CRM Holdings, Ltd. Comments On Wholesale Retail Workers' Compensation Trust Of New York Litigation

                               Poughkeepsie, NY (CompNewsNetwork) - CRM Holdings, Ltd., a provider of a full range of products and services for the workers' compensation insurance industry, today said that Compensation Risk Managers, LLC ("CRM") intends to vigorously contest the lawsuit filed by former members of the Wholesale Retail Workers' Compensation Trust of New York ("WRWCTNY"). The suit was brought against CRM, a wholly-owned subsidiary of the Company, and was filed in the Supreme Court of the State of New York, Erie County.

In the lawsuit, certain former members of WRWCTNY, on behalf of themselves and other former trust members, have made allegations that, among other things, CRM breached its contract with WRWCTNY, breached its duty of good faith and fair dealing owed to WRWCTNY and breached its fiduciary duties owed to WRWCTNY.

However, CRM's position on the litigation is unequivocal. CRM stands behind its business practices. The agreements made with each of the self-insurance groups it managed in the State of New York clearly set out CRM's obligations under these agreements, and in each and every case, CRM has fulfilled those duties. Moreover, CRM has not reviewed the methodology used by the New York State Workers' Compensation Board's agent to produce an estimate of $19 million for the deficit of WRWCTNY as of September 30, 2007.

This lawsuit will be resolved through the normal legal process. The Company regards any increased uncertainty surrounding its businesses, or damage caused to its reputation in the State of New York or elsewhere, to be extremely unfortunate and entirely unjustified. In the meantime, the Company and its subsidiaries will continue to provide its customers with the full range of workers' compensation products and services they have come to expect. As always, the Company stands behind its products and its people.

About CRM Holdings, Ltd.

CRM Holdings, Ltd. is a provider of workers' compensation insurance products. Its main business activities include underwriting primary workers' compensation 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.

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