Read Larry Connors' blog – Short Term Trading Strategies
Three Months Ended June 30, 2009
In the second quarter of 2009, the Company incurred a net loss from continuing operations of $2.1 million, or $(0.12) per diluted share. In the same quarter of the prior year, the Company earned net income from continuing operations of $4.6 million, or $0.28 per diluted share. Unless otherwise stated, all further results discussed in this release refer to continuing operations for 2009 and results on a comparable basis for 2008.
Total revenues from continuing operations in the second quarter of 2009 were $26.4 million, compared to $47.8 million in the same quarter of the prior year. The principal reason for the decline was the execution of a 40% quota share treaty between the Company's primary insurance subsidiary, Majestic Insurance Company ("Majestic"), and a third party reinsurer, effective July 1, 2008.
Investment income during the quarter declined to $2.8 million from $4.7 million in the second quarter of 2008. The second quarter in the prior year benefited from $2.2 million of realized gains on the liquidation of the Company's equity portfolio as the Company reduced the risk profile of its investments. In the second quarter of 2009, despite a larger investment portfolio, investment income earned was relatively unchanged due to lower yields.
Total underwriting expenses for the second quarter declined to $21.9 million from $33.3 million a year ago. Loss and loss adjustment expenses were reduced due to the 40% third-party quota share treaty that commenced on July 1, 2008, and was in place throughout the second quarter of 2009. This reduction was in part offset by higher accident year loss and loss adjustment expense ratios on the Company's retained business. The overall loss ratio was 78.9% and the overall combined ratio was 110.6% for the second quarter of 2009, compared to an overall loss ratio of 64.8% and an overall combined ratio of 86.4% for the second quarter of 2008. The second quarter of 2008 benefited from $1.3 million of favorable loss reserve development, compared to $1.1 million of favorable loss reserve development in the second quarter of 2009.
Book value per share on a diluted basis decreased by $0.65 to $5.97 at June 30, 2009, from $6.62 per diluted share at December 31, 2008.
"Our results for the second quarter, while showing improvement from the first quarter, were unsatisfactory. Despite this, we saw positive impact from the underwriting actions we took in New York. We are focusing on other territories where improvement is needed, and we are confident our results will return to acceptable levels as we move forward," said James J. Scardino, Chief Executive Officer.
Primary Insurance
During the quarter, Majestic experienced a decline in revenues compared to the same quarter of 2008. Net earned premiums for the quarter ended June 30, 2009, were $20.3 million, compared to $34.9 million in the same quarter a year ago, largely as a result of the 40% quota share treaty discussed previously. Net earned premiums, particularly in California, were also reduced by the completion of premium audits, which resulted in a return of premiums to policyholders, as a result of lower payrolls brought on by the current economic conditions. In addition, underwriting actions taken on our New York primary insurance business resulted in lower policy renewal rates in the second quarter of 2009 as compared to the second quarter of 2008. These effects were partly offset by higher rates on renewing business and growth in the number of policies written in California.
Despite declining payroll, increased return audit premiums and deliberate underwriting actions in New York, Majestic's submissions and premium written remained robust. As of June 30, 2009, in-force premiums from primary insurance policies at Majestic were $152.3 million, compared with $153.7 million at the same time last year.
Majestic's underwriting loss was $2.6 million for the quarter ended June 30, 2009, compared to an underwriting profit of $4.6 million a year ago. The reduction in profitability was principally due to an increase in the loss and loss adjustment expense ratio for the quarter ended June 30, 2009, to 80.6%, compared to 63.2% a year ago. Losses for the 2009 accident year in the California and New Jersey markets were higher than a year ago.
Total underwriting, acquisition and insurance expenses at Majestic were $6.5 million in the second quarter, compared to $8.3 million in the same quarter of 2008. The reduction was attributable to ceding commissions on the 40% quota share treaty. Majestic's combined ratio for the second quarter of 2009 was 111.9%, compared to 84.3% a year ago.
Reinsurance
The Company's reinsurance segment, Twin Bridges, generated $2.3 million of net earned premiums in the second quarter of 2009, down from $6.3 million in the second quarter of the prior year. The reduction was principally due to a decrease in the volume of reinsurance premiums earned on excess insurance policies issued to the self-insured groups managed by the Company's fee-based business segment. The underwriting loss of $0.1 million for the quarter was essentially unchanged from the same quarter of 2008. Losses and loss adjustment expenses were 63.9% of net premiums earned for the three months ended June 30, 2009, compared to 74.2% of net premiums earned for the same three months in 2008. Twin Bridges' combined ratio for the quarter was 99.2%, compared to 98.2% a year ago.
