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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C.  20549**

**FORM        10-Q**

**QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES        EXCHANGE ACT OF 1934**

**For        the Quarterly Period Ended June 30, 2005**

**Commission        File No. 001-31984**

**BRISTOL        WEST HOLDINGS, INC.**

| **Delaware**                                                                                    |   | **13-3994449**                                                              |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
| (State                  or other jurisdictionof                  incorporation or organization) |   | (I.R.S.                  Employer Identification                  No.) |
|                                                                                            |   |                                                                        |
| **5701                  Stirling Road, Davie, Florida**                                         |   | **33314**                                                                   |
| (Address                  of principal executive offices)                                       |   | (Zip                  Code)                                                 |
|                                                                                            |   |                                                                        |
| Registrant’s                  telephone number, including area code:                      |
| **(954)                  316-5200**                                                             |

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**INDEX        TO QUARTERLY REPORT**

**ON        FORM 10-Q**

|                                                                                                            |                                                                                                                                                                   | **Page** |
|-----------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Part                  I                                                                                         | Financial                  Information                                                                                                                                 |     |
| Item                  1.                                                                                        | Financial                  Statements:                                                                                                                                 |     |
|                                                                                                            | Consolidated                  Balance Sheets as of June 30, 2005 and                  December 31, 2004 (unaudited)                                          | 3        |
|                                                                                                            | Consolidated                  Statements of Income for the three months and                  six months ended June 30, 2005 and 2004                  (unaudited) | 4        |
|                                                                                                            | Consolidated                  Statements of Changes in Stockholders’ Equity for the six months ended                  June 30, 2005 and 2004 (unaudited)         | 5        |
|                                                                                                            | Consolidated                  Statements of Cash Flow for the six months ended June 30,                  2005 and                  2004(unaudited)                | 6        |
|                                                                                                            | Notes                  to Consolidated Financial Statements                                                                                                            | 7        |
| Item                  2.                                                                                        | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                          | 10       |
| Item                  3.                                                                                        | Quantitative                  and Qualitative Disclosure About Market Risk                                                                                             | 22       |
| Item                  4.                                                                                        | Controls                  and Procedures                                                                                                                               | 22       |
|                                                                                                            |                                                                                                                                                                   |     |
| Part                  II                                                                                        | Other                  Information                                                                                                                                     | 23       |
| Item                  1.                                                                                        | Legal                  Proceedings                                                                                                                                     | 23       |
| Item                  2.                                                                                        | Unregistered                  Sales of Equity Securities and Use                  of Proceeds                                                                          | 23       |
| Item                  3.                                                                                        | Defaults                  Upon Senior Securities                                                                                                                       | 24       |
| Item                  4.                                                                                        | Submission                  of Matters to a Vote of Security Holders                                                                                                   | 24       |
| Item                  5.                                                                                        | Other                  Information                                                                                                                                     | 24       |
| Item                  6.                                                                                        | Exhibits                                                                                                                                                               | 25       |
| Signatures                                                                                                      | 26                                                                                                                                                                     |
| Certifications                  Pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002 |                                                                                                                                                                   |
| Certification                  Pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002  |                                                                                                                                                                   |

