<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 March 31, 2001


                         COMMISSION FILE NUMBER 0-22280

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


      PENNSYLVANIA                                  23-2202671
      ------------                                  ----------
  (State of Incorporation)                (IRS Employer Identification No.)


                            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 May 9, 2001.

Preferred Stock, $.01 par value, no shares outstanding

Common Stock, no par value, 13,522,657 shares outstanding

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

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001


<TABLE>
<CAPTION>

Part I - Financial Information

<S>                                                                               <C>
         Consolidated Balance Sheets - March 31, 2001 and
           December 31, 2000                                                       3


         Consolidated Statements of Operations and Comprehensive
           Income - For the three months ended March 31, 2001 and 2000             4


         Consolidated Statements of Changes in Shareholders' Equity - For the
           three months ended March 31, 2001 and year ended
           December 31, 2000                                                       5


         Consolidated Statements of Cash Flows - For the three
           months ended March 31, 2001 and 2000                                    6


         Notes to Consolidated Financial Statements                               7-9


         Management's Discussion and Analysis of Results of Operations and
           Financial Condition                                                    10-12


         Quantitative and Qualitative Disclosures About Market Risk               13



Part II - Other Information                                                       14


Signatures                                                                        15
</TABLE>

                                       2
<PAGE>   3


            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE>
<CAPTION>
                                                                       As of
                                                               ----------------------
                                                               March 31,  December 31,
                                                                2001         2000
<S>                                                           <C>          <C>
                                ASSETS
INVESTMENTS:
  FIXED MATURITIES AVAILABLE FOR SALE AT MARKET
     (AMORTIZED COST $435,337 AND $392,439) ..............     $440,261     $394,733
  EQUITY SECURITIES AT MARKET (COST $21,850 AND $24,087)..       34,479       42,553
                                                               --------     --------
       TOTAL INVESTMENTS .................................      474,740      437,286

CASH AND CASH EQUIVALENTS ................................       33,876       49,742
ACCRUED INVESTMENT INCOME ................................        6,614        5,726
PREMIUMS RECEIVABLE ......................................       68,109       69,377
PREPAID REINSURANCE PREMIUMS AND
     REINSURANCE RECEIVABLES .............................       74,334       73,513
INCOME TAXES RECOVERABLE .................................        2,338       13,323
DEFERRED INCOME TAXES ....................................        3,068          909
DEFERRED ACQUISITION COSTS ...............................       35,741       33,324
PROPERTY AND EQUIPMENT ...................................       10,472       10,476
GOODWILL LESS ACCUMULATED AMORTIZATION
     OF $4,485 AND $4,112 ................................       30,436       30,809
OTHER ASSETS .............................................        5,198        5,979
                                                               --------     --------
       TOTAL ASSETS ......................................     $744,926     $730,464
                                                               ========     ========


                 LIABILITIES AND SHAREHOLDERS' EQUITY
POLICY LIABILITIES AND ACCRUALS:
  UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES ...............     $249,886     $237,494
  UNEARNED PREMIUMS ......................................      158,153      145,484
                                                               --------     --------
       TOTAL POLICY LIABILITIES AND ACCRUALS .............      408,039      382,978
LOANS PAYABLE ............................................                    22,000
PREMIUMS PAYABLE .........................................       22,303       20,868
OTHER LIABILITIES ........................................       26,074       23,388
                                                               --------     --------
       TOTAL LIABILITIES .................................      456,416      449,234
                                                               --------     --------

