Hamilton, Bermuda-based insurer CRM Holdings, Ltd. said the U.S. subprime market collapse should not impact its investment portfolio.
“We have conducted a careful analysis of our investment portfolios, and we are very comfortable with our minimal exposure to the subprime mortgage market,” commented Dan Hickey Jr., CRM’s chief executive officer, in a statement.
“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.”
The insurer, which is a provider of a full range of products and services for the workers’ compensation insurance industry, said 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.
CRM is not the first insurer to reach out to investors to quell any fears about exposure to the subprime mortgage market. Earlier this month executives at American International Group made a point during their second-quarter financial results report of explaining that the company has minimal exposure to the market.