CRM Holdings, Ltd. (CRMH) - 500 Beiträge pro Seite

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Profile:CRM Holdings, Ltd. provides a range of products and services for workers' compensation risk management in the United States. Its subsidiary, Majestic Insurance Company, provides workers' compensation insurance through independent insurance brokers and agents to medium and large size businesses primarily in California, as well as has operations in New York, Alaska, Arizona, Nevada, Oregon, and Washington. The company also forms and manages self-insured groups in New York, California, and Texas, which cover healthcare, contracting, transportation, wholesale and retail, manufacturing, public entities, real estate, cemetery management, new vehicle franchise auto dealerships, banking, winery, and publishing and printing industries. CRM Holdings offers these groups with various services, including assistance in their formation, underwriting, risk assessment, safety and loss control services, medical bill review and case management, general management and recordkeeping, regulatory compliance, and claims management services. It also acts as a broker by placing excess coverage insurance and various surety bonds for the groups, as well as reinsures a portion of this excess coverage. As of December 31, 2006, the company managed 14 self-insured groups. CRM Holdings was founded in 1999 and is based in Hamilton, Bermuda.


http://www.crmholdingsltd.bm/

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CRM Holdings, Ltd. Announces Record Second Quarter Results
Tuesday August 7, 8:00 am ET
Further Progress at Majestic Revenues Up 171% for the Quarter
Net Income of $0.32 Per Share


HAMILTON, Bermuda, Aug. 7 /PRNewswire-FirstCall/ -- CRM Holdings, Ltd. ("CRM" or "the Company") (Nasdaq: CRMH - News), a leading provider of a full range of products and services for the workers' compensation insurance industry, today announced results for the second quarter ended June 30, 2007.

Three Months Ending June 30, 2007

Net income for the second quarter of 2007 was $5.2 million, or $0.32 per diluted share, compared to $3.7 million, or $0.23 per diluted share, in the second quarter of 2006, an increase of 39%. The second quarter of 2007 reflects an increase in net income per share of approximately $0.07 derived from the April 24 novation agreement between the Company and New York Marine and General Insurance Company ("NYMAGIC").

Total revenues were a record $44.3 million in the quarter, up 171% from $16.4 million in the same quarter of 2006.

Net earned premiums from primary insurance and reinsurance increased to $33.5 million from $5.6 million a year ago. Majestic, which was acquired in November 2006, accounted for most of the increase with $27.5 million of earned premium, which included $9.2 million from the novation. Twin Bridges also contributed to the improvement, increasing its earned premiums by $0.4 million to $6.0 million from $5.6 million a year ago by assuming a larger share of the excess coverage purchased by self-insured groups administered by the Company.

Fee-based management services revenues declined to $8.8 million from $9.9 million in the prior year. The decline is attributable to lower insurance rates in California, attrition in one New York self-insured group, and reduced commissions on the renewing excess compensation policies issued by Majestic.

Investment income rose to $2.7 million for the quarter from $0.9 million in the same quarter of 2006, due to the increased level of investments following the inclusion of Majestic.

Total expenses increased to $38.3 million from $12.1 million in the second quarter a year ago, driven largely by the inclusion of Majestic's results. Loss and loss adjustment expenses as a percentage of net premiums earned (loss ratio) at Twin Bridges in the quarter were 32.0% compared to 21.4% in the prior year. Majestic's incurred losses of $18.1 million for the quarter, which produced a loss ratio of 65.6%, included novated losses of $7.4 million.

The combined ratio (total losses and loss adjustment, underwriting, acquisition and general expenses as a percentage of net premiums earned) for the reinsurance segment for the second quarter of 2007 was 56.5%, compared to 55.8% in the same quarter of 2006. The combined ratio for Majestic, the Company's primary insurance segment, was 87.2%.

"We are continuing to build a solid and diversified revenue and earnings platform. Our diverse offerings of fee-based services, primary insurance, excess insurance, and reinsurance further strengthen our relationships with our broker partners. Currently, our risk-based businesses are leading the way and driving improved levels of performance, but we plan to continue to offer all workers' compensation options to our brokers, providing them our full array of products and services for their clients," said Dan Hickey Jr., CEO of CRM Holdings Ltd.