Fee-based Business
Fee-based management services revenues were $1.2 million for the second quarter of 2009, compared to $2.1 million in the second quarter of 2008. The reduction reflected a decline in insured payroll in the self-insured groups managed by the Company and a reduction of the number of groups from 5 in the second quarter of 2008 to 3 in the second quarter of 2009. The continuing fee-based management services operations, which are now focused solely on the California market, produced a pre-tax operating loss of $0.2 million, compared to pre-tax operating loss of $0.9 million in the same quarter of 2008.
Six Months Ended June 30, 2009
For the first six months of 2009, the Company's net loss from continuing operations was $10.3 million, or ($0.61) per diluted share, compared to net income from continuing operations of $11.2 million, or $0.68 per diluted share, in 2008. The major factors contributing to the swing in profits were $8.4 million of favorable loss reserve development in 2008 as compared to no favorable development in 2009; $5.3 million of severance expense related to the former co-CEOs incurred in the first quarter of 2009; higher 2009 accident year loss ratios; a $1.0 million increase in bad debt expense in the first quarter of 2009; an increase in return premiums of $2.1 million; and the effects of the 40% quota share treaty. As a result of these changes, during the first six months of 2009, the combined ratio for the primary insurance segment was 119.6%, compared to 85.5% in 2008. The combined ratio for the reinsurance segment was 119.0%, compared to 72.5% a year ago.
Investment Portfolio
At June 30, 2009, the Company had no exposure to equities, collateralized debt obligations or collateralized mortgage obligations. The overall credit rating of Majestic's fixed income portfolio was AA+. The following tables illustrate Majestic's investment portfolio distribution by sector and average credit rating.
Portfolio Distribution by Sector Portfolio Distribution by
Credit Rating
% of Average
Portfolio Credit
Rating Credit Quality
Government 24.0% AAA AAA 56.2%
Agency 6.4% AAA AA 24.1%
Corporate 20.9% A A 16.5%
Mortgage Backed AAA
Securities 16.3% BBB 3.0%
Asset Backed
Securities 3.2% AA+
Municipal 29.2% AA below BBB 0.2%
--------- ---- -- --------- ---
Total 100.0% AA+ Average credit rating AA+
----- ----- --- --------------------- ---
The effective portfolio duration was 2.7 years, and the average portfolio yield was 3.5%. Unrealized gains in the portfolio increased by $1.1 million from $5.0 million at December 31, 2008 to $6.1 million at June 30, 2009.
Outlook
For the remainder of 2009, the Company expects its current accident year loss ratio to be approximately 76% and its underwriting expense ratio to be approximately 37%. Based on this combined ratio, the Company expects a loss from continuing operations for the remainder of 2009. The difference from the breakeven result previously expected for the last three quarters of 2009 is due in large part to the renewal of the Company's excess of loss and third party quota share treaties on less favorable terms than the expiring treaties and lower than expected yields on the Company's investment portfolio.
Conference Call
The Company will host a conference call at 9:00 a.m. EDT on Thursday, August 6, 2009, to discuss earnings for the second quarter ended June 30, 2009. To participate in the event by telephone, please dial 877-723-9521 five to 10 minutes prior to the start time (to allow time for registration) and reference passcode 9497390. International callers should dial 719-325-4824. 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 for 90 days on CRM's Web site at http://www.CRMHoldingsLtd.bm/events.cfm. A digital replay of the call will also be available on Thursday, August 6, at approximately noon EDT through Thursday, August 13 at midnight EDT. Dial 888-203-1112 and enter the conference ID number 9497390. 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 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. Further information can be found on the CRM Web site at www.CRMHoldingsLtd.bm.
CRMH-E
Contact Information:
Mark Collinson
CCG Investor Relations
10960 Wilshire Blvd., Ste. 2050
Los Angeles, CA 90024
(310) 954-1343
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 the Company's 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 the Company believes that its plans, intentions and expectations are reasonable, it may not achieve such plans, intentions or expectations. There are or may be important factors that could cause actual results to differ materially from the forward-looking statements the Company makes in this document. Such risks and uncertainties are discussed in the Company's Form 10-K for the year ended December 31, 2008 and in other documents filed by the Company with the Securities and Exchange Commission. The Company believes that these factors include, but are not limited to the following:
-- The cyclical nature of the insurance and reinsurance industry;
-- Premium rates;
-- Investment results;
-- Legislative and 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, arbitration or
regulatory 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 follow)
Table 1
CRM Holdings, Ltd.
