      ------------      ------------      ------------
     TOTAL LOSSES AND EXPENSES .......................           52,721            34,479           100,490            67,037
                                                           ------------      ------------      ------------      ------------

MINORITY INTEREST:  DISTRIBUTIONS ON COMPANY OBLIGATED
MANDATORILY
REDEEMABLE PREFERRED SECURITIES OF SUBSIDIARY TRUST ..            1,812             1,812             3,623             3,623
                                                           ------------      ------------      ------------      ------------


INCOME BEFORE INCOME TAXES ...........................            8,511            13,541            16,640            20,300
                                                           ------------      ------------      ------------      ------------

INCOME TAX EXPENSE (BENEFIT):
   CURRENT ...........................................            4,402             4,418             7,067             6,463
   DEFERRED ..........................................           (1,693)             (117)           (1,894)             (340)
                                                           ------------      ------------      ------------      ------------

     TOTAL INCOME TAX EXPENSE ........................            2,709             4,301             5,173             6,123
                                                           ------------      ------------      ------------      ------------

     NET INCOME ......................................     $      5,802      $      9,240      $     11,467      $     14,177
                                                           ============      ============      ============      ============

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
  HOLDING GAIN (LOSS) ARISING DURING PERIOD ..........              (91)           (3,849)            2,563            (4,612)
   RECLASSIFICATION ADJUSTMENT .......................             (253)           (3,694)             (313)           (3,375)
                                                           ------------      ------------      ------------      ------------
   OTHER COMPREHENSIVE INCOME (LOSS) .................             (344)           (7,543)            2,250            (7,987)
                                                           ------------      ------------      ------------      ------------

COMPREHENSIVE INCOME .................................     $      5,458      $      1,697      $     13,717      $      6,190
                                                           ============      ============      ============      ============


PER AVERAGE SHARE DATA:
   BASIC EARNINGS PER SHARE ..........................     $       0.48      $       0.76      $       0.94      $       1.16
                                                           ============      ============      ============      ============
   DILUTED EARNINGS PER SHARE ........................     $       0.39      $       0.61      $       0.78      $       0.94
                                                           ============      ============      ============      ============

WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING .......................................       12,122,135        12,236,221        12,224,966        12,222,880
WEIGHTED-AVERAGE SHARE EQUIVALENTS
   OUTSTANDING .......................................        2,581,779         2,863,849         2,533,853         2,845,212
                                                           ------------      ------------      ------------      ------------
WEIGHTED-AVERAGE SHARES AND SHARE
   EQUIVALENTS OUTSTANDING ...........................       14,703,914        15,100,070        14,758,819        15,068,092
                                                           ============      ============      ============      ============
</TABLE>


The accompanying notes are an integral part of the consolidated financial
statements.


                                       4
<PAGE>   5
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                       CONSOLIDATED STATEMENTS OF CHANGES
                             IN SHAREHOLDERS' EQUITY
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                    For the Six Months      For the Year Ended
                                                      Ended June 30,           December 31,
                                                          2000                    1999
                                                        ---------               ---------
<S>                                                 <C>                     <C>

COMMON STOCK:
   BALANCE AT BEGINNING OF PERIOD ..............        $  68,859               $  44,796
   ISSUANCE OF SHARES PURSUANT TO ACQUISITION
     AGREEMENT .................................                                   25,000
   ISSUANCE OF SHARES PURSUANT TO EMPLOYEE
     STOCK PURCHASE PLAN .......................                                     (420)
   EXERCISE OF EMPLOYEE STOCK OPTIONS, NET OF
     TAX BENEFIT ...............................             (116)                   (517)
   SHARES FORFEITED PURSUANT TO EMPLOYEE
     STOCK PURCHASE PLAN .......................                2
                                                        ---------               ---------
       BALANCE AT END OF PERIOD ................           68,745                  68,859
                                                        =========               =========

NOTES RECEIVABLE FROM SHAREHOLDERS:
   BALANCE AT BEGINNING OF PERIOD ..............           (2,506)                 (1,680)
   NOTES RECEIVABLE ISSUED PURSUANT TO
     EMPLOYEE STOCK PURCHASE PLAN ..............                                   (1,445)
   SHARES FORFEITED PURSUANT TO EMPLOYEE
     STOCK PURCHASE PLAN .......................              318
   COLLECTION OF NOTES RECEIVABLE ..............              324                     619
                                                        ---------               ---------
       BALANCE AT END OF PERIOD ................           (1,864)                 (2,506)
                                                        ---------               ---------

ACCUMULATED OTHER COMPREHENSIVE INCOME:
     BALANCE AT BEGINNING OF PERIOD ............           13,507                  22,417
     OTHER COMPREHENSIVE INCOME, NET OF TAXES...            2,250                  (8,910)
                                                        ---------               ---------
       BALANCE AT END OF PERIOD ................           15,757                  13,507
                                                        ---------               ---------

RETAINED EARNINGS:
   BALANCE AT BEGINNING OF PERIOD ..............           93,766                  74,923
   NET INCOME ..................................           11,467                  18,843
                                                        ---------               ---------
       BALANCE AT END OF PERIOD ................          105,233                  93,766
                                                        ---------               ---------