Six Months Ending June 30, 2007

For the six months ended June 30, 2007, net income was $8.1 million, or $0.49 per diluted share, up 19.4% per diluted share in the first half of 2006.

Net earned premiums from primary insurance and reinsurance for the first half of 2007 increased to $56.3 million from $9.9 million a year ago. The increase was mainly due to the acquisition of Majestic in November 2006. Approximately $9.2 million of the revenue increase was due to the novation agreement. Twin Bridges increased its earned premiums by $2.1 million to $12.0 million from $9.9 million a year ago by assuming a larger share of the excess coverage purchased by certain self-insured groups administered by the Company.

Total expenses were $70.0 million compared to $23.9 million, largely due to the addition of Majestic.

The combined ratio for the reinsurance segment for the first half of 2007 was 58.7%, compared to 55.8% in the first half of 2006. The combined ratio for Majestic, the Company's primary insurance segment, was 92.1%.

Segment Results

Fee-based management services business

In the second quarter of 2007, revenues in the fee-based management services segment were $8.8 million, a decrease of 11.4% from $9.9 million in revenues in the second quarter of 2006. The number of group members in California increased 19.4% to 412 compared to the same quarter last year; however, rates in that state were lower than at the same time last year. As a result, premiums under management at quarter end of $58.3 million declined 15.0% from $68.5 million at the same time a year ago. The Company's group membership in New York increased 8.9% to 2,093, but premiums under management decreased by 13.4% to $100.7 million, mainly due to attrition in one trust.

Fee-based loss before taxes for the second quarter of 2007 was $1.0 million versus a $1.6 million profit for the same quarter the prior year. Lower premiums under management together with a fall in commission income related to excess insurance placements caused the decline in pre tax income.

For the first half of 2007, revenue in the fee-based management services segment declined by 4.7% to $18.7 million from $19.6 million last year.

Primary Insurance and Reinsurance Segments

In the second quarter of 2007, revenues in the reinsurance segment increased 7.7% to $6.7 million from $6.2 million in the same quarter last year due to the higher quota share agreement with Majestic compared to the agreement in place with a third party carrier last year.

Net income before taxes for the reinsurance segment was $3.3 million in the second quarter of 2007, compared to $3.1 million in the second quarter of 2006, an increase of 7.2%.

Revenues from the primary insurance segment were $29.4 million in the quarter, and income before taxes was $5.4 million.

In the first half of 2007, revenues in the reinsurance segment were $13.4 million compared to $11.1 million last year, an increase of 20.4%. Income before taxes was $6.4 million versus $5.6 million last year.

For the first half of the year, revenues from the primary insurance segment were $47.8 million and income before taxes was $6.9 million.

Outlook for Remainder of 2007

CRM expects further progress during the year from its risk-based businesses. Majestic has experienced record submission activity from its expanded agency network in California, and is increasing its business in New Jersey following its entry into that state in April. In June, two of the three remaining self-insured groups managed by CRM renewed their reinsurance contracts with Majestic, replacing the former third-party carrier and delivering reinsurance premium to Twin Bridges with no frictional cost.

Fee-based business will continue to experience soft market conditions in California and must absorb a rate cut in New York. Nonetheless, CRM expects to continue adding members to its self insured groups and will seek opportunities to acquire books of business. CRM expects retention will remain strong, which will be beneficial to revenue and earnings when market conditions harden.

CRM reaffirmed its guidance for the full year of fully diluted earnings per share in the range of $1.10 to $1.20.

