CRM Holdings 4Q profit up

NEW YORK --Bermuda-based CRM Holdings Ltd., a benefits manager for workers' compensation in New York, Texas and California, said Thursday its fourth-quarter profit more than doubled on a jump in revenue.

The results beat Wall Street predictions, sending CRM shares up 75 cents, or 9.4 percent, to $8.75 in morning trading on the Nasdaq Stock Market.

CRM earned $4.2 million, or 26 cents per share, compared with $2 million, or 18 cents per share, for the same quarter in 2005.

Analysts polled by Thomson Financial had expected a profit of 23 cents per share.

Company officials credited the increase in profit mainly to growth in the its reinsurance business and income from its primary insurance business, Majestic Insurance Co., which was acquired during the quarter.

Revenue rose 98 percent to $26.6 million from $13.5 million in the year-ago period.

Net earned premiums from primary insurance and reinsurance more than quadrupled to $14.5 million, while investment income soared to $1.8 million from $94,000.

Total expenses increased 92 percent to $21.9 million from $11.4 million in the fourth quarter of 2005.

For the full year 2006, CRM earned $14.3 million, or 88 cents per share, compared with $7.3 million, or 70 cents per share, for 2005. Revenue rose to $75 million from $45.1 million.