Bermuda-based workers' compensation insurer CRM Holdings Ltd. posted a second-quarter net loss from continuing operations of $2.1 million, the company announced yesterday.

Revenue plunged by more than $20 million as the company's primary insurance subsidiary, Majestic Insurance Company, entered ceded premiums in a 40 percent quota share agreement with a third-party reinsurer.

Total revenue from continuing operations were $26.4 million in the April through June period, compared to $47.8 million in the same quarter last year.

The combined ratio - the percentage of premium dollars paid out in claims and expenses - was was 110.6 percent, indicating an underwriting loss. That compared to 86.4 percent for the same period last year.

Book value per share decreased by 65 cents to $5.97 at June 30, 2009, from $6.62 per diluted share at December 31, 2008.

"Our results for the second quarter, while showing improvement from the first quarter, were unsatisfactory," said James Scardino, CRM's chief executive officer.

"Despite this, we saw positive impact from the underwriting actions we took in New York. We are focusing on other territories where improvement is needed, and we are confident our results will return to acceptable levels as we move forward."