Conference Call

The company will host a conference call at 9:00 a.m. EDT on Tuesday, August 7, 2007, to discuss earnings for the second quarter ended June 30, 2007. To participate in the event by telephone, please dial 800-289-0572 five to 10 minutes prior to the start time (to allow time for registration) and reference passcode 1974342. International callers should dial 913-981-5543. The conference call will be broadcast live over the Internet and can be accessed by all interested parties at CRM's Web site at http://www.CRMHoldingsLtd.bm/events.cfm. To listen to the call please go to this Web site at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live webcast, an audio replay of the conference call will be archived on CRM's web site, at http://www.CRMHoldingsLtd.bm/events.cfm, for 90 days. A digital replay of the call will also be available on Tuesday, August 7 at approximately 12:00 p.m. Eastern Time through Tuesday, August 14, at midnight Eastern Time. Dial 888- 203-1112 and enter the conference ID number 1974342. International callers should dial 719-457-0820 and enter the same conference ID number.

About CRM Holdings, Ltd.

CRM Holdings, Ltd. is a provider of workers' compensation insurance products. Its main business activities include providing fee-based management and other services to workers' compensation self-insured groups and, beginning in November 2006, the offering of a traditional workers' compensation insurance product. The Company provides its fee-based management services to self-insured groups in New York and California. It provides its traditional workers' compensation insurance coverage primarily to employers in California but also has active operations in Alaska, Arizona, Nevada, Oregon, Washington and, starting on April 1, 2007, New Jersey. CRM is a provider of reinsurance and excess workers' compensation coverage to the self insured groups it manages as well as other qualified self insured entities. Further information can be found on the CRM website at www.CRMHoldingsLtd.bm.


CRMH-E

Contact Information:
Mark Collinson
CCG Investor Relations
10960 Wilshire Blvd, Ste. 2050
Los Angeles, CA 90024
[phone], ext. 117

Forward-Looking statements

This press release contains forward-looking statements within the meaning of federal securities law, including statements concerning plans, objectives, goals, strategies, projections of future events or performance and underlying assumptions (many of which are based, in turn, upon further assumptions). These statements are based on our current expectations and projections about future events and are identified by terminology such as "may," "will," "should," "expect," "scheduled," "plan," "seek," "intend," "anticipate," "believe," "estimate," "aim," "potential," or "continue" or the negative of those terms or other comparable terminology.

All forward-looking statements involve risks and uncertainties. Although we believe that our plans, intentions and expectations are reasonable, we may not achieve our plans, intentions or expectations. There are or may be important factors that could cause actual results to differ materially from the forward-looking statements we make in this document. Such risks and uncertainties are discussed in the Company's Form 10-K for the year ended December 31, 2006 and in other documents filed by the Company with the Securities and Exchange Commission. We believe that these factors include, but are not limited to the following:


* The cyclical nature of the insurance and reinsurance industry;
* Premium rates;
* Investment results;
* Regulatory changes;
* The estimation of loss reserves and loss reserve development;
* Reinsurance may be unavailable on acceptable terms, and we may be
unable to collect reinsurance;
* The occurrence and effects of wars and acts of terrorism;
* The effects of competition;
* The possibility that the outcome of any litigation or arbitration
proceeding is unfavorable;
* Failure to retain key personnel;
* Economic downturns; and
* Natural disasters.

These risks and others could cause actual results to differ materially from those expressed in any forward-looking statements made. The Company undertakes no obligation to update publicly or revise any forward-looking statements made.


(Financial tables and contact information follow)


Table 1
CRM Holdings, Ltd.
Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2007 2006
(Dollars in thousands)
Assets
Investments:
Fixed-maturity securities, available-for-sale
(amortized cost $186,773 and $193,467) $185,490 $193,208
Equity securities, available-for-sale (cost $13,169
and $11,904) 14,624 12,089
Short-term investments 4,305 7,677
Investment in unconsolidated subsidiary 1,083 1,083
Total investments 205,502 214,057
Cash and cash equivalents 64,351 14,257
Cash and cash equivalents, restricted 3,395 6,546
Accrued interest receivable 2,432 2,325
Premiums receivable, net 14,022 17,806
Reinsurance recoverable 42,375 30,749
Accounts receivable 5,307 5,572
Deferred policy acquisition costs 435 1,143
Net deferred tax asset 8,650 6,803
Goodwill 2,661 2,695
Other assets 4,710 4,400
Total assets $353,840 $306,353