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, 13,523,365 AND 13,431,408 SHARES ISSUED
     AND OUTSTANDING ...................................       47,979       46,582
  NOTES RECEIVABLE FROM SHAREHOLDERS ...................       (2,033)      (2,287)
  ACCUMULATED OTHER COMPREHENSIVE INCOME ...............       11,409       13,494
  RETAINED EARNINGS ....................................      132,250      124,536
                                                            ---------    ---------
       TOTAL SHAREHOLDERS' EQUITY ......................      189,605      182,325
                                                            ---------    ---------
       TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ......    $ 744,926    $ 730,464
                                                            =========    =========
</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 AND
                              COMPREHENSIVE INCOME
                 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           For the Three Months
                                                               Ended March 31,
                                                           --------------------
                                                           2001              2000
                                                           ----              ----
<S>                                                <C>               <C>
REVENUE:
   NET WRITTEN PREMIUMS ......................     $     77,087      $     58,128
   CHANGE IN NET UNEARNED
     PREMIUM RESERVE (INCREASE) ..............          (10,564)           (9,501)
                                                   ------------      ------------
   NET EARNED PREMIUMS .......................           66,523            48,627
   NET INVESTMENT INCOME .....................            8,042             6,264
   NET REALIZED INVESTMENT GAIN ..............            2,299                93
   OTHER INCOME ..............................               53             2,725
                                                   ------------      ------------
     TOTAL REVENUE ...........................           76,917            57,709
                                                   ------------      ------------

LOSSES AND EXPENSES:
   LOSS AND LOSS ADJUSTMENT EXPENSES .........           45,538            40,246
   NET REINSURANCE RECOVERIES ................           (6,386)          (12,006)
   NET LOSS AND LOSS ADJUSTMENT EXPENSES .....     ------------      ------------
                                                         39,152            28,240

   ACQUISITION COSTS AND OTHER UNDERWRITING
     EXPENSES ................................           22,468            16,719
   OTHER OPERATING EXPENSES ..................            2,032             2,810
                                                   ------------      ------------
     TOTAL LOSSES AND EXPENSES ...............           63,652            47,769
                                                   ------------      ------------
MINORITY INTEREST:  DISTRIBUTIONS ON
     COMPANY OBLIGATED MANDATORILY
     REDEEMABLE PREFERRED SECURITIES
     OF SUBSIDIARY TRUST .....................            1,811             1,811
                                                   ------------      ------------

INCOME BEFORE INCOME TAXES ...................           11,454             8,129
                                                   ------------      ------------

INCOME TAX EXPENSE (BENEFIT):
   CURRENT ...................................            4,777             2,665
   DEFERRED ..................................           (1,037)             (201)
                                                   ------------      ------------
     TOTAL INCOME TAX EXPENSE ................            3,740             2,464
                                                   ------------      ------------
     NET INCOME ..............................     $      7,714      $      5,665
                                                   ==============    ============

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
   HOLDING GAIN (LOSS) ARISING DURING PERIOD .     $       (591)     $      2,654
   RECLASSIFICATION ADJUSTMENT ...............           (1,494)              (60)
                                                   ------------      ------------
   OTHER COMPREHENSIVE INCOME (LOSS) .........           (2,085)            2,594
                                                   ------------      ------------
COMPREHENSIVE INCOME .........................     $      5,629      $      8,259
                                                   ============      ============

PER AVERAGE SHARE DATA:
   BASIC EARNINGS PER SHARE ..................     $       0.57      $       0.46
                                                   ============      ============
   DILUTED EARNINGS PER SHARE ................     $       0.54      $       0.38
                                                   ============      ============

WEIGHTED-AVERAGE COMMON SHARES
   OUTSTANDING ...............................       13,477,940        12,327,797
WEIGHTED-AVERAGE SHARE EQUIVALENTS
   OUTSTANDING ...............................          701,604         2,496,325
                                                   ------------      ------------
WEIGHTED-AVERAGE SHARES AND SHARE
   EQUIVALENTS OUTSTANDING ...................       14,179,544        14,824,122
                                                   ============      ============
</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)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                       For the Three         For the Year Ended
                                                     Months Ended March         December 31,
                                                          31, 2001                  2000
                                                     ------------------      ---------------
<S>                                                  <C>                      <C>
COMMON STOCK:
  BALANCE AT BEGINNING OF YEAR ................          $  46,582                $  68,859

  EXERCISE OF EMPLOYEE STOCK OPTIONS ..........              1,453                  (23,132)

  ISSUANCE OF SHARES PURSUANT TO STOCK
    PURCHASE PLANS ............................                (56)                     855
                                                         ---------                ---------

      BALANCE AT END OF PERIOD ................             47,979                   46,582
                                                         ---------                ---------



