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MRM Reports Operating Results For First Quarter 2001

08 May 2001

Hamilton, Bermuda: 8 May, 2001 -- Mutual Risk Management Ltd. (NYSE:MM BSX:MM.BH) today reported

operating results for the quarter ended March 31, 2001.

In a joint statement, Robert A. Mulderig, Chairman and Chief Executive Officer and John Kessock, Jr., President said: "The improvement in property casualty pricing has positively affected new unit sales and fee income in our Corporate Risk Management business segment. This will continue to have a positive impact on our mix of business and therefore our performance as we move through 2001. Corporate Risk Management sales for the first quarter of 2001 produced 16 new accounts compared to 6 in the 2000 first quarter. Corporate Risk Management fees increased by 28% in the quarter and Financial Services fees

continued their strong growth in the quarter at 98%. Excluding the effect of the acquisition of Valmet in the quarter, the Financial Services fees still grew by an impressive 46%."

"In conjunction with the previously announced investment in the Company led by XL Capital Ltd., A.M. Best Co. affirmed the A- (Excellent) rating of our insurance companies. This quarter marks the

beginning of the transition from our former Program Business model to a specialty insurance operation.

We have amended the income statement presentation and restated the comparative quarter to reflect this." Operating income increased by 9% to $12.5 million for the first quarter, or $0.30 per common share on a diluted basis, as compared to $11.5 million or $0.28 per diluted share in 2000. Fee income increased 39% in the first quarter to $31.9 million as compared to $22.9 million in 2000. Pre-tax profit margins from our fee-based operations were 28% in the first quarter of 2001, up slightly from 27% in 2000. Insurance Operations contributed $4.6 million of operating income, a 57% increase from $2.9 million in

the 2000 first quarter. Cash flow from operations for the first quarter was positive and amounted to $6.0 million. Return on equity amounted to 12.7% for the first quarter of 2001.

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