COMMON STOCK HELD IN TREASURY:
   BALANCE AT BEGINNING OF PERIOD ..............          (12,186)                 (2,973)
   COMMON SHARES REPURCHASED ...................           (7,333)                (12,081)
   ISSUANCE OF SHARES PURSUANT TO EMPLOYEE
     STOCK PURCHASE PLAN .......................                                    1,893
   ISSUANCE OF SHARES PURSUANT TO DIRECTOR
     STOCK PURCHASE PLAN .......................               15
   EXERCISE OF EMPLOYEE STOCK OPTIONS, NET OF
     TAX BENEFIT ...............................              219                     975
   SHARES FORFEITED PURSUANT TO EMPLOYEE STOCK
     PURCHASE PLAN .............................             (320)
                                                        ---------               ---------
       BALANCE AT END OF PERIOD ................          (19,605)                (12,186)
                                                        ---------               ---------
       TOTAL SHAREHOLDERS' EQUITY ..............        $ 168,266               $ 161,440
                                                        =========               =========
</TABLE>


The accompanying notes are an integral part of the consolidated financial
statements.



                                       5
<PAGE>   6
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            For the Six Months Ended June 30,
                                                            --------------------------------
                                                                2000                1999
                                                              --------            --------
<S>                                                         <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   NET INCOME ...........................................     $ 11,467            $ 14,177
   ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
     PROVIDED BY OPERATING ACTIVITIES:
     NET REALIZED INVESTMENT GAIN .......................         (482)             (5,193)
     DEPRECIATION AND AMORTIZATION EXPENSE ..............        1,894               1,150
     DEFERRED INCOME TAX BENEFIT ........................       (1,894)               (340)
     CHANGE IN PREMIUMS RECEIVABLE ......................       (6,193)             (3,212)
     CHANGE IN OTHER RECEIVABLES ........................      (12,177)             (6,096)
     CHANGE IN DEFERRED ACQUISITION COSTS ...............       (4,173)             (3,881)
     CHANGE IN OTHER ASSETS .............................         (141)               (386)
     CHANGE IN UNPAID LOSS AND LOSS ADJUSTMENT
     EXPENSES ...........................................       22,310              10,850
     CHANGE IN UNEARNED PREMIUMS ........................       15,500              16,645
     CHANGE IN OTHER LIABILITIES ........................          844               1,788
                                                              --------            --------
         NET CASH PROVIDED BY OPERATING ACTIVITIES ......       26,955              25,502
                                                              --------            --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   PROCEEDS FROM SALES OF INVESTMENTS IN FIXED
       MATURITIES AVAILABLE FOR SALE ....................       42,156              57,901
   PROCEEDS FROM MATURITY OF INVESTMENTS IN FIXED
       MATURITIES AVAILABLE FOR SALE ....................       14,745              17,850
   PROCEEDS FROM SALES OF INVESTMENTS IN EQUITY
       SECURITIES .......................................       11,117              21,616
   COST OF FIXED MATURITIES SECURITIES AVAILABLE FOR
       SALE ACQUIRED ....................................      (78,090)            (76,970)
   COST OF EQUITY SECURITIES ACQUIRED ...................      (15,736)            (13,274)
   PURCHASE OF PROPERTY AND EQUIPMENT ...................       (1,897)             (1,389)
                                                              --------            --------
       NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES..      (27,705)              5,734
                                                              --------            --------


CASH FLOWS FROM FINANCING ACTIVITIES:
   EXERCISE OF EMPLOYEE STOCK OPTIONS, NET
     OF TAX BENEFIT .....................................          103                 373
   ISSUANCE OF SHARES PURSUANT TO DIRECTOR
       STOCK PURCHASE PLAN ..............................           15
   COLLECTION OF NOTES RECEIVABLE .......................          324                 310
   PROCEEDS FROM SHARES PURSUANT TO
     EMPLOYEE STOCK PURCHASE PLAN .......................                               24
   COST OF COMMON STOCK REPURCHASED .....................       (7,333)
                                                              --------            --------
         NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES       (6,891)                707
                                                              --------            --------

NET INCREASE (DECREASE) IN CASH AND
   CASH EQUIVALENTS .....................................       (7,641)             31,943
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ........       26,230              31,573
                                                              --------            --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD ..............     $ 18,589            $ 63,516
                                                              ========            ========

CASH PAID DURING THE PERIOD FOR:
   INCOME TAXES .........................................     $  5,422            $  3,334

NON-CASH FINANCING TRANSACTIONS:
   ISSUANCE OF SHARES (FORFEITURES) PURSUANT TO
     EMPLOYEE STOCK PURCHASE PLAN IN EXCHANGE FOR
     NOTES RECEIVABLE ...................................     $   (318)           $    489
</TABLE>


The accompanying notes are an integral part of the consolidated financial
statements.


