Bermuda-based self-insurance services provider CRM Holdings, Ltd., reported net income in the fourth quarter increased 113 percent on growth in its reinsurance and primary insurance business.
CRM, which concentrates on providing products and services for workers' compensation risk management, reported net income rose $2.2 million in the quarter, from $2 million to $4.2 million.
Earnings per share stood at 26 cents, up from 18 cents in 2005. Revenues rose 98 percent, or $13.2 million, from $13.4 million to $26.6 million.
For the year, net income was up 96 percent, or $7 million, from $7 million to $14 million. Earnings per share rose to 88 cents from 70 cents. Earnings increased 67 percent, or $30 million, from $45 million to $75 million.
CRM said the quarter's net income improvement reflected growth in the company's reinsurance business and income from its primary insurance business, Majestic Insurance Company, acquired during the quarter.
The combined ratio for the reinsurance segment improved to 48.2 in the quarter, down from 79.7 in the same period in 2005.
For all of 2006 the combined ratio was 56.8, improved from 77.2 in 2005. For Majestic the combined ratio was 95.4. There were no comparative figures.
"We are pleased with the growth in our reinsurance business which is now showing the benefits from the use of the capital we raised in our initial public offering a year ago," said Dan Hickey Jr., the company's chief executive officer.
"Disciplined underwriting of increasing amounts of workers' compensation insurance with very favorable loss experience is enhancing profitability," Mr. Hickey said. "The addition of Majestic will create a powerful strategic combination with our fee-based and reinsurance businesses that we expect to perform well over the long term."
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