NEW YORK — In one of his last public statements before steppingdown as CEO of Philadelphia Insurance Cos. on Jan. 1, Jamie Maguireshared some of the strategies that help set his company apart.

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For starters, Maguire, who spoke at the 23rd annualExecutive Conference hosted by Ernst & Young and SummitBusiness Media (parent company of PC360), was justifiablyproud of Philly's decision to stay entirely out of what has becomeone of the most-troubled lines in the industry: workers'compensation. The total absence of that coverage on the company'sbooks gives it a big boost over competitors' saddled with it.

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Another point of distinction for the company: It's 49.3 percent“hit rate” on binding business that it quotes. Maguire creditsPhilly's trademarked “10 Reasons Why” marketing strategy as a keyfactor in this impressive figure: For each line it writes, thecompany offers 10 ways in which its coverage is advantageous toinsureds. Its special “Bell” endorsements, playing off its homecity's most-famous landmark, are another tactic to help itspolicies stand out in the crowd (such as offering Key EmployeeReplacement coverage at no extra cost).

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Read our August profile of Philadelphia Insurance Cos.and check out all our recent coverage of the insurer here.

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On the distribution question, Philly, like many of itscompetitors, relies heavily on a network of preferred independentagents. But the company's own sales force is comprised of licensedagents who can also transact the business. And the company is oneof the few to offer direct online quotes for select commercialclasses, such as yoga studios.

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Looking ahead to 2013, Maguire believes he has left the companyin good shape. He expects its recently launched E&S division tobecome an increasingly important component of the business(currently 99 percent of its business is admitted). He also is surethat more “consolidation is inevitable” and that the “winners”—withthe scale to make substantial technology investments—“will benefitfrom exceptional diagnostic tools” to price and select risks.

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On the future-impacting climate-change question, Philadelphia'senterprise-risk management committee has opined that the world isentering “a completely different weather paradigm” and that it'scrucial that Philadelphia (and all insurers) take thecapital-adequacy implications of this into account when reserving.

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His farewell advice for his insurance-executive peers? Bewilling “to take drastic measures when necessary [in terms of]significant increases in rates and deductibles. And “beware ofreaching for yield” when it comes to investmentdecisions.

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