                                       6
<PAGE>   7
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   Basis of Presentation

     The consolidated financial statements as of and for the six months ended
     June 30, 2000 and 1999 are unaudited, but in the opinion of management,
     have been prepared on the same basis as the annual audited consolidated
     financial statements and reflect all adjustments, consisting of normal
     recurring accruals, necessary for a fair presentation of the information
     set forth therein. The results of operations for the six months ended June
     30, 2000 are not necessarily indicative of the operating results to be
     expected for the full year or any other period. Certain prior year amounts
     have been reclassified for comparative purposes.

     These financial statements should be read in conjunction with the financial
     statements and notes as of and for the year ended December 31, 1999
     included in the Company's Annual Report on Form 10-K.

2.   Acquisitions

     On July 16, 1999, Philadelphia Consolidated Holding Corp. (the "Company")
     closed on its acquisition of Liberty American Insurance Group, Inc.
     ("Liberty") for a purchase price of $45.0 million, and a contingent
     additional amount of up to $5.0 million based upon the future earnings for
     the acquired business. Of the purchase price, $20.0 million was paid in
     cash and the balance in 1,037,772 shares of common stock of the Company.
     Any contingent additional amount will be paid in cash. The acquisition is
     being accounted for using the purchase method of accounting.

3.   Goodwill

     Goodwill resulting from the acquisition of Liberty amounted to $29.2
     million. This amount represents the excess of acquisition costs over the
     fair value of net assets acquired. Goodwill is being amortized on a
     straight-line basis over 20 years.

4.   Earnings Per Share

     Earnings per common share has been calculated by dividing net income for
     the period by the weighted average number of common shares and common share
     equivalents outstanding during the period.

5.   Income Taxes

     The effective tax rate differs from the 35% marginal tax rate principally
     as a result of interest exempt from tax, the dividend received deduction
     and other differences in the recognition of revenues and expenses for tax
     and financial reporting purposes.

6.   Comprehensive Income

     Components of comprehensive income, as detailed in the Consolidated
     Statements of Operations and Comprehensive Income, are net of tax. The
     related tax effect of Holding Gains (Losses) arising during the six and
     three months ended June 30, 2000 and 1999 was $1.4 million and ($2.5)
     million respectively, and ($.1) million and ($2.1) million respectively.
     The related tax effect of Reclassification Adjustments for the six and
     three months ended June 30, 2000 and 1999 was ($.2) million and ($1.8)
     million respectively, and ($.1) million and ($2.0) million respectively.

7.   Segment Information

     The Company has divided its operations into three reportable segments: The
     Commercial Lines Underwriting Group which has underwriting responsibility
     for the Commercial Automobile, Commercial Property and Commercial
     multi-peril package insurance products; The Specialty Lines Underwriting
     Group which has underwriting responsibility for the professional liability
     insurance products; and The Personal Lines Group


                                       7
<PAGE>   8
     which designs, markets and underwrites personal property and casualty
     insurance products for the Manufactured Housing and Homeowners markets.
     Effective this quarter, due to a change in market focus, the previously
     reported Specialty Property Underwriting Group segment was restructured
     resulting in the combination of this Underwriting Group with the Commercial
     Lines Underwriting Group. Accordingly, prior information has been
     reclassified to reflect this change. The reportable segments operate solely
     within the United States. The segments follow the same accounting policies
     used for the Company's consolidated financial statements. Management
     evaluates a segment's performance based upon underwriting results.

     Following is a tabulation of business segment information for the six and
     three months ended June 30, 2000 and 1999. Corporate information is
     included to reconcile segment data to the consolidated financial statements
     (in thousands):

<TABLE>
<CAPTION>
                                                                           Six Months Ended,
                                                 -------------------------------------------------------------------
                                                 Commercial    Specialty      Personal
                                                   Lines         Lines          Lines       Corporate        Total
                                                 -------------------------------------------------------------------
<S>                                              <C>           <C>            <C>           <C>            <C>
June 30, 2000:
Gross Written Premiums                           $ 103,861     $  33,598      $  29,530                    $ 166,989
                                                 -------------------------------------------------------------------
Net Written Premiums                             $  66,648     $  34,668      $  16,496                    $ 117,812
                                                 -------------------------------------------------------------------
Revenue:
  Net Earned Premiums                            $  64,473     $  25,348      $  13,097                    $ 102,918
  Net Investment Income                                                                        12,096         12,096
  Net Realized Investment Gain (Loss)                                                             482            482
  Other Income                                                                   10,802        (5,545)         5,257
                                                 -------------------------------------------------------------------
  Total Revenue                                     64,473        25,348         23,899         7,033        120,753
                                                 -------------------------------------------------------------------

Losses and Expenses:
   Net Loss and Loss Adjustment Expenses            37,576        15,892          6,745                       60,213
   Acquisition Costs and Other Underwriting
     Expenses                                                                     4,430        29,606         34,036
   Other Operating Expenses                                                       7,988        (1,747)         6,241
                                                 -------------------------------------------------------------------
   Total Losses and Expenses                        37,576        15,892         19,163        27,859        100,490
                                                 -------------------------------------------------------------------

Minority Interest: Distributions on Company
  Obligated Mandatorily Redeemable Preferred
  Securities of Subsidiary Trust                                                                3,623          3,623
                                                 -------------------------------------------------------------------