Liabilities and shareholders' equity
Reserve for losses and loss adjustment expenses $176,077 $153,622
Reinsurance payable 6,616 1,538
Unearned premiums 12,200 8,080
Unearned management fees and commissions 886 613
Long-term debt and other secured borrowings 44,895 44,083
Accrued expenses 20,714 14,773
Total liabilities 261,388 222,709
Common Stock
Authorized 50 billion shares; $.01 par value;
15.9 million common shares issued and outstanding; 159 155
0.4 million Class B shares issued and outstanding 4 8
Additional paid-in capital 67,157 66,566
Retained earnings 25,029 16,973
Accumulated other comprehensive gain (loss), net of
tax 103 (58)
Total shareholders' equity 92,452 83,644
Total liabilities and shareholders' equity $353,840 $306,353


Table 2
CRM Holdings, Ltd.
Consolidated Statements of Income (Unaudited)



Three months ended Six months ended
2007 2006 2007 2006
(Amounts in thousands, except per share data)
Revenues

Net premiums earned $33,515 $5,603 $56,337 $9,914
Fee-based management services 8,094 9,908 17,607 19,603
Investment income 2,728 857 5,130 1,639
Total revenues 44,337 16,368 79,074 31,156

Expenses
Losses and loss adjustment
expenses 19,969 1,197 32,979 2,231
Fees paid to general agents and
brokers 2,844 2,514 5,604 5,267
Policy acquisition costs 4,053 1,681 8,104 2,973
Selling, general and
administrative expenses 10,413 6,695 21,347 13,404
Interest expense 977 2 1,950 30
Total expenses 38,256 12,089 69,984 23,905

Income before taxes 6,081 4,279 9,090 7,251

Provision for income taxes 922 557 1,034 504

Net Income $5,159 $3,722 $8,056 $6,747

Earnings per share:
Basic $0.32 $0.23 $0.49 $0.42
Diluted $0.32 $0.23 $0.49 $0.41

Weighted average shares
outstanding:
Basic 16,286 16,247 16,280 16,247
Diluted 16,319 16,383 16,320 16,361


Table 3
CRM Holdings Ltd.
Consolidated Statements of Cash Flow (Unaudited)
Six months ended
June 30,
2007 2006
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $8,056 $6,747
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 406 104
Amortization of unearned compensation,
restricted stock 605 242
Amortization of discounts on available-for-sale
investments (844) (818)
Net realized gains on sale of investments (28) --
Deferred income tax benefit (1,930) (98)
Changes in:
Cash and cash equivalents, restricted 3,150 (3,864)
Accrued interest receivable (107) --
Premiums receivable 3,783 (13,117)
Reinsurance recoverable (11,626) --
Accounts receivable 265 (720)
Policy acquisition costs 707 (3,807)
Other assets 218 (1,384)
Reserve for losses and loss adjustment expenses 22,455 2,231
Reinsurance payable 5,078 --
Unearned premiums 4,120 12,589
Unearned management fees and commissions 273 675
Other accrued expenses 5,974 364
Net cash provided by (used in) operating
activities 40,555 (856)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale investments (79,603) (120,407)
Proceeds from sales and maturities of
available-for-sale investments 85,901 69,975
Net sales and maturities of short-term
investments 3,372 --
Fixed assets, net (671) (227)
Loans receivable (225) 4
Net cash provided by (used in) investing
activities 8,774 (50,655)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in accrued IPO costs -- (2,411)
Borrowings (repayments) under long-term debt and
credit facilities 779 (26)
Retirement of common shares - share-based
compensation (14) --
Net cash provided by (used in) financing
activities 765 (2,437)
Net increase (decrease) in cash 50,094 (53,948)
Cash and cash equivalents
Beginning 14,257 67,923
Ending $64,351 $13,975


Table 4
CRM Holdings, Ltd.
Income By Segment
For the three months ended June 30, 2007

Fee-Based Corporate
Management Primary and
Services Insurance Reinsurance Other Eliminations Total
(Dollars in thousands)
Revenues:
Net premiums
earned $-- $27,521 $5,994 $-- $-- $33,515
Management
fees 8,769 -- -- -- (675) 8,094
Investment
income 32 1,875 731 90 -- 2,728