----

**PART        I-FINANCIAL INFORMATION**

**    Item        1.         Financial Statements**

| **BRISTOL                WEST HOLDINGS, INC.**                                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                BALANCE SHEETS**                                                                                                                                                                                             |
| **(Unaudited)**                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                       |   |   |   |
|                                                                                                                                                                                                                                       | **June                30,** |   | **December                31,** |
|                                                                                                                                                                                                                                       | **2005** |   | **2004** |
|                                                                                                                                                                                                                                       | **(in                thousands, except share data)** |
| **Assets:**                                                                                                                                                                                                                                |   |   |   |
| Investments:                                                                                                                                                                                                                               |   |   |   |
| Fixed                maturities available-for-sale (amortized cost $429,193 and $280,578                at                June                  30, 2005 and December 31, 2004, respectively)                                              | $            429,631 |   | $                           281,568 |
| Equity                securities (cost $2,000 at June 30, 2005 and December 31,                2004)                                                                                                                                       | 2,000 |   | 2,000 |
| Total                investments                                                                                                                                                                                                           | 431,631 |   | 283,568 |
| Cash                and cash equivalents                                                                                                                                                                                                   | 61,313 |   | 11,508 |
| Accrued                investment income                                                                                                                                                                                                   | 4,708 |   | 2,958 |
| Premiums                and other receivables (net of allowance for doubtful accounts of                $14,900                and                  $15,845 at June 30, 2005 and December 31, 2004,                  respectively)         | 175,009 |   | 180,289 |
| Reinsurance                recoverables on paid and unpaid losses & loss adjustment                expenses                                                                                                                            | 18,298 |   | 155,326 |
| Prepaid                reinsurance                                                                                                                                                                                                         | 20,611 |   | 108,601 |
| Ceding                commission receivable                                                                                                                                                                                                | 6,670 |   | 138,092 |
| Deferred                policy acquisition costs                                                                                                                                                                                           | 52,431 |   | 31,028 |
| Property,                software and equipment - net                                                                                                                                                                                      | 18,827 |   | 18,017 |
| Goodwill                                                                                                                                                                                                                                   | 101,611 |   | 101,611 |
| Other                assets                                                                                                                                                                                                                | 9,179 |   | 9,922 |
| Total                assets                                                                                                                                                                                                                | $                           900,288 |   | $                        1,040,920 |
| **Liabilities                and Stockholders' Equity:**                                                                                                                                                                                   |   |   |   |
| Liabilities:                                                                                                                                                                                                                               |   |   |   |
| Policy                liabilities:                                                                                                                                                                                                         |   |   |   |
| Reserve                for losses and loss adjustment expenses                                                                                                                                                                             | $                           222,083 |   | $                           222,326 |
| Drafts                outstanding                                                                                                                                                                                                          | - |   | 1,239 |
| Unearned                premiums                                                                                                                                                                                                           | 206,584 |   | 214,431 |
| Total                policy liabilities                                                                                                                                                                                                    | 428,667 |   | 437,996 |
| Reinsurance                payables                                                                                                                                                                                                        | 27,405 |   | 166,513 |
| Accounts                payable and other liabilities                                                                                                                                                                                      | 35,749 |   | 31,421 |
| Deferred                income taxes                                                                                                                                                                                                       | 3,126 |   | 9,279 |
| Long-term                debt, including current portion                                                                                                                                                                                   | 71,875 |   | 73,388 |
| Total                liabilities                                                                                                                                                                                                           | 566,822 |   | 718,597 |
| Commitments                and contingent liabilities (Note 7)                                                                                                                                                                             |   |   |   |
| Stockholders'                equity:                                                                                                                                                                                                       |   |   |   |
| Preferred                stock, $0.01 par value (15,000,000 shares authorized; 0 shares outstanding                  at June 30, 2005 and December 31, 2004)                                                                               | - |   | - |
| Common                stock, $0.01 par value (200,000,000 shares authorized; 32,784,466                and                32,554,437                  shares issued at June 30, 2005 and December 31, 2004,                  respectively) | 327 |   | 325  |
| Additional                paid-in capital                                                                                                                                                                                                  | 234,868 |   | 231,281 |
| Retained                earnings                                                                                                                                                                                                           | 124,078 |   | 97,885 |
| Deferred                compensation on restricted stock                                                                                                                                                                                   | (6,834) |   | (4,723) |
| Treasury                stock at cost (1,668,796 and 683,036 shares held at June 30, 2005                and                December                  31, 2004, respectively)                                                              | (19,177) |   | (2,965) |
| Stock                subscription receivable                                                                                                                                                                                               | (81) |   | (120) |
| Accumulated                other comprehensive income                                                                                                                                                                                      | 285 |   | 640 |
| Total                stockholders' equity                                                                                                                                                                                                  | 333,466 |   | 322,323 |
| Total                liabilities and stockholders' equity                                                                                                                                                                                  | $                           900,288 |   | $                        1,040,920 |
|                                                                                                                                                                                                                                       |   |   |   |
| The                accompanying notes are an integral part of the consolidated financial                statements.                                                                                                                        |