Consolidated Balance Sheets
Unaudited
June 30, December 31,
2009 2008
---- ----
(Dollars in thousands)
Assets
Investments:
Fixed-maturity securities, available-
for-sale (amortized cost $290,314 and
$308,607) $296,452 $313,622
Short-term investments 9,191 113
Investment in unconsolidated subsidiary 1,083 1,083
----- -----
Total investments 306,726 314,818
Cash and cash equivalents 27,833 28,044
Cash and cash equivalents, restricted 11,682 2,000
------ -----
Total cash and cash equivalents 39,515 30,044
Accrued interest receivable 3,213 3,184 `
Premiums receivable, net 7,388 11,935
Reinsurance recoverable and prepaid
reinsurance 86,290 63,801
Accounts receivable, net 4,022 3,099
Deferred policy acquisition costs 1,148 1,084
Current income taxes, net 5,910 3,208
Deferred income taxes, net 10,075 7,809
Goodwill and other intangible assets 3,173 3,252
Prepaid expenses 2,306 1,836
Other assets 3,113 3,330
------------ ----- -----
Total assets $472,879 $447,400
------------ -------- --------
Liabilities and shareholders' equity
Reserve for losses and loss adjustment
expenses $272,000 $245,618
Reinsurance payable 3,511 9,424
Unearned premiums 13,732 13,090
Unearned management fees 48 26
Long-term debt and other secured
borrowings 44,083 44,083
Other liabilities 39,815 26,299
------------------ ------ ------
Total liabilities 373,189 338,540
-------------------- ------- -------
Common shares
Authorized 50 billion shares; $.01 par value;
16.5 and 16.2 million common shares
issued and outstanding 165 162
0.4 million Class B shares issued and
outstanding 4 4
Additional paid-in capital 70,673 69,743
Retained earnings 24,855 35,619
Accumulated other comprehensive gain, net
of tax 3,993 3,332
----------------------------------------- ----- -----
Total shareholders' equity 99,690 108,860
------------------------------ ------ -------
Total liabilities and shareholders' equity $472,879 $447,400
------------------------------------------ -------- --------
Table 2
CRM Holdings, Ltd.
Unaudited Consolidated Statements of Income
Three Months Six Months
Ended Ended
June 30, June 30,
------------- ------------
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands, except per
share amounts)
Revenues
Net premiums earned $22,567 $41,185 $43,709 $73,536
Fee-based management services 1,061 1,917 2,734 3,791
Investment income 2,783 4,706 6,032 6,350
----------------- ----- ----- ----- -----
Total revenues 26,411 47,808 52,475 83,677
-------------- ------ ------ ------ ------
Expenses
Losses and loss adjustment
expenses 17,804 26,706 34,888 41,388
Policy acquisition costs 4,070 6,635 7,975 11,268
Fees paid to general agents and
brokers 504 2,190 1,185 2,938
Selling, general and
administrative expenses 6,738 4,804 21,621 12,916
Interest expense 886 924 1,786 1,876
---------------- --- --- ----- -----
Total expenses 30,002 41,259 67,455 70,386
-------------- ------ ------ ------ ------
(Loss) income from continuing
operations before income taxes (3,591) 6,549 (14,980) 13,291
Tax (benefit) provision from
continuing operations (1,495) 1,916 (4,700) 2,098
---------------------------- ------ ----- ------ -----
(Loss) income from continuing
operations (2,096) 4,633 (10,280) 11,193
----------------------------- ------ ----- ------- ------
Discontinued operations
Loss from discontinued
operations before income taxes (431) (2,278) (729) (4,701)
Tax benefit from discontinued
operations (151) (695) (245) (1,533)
----------------------------- ---- ---- ---- ------
Loss on discontinued operations (280) (1,583) (484) (3,168)
-------------------------------- ---- ------ ---- ------
Net (Loss) Income $(2,376) $3,050 $(10,764) $8,025
----------------- ------- ------ -------- ------
(Loss) earnings per share
from continuing operations
Basic ($0.12) $0.28 ($0.61) $0.68
Diluted ($0.12) $0.28 ($0.61) $0.68
Loss per share from
discontinued operations
Basic ($0.02) ($0.09) ($0.03) ($0.19)
Diluted ($0.02) ($0.09) ($0.03) ($0.19)
Net (loss) earnings per share
Basic ($0.14) $0.19 ($0.64) $0.49
Diluted ($0.14) $0.19 ($0.64) $0.49
Weighted average shares
outstanding:
Basic 16,775 16,436 16,697 16,404
Diluted 16,775 16,436 16,697 16,404
Table 3
CRM Holdings, Ltd.
