Item 2.06 Material Impairments.

On September 15, 2008, Lehman Brothers Holdings, Inc. ("Lehman") filed for protection under Chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court in the Southern District of New York. Based on the bankruptcy filing of Lehman, CRM Holdings, Ltd. (the "Company") intends to record an other-than-temporary impairment ("OTTI") noncash charge with respect to the $1 million par value of senior unsecured debt securities of Lehman that the Company owns. The OTTI charge related to such securities will be made effective September 30, 2008, and is expected to approximate $640,000 before the effect of federal income tax, which is based on the current estimate of the market value of such securities.

Item 8.01 Other Events.

In addition to the Lehman holdings, the Company holds two debt securities of subsidiaries of American International Group, Inc. ("AIG"). The Company's aggregate investment in these securities is approximately $1.4 million at amortized cost. The Company has not deemed these investments to be other-than-temporarily-impaired. The Company does not have any other exposure via derivatives or other instruments or obligations to AIG or its subsidiaries, nor does the Company have any direct exposure to the parent or subsidiaries of Washington Mutual Inc.

This Form 8-K contains forward-looking statements within the meaning of federal securities law, including statements concerning plans, objectives, goals, strategies, projections of future events or performance and underlying assumptions (many of which are based, in turn, upon further assumptions). These statements are based on our current expectations and projections about future events and are identified by terminology such as "may," "will," "should," "expect," "scheduled," "plan," "seek," "intend," "anticipate," "believe," "estimate," "aim," "potential," or "continue" or the negative of those terms or other comparable terminology. All forward-looking statements involve risks and uncertainties. Although the Company believes that its plans, intentions and expectations are reasonable, the Company may not achieve such plans, intentions or expectations. There are or may be important factors that could cause actual results to differ materially from the forward-looking statements the Company makes in this document. Such risks and uncertainties are discussed in the company's Form 10-K for the year ended December 31, 2007, and in other documents filed by the Company with the Securities and Exchange Commission. These risks and others could cause actual results to differ materially from those expressed in any forward-looking statements made. The Company undertakes no obligation to update publicly or revise any forward-looking statements made.

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