CRM Holdings, Ltd. (“CRM” or “the Company”) (NASDAQ:CRMH), a provider of a full range of products and services for the workers’ compensation insurance industry, announced that its medical bill review and case management services subsidiary, Eimar, L.L.C., has purchased the assets of Medical Expense Management Inc. (“MEMI”), a medical expense claims management business. Financial details of the transaction were not disclosed.
The Company also announced that Charles Manzo, president of MEMI, will join CRM as senior vice president of Claims Management Services for its Compensation Risk Managers LLC subsidiary. Manzo has 30 years experience in the insurance industry, focusing on workers’ compensation claims management and managed care quality controls. Before founding MEMI, he worked for two major insurance carriers and a major insurance broker.
“We see this acquisition as an opportunity to enhance and diversify our fee-based business,” said Chester J. Walczyk, chief operating officer of CRM. “This transaction broadens Eimar’s client base, expanding it beyond self-insured entities to now include third-party insurance companies and law firms.”
The Company expects MEMI to contribute immaterially to revenue and earnings per share in the fourth quarter of fiscal 2007.
In completing the transaction, CRM was advised by Mystic Capital Advisors Group LLC, which also advised the Company during its acquisition of Majestic Insurance Co. in November 2006.
Source: CRM Holdings Ltd., http://www.crmholdingsltd.bm/.
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