A.M. Best Comments on the Announced Acquisition of Philadelphia Consolidated Holding Corp. by Tokio Marine Holdings, Inc

Business Wire, August 6, 2008

OLDWICK, N.J. -- A.M. Best Co. has commented that the issuer credit rating (ICR) of "a-" of Philadelphia Consolidated Holding Corp. (Philadelphia Consolidated) (Bala Cynwyd, PA) (NASDAQ: PHLY) is unchanged as a result of the recent announcement that Tokio Marine Holdings, Inc. (Tokio Marine) (Chiyoda-ku, Tokyo, Japan) had entered into a definitive agreement to acquire Philadelphia Consolidated. Additionally, A.M. Best's financial strength rating (FSR) of A (Superior) and ICRs of "aa-"of Philadelphia Insurance Companies (Philadelphia Insurance) and its members and FSR of A- (Excellent) and ICRs of "a-" of Liberty American Insurance Group (Liberty American) and its members are unchanged. Philadelphia Consolidated is the parent holding company of Philadelphia Insurance and Liberty American. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

The announced acquisition stipulates that Tokio Marine would acquire all outstanding shares of Philadelphia Consolidated for $61.50 per share, in cash. The total transaction value is approximately $4.7 billion. The actual purchase would be made through Tokio Marine's wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co. Ltd. (Tokyo, Japan).

In concurrence with the acquisition, Philadelphia Consolidated is expected to be delisted and its ICR withdrawn. The acquisition is expected to close in fourth quarter 2008 and is subject to the customary regulatory approvals.

The ICR of "a-" is unchanged for Philadelphia Consolidated Holding Corp.

The FSR of A (Superior) and ICRs of "aa-" are unchanged for Philadelphia Insurance Companies and its following members:

* Philadelphia Indemnity Insurance Company

* Philadelphia Insurance Company

The FSR of A- (Excellent) and ICRs of "a-" are unchanged for Liberty American Insurance Group and its following members:

* Liberty American Insurance Company

* Liberty American Select Insurance Company

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.