Total
revenues 8,801 29,396 6,725 90 (675) 44,337
Expenses:
Underwriting
expenses -- 21,644 3,053 -- (675) 24,022
Interest
expense 3 -- -- 974 -- 977
Depreciation
and
amortization 170 31 -- -- -- 201

Operating
expenses 9,602 2,320 332 802 -- 13,056
Total
expenses 9,775 23,995 3,385 1,776 (675) 38,256
Income before
taxes $(974) $5,401 $3,340 $(1,686) $-- $6,081

Total
Assets $6,806 $290,667 $92,438 $7,824 $(43,895) $353,840

For the three months ended June 30, 2006
Fee-Based Corporate
Management Primary and
Services Insurance Reinsurance Other Eliminations Total
(Dollars in thousands)
Revenues:

Net premiums
earned $-- $-- $5,603 $-- $-- $5,603
Management
fees 9,908 -- -- -- -- 9,908
Investment
income 23 -- 639 195 -- 857
Total
revenues 9,931 -- 6,242 195 -- 16,638
Expenses:
Underwriting
expenses -- -- 2,878 -- -- 2,878
Interest
expense 2 -- -- -- -- 2
Depreciation
and
amortization 52 -- -- -- -- 52
Operating
expenses 8,285 -- 248 624 -- 9,157

Total
expenses 8,339 -- 3,126 624 -- 12,089

Income
before
taxes $1,592 $-- $3,116 $(429) $-- $4,279

Total
Assets $7,786 $-- $79,920 $16,582 $-- 104,288


Table 4,
continued
CRM Holdings, Ltd.
Income By Segment, continued
For the six months ended June 30, 2007
Fee-Based Corporate
Management Primary and
Services Insurance Reinsurance Other Eliminations Total
(Dollars in thousands)
Revenues:
Net premiums
earned $-- $44,373 $11,964 $-- $-- $56,337
Management
fees 18,635 -- -- -- (1,028) 17,607
Investment
income 76 3,425 1,444 185 -- 5,130
Total
revenues 18,711 47,798 13,408 185 (1,028) 79,074
Expenses:
Underwriting
expenses -- 35,704 6,407 -- (1,028) 41,083
Interest
expense 4 -- -- 1,946 -- 1,950
Depreciation
and
amortization 326 59 -- -- -- 385
Operating
expenses 18,789 5,106 618 2,053 -- 26,566
Total
expenses 19,119 40,869 7,025 3,999 (1,028) 69,984

Income
before
taxes $(408) $6,929 $6,383 $(3,814) $-- $9,090


Total
Assets $6,806 $290,667 $92,438 $7,824 $(43,895) $353,840

For the six months ended June 30, 2006
Fee-Based Corporate
Management Primary and
Services Insurance Reinsurance Other Eliminations Total
(Dollars in thousands)
Revenues:
Net premiums
earned $-- $-- $9,914 $-- $-- $9,914
Management
fees 19,603 -- -- -- -- 19,603
Investment
income 40 -- 1,222 377 -- 1,639
Total
revenues 19,643 -- 11,136 377 -- 31,156
Expenses:
Underwriting
expenses -- -- 5,204 -- -- 5,204
Interest
expense 30 -- -- -- -- 30
Depreciation
and
amortization 104 -- -- -- -- 104
Operating
expenses 17,203 -- 328 1,036 -- 18,567
Total
expenses 17,337 -- 5,532 1,036 -- 23,905

Income
before
taxes $2,306 $-- $5,604 $(659) $-- $7,251

Total
Assets $7,786 $-- $79,920 $16,582 $-- $104,288


Table 5
CRM Holdings, Ltd.
Revenues by Segment
For the three months For the six months
ended ended
June 30, June 30,
2007 2006 2007 2006
(Dollars in (Dollars in
thousands) thousands)

Revenues from Fee-Based
Management Services
New York (1) $6,083 $7,210 $13,441 $13,613
California 2,686 2,698 5,193 5,990
8,769 9,908 18,634 19,603