----

| **BRISTOL                  WEST HOLDINGS, INC.**                                                                        |
|-------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF                  INCOME**                                                 |
| **(Unaudited)**                                                                                                         |
|                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                    | **Three                  Months Ended June 30,** |   | **Six                  Months Ended****June                  30,** |
|                                                                                                                    | **2005** |   | **2004** |   | **2005** |   | **2004** |
|                                                                                                                    | **(in                  thousands, except per share data)** |
| **Revenues:**                                                                                                           |   |   |   |   |   |   |   |
| Net                  premiums earned                                                                                    | $                           153,536 |   | $                             81,101 |   | $                           316,995 |   | $                           150,710 |
| Net                  investment income                                                                                  | 4,402 |   | 2,258 |   | 8,035 |   | 4,063 |
| Realized                  (loss) gain on investments, net                                                               | (25) |   | 69 |   | (26) |   | 69 |
| Policy                  service fee revenue                                                                             | 16,512 |   | 18,504 |   | 34,278 |   | 36,354 |
| Other                  income                                                                                           | 678 |   | 457 |   | 1,426 |   | 1,070 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Total                  revenues                                                                                         | 175,103 |   | 102,389 |   | 360,708 |   | 192,266 |
|                                                                                                                    |   |   |   |   |   |   |   |
| **Costs                  and Expenses:**                                                                                |   |   |   |   |   |   |   |
| Losses                  and loss adjustment expenses incurred                                                           | 103,553 |   | 54,652 |   | 211,318 |   | 102,218 |
| Commissions                  and other underwriting expenses                                                            | 40,796 |   | 13,890 |   | 81,611 |   | 23,387 |
| Other                  operating and general expenses                                                                   | 8,545 |   | 8,350 |   | 17,810 |   | 15,414 |
| Interest                  expense                                                                                       | 1,034 |   | 723 |   | 2,002 |   | 1,374 |
| Extinguishment                  of debt                                                                                 | - |   | - |   | - |   | 1,613 |
| Stock                  based compensation expense                                                                       | 593 |   | 92 |   | 999 |   | 671 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Total                  costs and expenses                                                                               | 154,521 |   | 77,707 |   | 313,740 |   | 144,677 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Income                  before income taxes                                                                             | 20,582 |   | 24,682 |   | 46,968 |   | 47,589 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Income                  taxes                                                                                           | 7,461 |   | 9,009 |   | 17,026 |   | 17,370 |
|                                                                                                                    |   |   |   |   |   |   |   |
| **Net                  Income**                                                                                         | $                             13,121 |   | $                             15,673 |   | $                             29,942 |   | $                             30,219 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Net                  income per common share - Basic                                                                    | $                                 0.42 |   | $                                 0.50 |   | $                                 0.96 |   | $                                 1.01 |
| Net                  income per common share - Diluted                                                                  | $                                 0.41 |   | $                                 0.48 |   | $                                 0.92 |   | $                                 0.95 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Dividends                  declared per common share                                                                    | $                                 0.07 |   | $                                 0.05 |   | $                                 0.12 |   | $                                 0.05 |
|                                                                                                                    |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of the consolidated financial                  statements. |

