CRM Holdings, Ltd. Confirms No Exposure to U.S. Sub-prime Mortgage Sector

CRM Holdings, Ltd. ("CRM" or "the Company") (NASDAQ:CRMH) , a leading provider of a full range of products and services for the workers` compensation insurance industry, today confirmed it does not have any material exposure to the U.S. residential mortgage market in its investment portfolios.

At June 30, 2007, the majority of its investment portfolio at its reinsurance subsidiary, Twin Bridges, was comprised of short-term U.S. government and agency securities, and cash and money market equivalents. The majority of its investment portfolio at its primary insurance subsidiary, Majestic Insurance Company, was composed of debt obligations of states and political subdivisions, corporate bonds, debt of U.S. government and agencies and equity securities.

"We have conducted a careful analysis of our investment portfolios, and we are very comfortable with our minimal exposure to the sub-prime mortgage market," commented Dan Hickey, Jr., CRM`s CEO. "Going forward, we will continue to monitor our portfolios to maximize value, and remain focused on creating long-term opportunities to grow at attractive rates of return and, ultimately, driving shareholder value."

About CRM Holdings, Ltd.

CRM Holdings, Ltd. is a provider of workers` compensation insurance products. Its main business activities include providing fee-based management and other services to workers` compensation self-insured groups and, beginning in November 2006, the offering of a traditional workers` compensation insurance product. The Company provides its fee-based management services to self-insured groups in New York and California. It provides its traditional workers` compensation insurance coverage primarily to employers in California but also has active operations in Alaska, Arizona, Nevada, Oregon, Washington and, starting on April 1, 2007, New Jersey. CRM is a provider of reinsurance and excess workers` compensation coverage to the self insured groups it manages as well as other qualified self insured entities. Further information can be found on the CRM website at http://www.crmholdingsltd.bm/.

  Contact Information:
  Mark Collinson
  CCG Investor Relations
  10960 Wilshire Blvd, Ste. 2050
  Los Angeles, CA  90024
  (310) 231-8600, ext. 117

Source: CRM Holdings, Ltd.

CONTACT: Mark Collinson of CCG Investor Relations, +1-310-231-8600,
ext. 117, for CRM Holdings, Ltd.

Web site: http://www.crmholdingsltd.bm/