Revenues from Primary
Insurance
California 18,785 -- 34,285 --
Other (2) 8,736 -- 10,089 --
27,521 -- 44,374 --
Revenues from Reinsurance
New York 3,394 3,053 6,788 4,730
California 2,600 2,550 5,176 5,184
5,994 5,603 11,964 9,914

Investment Income 2,728 857 5,130 1,639

Eliminations (3) (675) -- (1,028) --

Total Revenues $44,337 $16,368 $79,074 $31,156

(1) Includes $31 and $62 thousand of revenues from our Texas self-insured
group for the three and six months ended June 30, 2007, respectively.
(2) Includes primary insurance premiums for policies written in
Washington, Alaska, Arizona, Nevada, New Jersey and New York.
(3) Elimination of CRM New York and CRM California intercompany
commissions from Majestic.


Table 6
CRM Holdings, Ltd.
Fee-Based Management Services Segment Data
June 30,
2007 2006

Number of Groups
New York 8 8
California 5 6
Texas 1 --
14 14

Number of Group Members
New York 2,093 1,922
California 412 345
Texas 12 --
2,517 2,267

Aggregate Annualized
Premiums (1)
New York $100,722,302 $116,366,970
California 58,267,439 68,530,940
Texas 353,839 --
$159,343,580 $184,897,910

(1) Aggregate annualized premiums are the annualized total of the actual
premiums payable to our groups by their members as in effect at the
dates specified. CRM management monitors the period-to-period changes
in these amounts because we believe that it is a meaningful indicator
of the change in our expected fee-based management services revenue
in the future. Our management fees are based on a percentage of the
premiums our groups charge their members and are recognized as income
over the year for which such premiums are fixed. Increases and
decreases in the aggregate amount of these annualized premiums are an
indication of the increase or decrease in the amount of management
fees we expect to earn in the future as our unearned management fees
are recognized as income.


Table 7
CRM Holdings, Ltd.
Primary Insurance Segment Data (1)

For the three months For the six months
ended ended
June 30, June 30,
2007 2006 2007 2006
(Dollars in (Dollars in
thousands) thousands)

Primary Insurance Premiums $27,521 $-- $44,373 $--

Loss and Loss Adjustments Expenses 18,051 -- 29,151 --
Underwriting, Acquisition and
Insurance Expenses (2) 5,944 -- 11,718 --
Underwriting Profit $3,526 $-- $3,504 $--

Loss Ratio (3) 65.6% 0.0% 65.7% 0.0%
Expense Ratio (4) 21.6% 0.0% 26.4% 0.0%
Combined Ratio (5) 87.2% 0.0% 92.1% 0.0%

(1) Results of the Primary Insurance segment are not presented for
periods prior to the acquisition date of November 14, 2006.
(2) Does not include the elimination of $375 thousand and $1.0 million of
Majestic policy acquisition costs against commissions due to CRM New
York and CRM California for the three and six months ended June 30,
2007, respectively.
(3) The loss ratio is calculated by dividing loss and loss adjustment
expense by net primary insurance premiums.
(4) The expense ratio is calculated by dividing underwriting, acquisition
and insurance expenses for the period by net primary insurance
premiums.
(5) The combined ratio is the sum of the loss ratio and the expense
ratio.


Table 8
CRM Holdings, Ltd.
Reinsurance Segment Data

For the three months For the six months
ended ended
June 30, June 30,
2007 2006 2007 2006
(Dollars in (Dollars in
thousands) thousands)

Net Reinsurance Premiums $5,994 $5,603 $11,964 $9,914
Loss and Loss Adjustments
Expenses 1,918 1,197 3,828 2,231
Underwriting, Acquisition and
Insurance Expenses 1,467 1,929 3,196 3,301
Underwriting Profit $2,609 $2,477 $4,940 $4,382

Loss Ratio (1) 32.0% 21.4% 32.0% 22.5%
Expense Ratio (2) 24.5% 34.4% 26.7% 33.3%
Combined Ratio (3) 56.5% 55.8% 58.7% 55.8%

(1) The loss ratio is calculated by dividing loss and loss adjustment
expense by net reinsurance premiums.
(2) The expense ratio is calculated by dividing underwriting, acquisition
and insurance expenses for the period by net reinsurance premiums.
(3) The combined ratio is the sum of the loss ratio and the expense
ratio.





