Wednesday, June 18, 2008

CRM Holdings Notes Extension with California Program

CRM Holdings Ltd., a provider of a full range of products and services for the workers' compensation insurance industry, announced its wholly-owned subsidiary Compensation Risk Managers of California, LLC has signed a five-year contract extension with Contractors Access Program of California Inc., a self-insured group managed by CRM CA.

Under terms of the agreement, CRM CA will continue to manage CAP for a five-year term beginning July 1, 2008, and running through June 30, 2013. The agreement also calls for a 10% increase in CRM CA's annual management fee from the program. In addition, CRM CA has agreed to contribute towards CAP's September 2006 settlement with its previous program manager. This resolution will consist of five annual payments by CRM CA of $400,000 commencing on July 1, 2009.

"Contractors has been an outstanding self-insured group in California since 2003, and we are pleased to continue managing the trust for the next five years on behalf of its members," said Daniel Hickey Jr., CRM's chairman and CEO. "This agreement demonstrates CAP's continued confidence in CRM CA's ability to provide high-level management services to self-insured groups throughout the state."

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