Unaudited Consolidated Statements of Cash Flow
Six Months Ended June 30,
---- ----
2009 2008
---- ----
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $(10,764) $8,025
Adjustments to reconcile net
(loss) income to net cash
provided by operating activities:
Depreciation and amortization 402 675
Amortization of unearned
compensation, restricted stock 869 579
Amortization of premiums and
discounts on available-for-sale
investments 794 27
Net realized gains on sale and
impairment of available-for-sale
investments (744) (1,123)
Deferred income tax (benefit) expense (2,728) 635
Changes in:
Accrued interest receivable (29) (414)
Premiums receivable, net 4,546 (3,935)
Reinsurance recoverable and prepaid
reinsurance (22,489) (823)
Accounts receivable, net (923) 1,877
Deferred policy acquisition costs (64) (1,618)
Current income taxes, net (2,702) (1,269)
Prepaid expenses (491) 398
Other assets (13) (12)
Reserve for losses and loss
adjustment expenses 26,382 20,017
Reinsurance payable (5,913) (3,401)
Unearned premiums 642 3,822
Unearned management fees 22 (262)
Accrued expenses 13,519 1,157
---------------- ------ -----
Net cash provided by operating
activities 316 24,355
------------------------------ --- ------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale investments (118,295) (120,166)
Proceeds from sales of available-for-sale
investments 53,415 64,479
Proceeds from maturities of available-for-
sale investments 83,123 49,041
Net purchases, sales and maturities of
short-term investments (9,078) 694
Purchases of fixed assets (114) (621)
Disposals of fixed assets 39 273
Payments on loans receivable, net - 3
---------------------------------- --- ---
Net cash provided by (used in)
investing activities 9,090 (6,297)
------------------------------ ----- ------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments under long-term debt and other
secured borrowings - (1)
Issuance of common shares - employee stock
purchase plan 76 126
Retirement of common shares - share-based
compensation (11) (40)
------------------------------------------ --- ---
Net cash provided by financing
activities 65 85
------------------------------ --- ---
Net increase in cash 9,471 18,143
Cash and cash equivalents
Beginning 30,044 34,286
--------- ------ ------
Ending $39,515 $52,429
------ ------- -------
Table 4
CRM Holdings, Ltd.
Quarter to Date
Income by Segments
For the three months ended June 30, 2009
Fee-
Based Corporate
Primary Re- Management and Elimin-
Insurance insurance Services Other ations Total
--------- --------- ---------- ------- ------ ------
(Dollars in thousands)
Revenues:
Net premiums
earned $20,301 $2,266 $- $- $- $22,567
Management
fees - - 1,161 - (100) 1,061
Net
investment
income 2,418 385 (5) 22 (309) 2,511
Net realized
gains 272 - - - - 272
------------ --- --- --- --- --- ---
Total revenues 22,991 2,651 1,156 22 (409) 26,411
--------------- ------ ----- ----- --- ---- ------
Expenses:
Underwriting
expenses 19,878 2,096 - - (100) 21,874
Operating
expenses 3,020 253 1,348 2,621 - 7,242
Interest
expense 309 - - 886 (309) 886
--------- --- --- --- --- ---- ---
Total
expenses 23,207 2,349 1,348 3,507 (409) 30,002
--------- ------ ----- ----- ----- ---- ------
(Loss) income
from
continuing
operations
before taxes $(216) $302 $(192) $(3,485) $- $(3,591)
-------------- ----- ---- ----- ------- --- -------
-------------------------------------------------------------------------
Total assets $465,257 $59,001 $4,724 $311,270 $(371,227) $469,025
------------- -------- ------- ------ -------- -------- --------
For the three months ended June 30, 2008
Fee-
Based Corporate
Primary Re- Management and Elimin-
Insurance insurance Services Other ations Total
--------- --------- ---------- ------ ------ -----
(Dollars in thousands)
Revenues:
Net premiums
earned $34,910 $6,275 $- $- $- $41,185
Management
fees - - 2,149 - (232) 1,917
Net
investment
income 2,220 364 (1) 71 (112) 2,542
Net realized
gains 2,148 16 - - - 2,164
------------ ----- --- --- --- --- -----
Total revenues 39,278 6,655 2,148 71 (344) 47,808
--------------- ------ ----- ----- --- ---- ------
Expenses:
Underwriting
expenses 27,530 6,043 - - (232) 33,341
Operating
expenses 2,827 316 3,086 765 - 6,994
Interest
expense 112 - - 924 (112) 924
--------- --- --- --- --- ---- ---
Total expenses 30,469 6,359 3,086 1,689 (344) 41,259
-------------- ------ ----- ----- ----- ---- ------
Income (loss)
from
continuing
operations
before
taxes $8,809 $296 $(938) $(1,618) $- $6,549
------------- ------ ---- ----- ------- --- ------
-------------------------------------------------------------------------
Total
assets $387,923 $57,278 $4,394 $317,499 $(365,602) $401,492
-------- -------- ------- ------ -------- --------- --------
Table 4
CRM Holdings, Ltd.
