CRM Holdings, Ltd. announced that it received a NASDAQ Staff Deficiency Letter on November 10, 2009 indicating that the Company fails to comply with the minimum bid price requirement for continued listing on the NASDAQ Global Select Market as set forth in Marketplace Rule 5450(a)(1). The letter gives the Company notice that the bid price of its common shares has closed under $1.00 for the last 30 consecutive business days. The notification does not result in the immediate delisting of the Company�s common shares from the NASDAQ Global Select Market. The Company has until May 10, 2010 to regain compliance with the minimum closing bid price requirement. To regain compliance, the closing bid price of the Company�s common shares must meet or exceed $1.00 per share for at least ten consecutive business days. The letter states that the NASDAQ staff will provide written notification that the Company has achieved compliance with Rule 5450(a)(1) if at any time before May 10, 2010, the bid price of the Company�s common shares closes at $1.00 per share or more for a minimum of 10 consecutive business days. If the Company does not regain compliance by May 10, 2010, NASDAQ will provide written notification to the Company that the Company�s common shares will be delisted. At that time, the Company may appeal NASDAQ�s delisting determination to a NASDAQ Listing Qualifications Panel. Alternatively, the Company may apply to transfer the listing of its common shares to the NASDAQ Capital Market if it satisfies all criteria for initial listing on the NASDAQ Capital Market, other than compliance with the minimum bid price requirement. If such application to the NASDAQ Capital Market is approved, then the Company may be eligible for an additional grace period. The Company is considering actions that it may take in response to this notification in order to regain compliance with the continued listing requirements.

CRM Holdings Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's total revenues were $21,755,000 against $29,232,000 a year ago. Loss from continuing operations before income taxes was $7,345,000 against $5,275,000 a year ago. Loss from continuing operations was $15,658,000 or $0.93 per basic and diluted share against $2,923,000 or $0.18 per basic and diluted share a year ago. Net loss was $17,001,000 or $1.01 per basic and diluted share against $3,766,000 or $0.23 per basic and diluted share a year ago. Results for the third quarter were below the company expectations, mainly due to the impact of adjustments originating in prior periods. For the nine months, the company's total revenues were $74,230,000 against $112,910,000 a year ago. Loss from continuing operations before income taxes was $22,326,000 against income from continuing operations before income taxes of $8,016,000 a year ago. Loss from continuing operations was $25,940,000 or $1.55 per basic and diluted share against income from continuing operations of $8,270,000 or $0.50 per basic and diluted share a year ago. Net loss was $27,767,000 or $1.66 per basic and diluted share against net income of $4,259,000 or $0.26 per basic and diluted share a year ago. The major factors contributing to the swing in profits were the establishment of a tax valuation allowance, a decrease in net earned premiums, which includes the reinstatement premiums incurred in the third quarter of 2009, favorable loss reserve development in 2008 as compared to unfavorable development in 2009 and severance expense related to the former co-CEOs incurred in the first quarter of 2009. Net cash used in operating activities was $10,298,000 against net cash provided by operating activities of $40,266,000 a year ago. Purchases of fixed assets was $134,000 against $674,000 a year ago. Book value per share on a diluted basis decreased by $1.56 to $5.04 at September 30, 2009, from $6.60 per diluted share at December 31, 2008. The major factors contributing to the swing in profits were the establishment of a tax valuation allowance, a decrease in net earned premiums, which includes the reinstatement premiums incurred in the third quarter of 2009, favorable loss reserve development in 2008 as compared to unfavorable development in 2009 and severance expense related to the former co-CEOs incurred in the first quarter of 2009.

CRM Holdings Ltd., Q3 2009 Earnings Call, Nov-05 2009