CRM Holdings has confirmed it does not have any material exposure to the US residential mortgage market in its investment portfolios.

The Bermuda-based products and services provider for the workers' compensation insurance industry said that, as of the end of the second quarter, the majority of its investment portfolio at its reinsurance subsidiary, Twin Bridges, was comprised of short-term US government and agency securities, and cash and money market equivalents.

The majority of its investment portfolio at its primary insurance subsidiary, Majestic Insurance Company, was, meanwhile, composed of debt obligations of states and political subdivisions, corporate bonds, debt of US government and agencies and equity securities.

"We have conducted a careful analysis of our investment portfolios, and we are very comfortable with our minimal exposure to the sub-prime mortgage market," said Dan Hickey Jr, CRM's CEO.

"Going forward, we will continue to monitor our portfolios to maximise value, and remain focused on creating long-term opportunities to grow at attractive rates of return and, ultimately, driving shareholder value."