----

| **BRISTOL                  WEST HOLDINGS, INC.**                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CHANGES IN                  STOCKHOLDERS’ EQUITY**                                  |
| **(Unaudited)**                                                                                                                         |
|                                                                                                                                    |   |   |   |
|                                                                                                                                    | **Six                  Months Ended June 30,** |
|                                                                                                                                    | **2005** |   | **2004** |
|                                                                                                                                    | **(in                  thousands, except share data)** |
| **STOCKHOLDERS'                  EQUITY:**                                                                                              |   |   |   |
|                                                                                                                                    |   |   |   |
| **Common                  Stock**                                                                                                       |   |   |   |
| Balance,                  beginning of period                                                                                           | $                                    325 |   | $                                    245 |
| Issuance                  of common stock in initial public offering (6,250,000 shares--2004)                                           | - |   | 63 |
| Exercise                  of options and warrants, including tax benefit (37,839 shares--2005,                  1,297,764 shares--2004) | - |   | 13 |
| Shares                  issued for services (8,712 shares--2005, 29,950 shares--2004)                                                   | - |   | - |
| Issuance                  of restricted common stock (183,413 shares--2005, 296,035 shares--2004)                                       | 2 |   | 3 |
| Shares                  issued in payment of dividend (65 shares--2005)                                                                 | - |   | - |
| Balance,                  end of period                                                                                                 | 327 |   | 324 |
|                                                                                                                                    |   |   |   |
| **Additional                  Paid-In Capital**                                                                                         |   |   |   |
| Balance,                  beginning of period                                                                                           | 231,281 |   | 97,810 |
| Issuance                  of common stock in initial public offering (6,250,000 shares--2004)                                           | - |   | 113,368 |
| Exercise                  of options and warrants, including tax benefit (37,839 shares--2005,                  1,297,764 shares--2004) | 329 |   | 12,326 |
| Shares                  issued for services (8,712 shares--2005, 29,950 shares--2004)                                                   | 167 |   | 526 |
| Issuance                  of restricted common stock (183,413 shares--2005, 296,035 shares--2004)                                       | 3,090 |   | 5,444 |
| Shares                  issued in payment of dividend (65 shares--2005)                                                                 | 1 |   | - |
| Balance,                  end of period                                                                                                 | 234,868 |   | 229,474 |
|                                                                                                                                    |   |   |   |
| **Retained                  Earnings**                                                                                                  |   |   |   |
| Balance,                  beginning of period                                                                                           | 97,885 |   | 41,504 |
| Net                  income                                                                                                             | 29,942 |   | 30,219 |
| Dividend                  to common shareholders ($0.12 per share--2005, $0.05 per share--2004)                                         | (3,749) |   | (1,567) |
| Balance,                  end of period                                                                                                 | 124,078 |   | 70,156 |
|                                                                                                                                    |   |   |   |
| **Deferred                  Compensation on Restricted Stock**                                                                          |   |   |   |
| Balance,                  beginning of period                                                                                           | (4,723) |   | - |
| Issuance                  of restricted common stock (183,413 shares--2005, 296,035 shares--2004)                                       | (3,092) |   | (5,447) |
| Amortization                  of deferred compensation on restricted stock                                                              | 927 |   | 144 |
| Restricted                  stock forfeited (3,160 shares--2005, 18,098 shares--2004)                                                   | 54 |   | 333 |
| Balance,                  end of period                                                                                                 | (6,834) |   | (4,970) |
|                                                                                                                                    |   |   |   |
| **Treasury                  Stock**                                                                                                     |   |   |   |
| Balance,                  beginning of period                                                                                           | (2,965) |   | (2,563) |
| Acquisition                  of treasury stock (982,600 shares--2005, 2,608 shares--2004)                                               | (16,158) |   | (69) |
| Restricted                  stock forfeited (3,160 shares--2005, 18,098 shares--2004)                                                   | (54) |   | (333) |
| Balance,                  end of period                                                                                                 | (19,177) |   | (2,965) |
|                                                                                                                                    |   |   |   |
| **Stock                  Subscription Receivable**                                                                                      |   |   |   |
| Balance,                  beginning of period                                                                                           | (120) |   | (393) |
| Payment                  of stock subscriptions receivable                                                                              | 39 |   | 195 |
| Balance,                  end of period                                                                                                 | (81) |   | (198) |
|                                                                                                                                    |   |   |   |
| **Accumulated                  Other Comprehensive (Loss) Income**                                                                      |   |   |   |
| Balance,                  beginning of period                                                                                           | 640 |   | 2,132 |
| Unrealized                  holdings losses arising during the period                                                                   | (232) |   | (4,034) |
| Less:                  reclassification adjustment                                                                                      | (123) |   | (133) |
| Net                  unrealized losses on securities                                                                                    | (355) |   | (4,167) |
| Balance,                  end of period                                                                                                 | 285 |   | (2,035) |
|                                                                                                                                    |   |   |   |
| **Total                  Stockholders' Equity**                                                                                         | $                             333,466 |   | $                             289,786 |
|                                                                                                                                    |   |   |   |
| **COMPREHENSIVE                  INCOME:**                                                                                              |   |   |   |
|                                                                                                                                    |   |   |   |
| Net                  income                                                                                                             | $                               29,942 |   | $                               30,219 |
| Net                  unrealized losses on securities                                                                                    | (355) |   | (4,167) |
| **Comprehensive                  Income**                                                                                               | $                               29,587 |   | $                               26,052 |
|                                                                                                                                    |   |   |   |
| The                  accompanying notes are an integral part of the consolidated financial                  statements.                 |

