CRM Holdings Ltd. reported a 71 percent increase in net income during the first quarter of 2008.

The company reported net income of $5 million, or 30 cents per share, compared to $2.9 million or 18 cents a share during the same period in 2007.

Net earned premiums from primary insurance and reinsurance increased 41.8 percent to $32.4 million from $22.8 million a year ago.

Twin Bridges, the company's reinsurance subsidiary, accounted for much of the increase with $14.8 million of net earned premium, up from $6 million in the first quarter of 2007.

Fee-based management services revenues declined to $3.8 million from $9.5 million a year ago. The decline resulted from a decrease in the number of New York self-insured groups managed by the company, lower insurance rates in California and reduced commissions on excess insurance policies placed with Majestic, the company's insurance segment.

The company's US subsidiary Compensation Risk Managers is meanwhile facing an action from the New York Workers' Compensation Board to revoke the licence that allows it to provide third-party claims administrative services to self-insured workers' compensation groups in the state.