NOTES RECEIVABLE FROM SHAREHOLDERS:
  BALANCE AT BEGINNING OF PERIOD ..............             (2,287)                  (2,506)

  NOTES RECEIVABLE (ISSUED) FORFEITED PURSUANT
    TO STOCK PURCHASE PLAN ....................                 70                     (414)

  COLLECTION OF NOTES RECEIVABLE ..............                184                      633
                                                         ---------                ---------

      BALANCE AT END OF PERIOD ................             (2,033)                  (2,287)
                                                         ---------                ---------



ACCUMULATED OTHER COMPREHENSIVE INCOME:
  BALANCE AT BEGINNING OF PERIOD ..............             13,494                   13,507
  OTHER COMPREHENSIVE LOSS, NET OF TAXES ......             (2,085)                     (13)
                                                         ---------                ---------

      BALANCE AT END OF PERIOD ................             11,409                   13,494
                                                         ---------                ---------



RETAINED EARNINGS:

  BALANCE AT BEGINNING OF PERIOD ..............            124,536                   93,766

  NET INCOME ..................................              7,714                   30,770
                                                         ---------                ---------

      BALANCE AT END OF PERIOD ................            132,250                  124,536
                                                         ---------                ---------


COMMON STOCK HELD IN TREASURY:

  BALANCE AT BEGINNING OF PERIOD ..............                                    (12,186)

  COMMON SHARES REPURCHASED ...................                                    (40,766)

  EXERCISE OF EMPLOYEE STOCK OPTIONS ..........                                     52,712

  ISSUANCE OF SHARES PURSUANT TO EMPLOYEE STOCK
    PURCHASE PLAN .............................                                        240
                                                         ---------                ---------

      BALANCE AT END OF PERIOD ................                 --                       --
                                                         ---------                ---------

      TOTAL SHAREHOLDERS' EQUITY ..............          $ 189,605                $ 182,325
                                                         =========                =========
</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 Three Months Ended March 31,
                                                              ------------------------------------
                                                                    2001              2000
                                                                    ----              ----
<S>                                                             <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   NET INCOME .......................................             $  7,714          $  5,665
   ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
     PROVIDED BY OPERATING ACTIVITIES:
     NET REALIZED INVESTMENT GAIN ...................                (2,299)              (93)
     DEPRECIATION AND AMORTIZATION EXPENSE ..........                   605               959
     DEFERRED INCOME TAX BENEFIT ....................                (1,037)             (201)
     CHANGE IN PREMIUMS RECEIVABLE ..................                 1,268             2,272
     CHANGE IN OTHER RECEIVABLES ....................                (1,710)           (4,442)
     CHANGE IN DEFERRED ACQUISITION COSTS ...........                (2,417)           (1,895)
     CHANGE IN INCOME TAXES RECOVERABLE .............                10,986             2,630
     CHANGE IN OTHER ASSETS .........................                   905               583
     CHANGE IN UNPAID LOSS AND LOSS ADJUSTMENT
     EXPENSES .......................................                12,392            10,346
     CHANGE IN UNEARNED PREMIUMS ....................                12,669             6,691
     CHANGE IN OTHER LIABILITIES ....................                 4,123              (554)
     TAX BENEFIT FROM EXERCISE OF EMPLOYEE
     STOCK OPTIONS ..................................                   693                13
                                                                   --------          --------
         NET CASH PROVIDED BY OPERATING ACTIVITIES...                43,892            21,974
                                                                   --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   PROCEEDS FROM SALES OF INVESTMENTS IN FIXED
       MATURITIES ...................................                11,777            23,504
   PROCEEDS FROM MATURITY OF INVESTMENTS IN FIXED
       MATURITIES ...................................                 3,865             7,245
   PROCEEDS FROM SALES OF INVESTMENTS IN EQUITY
       SECURITIES ...................................                 6,593             8,606
   COST OF FIXED MATURITIES ACQUIRED ................               (58,436)          (42,073)
   COST OF EQUITY SECURITIES ACQUIRED ...............                (2,022)          (13,829)
   PURCHASE OF PROPERTY AND EQUIPMENT ...............                  (493)             (872)
                                                                   --------          --------
       NET CASH USED BY INVESTING ACTIVITIES ........               (38,716)          (17,419)
                                                                   --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   REPAYMENTS ON LOANS PAYABLE ......................               (22,000)
   EXERCISE OF EMPLOYEE STOCK OPTIONS ...............                   760                 8
   PROCEEDS FROM SHARES ISSUED PURSUANT TO
     STOCK PURCHASE PLANS ...........................                    14                 6
   COLLECTION OF NOTES RECEIVABLE ...................                   184               178
   COST OF COMMON STOCK REPURCHASED .................                                  (5,549)
                                                                   --------          --------
         NET CASH USED BY FINANCING ACTIVITIES ......               (21,042)           (5,357)
                                                                   --------          --------

