CRM Holdings, a provider of products and services for the workers' compensation insurance industry, has announced changes in its group self insurance subsidiary Compensation Risk Managers.
In response to changes in market and business conditions that have reduced the volume of business in group self-insured trusts in its New York market, CRM recently implemented a series of cost cutting and realignment measures. These measures are intended to ensure that the organization is focused on its customers, is right-sized in view of these changing market conditions and is better positioned for strong future growth.
The actions being taken reflect the results of an internal assessment of CRM’s fee-based segment and better align the resources of the organization with the best opportunities in the workers’ compensation marketplace.
The realignment has resulted in the elimination of 34 positions at Compensation Risk Managers’s headquarters in Poughkeepsie and the transfer of six positions to the company’s Majestic Insurance Company subsidiary. The actions are expected to yield annualized pre-tax expense savings of approximately $2.2 million.
Daniel Hickey, chairman and CEO of CRM Holdings, said: Although staffing reductions are never pleasant, this is a necessary step to further strengthen our existing platform of insurance offerings. We expect the changes to enhance the profitability and competitiveness of our operations overall, and we are committed to that end.