Income Before Income Taxes                          26,897         9,456          4,736       (24,449)        16,640

Total Income Tax Expense                                                                        5,173          5,173
                                                 -------------------------------------------------------------------

Net Income                                       $  26,897     $   9,456      $   4,736     $ (29,622)     $  11,467
                                                 ===================================================================

Total Assets                                                                  $ 138,259     $ 505,558      $ 643,817
                                                 ===================================================================


June 30, 1999:
Gross Written Premiums                           $  93,028     $  22,562      $   5,493                    $ 121,083
                                                 -------------------------------------------------------------------
Net Written Premiums                             $  64,408     $  18,935      $   4,944                    $  88,287
                                                 -------------------------------------------------------------------
Revenue:
  Net Earned Premiums                            $  58,809     $  14,772      $   2,336                    $  75,917
  Net Investment Income                                                                         9,850          9,850
  Net Realized Investment Gain                                                                  5,193          5,193
                                                 -------------------------------------------------------------------
  Total Revenue                                     58,809        14,772          2,336        15,043         90,960
                                                 -------------------------------------------------------------------

Losses and Expenses:
   Net Loss and Loss Adjustment Expenses            32,334         8,340          1,203                       41,877
   Acquisition Costs and Other Underwriting
     Expenses                                                                                  23,864         23,864
   Other Operating Expenses                                                                     1,296          1,296
                                                 -------------------------------------------------------------------
   Total Losses and Expenses                        32,334         8,340          1,203        25,160         67,037
                                                 -------------------------------------------------------------------

Minority Interest:  Distributions on Company
  Obligated Mandatorily Redeemable Preferred
  Securities of Subsidiary Trust                                                                3,623          3,623
                                                 -------------------------------------------------------------------
Income Before Income Taxes                          26,475         6,432          1,133       (13,740)        20,300

Total Income Tax Expense                                                                        6,123          6,123
                                                 -------------------------------------------------------------------
Net Income                                       $  26,475     $   6,432      $   1,133     $ (19,863)     $  14,177
                                                 ===================================================================
Total Assets                                                                                $ 509,557      $ 509,557
                                                 ===================================================================
</TABLE>


                                       8
<PAGE>   9
<TABLE>
<CAPTION>
                                                                       Three Months Ended,
                                                -------------------------------------------------------------------
                                                Commercial    Specialty      Personal
                                                  Lines         Lines          Lines        Corporate       Total
                                                -------------------------------------------------------------------
<S>                                             <C>           <C>            <C>            <C>           <C>
June 30, 2000:
Gross Written Premiums                          $  59,091     $  17,367      $  13,385                    $  89,843
                                                -------------------------------------------------------------------
Net Written Premiums                            $  37,755     $  16,602      $   5,327                    $  59,684
                                                -------------------------------------------------------------------
Revenue:
  Net Earned Premiums                           $  33,845     $  13,627      $   6,819                    $  54,291
  Net Investment Income                                                                        5,832          5,832
  Net Realized Investment Gain (Loss)                                                            389            389
  Other Income                                                                   7,113        (4,581)         2,532
                                                -------------------------------------------------------------------
  Total Revenue                                    33,845        13,627         13,932         1,640         63,044
                                                -------------------------------------------------------------------

Losses and Expenses:
   Net Loss and Loss Adjustment Expenses           19,943         8,534          3,496                       31,973
   Acquisition Costs and Other Underwriting
     Expenses                                                                    2,684        14,633         17,317
   Other Operating Expenses                                                      5,703        (2,272)         3,431
                                                -------------------------------------------------------------------
   Total Losses and Expenses                       19,943         8,534         11,883        12,361         52,721
                                                -------------------------------------------------------------------

Minority Interest:  Distributions on
Company Obligated Mandatorily Redeemable
Preferred Securities of Subsidiary Trust                                                       1,812          1,812
                                                -------------------------------------------------------------------
Income Before Income Taxes                         13,902         5,093          2,049       (12,533)         8,511

Total Income Tax Expense                                                                       2,709          2,709
                                                -------------------------------------------------------------------
Net Income                                      $  13,902     $   5,093      $   2,049     $ (15,242)     $   5,802
                                                ===================================================================
Total Assets                                                                 $ 138,259     $ 505,558      $ 643,817
                                                ===================================================================


June 30, 1999:
Gross Written Premiums                          $  47,861     $  11,648      $   3,484                    $  62,993
                                                -------------------------------------------------------------------
Net Written Premiums                            $  32,429     $   9,844      $   3,209                    $  45,482
                                                -------------------------------------------------------------------
Revenue:
  Net Earned Premiums                           $  30,256     $   7,490      $   1,407                    $  39,153
  Net Investment Income                                                                        4,996          4,996
  Net Realized Investment Gain                                                                 5,683          5,683
                                                -------------------------------------------------------------------
  Total Revenue                                    30,256         7,490          1,407        10,679         49,832
                                                -------------------------------------------------------------------