NET DECREASE IN CASH AND CASH EQUIVALENTS ...........               (15,866)             (802)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ....                49,742            26,230
                                                                   --------          --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD ..........              $ 33,876          $ 25,428
                                                                  =========          ========

CASH PAID DURING THE PERIOD FOR:
   INTEREST .........................................             $     130          $

NON-CASH TRANSACTIONS:

   ISSUANCE OF SHARES (FORFEITURES) PURSUANT TO
    EMPLOYEE STOCK PURCHASE PLAN IN EXCHANGE FOR
    NOTES RECEIVABLE ................................             $      70           $  (226)
</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 three months ended
     March 31, 2001 and 2000 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 three months ended
     March 31, 2001 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, 2000
     included in the Company's Annual Report on Form 10-K.

2.       Investments

     The Company adopted the provisions of Statement of Financial Accounting
     Standards No. 133 ("SFAS 133"), Accounting for Derivative Instruments and
     Hedging Activities on January 1, 2001. The provisions of SFAS 133 require,
     among other things, that all derivatives be recognized in the consolidated
     balance sheets as either assets or liabilities and measured at fair value.
     The corresponding derivative gains and losses should be reported based upon
     the hedge relationship, if such a relationship exists. Changes in the fair
     value of derivatives that are not designated as hedges or that do not meet
     the hedge accounting criteria in SFAS 133 are required to be reported in
     income. At March 31, 2001, the Company held no derivative financial
     instruments nor imbedded financial derivatives. The Company's FELINE
     PRIDESSM have been grandfathered under the current accounting guidance and
     are therefore not subject to the provisions of SFAS No. 133. The Company
     does not currently utilize derivatives in its investment or risk management
     strategy.

3.       Goodwill

     Goodwill amounted to $30.4 million at March 31, 2001. Goodwill is being
     amortized on a straight line basis over 20 years. The carrying value of
     goodwill is reviewed for recoverability based on the undiscounted cash
     flows of the businesses acquired over the remaining amortization period.
     Should the review indicate that goodwill is not recoverable, the Company
     would recognize an impairment loss.

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. Following is the computation of
     earnings per share for the three months ended March 31, 2001 and 2000,
     respectively:

<TABLE>
<CAPTION>
                                                         As of and For the Three
                                                              Months Ended
                                                                March 31,
                                                         -----------------------
                                                           2001           2000
                                                           ----           ----
<S>                                                      <C>             <C>
Weighted-Average Common Shares Outstanding               13,478          12,328

Weighted-Average Share Equivalents  Outstanding             702           2,496
                                                        -------         -------

Weighted-Average Shares and Share
 Equivalents Outstanding                                 14,180          14,824
                                                        =======         =======

Net Income                                              $ 7,714         $ 5,665
                                                        =======         =======

Basic Earnings per Share                                $  0.57         $  0.46
                                                        =======         =======

Diluted Earnings per Share                              $  0.54         $  0.38
                                                        =======         =======
</TABLE>

                                       7
<PAGE>   8


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 quarter was
     ($0.3) million and $1.4 million for the three months ended March 31, 2001
     and 2000, respectively. The related tax effect of Reclassification
     Adjustments was ($0.8) million in 2001.