Year to Date
Income by Segments
For the six months ended June 30, 2009
Fee-
Based Corporate
Primary Re- Management and Elimin-
Insurance insurance Services Other ations Total
--------- --------- ---------- ------ ----- -----
(Dollars in thousands)
Revenues:
Net premiums
earned $39,131 $4,578 $- $- $- $43,709
Management
fees - - 2,898 - (164) 2,734
Net
investment
income 5,050 796 (9) 45 (594) 5,288
Net realized
gains 714 30 - - - 744
------------ --- --- --- --- --- ---
Total revenues 44,895 5,404 2,889 45 (758) 52,475
-------------- ------ ----- ----- --- ---- ------
Expenses:
Underwriting
expenses 37,786 5,241 - - (164) 42,863
Operating
expenses 9,558 581 2,942 9,725 - 22,806
Interest
expense 594 - - 1,786 (594) 1,786
--------- --- --- --- ----- ---- -----
Total expenses 47,938 5,822 2,942 11,511 (758) 67,455
---------- ------ ----- ----- ------ ---- ------
(Loss) income
from
continuing
operations
before
taxes $(3,043) $(418) $(53) $(11,466) $- $(14,980)
------- ------- ----- ---- -------- --- --------
-------------------------------------------------------------------------
Total assets $465,257 $59,001 $4,724 $311,270 $(371,227) $469,025
---------- -------- ------- ------ -------- --------- --------
For the six months ended June 30, 2008
Fee-
Based Corporate
Primary Re- Management and Elimin-
Insurance insurance Services Other ations Total
--------- --------- ---------- ------ ------ -----
(Dollars in thousands)
Revenues:
Net premiums
earned $52,427 $21,109 $- $- $- $73,536
Management
fees - - 4,296 - (505) 3,791
Net
investment
income 4,325 1,072 (2) 145 (313) 5,227
Net realized
gains 1,099 24 - - - 1,123
------------ ----- --- --- --- --- -----
Total
revenues 57,851 22,205 4,294 145 (818) 83,677
---------- ------ ------ ----- --- ---- ------
Expenses:
Underwriting
expenses 37,529 15,632 - - (505) 52,656
Operating
expenses 7,826 535 4,673 2,820 - 15,854
Interest
expense 313 - - 1,876 (313) 1,876
--------- --- --- --- ----- ---- -----
Total expenses 45,668 16,167 4,673 4,696 (818) 70,386
-------------- ------ ------ ----- ----- ---- ------
Income (loss)
from
continuing
operations
before
taxes $12,183 $6,038 $(379) $(4,551) $- $13,291
------- ------- ------ ----- ------- --- -------
-------------------------------------------------------------------------
Total assets $387,923 $57,278 $4,394 $317,499 $(365,602) $401,492
------------ -------- ------- ------ -------- --------- --------
Table 5
CRM Holdings, Ltd.
Revenues by Segment
Three months ended Six months ended
June 30, June 30,
--------------- ---------------
2009 2008 2009 2008
(Dollars in thousands)
Revenues from Fee-Based
Management Services
California $1,161 $2,149 $2,898 $4,296
------ ------ ------ ------
1,161 2,149 2,898 4,296
----- ----- ----- -----
Revenues from Primary Insurance
California 12,554 20,651 23,723 32,594
New York/New Jersey 6,920 13,303 13,451 18,085
Other (1) 827 956 1,957 1,748
--- --- ----- -----
20,301 34,910 39,131 52,427
------ ------ ------ ------
Revenues from Reinsurance
California 1,910 3,873 3,475 13,217
New York/New Jersey 210 1,550 819 6,640
Other (2) 146 852 284 1,252
--- --- --- -----
2,266 6,275 4,578 21,109
----- ----- ----- ------
Investment income (3) 2,783 4,706 6,032 6,350
Eliminations (4) (100) (232) (164) (505)
------- ------- ------- -------
Total revenues from
continuing operations $26,411 $47,808 $52,475 $83,677
------- ------- ------- -------
(1) Includes primary insurance premiums for policies written in
Washington, Alaska, Arizona, Nevada, Florida, Oregon & Hawaii.