Losses and Expenses:
   Net Loss and Loss Adjustment Expenses           16,671         4,219            725                       21,615
   Acquisition Costs and Other Underwriting
     Expenses                                                                                 12,087         12,087
   Other Operating Expenses                                                                      777            777
                                                -------------------------------------------------------------------
   Total Losses and Expenses                       16,671         4,219            725        12,864         34,479
                                                -------------------------------------------------------------------

Minority Interest:  Distributions on
Company Obligated Mandatorily Redeemable
Preferred Securities of Subsidiary Trust                                                       1,812          1,812
                                                -------------------------------------------------------------------
Income Before Income Taxes                         13,585         3,271            682        (3,997)        13,541

Total Income Tax Expense                                                                       4,301          4,301
                                                -------------------------------------------------------------------

Net Income                                      $  13,585     $   3,271      $     682     $  (8,298)     $   9,240
                                                ===================================================================
Total Assets                                                                               $ 509,557      $ 509,557
                                                ===================================================================
</TABLE>



                                       9
<PAGE>   10
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
                            AND FINANCIAL CONDITION


GENERAL

Although the Company's financial performance is dependent upon its own specific
business characteristics, certain risk factors can affect the profitability of
the Company. These include:

   -     Industry factors - Historically the financial performance of the
         property and casualty insurance industry has tended to fluctuate in
         cyclical patterns of soft markets followed by hard markets. In the
         current environment, insurance industry pricing in general continues to
         be soft; however, the Company's strategy is to focus on underwriting
         profits and accordingly the Company's marketing organization is being
         directed into those niche businesses that exhibit the greatest
         potential for underwriting profits.

   -     Competition - The Company competes in the property and casualty
         business with other domestic and international insurers having greater
         financial and other resources than the Company.

   -     Regulation - The Company's insurance subsidiaries are subject to a
         substantial degree of regulatory oversight, which generally is designed
         to protect the interests of policyholders, as opposed to shareholders.

   -     Inflation - Property and casualty insurance premiums are established
         before the amount of losses and loss adjustment expenses, or the extent
         to which inflation may effect such amounts is known.

   -     Investment Risk - Substantial future increases in interest rates could
         result in a decline in the market value of the Company's investment
         portfolio and resulting losses and/or reduction in shareholders'
         equity.

   -     Catastrophe Exposure - The Company's insurance subsidiaries issue
         insurance policies which provide coverage for commercial and personal
         property and casualty risks. It is possible that a catastrophic event
         could greatly increase claims under these insurance policies.


RESULTS OF OPERATIONS (SIX MONTHS ENDED JUNE 30, 2000 VS JUNE 30, 1999)

         Premiums: Gross written premiums grew $45.9 million (37.9%) to $167.0
million for the six months ended June 30, 2000 from $121.1 million for the same
period of 1999; gross earned premiums grew $46.9 million (44.8%) to $151.7
million for the six months ended June 30, 2000 from $104.8 million for the same
period of 1999; net written premiums increased $29.5 million (33.4%) to $117.8
million for the six months ended June 30, 2000 from $88.3 million for the same
period of 1999; and net earned premiums grew $27.0 million (35.6%) to $102.9
million in 2000 from $75.9 million in 1999.

The respective gross written and net written premium increases for commercial
lines and specialty lines products for the six months ended June 30, 2000 vs.
1999 amount to $11.6 million and $7.1 million for commercial lines products, and
$11.0 million and $15.7 million for specialty lines products. Overall premium
growth in the commercial lines segment has been offset in part by the Company's
decision not to renew certain policies in the commercial automobile and
specialty property niches due to inadequate pricing levels being experienced as
a result of market conditions and/or loss experience emerging at higher than
expected levels. The overall growth in premiums are attributable to a number of
factors:

-    The acquisition of Liberty, resulting in an increase of $24.0 million and
     $11.6 million in gross and net manufactured housing, preferred homeowners
     and National Flood Insurance Program written premiums, respectively.

-    Displacement of agency relationships in the marketplace due to the
     consolidation of certain competitor property and casualty insurance
     companies resulting in additional prospects and business.

-    Recent rating agency downgrades of certain property and casualty insurance
     companies resulting in their diminished presence in the company's product
     niches resulting in additional prospects and business.


                                       10
<PAGE>   11
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
                            AND FINANCIAL CONDITION


-    Continued expansion of marketing efforts relating to commercial lines and
     specialty lines products through the Company's field organization and
     preferred agents.

-    Modest pricing increases on select casualty renewal business.

         Net Investment Income: Net investment income approximated $12.1 million
for the six months ended June 30, 2000 and $9.9 million for the same period of
1999. Total investments grew to $423.4 million at June 30, 2000 from $349.6
million at June 30, 1999. The growth in investment income is due to investing
net cash flows provided from operating activities, the reinvesting of the net
proceeds from equity security sales in fixed maturity securities, and the net
investable assets acquired in the Company's acquisition of Liberty.

         Net Realized Investment Gain: Net realized investment gains were $0.5
million for the six months ended June 30, 2000 and $5.2 million for the same
period in 1999. During the quarter ended June 30, 1999 the Company sold certain
fixed maturity and equity investments which resulted in net realized gains of
$5.7 million. The proceeds from these sales were utilized for the cash purchase
price and repayment of certain obligations at the July 16, 1999 closing of the
Liberty acquisition. The remaining proceeds were invested in fixed maturity
securities in order to lessen the Company's holdings in certain common stock
positions and increase current investment income.

