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CRM Holdings reports Q1 net loss

An increase in the allowance for uncollectible premiums of $0.9m

CRM Holdings, a provider of a range of products and services for the workers’ compensation insurance industry, has reported a net loss of $8.39m, or $0.50 per share, for the first quarter ended March 31, 2009, compared to a net income of $4.97m, or $0.30 per share, for the first quarter ended March 31, 2008.

According to the company, loss from continuing operations for the first quarter of 2009 was $8.19m, or $0.49 per share, compared to an income from continuing operations of $6.56m, or $0.40 per share, for the same quarter of 2008.

Net premiums earned for the first quarter of 2009 were $21.14m, compared to $32.35m for the first quarter of 2008. For the first quarter of 2009, total revenues declined to $26.07m from $35.87m for the comparable period in 2008.

Furthermore, investment income during the quarter increased to $3.3m from $1.6m in the first quarter of the prior year. This increase was due to a 17% increase in total investments from a year ago and the recognition of $1.2m of asset impairment charges in the first quarter of 2008.

The report published by the company noted that total underwriting expenses for the quarter increased to $21m from $19.3m in the first quarter of 2008, primarily as a result of increased calendar-year loss and loss adjustment expenses and an allowance for uncollectible premiums of $1.4m before taxes.

At March 31, 2009, total assets were $452.95m, compared to $447.4m as of December 31, 2008.

CRM Holdings is a provider of workers’ compensation insurance products. Its main business activities include underwriting primary workers’ compensation insurance policies, underwriting workers’ compensation reinsurance and excess insurance policies, and providing fee-based management and other services to self-insured entities. The company provides primary workers’ compensation insurance to employers in California, Arizona, Florida, Nevada, New Jersey, New York, and other states. The company reinsures some of the primary business underwritten and provides excess workers’ compensation coverage for self-insured organizations. CRM is also a provider of fee-based management services to self-insured groups in California.