Workers’ compensation insurer CRM Holdings, Ltd. In Bermuda recently reported a 135 percent increase in its revenue to a record $34.7 million in the first quarter.
The company said it continues to benefit from its acquisition of Majestic Insurance Co. and its Twin Bridges reinsurance business, reporting a 429 percent increase in net earned premiums to $22.8 million for both these businesses. Majestic Insurance Co. contributed its first full quarter of premiums, totaling $16.9 million.
Also in the quarter, CRM began writing traditional workers’ compensation insurance in the state of New Jersey as part of its strategy to diversify beyond its base in California. In addition, three additional trusts renewed their reinsurance contracts with Twin Bridges as their U.S. carrier, replacing the former third-party carrier and increasing Twin Bridges’ quota share participation on these contracts from 70 percent to 90 percent.
Net income for the first quarter of 2007 was $2.9 million, or $0.18 per diluted share, compared to $3.0 million, or $0.19 per diluted share, in the first quarter of 2006. The first quarter of 2007 reflects an increase in corporate and other expenses of $0.9 million or $0.04 per share, due in part to fees and expenses related to CRM’s secondary offering of shares during the quarter.
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