7.       Segment Information

     The Company's operations are classified into three reportable business
     segments: The Commercial Lines Underwriting Group which has underwriting
     responsibility for the Commercial Automobile and 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
     which designs, markets and underwrites personal property and casualty
     insurance products for the Manufactured Housing and Homeowners markets.
     Effective June 30, 2000, 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 three
     months ended March 31, 2001 and 2000. Corporate information is included to
     reconcile segment data to the consolidated financial statements (in
     thousands):


                                       8
<PAGE>   9

<TABLE>
<CAPTION>
                                                    Commercial       Specialty       Personal
                                                      Lines            Lines          Lines           Corporate           Total
                                                    ---------       ---------       ---------         ---------          ---------
<S>                                                 <C>             <C>             <C>               <C>                <C>
March 31, 2001:
Gross Written Premiums                              $  60,390       $  20,584       $  23,060                            $ 104,034
                                                    -------------------------------------------------------------------------------
Net Written Premiums                                $  41,810       $  17,886       $  17,391                            $  77,087
                                                    -------------------------------------------------------------------------------
Revenue:
  Net Earned Premiums                               $  41,418       $  15,856       $   9,249                            $  66,523
  Net Investment Income                                                                                   8,042              8,042
  Net Realized Investment Gain                                                                            2,299              2,299
  Other Income                                                                            905              (852)                53
                                                    -------------------------------------------------------------------------------
  Total Revenue                                        41,418          15,856          10,154             9,489             76,917
                                                    -------------------------------------------------------------------------------

Losses and Expenses:
   Net Loss and Loss Adjustment Expenses               24,413          10,018           4,721                               39,152
   Acquisition Costs and Other Underwriting
     Expenses                                                                                            22,468             22,468
   Other Operating Expenses                                                               389             1,643              2,032
                                                    -------------------------------------------------------------------------------
   Total Losses and Expenses                           24,413          10,018           5,110            24,111             63,652
                                                    -------------------------------------------------------------------------------

Minority Interest:  Distributions on
Company Obligated Mandatorily Redeemable
Preferred Securities of Subsidiary Trust                                                                  1,811              1,811
                                                    -------------------------------------------------------------------------------

Income Before Income Taxes                             17,005           5,838           5,044           (16,433)            11,454

Total Income Tax Expense                                                                                  3,740              3,740
                                                    -------------------------------------------------------------------------------

Net Income                                          $  17,005       $   5,838       $   5,044         $ (20,173)         $   7,714
                                                    ===============================================================================

Total Assets                                                                        $ 162,533         $ 582,393          $ 744,926
                                                    ===============================================================================


March 31, 2000:
Gross Written Premiums                              $  44,770       $  16,231       $  16,145                            $  77,146
                                                    -------------------------------------------------------------------------------
Net Written Premiums                                $  28,893       $  18,066       $  11,169                            $  58,128
                                                    -------------------------------------------------------------------------------
Revenue:
  Net Earned Premiums                               $  30,628       $  11,721       $   6,278                            $  48,627
  Net Investment Income                                                                                   6,264              6,264
  Net Realized Investment Gain                                                                               93                 93
  Other Income                                                                          3,689              (964)             2,725
                                                    -------------------------------------------------------------------------------
  Total Revenue                                        30,628          11,721           9,967             5,393             57,709
                                                    -------------------------------------------------------------------------------

Losses and Expenses:
   Net Loss and Loss Adjustment Expenses               17,633           7,358           3,249                               28,240
   Acquisition Costs and Other Underwriting
     Expenses                                                                                            16,719             16,719
   Other Operating Expenses                                                             2,285               525              2,810
                                                     -------------------------------------------------------------------------------
  Total Losses and Expenses                            17,633           7,358           5,534            17,244             47,769
                                                     -------------------------------------------------------------------------------

Minority Interest:  Distributions on
Company Obligated Mandatorily Redeemable
Preferred  Securities of Subsidiary Trust                                                                 1,811              1,811
                                                    -------------------------------------------------------------------------------

Income Before Income Taxes                             12,995           4,363           4,433           (13,662)             8,129

Total Income Tax Expense                                                                                  2,464              2,464
                                                    -------------------------------------------------------------------------------

Net Income                                          $  12,995       $   4,363       $   4,433         $ (16,126)         $   5,665
                                                    ===============================================================================

Total Assets                                                                        $ 135,703         $ 486,541          $ 622,244
                                                    ===============================================================================
</TABLE>


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

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. The Company's strategy
     is and has been 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 adversely
     impact profitability.


