ADDENDUM NO. 2 to the PROPERTY EXCESS OF LOSS AGREEMENT OF REINSURANCE NO. TP1600E,F (hereinafter referred to as the “Agreement”) between PHILADELPHIA INDEMNITY COMPANY PHILADELPHIA INSURANCE COMPANY One Bala Plaza, Suite 100 Bala Cynwyd, Pennsylvania...

EXHIBIT 10.7

Swiss Re

ADDENDUM NO. 2

to the

PROPERTY EXCESS OF LOSS
AGREEMENT OF REINSURANCE
NO. TP1600E,F
(hereinafter referred to as the “Agreement”)

between

PHILADELPHIA INDEMNITY COMPANY
PHILADELPHIA INSURANCE COMPANY
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(hereinafter referred to as the “Company”)

and

SWISS REINSURANCE AMERICA CORPORATION
Armonk, New York
(hereinafter referred to as the “Reinsurer”)

It is understood and agreed that as respects policies in force at 12:01 a.m., Eastern Standard Time, January 1, 2005, and new and renewal policies becoming effective on and after said date, Paragraph A. of Article VIII – Reinsurance Premium is revised to read as follows:

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ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate, by their duly authorized representatives as of the following dates:

In Bala Cynwyd, Pennsylvania, this 21^st day of March, 2005

And in Armonk, New York, this 9^th day of February, 2005.

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