----

| **BRISTOL                  WEST HOLDINGS, INC.**                                                                        |
|-------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH                  FLOW**                                              |
| **(Unaudited)**                                                                                                         |
|                                                                                                                    |   |   |   |
|                                                                                                                    | **Six                  Months Ended June 30,** |
|                                                                                                                    | **2005** |   | **2004** |
|                                                                                                                    | **(in                  thousands)** |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                              |   |   |   |
| Net                  income                                                                                             | $                                        29,942 |   | $                                        30,219 |
| Adjustments                  to reconcile net income to net cash provided by                                            |   |   |   |
| operating                  activities:                                                                                  |   |   |   |
| Accretion                  of fixed maturity investments                                                                | 1,935 |   | 998 |
| Depreciation                  and amortization                                                                          | 3,382 |   | 2,302 |
| Realized                  investment losses (gains)                                                                     | 26 |   | (69) |
| Deferred                  federal income taxes                                                                          | (5,954) |   | 175 |
| Stock                  based compensation                                                                               | 999 |   | 671 |
| Extinguishment                  of debt                                                                                 | - |   | 1,613 |
| Changes                  in assets and liabilities:                                                                     |   |   |   |
| Premiums                  and other receivables                                                                         | 5,280 |   | (34,495) |
| Reinsurance                  receivables                                                                                | 268,450 |   | (21,473) |
| Prepaid                  reinsurance premiums                                                                           | 87,990 |   | (8,294) |
| Deferred                  policy acquisition costs                                                                      | (21,403) |   | (8,777) |
| Losses                  and loss adjustment expenses                                                                    | (243) |   | 4,408 |
| Unearned                  premiums                                                                                      | (7,847) |   | 43,148 |
| Drafts                  outstanding                                                                                     | (1,239) |   | (113) |
| Reinsurance                  payables                                                                                   | (139,108) |   | 4,135 |
| Other                  assets and liabilities                                                                           | 2,115 |   | 1,612 |
| Tax                  benefit on exercise of stock options                                                               | 174 |   | - |
| Net                  cash provided by operating activities                                                              | 224,499 |   | 16,060 |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                              |   |   |   |
| Purchase                  of fixed maturity investments - available-for-sale                                            | (154,774) |   | (135,863) |
| Sales                  and maturities of fixed maturity investments -                  available-for-sale               | 5,288 |   | 21,887 |
| Purchase                  of equity securities                                                                          | - |   | (400) |
| Acquisition                  of property, software and equipment                                                        | (3,982) |   | (4,536) |
| Net                  cash used in investing activities                                                                  | (153,468) |   | (118,912) |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                              |   |   |   |
| Proceeds                  from initial public offering of stock                                                         | - |   | 113,431 |
| Proceeds                  from exercise of stock options                                                                | 155 |   | 12,339 |
| Acquisition                  of treasury stock                                                                          | (16,158) |   | (69) |
| Principal                  repayment at time of debt extinguishment                                                     | - |   | (71,500) |
| Principal                  payments on long-term debt                                                                   | (1,513) |   | (538) |
| Proceeds                  from acquisition of long-term bank debt                                                       | - |   | 75,000 |
| Payment                  of fees and expenses related to acquisition of long-term debt                                  | - |   | (2,325) |
| Payment                  of dividends to stockholders                                                                   | (3,749) |   | (1,567) |
| Other                                                                                                                   | 39 |   | 144 |
| