CRM Holdings posts strong Q3
CRM Holdings, Ltd. (Nasdaq: CRMH), a provider of a full range of products and services for the workers' compensation insurance industry, reported robust third-quarter results today, pushing shares up during afternoon trading.
For the three months ending Sept. 30, net income was $7.2 million, or $0.44 per diluted share, compared with $3.3 million, or $0.21 per diluted share, in the third quarter of 2006. No analyst estimates were available.
Total revenues were $39.5 million in the quarter, an increase of 129% from $17.3 million in the same quarter of 2006.
The small cap noted that its results were aided by the inclusion of results of Majestic Insurance Company, which it acquired Nov. 14, 2006.
Net earned premiums from primary insurance and reinsurance rose to $28.9 million from $6.3 million in the prior year. Majestic accounted for the majority of the increase with $21.6 million of net earned premium. The company's reinsurance subsidiary, Twin Bridges, also increased its net earned premiums to $7.3 million from $6.3 million a year ago, by assuming a larger share of the excess coverage purchased by self-insured groups administered by the company.
For the remainder of 2007, CRM said it expects its fee-based business will continue to experience soft market conditions in California and must absorb an impending rate cut in New York and the weakness of some of its managed trusts in the current legislative and rate environment.
Based on results in the company’s reinsurance and primary insurance segments, CRM has raised its guidance range for the full year to $1.20 to $1.25 per fully diluted share. No analyst estimates were available.
Shares of CRM Holdings (CRMH) jumped 18.24%, or $1.24, to $8.04 at 12:18 p.m. ET. Shares of CRM Holdings have been trading in the range of $5.75 to $10.10 for the last 52 weeks.