RESULTS OF OPERATIONS (THREE MONTHS ENDED MARCH 31, 2001 VS MARCH 31, 2000)

         Premiums: Gross written premiums grew $26.9 million (34.9%) to $104.0
million for the three months ended March 31, 2001 from $77.1 million for the
same period of 2000; gross earned premiums grew $20.3 million (28.6%) to $91.2
million for the three months ended March 31, 2001 from $70.9 million for the
same period of 2000; net written premiums increased $19.0 million (32.7%) to
$77.1 million for the three months ended March 31, 2001 from $58.1 million for
the same period of 2000; and net earned premiums grew $17.9 million (36.8%) to
$66.5 million in 2001 from $48.6 million in 2000.

The respective gross written premium increases for commercial lines, specialty
lines and personal lines segments for the three months ended March 31, 2001 vs.
March 31, 2000 amount to $15.6 million (34.9%), $4.4 million (26.8%) and $6.9
million (42.8%) respectively. The overall growth in gross written premiums is
primarily attributable to the following:

-    Recent rating downgrades of certain major competitor property and casualty
     insurance companies has led to their diminished presence in the Company's
     commercial and specialty lines business segments and continues to result in
     additional prospects and increased premium writings most notably for the
     Company's various commercial package and non-profit D&O product lines.

-    The consolidation of certain competitor property and casualty insurance
     companies has led to the displacement of certain of its independent agency
     relationships which continues to result in new agency relationships for the
     Company which have been bringing additional prospects and premium writings
     for the Company's commercial and specialty lines segments.

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

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

-    Rate increases on select casualty renewal business.

-    The growth in the personal lines segment, resulting in an increase of $6.9
     million in gross manufactured housing, preferred homeowners and National
     Flood Insurance Program written premiums.

-    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 product lines due to
     inadequate pricing levels being experienced as a result of market
     conditions and/or loss experience emerging at higher than expected levels.

The respective net written premium increases (decreases) for commercial lines,
specialty lines and personal lines segments for the three months ended March 31,
2001 vs. March 31, 2000 amount to $12.9 million (44.7%), ($0.2) million (1.0%)
and $6.2 million (55.7%) respectively. The differing percentage increases
(decreases) in net written premiums versus gross written premiums for the period
is primarily due to the various changes in the Company's reinsurance programs.

         Net Investment Income: Net investment income approximated $8.0 million
for the three months ended March 31, 2001 and $6.3 million for the same period
of 2000. Total investments grew to $474.7 million at March 31, 2001 from $412.4
million at March 31, 2000. The growth in investment income is due to investing
net cash flows provided from operating activities and the reinvestment of $4.6
million in proceeds from the sale of common stock holdings which were reinvested
into fixed maturity securities.

         Net Realized Investment Gain: Net realized investment gains were $2.3
million for the three months ended March 31, 2001 and $0.1 million for the same
period in 2000. The Company realized net investment gains of $2.3 million from
the sales of common stock equity securities during the three months ended March
31, 2001. The proceeds from these common stock sales are being reinvested in
fixed maturity securities to increase current investment income, lessen the
Company's holdings in certain common stock positions, and decrease the overall
percentage of investments in common stock securities.

         Other Income: Other income approximated $0.1 million for the three
months ended March 31, 2001 and $2.7 million for the same period of 2000. Other
income primarily consists of commissions earned on brokered personal lines
business. Such commissions earned continue to decrease as brokering activities
are discontinued in favor of writing business directly.

         Net Loss and Loss Adjustment Expenses: Net loss and loss adjustment
expenses increased $11.0 million (39.0%) to $39.2 million for the three months
ended March 31, 2001 from $28.2 million for the same period of 2000 and the loss
ratio increased to 58.9% in 2001 from 58.1% in 2000. This increase in net loss
and loss adjustment expenses was due principally to the 36.8% growth in net
earned premiums and in part to the relative increase in the loss ratios for the
commercial lines and specialty lines segment products.