--------------------------------------------------------------------------------
Source: CRM Holdings, Ltd.

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CRM Holdings, Ltd. Confirms No Exposure to U.S. Sub-prime Mortgage Sector
Monday August 27, 12:47 pm ET


HAMILTON, Bermuda, Aug. 27 /PRNewswire-FirstCall/ -- CRM Holdings, Ltd. ("CRM" or "the Company") (Nasdaq: CRMH - News), a leading provider of a full range of products and services for the workers' compensation insurance industry, today confirmed it does not have any material exposure to the U.S. residential mortgage market in its investment portfolios.


At June 30, 2007, the majority of its investment portfolio at its reinsurance subsidiary, Twin Bridges, was comprised of short-term U.S. government and agency securities, and cash and money market equivalents. The majority of its investment portfolio at its primary insurance subsidiary, Majestic Insurance Company, was composed of debt obligations of states and political subdivisions, corporate bonds, debt of U.S. government and agencies and equity securities.

"We have conducted a careful analysis of our investment portfolios, and we are very comfortable with our minimal exposure to the sub-prime mortgage market," commented Dan Hickey, Jr., CRM's CEO. "Going forward, we will continue to monitor our portfolios to maximize value, and remain focused on creating long-term opportunities to grow at attractive rates of return and, ultimately, driving shareholder value."

About CRM Holdings, Ltd.

CRM Holdings, Ltd. is a provider of workers' compensation insurance products. Its main business activities include providing fee-based management and other services to workers' compensation self-insured groups and, beginning in November 2006, the offering of a traditional workers' compensation insurance product. The Company provides its fee-based management services to self-insured groups in New York and California. It provides its traditional workers' compensation insurance coverage primarily to employers in California but also has active operations in Alaska, Arizona, Nevada, Oregon, Washington and, starting on April 1, 2007, New Jersey. CRM is a provider of reinsurance and excess workers' compensation coverage to the self insured groups it manages as well as other qualified self insured entities. Further information can be found on the CRM website at http://www.CRMHoldingsLtd.bm.


Contact Information:
Mark Collinson
CCG Investor Relations
10960 Wilshire Blvd, Ste. 2050
Los Angeles, CA 90024
[phone], ext. 117




--------------------------------------------------------------------------------
Source: CRM Holdings, Ltd.

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PERIOD ENDING 30-Jun-07 31-Mar-07 31-Dec-06 30-Sep-06
Total Revenue 44,337 34,737 26,608 17,284
Cost of Revenue - - - -

Gross Profit 44,337 34,737 26,608 17,284

Operating Expenses
Research Development - - - -
Selling General and Administrative 37,279 30,755 21,430 13,378
Non Recurring - - - -
Others - - - -

Total Operating Expenses - - - -


Operating Income or Loss 7,058 3,982 5,177 3,907

Income from Continuing Operations
Total Other Income/Expenses Net - - - -
Earnings Before Interest And Taxes 7,058 3,982 5,177 3,907
Interest Expense 978 972 501 1
Income Before Tax 6,080 3,010 4,676 3,905
Income Tax Expense 922 112 509 563
Minority Interest - - - -

Net Income From Continuing Ops 5,158 2,898 4,167 3,342

Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -


Net Income 5,158 2,898 4,167 3,342
Preferred Stock And Other Adjustments - - - -

Net Income Applicable To Common Shares $5,158 $2,898 $4,167 $3,342

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CRMH ist eine verdoppelungschance!