         Other Income: Other income approximated $5.3 million for the six months
ended June 30, 2000 and $0.0 for the same period of 1999. This increase is
primarily attributed to commissions earned on personal lines brokered business
arising from the acquisition of Liberty.

         Net Loss and Loss Adjustment Expenses: Net loss and loss adjustment
expenses increased $18.3 million (43.7%) to $60.2 million for the six months
ended June 30, 2000 from $41.9 million for the same period of 1999 and the loss
ratio increased to 58.5% in 2000 from 55.2% in 1999. The increase in net loss
and loss adjustment expenses was due principally to the 35.6% growth in net
earned premiums and in part to the relative growth in the professional liability
and specialty property product lines which incur higher relative loss
experience.

         Acquisition Costs and Other Underwriting Expenses: Acquisition costs
and other underwriting expenses increased $10.1 million (42.3%) to $34.0 million
for the six months ended June 30, 2000 from $23.9 million for the same period of
1999. This increase was due primarily to the 35.6% growth in net earned premiums
and in part to the higher acquisition costs as a result of the relative changes
in the Company's product and associated distribution channel mix (see Results of
Operations "Premiums").

         Other Operating Expenses: Other operating expenses increased $4.9
million to $6.2 million for the six months ended June 30, 2000 from $1.3 million
for the same period of 1999. The increase in other operating expenses was
primarily due to the operating expenses of the Company's brokered personal lines
business ($3.9 million), and goodwill amortization ($.8 million), both arising
from the acquisition of Liberty.

         Income Tax Expense: The Company's effective tax rate for the six months
ended June 30, 2000 and 1999 was 31.1% and 30.2%, respectively. The effective
rates differed from the 35% statutory rate principally due to investments in
tax-exempt securities offset in part by non-deductible goodwill amortization.
The increase in the effective tax rate is principally due to a greater
investment of cash flows in taxable securities relative to tax-exempt
securities.


RESULTS OF OPERATIONS (THREE MONTHS ENDED JUNE 30, 2000 VS JUNE 30, 1999)

         Premiums: Gross written premiums grew $26.8 million (42.5%) to $89.8
million for the three months ended June 30, 2000 from $63.0 million for the same
period of 1999; gross earned premiums grew $26.4 million (48.5%) to $80.8
million for the three months ended June 30, 2000 from $54.4 million for the same
period of 1999; net written premiums increased $14.2 million (31.2%) to $59.7
million for the three months ended June 30, 2000 from $45.5 million for the same
period of 1999; and net earned premiums grew $15.1 million (33.2%) to $54.3
million in 2000 from $39.2 million in 1999.



                                       11
<PAGE>   12
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
                            AND FINANCIAL CONDITION


         The respective gross written and net written premium increases for
commercial lines and specialty lines products for the three months ended June
30, 2000 vs. 1999 amount to $11.8 million and $8.3 million for commercial lines
products, and $5.7 million and $6.8 million for specialty lines products.
Overall premium growth in the commercial lines segment has been offset in part
by the Company's decision not to renew certain policies in its commercial
automobile and specialty property product niches due to inadequate pricing
levels being experienced as a result of market conditions and/or loss experience
emerging at higher than expected levels. The overall growth in premiums are
attributable to a number of factors:

-    The acquisition of Liberty, resulting in an increase of $9.9 million and
     $2.1 million in gross and net manufactured housing, preferred homeowners
     and National Flood Insurance Program written premiums, respectively.

-    Displacement of agency relationships in the marketplace due to the
     consolidation of certain competitor property and casualty insurance
     companies resulting in additional prospects and business.

-    Recent rating agency down grades of certain property and casualty insurance
     companies resulting in their diminished presence in the company's product
     niches resulting in additional prospects and business.

-    Continued expansion of marketing efforts relating to commercial lines and
     specialty lines products through the Company's field organization and
     preferred agents.

-    Modest pricing increases on select casualty renewal business.

         Net Investment Income: Net investment income approximated $5.8 million
for the three months ended June 30, 2000 and $5.0 million for the same period of
1999. Total investments grew to $423.4 million at June 30, 2000 from $349.6
million at June 30, 1999. The growth in investment income is due to investing
net cash flows provided from operating activities, the reinvesting of the
proceeds from equity security sales in fixed maturity securities, and the net
investable assets acquired in the Company's acquisition of Liberty.

         Net Realized Investment Gain: Net realized investment gains were $0.4
million for the three months ended June 30, 2000 and $5.7 million for the same
period in 1999. During the quarter ended June 30, 1999 the Company sold certain
fixed maturity and equity investments which resulted in net realized gains of
$5.7 million. The proceeds from these sales were utilized for the cash purchase
price and repayment of certain obligations at the July 16, 1999 closing of the
Liberty acquisition. The remaining proceeds were invested in fixed maturity
securities in order to increase current investment income and to lessen the
Company's holdings in certain common stock positions.