(2) Includes reinsurance premiums for policies written in Washington,
Alaska, Arizona, Nevada, Florida, Oregon & Hawaii.
(3) Includes the elimination of $309 thousand and $112 thousand of Twin
Bridges intercompany interest income on funds withheld by
Majestic for the three months ended June 30, 2009 and 2008,
respectively, and the elimination of $594 thousand and $313
thousand of Twin Bridges intercompany interest income on funds
withheld by Majestic for the six months ended June 30, 2009 and
2008, respectively.
(4) Elimination of fee-based management intercompany commissions against
primary insurance policy acquisition costs for the three months ended
June 30, 2009 and 2008, respectively. Elimination
of fee-based management intercompany commissions
against primary insurance policy acquisition costs for the six months
ended June 30, 2009 and 2008, respectively.
Table 6
CRM Holdings, Ltd.
Fee-Based Management Services Segment Data (1)
June 30,
----------------
2009 2008
Number of Groups
California 3 5
Number of Group Members
California 247 411
Aggregate Annualized Premiums (2)
California $32,126,342 $53,580,259
(1) Excludes the fee-based management services segment data for CRM NY,
which has been reclassified as discontinued operations for all periods
presented.
(2) 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
indications 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
Three months
ended Six months ended
June 30, June 30,
--------- ---------
2009 2008 2009 2008
(Dollars in (Dollars in
thousands) thousands)
Net primary insurance
premiums written $20,900 $39,403 $40,550 $54,432
Net primary insurance
premiums earned 20,301 34,910 39,131 52,427
Loss and loss adjustments
expenses 16,356 22,050 30,980 31,230
Underwriting, acquisition
and insurance expenses (1) 6,542 8,307 16,364 14,125
----- ----- ------ ------
Underwriting (loss) profit $(2,597) $4,553 $(8,213) $7,072
------- ------ ------- ------
Loss Ratio (2) 80.6% 63.2% 79.2% 59.6%
Expense Ratio (3) 31.3% 21.1% 40.4% 25.9%
Combined Ratio (4) 111.9% 84.3% 119.6% 85.5%
(1) Does not include the elimination of $100 thousand and $232 thousand
of Majestic policy acquisition costs against fee-based
management commissions for the three months ended June 30, 2009 and
2008, respectively. Does not include the elimination of $164
thousand and $505 thousand of Majestic policy acquisition costs
against fee-based management commission for the six months ended
June 30, 2009 and 2008, respectively.
(2) The loss ratio is calculated by dividing loss and loss adjustment
expense by net primary insurance premiums earned.
(3) The expense ratio is calculated by dividing underwriting, acquisition
and insurance expenses for the period by net primary insurance
premiums written.
(4) The combined ratio is the sum of the loss ratio and the expense
ratio.
Table 8
CRM Holdings, Ltd.
Reinsurance Segment Data
Three months
ended Six months ended
June 30, June 30,
--------- ---------
2009 2008 2009 2008
(Dollars in (Dollars in
thousands) thousands)
Net reinsurance premiums written $2,553 $7,100 $5,685 $24,600
Net reinsurance premiums earned 2,266 6,275 4,578 21,109
Loss and loss adjustments expenses 1,447 4,656 3,910 10,159
Underwriting, acquisition and
insurance expenses 902 1,703 1,912 6,008
--- ----- ----- -----
Underwriting (loss) profit $(83) $(84) $(1,244) $4,942
---- ---- ------- ------
Loss Ratio (1) 63.9% 74.2% 85.4% 48.1%
Expense Ratio (2) 35.3% 24.0% 33.6% 24.4%
Combined Ratio (3) 99.2% 98.2% 119.0% 72.5%
(1) The loss ratio is calculated by dividing loss and loss adjustment
expense by net reinsurance premiums earned.
(2) The expense ratio is calculated by dividing underwriting, acquisition
and insurance expenses for the period by net reinsurance premiums
written.
(3) The combined ratio is the sum of the loss ratio and the expense
ratio.
SOURCE CRM Holdings, Ltd.
http://www.CRMHoldingsLtd.bm
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.