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CRM Holdings, Ltd. Acquires Fee-Based Business, Medical Expense Management
Tuesday October 2, 8:00 am ET


HAMILTON, Bermuda, Oct. 2 /PRNewswire-FirstCall/ -- CRM Holdings, Ltd. ("CRM" or "the Company") (Nasdaq: CRMH - News), a leading provider of a full range of products and services for the workers' compensation insurance industry, announced today that its medical bill review and case management services subsidiary, Eimar, L.L.C., has purchased the assets of Medical Expense Management, Inc. ("MEMI"), a medical expense claims management business. Financial details of the transaction were not disclosed.

The Company also announced that Mr. Charles Manzo, President of MEMI, will join CRM as Senior Vice President of Claims Management Services for its Compensation Risk Managers, LLC subsidiary. Mr. Manzo has 30 years experience in the insurance industry, focusing on workers' compensation claims management and managed care quality controls. Before founding MEMI, he worked for two major insurance carriers and a major insurance broker.

"We see this acquisition as an opportunity to enhance and diversify our fee-based business," said Mr. Chester J. Walczyk, Chief Operating Officer of CRM. "This transaction broadens Eimar's client base, expanding it beyond self-insured entities to now include third-party insurance companies and law firms. We are also pleased to welcome Charles Manzo to CRM. His expertise and experience in workers' compensation claims management and managed care will be an invaluable asset to the fee-based side of our business."

The Company expects MEMI to contribute immaterially to revenue and earnings per share in the fourth quarter of fiscal 2007.

In completing the transaction, CRM was advised by Mystic Capital Advisors Group, LLC, which also advised the Company during its acquisition of Majestic Insurance Co. in November 2006.

About CRM Holdings, Ltd.

CRM Holdings, Ltd. is a provider of workers' compensation insurance products. Its main business activities include providing fee-based management and other services to workers' compensation self-insured groups and, beginning in November 2006, the offering of a traditional workers' compensation insurance product. The Company provides its fee-based management services to self-insured groups in New York and California. It provides its traditional workers' compensation insurance coverage primarily to employers in California but also has active operations in Alaska, Arizona, Nevada, Oregon, Washington and, starting on April 1, 2007, New Jersey. CRM is a provider of reinsurance and excess workers' compensation coverage to the self-insured groups it manages as well as other qualified self-insured entities. Further information can be found on the CRM website at http://www.CRMHoldingsLtd.bm.



CRMH-G

Contact Information:
Mark Collinson
CCG Investor Relations
10960 Wilshire Blvd, Ste. 2050
Los Angeles, CA 90024
[phone], ext. 117

Forward-Looking statements

This press release contains forward-looking statements within the meaning of federal securities law, including statements concerning plans, objectives, goals, strategies, projections of future events or performance and underlying assumptions (many of which are based, in turn, upon further assumptions). These statements are based on our current expectations and projections about future events and are identified by terminology such as "may," "will," "should," "expect," "scheduled," "plan," "seek," "intend," "anticipate," "believe," "estimate," "aim," "potential," or "continue" or the negative of those terms or other comparable terminology.

All forward-looking statements involve risks and uncertainties. Although we believe that our plans, intentions and expectations are reasonable, we may not achieve our plans, intentions or expectations. There are or may be important factors that could cause actual results to differ materially from the forward-looking statements we make in this document. Such risks and uncertainties are discussed in the Company's Form 10-K for the year ended December 31, 2006 and in other documents filed by the Company with the Securities and Exchange Commission. We believe that these factors include, but are not limited to the following:


-- The cyclical nature of the insurance and reinsurance industry;
-- Premium rates;
-- Investment results;
-- Regulatory changes;
-- The estimation of loss reserves and loss reserve development;
-- Reinsurance may be unavailable on acceptable terms, and we may be
unable to collect reinsurance;
-- The occurrence and effects of wars and acts of terrorism;
-- The effects of competition;
-- The possibility that the outcome of any litigation or arbitration
proceeding is unfavorable;
-- Failure to retain key personnel;
-- Economic downturns; and
-- Natural disasters.


These risks and others could cause actual results to differ materially from those expressed in any forward-looking statements made. The Company undertakes no obligation to update publicly or revise any forward-looking statements made.




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Source: CRM Holdings, Ltd.