         Other Income: Other income approximated $2.5 million for the three
months ended June 30, 2000 and $0.0 for the same period of 1999. This increase
is primarily attributed to commissions earned on personal lines brokered
business arising from the acquisition of Liberty.

         Net Loss and Loss Adjustment Expenses: Net loss and loss adjustment
expenses increased $10.4 million (48.1%) to $32.0 million for the three months
ended June 30, 2000 from $21.6 million for the same period of 1999 and the loss
ratio increased to 58.9% in 2000 from 55.2% in 1999. The increase in net loss
and loss adjustment expenses was due principally to the 33.2% growth in net
earned premiums and in part to the relative growth in the professional liability
product line which incurs higher relative loss experience.

         Acquisition Costs and Other Underwriting Expenses: Acquisition costs
and other underwriting expenses increased $5.2 million (43.0%) to $17.3 million
for the three months ended June 30, 2000 from $12.1 million for the same period
of 1999. This increase was due primarily to the 33.2% growth in net earned
premiums and in part to the higher acquisition costs as a result of the relative
changes in the Company's product and associated distribution channel mix (see
Results of Operations "Premiums").

         Other Operating Expenses: Other operating expenses increased $2.6
million to $3.4 million for the three months ended June 30, 2000 from $0.8
million for the same period of 1999. The increase in other operating expenses
was primarily due to the operating expenses of the Company's brokered personal
lines business ($2.0 million), and goodwill amortization ($0.4 million), both
arising from the acquisition of Liberty.



                                       12
<PAGE>   13
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
                            AND FINANCIAL CONDITION


         Income Tax Expense: The Company's effective tax rate for the three
months ended June 30, 2000 and 1999 was 31.8% and 31.8%, respectively. The
effective rates differed from the 35% statutory rate principally due to
investments in tax-exempt securities offset in part by non-deductible goodwill
amortization.


LIQUIDITY AND CAPITAL RESOURCES

         For the six months ended June 30, 2000 the Company's investments
experienced unrealized investment appreciation of $2.3 million, net of the
related deferred tax expense of $1.2 million. At June 30, 2000, the Company had
total investments with a carrying value of $423.4 million, of which 80.7%
consisted of investments in investment grade fixed maturity securities,
including U.S. treasury securities and obligations of U.S. government
corporations and agencies, obligations of states and political subdivisions,
corporate debt securities, collateralized mortgage securities and asset backed
securities. The collateralized mortgage securities and asset backed securities
consist of short tranche securities possessing favorable pre-payment risk
profiles. The remaining 19.3% of the Company's total investments consisted
primarily of publicly traded common stock securities.

         At its July 20, 2000 meeting, the Company's Board of Directors
authorized the repurchase of an additional $10.0 million of the Company's common
stock. This authorization is in addition to the previously announced $30.0
million common stock buyback authorization. The purchases are made from time to
time in the open market or through privately negotiated transactions. The
Company purchased 806,400 shares of its common stock during the six months ended
June 30, 2000 for $12.4 million under its stock buyback authorization.

         During the second quarter 2000, the Company extended the lease
agreement for its headquarters office space through February 2008. The aggregate
future minimum rental payments for the additional 5 year lease term approximate
$6.0 million.

         The Company produced net cash from operations of $27.0 million and
$25.5 million, respectively, for the six months ended June 30, 2000 and 1999.
Management believes that the Company has adequate ability to pay all claims and
meet all other cash needs.

         Risk-based capital is designed to measure the acceptable amount of
capital an insurer should have based on the inherent specific risks of each
insurer. Insurers failing to meet this benchmark capital level may be subject to
scrutiny by the insurer's domiciliary insurance department and ultimately
rehabilitation or liquidation. Based on the standards currently adopted, the
Company's insurance subsidiaries' capital and surplus is in excess of the
prescribed risk-based capital requirements.


YEAR 2000 ISSUES

         Many existing computer programs use only two digits, instead of four,
to identify a year in the date field. These programs were designed and developed
without considering the impact of the upcoming change in the century. If not
corrected, many computer applications could fail or create incorrect results on
or after the Year 2000. The "Year 2000" issue affects computer and information
technology systems, as well as non-information technology systems which include
embedded technology such as micro-processors and micro-controllers (or
micro-chips) that have date sensitive programs that may not properly recognize
the year 2000 or beyond. As of August 1, 2000 the Company has not experienced
any Year 2000 issues with respect to either computer and information technology
systems, or non-information technology systems.

