CRM Holdings, Ltd. Announces California Preferred Auto Dealers Self-Insured Group Declares Dividend

HAMILTON, Bermuda, Nov. 29, 2007 -- CRM Holdings, Ltd. ("CRM"), a leading provider of a full range of products and services for the workers' compensation insurance industry, today announced that one of the California self-insured groups managed by its subsidiary Compensation Risk Managers of California has declared a $1.4 million dividend for the 2003 through 2005 program years.

The dividend will be distributed to members of the Company's Preferred Auto Dealers Self Insurance Program ("PADSIP") on February 1, 2008, to members in good standing.

"When PADSIP was launched in 2003, CRM, the PADSIP board and the member employers had a vision of safety, savings and security," said Daniel G. Hickey Jr., CRM's Chairman and Chief Executive Officer. "As a direct result of rigorous underwriting, extensive safety programs and efficient claims systems, this exciting milestone is proof that the self-insured group model continues to thrive in California as a viable risk management option for workers' compensation risk. CRM is very pleased to be associated with PADSIP's success."

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 primary workers' compensation insurance product. The Company provides its fee-based management services to self-insured groups in New York and California. It provides its primary workers' compensation insurance coverage primarily to employers in California but also has active operations in Alaska, Arizona, Nevada, Oregon, Washington, New Jersey and, starting on October 1, 2007, New York. CRM is also 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/.

  CRMH-G

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