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Original Source: FD (FAIR DISCLOSURE) WIRE
UNIDENTIFIED SPEAKER: Okay, let's get this next session started. We have Philadelphia Consolidated Holdings here -- Jamie Maguire, the CEO, and Sean Sweeney, the Chief Marketing Officer, here to tell the story about Philly.
JAMIE MAGUIRE, CEO, PRESIDENT, PHILADELPHIA CONSOLIDATED HOLDINGS: Thank you, Bob, and thank you all for listening in over the Internet and thank you all for being here. Sean and I are going to tell you about Philadelphia Consolidated Holdings Corp. and why we think that your investment in us is probably the best investment when it comes to insurance companies right now.
But before we talk about that we have the obligatory Safe Harbor statement that we have to remind you of that some of our statements will be forward-looking in nature and certain representations that we may make may or may not materialize based on items which are listed here in this slide and which we've released on our 10-K.
Philly Consolidated, we're set up as a holding company. We went public in 1993. We have four subsidiary companies -- Philadelphia Indemnity Insurance Co., which is our admitted company in 50 states; Philadelphia Insurance Co., which is our non-admitted company, approved to write business on an excess and surplus lines basis in 48 states; Maguire Insurance Agency, which is a captive agency, all the employees are employees of our agency and the agency in turn writes on behalf of the two insurance companies; and Liberty American Insurance Group, which is an acquisition we made in 1999 where we write homeowners and federal flood primarily in Florida.
The Liberty American Insurance Group has three subsidiary companies, two insurance companies and an agency set up similar to the Philadelphia pool. We're a pool -- we have two pools from A.M. Best, an A+ rated pool which is our Philly pool and an A- rated pool which is our Florida pool. And we've had that rating affirmed for 2006.
Our executive management team, the key take away from this slide is we have some family in the business. Obviously the family started the Company, still owns about 12% of the stock. Sean is my first cousin so he's part of the family, been with the Company 26 years going. He's going to talk to you a little bit later about some of our products and our field operations. But you can see we have a significant number of years in the business, a significant tenure with Philadelphia Insurance Company by the executive management team.
We like to try to hold on to our employees for a long period of time; we have long-term incentive plans and options and restricted stock which we've granted with a five-year [cliff] vesting which guarantees -- virtually guarantees us that our management team is going to remain intact. We've had no turnover, virtually no turnover in the last ten years of our management team. So a very stable management team in the home office.
In original offices, we have 38 offices across the country, 13 regions and our regions are run by regional vice presidents all of whom, again, have significant experience in the industry and a significant number of years with Philly. And it's a relationship that -- the insurance business is a relationship business and having the stability of management and having the stability of our management team both in the home office and in the field offices has helped fuel our growth which I'll go into in a little bit. We complement the relationship -- we complement the stability of our management team with excellent technology which I'll talk about also.
A brief history of the Company -- it was founded in 1962 by our Chairman and founder, my father, as a general agency. So we have our roots as a marketing organization. We were primarily into automobile dealership leasing and rental. We've moved out of that business, although that's still a small part of what we do right now. And you'll see when we talk about our products; we've diversified substantially in terms of the number of products that we offer and geographically as well.
In 1978 we enter the risk bearing business. We became a managing general agent. We posted a letter of credit to guarantee the underwriting results. So it's always been our philosophy, it's always been our corporate culture to underwrite to a profit. And even back as an MGA, managing general agent, we guaranteed the underwriting results by putting up our own money through a letter of credit with the carriers we represented to guarantee the underwriting results.
In 1986 we went to Wall Street, obtained $18 million in mezzanine financing, capitalized our two insurance companies and in '93 repaid the mezzanine financing and went …