         The Company issues professional liability coverage, including directors
and officers liability, and commercial multi-peril insurance policies. Coverage
under certain of these policies may cover losses suffered by insureds as a
result of the Year 2000 issues. Professional liability policies are written on a
"claim made and reported" basis. Since early 1997 approximately 50% of these
policies have included a Year 2000 exclusion endorsement. The Company includes a
Year 2000 exclusion endorsement on virtually all new or renewing professional
liability policies providing coverage effective January 1, 1999 and thereafter.
On occasion, for


                                       13
<PAGE>   14
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
                            AND FINANCIAL CONDITION


qualifying accounts, the Company's underwriters may remove the exclusion after
receipt and review of a satisfactory supplemental application (which includes a
warranty statement) and other underwriting information. With respect to
commercial multi-peril policies, the Company believes that it should not be held
liable for claims arising from the Year 2000 issue under comprehensive general
liability policies. However, the Company cannot determine whether or to what
extent courts may find liability for such claims. Additionally, expenses could
be incurred to contest Year 2000 issue coverage claims, even if the Company
prevails in its position. As a result, it cannot presently be determined what,
if any, insurance exposure ultimately exists for Year 2000 issue claims.
However, no Year 2000 issue claims have been reported to the Company as of
August 1, 2000. There can be no assurance that such Year 2000 issues will not
materially adversely affect the Company.


FORWARD-LOOKING INFORMATION

         Certain information included in this report and other statements or
materials published or to be published by the Company are not historical facts
but are forward-looking statements relating to such matters as anticipated
financial performance, business prospects, technological developments, new and
existing products, expectations for market segment and growth, the impact of
Year 2000 issues, and similar matters. 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) catastrophe losses; and (vi) the
impact of Year 2000 issues, including the matters referred to above.



                                       14
<PAGE>   15
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         Not applicable.

Item 2.  Changes in Securities and Use of Proceeds

         Not applicable.

Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

         At the Company's annual meeting of shareholders held on May 4, 2000,
         the following members were elected to the Board of Directors:

<TABLE>
<CAPTION>
                                    Votes For    Votes Withheld
                                    ---------    --------------
<S>                                 <C>          <C>
         William J. Henrich, Jr.    7,461,515        3,700
         Paul R. Hertel, Jr.        7,461,515        3,700
         Roger L. Larson            7,461,515        3,700
         James J. Maguire           7,461,515        3,700
         James J. Maguire, Jr.      7,461,515        3,700
         Thomas J. McHugh           7,461,515        3,700
         Michael J. Morris          7,461,515        3,700
         Dirk A. Stuurop            7,461,515        3,700
         Sean S. Sweeney            7,461,515        3,700
         J. Eustace Wolfington      7,461,515        3,700
</TABLE>

         The following other matters were approved at the Annual Meeting:

<TABLE>
<CAPTION>
                                                                      Votes For    Votes Against    Abstentions
                                                                      ---------    -------------    -----------
<S>                                                                   <C>          <C>              <C>
          Approval of an Amendment to the Company's Employee Stock
          Purchase Plan to increase the number of shares subject
          to purchase under the plan from 500,000 to 1,000,000
          shares                                                      7,234,624       182,267         48,324

          Approval of the Appointment of PricewaterhouseCoopers
          LLP as Independent Auditors for the Fiscal Year Ending
          December 31, 2000                                           7,464,545         600             70
</TABLE>

Item 5.  Other information

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

         a. Exhibits

<TABLE>
<CAPTION>
                  Exhibit No.      Description

<S>                                <C>
                  11.0             Computation of Earnings Per Share
</TABLE>

         b. The Company has not filed any reports on Form 8-K during the quarter
for which this report is filed.



                                       15
<PAGE>   16
                                   SIGNATURES



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 thereunto duly authorized.




                                    PHILADELPHIA CONSOLIDATED HOLDING CORP.
                                    ---------------------------------------
                                    Registrant


<TABLE>
<S>                               <C>
Date August 8, 2000               /s/ James J. Maguire
     ------------------------     -------------------------------------------
                                  James J. Maguire
                                  Chairman of the Board of Directors,
                                  and Chief Executive Officer
                                  (Principal Executive Officer)


Date August 8, 2000               /s/ Craig P. Keller
     ------------------------     -------------------------------------------
                                  Craig P. Keller
                                  Senior Vice President, Secretary,
                                  Treasurer and Chief Financial Officer
                                  (Principal Financial and Accounting
                                  Officer)
</TABLE>



                                       16
<PAGE>   17
            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
                        COMPUTATION OF EARNINGS PER SHARE
          (Dollars and Share Data in Thousands, except Per Share Data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                        As of and For the Three         As of and For the Six
                                                         Months Ended June 30,           Months Ended June 30
                                                        -----------------------        ------------------------
                                                          2000           1999            2000            1999
                                                        --------       --------        --------        --------
<S>                                                     <C>            <C>             <C>             <C>

Weighted-Average Common Shares Outstanding                12,122         12,236          12,225          12,223

Weighted-Average Share Equivalents  Outstanding            2,582          2,864           2,534           2,845
                                                        --------       --------        --------        --------

Weighted-Average Shares and Share
 Equivalents Outstanding                                  14,704         15,100          14,759          15,068
                                                        ========       ========        ========        ========

Net Income                                              $  5,802       $  9,240        $ 11,467        $ 14,177
                                                        ========       ========        ========        ========

Basic Earnings per Share                                $   0.48       $   0.76        $   0.94        $   1.16
                                                        ========       ========        ========        ========

Diluted Earnings per Share                              $   0.39       $   0.61        $   0.78        $   0.94
                                                        ========       ========        ========        ========
</TABLE>




                                       17