         Acquisition Costs and Other Underwriting Expenses: Acquisition costs
and other underwriting expenses increased $5.8 million (34.7%) to $22.5 million
for the three months ended March 31, 2001 from $16.7 million for the same period
of 2000. This increase was due primarily to the 36.8% growth in net earned
premiums offset by relative changes in the Company's product mix and associated
distribution channel expense.

         Other Operating Expenses: Other operating expenses decreased $0.8
million to $2.0 million for the three months ended March 31, 2001 from $2.8
million for the same period of 2000. The decrease in other operating expenses
was primarily due to the discontinuance of brokering activities resulting in a
decrease in the amount of broker commissions (see Results of Operations "Other
Income").

         Income Tax Expense: The Company's effective tax rate for the three
months ended March 31, 2001 and 2000 was 32.7% and 30.3%, 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

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

effective tax rate is principally due to a greater investment of cash flows in
taxable securities relative to tax-exempt securities.

LIQUIDITY AND CAPITAL RESOURCES

         For the three months ended March 31, 2001 the Company's investments
experienced unrealized investment appreciation of $2.1 million, net of the
related deferred tax expense of $1.1 million. At March 31, 2001, the Company had
total investments with a carrying value of $474.7 million, of which 92.7%
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 7.3% of the Company's total investments consisted
primarily of publicly traded common stock securities.

         The Company produced net cash from operations of $43.9 million and
$22.0 million, respectively, for the three months ended March 31, 2001 and 2000.
Management believes that the Company has adequate ability to pay all claims and
meet all other cash needs.

         During the quarter ended March 31, 2001, the Company repaid $22.0
million of an unsecured revolving credit facility utilizing $8.6 million of
refunds of prior year tax payments which were received during January 2001 along
with the settlement of other intercompany tax balances.

         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.


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, 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; and (v) catastrophe losses.

                                       12
<PAGE>   13



PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     There is no material change to the Quantitative and Qualitative market risk
disclosure from the Company's Form 10-K for the fiscal year ended December 31,
2000.


                                       13
<PAGE>   14


            PHILADELPHIA CONSOLIDATED HOLDING CORP. AND SUBSIDIARIES
                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         On March 15, 2001, two of the Company's subsidiaries, Liberty American
         Insurance Group, Inc. and Mobile Homeowners Insurance Agencies, Inc.,
         filed an action in the U.S. District Court for the Middle District of
         Florida against Westpoint Underwriters LLC, its managing general agent,
         Modern Insurance Co., two former employees of Liberty American - John
         Jerger and Lyle Vincent - and a third individual, Sandy Jerger, for
         copyright infringement, theft of trade secrets and confidential
         information and breach of a confidentiality agreement. The action
         arises from the use of Liberty American's software to start up and
         operate Westpoint, which competes in the same market with Liberty
         American. Liberty American is seeking injunctive relief as well as
         damages.

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

         Not applicable

Item 5.  Other information

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

         a.       Not applicable.

         b.       The Company filed the following reports on Form 8-K during the
                  quarterly period ended March 31, 2001:

<TABLE>
<CAPTION>

                   Date of Report                       Item Reported
                  ----------------             ---------------------------------------------------------------
<S>                                            <C>
                  February 12, 2001            December 31, 2000 Investor Presentation

                  February 19, 2001            Supplemental Financial Data for the three months and years ended
                                               December  31, 2000 and 1999
</TABLE>

                                       14
<PAGE>   15

                                   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


Date May 14, 2001              /s/ James J. Maguire
-----------------------            ------------------------------------------
                                   James J. Maguire
                                   Chairman of the Board of Directors,
                                   and Chief Executive Officer
                                   (Principal Executive Officer)


Date  May 14, 2001             /s/ Craig P. Keller
-----------------------            ------------------------------------------
                                   Craig P. Keller
                                   Senior Vice President, Secretary,
                                   Treasurer and Chief Financial Officer
                                   (Principal Financial and Accounting
                                   Officer)














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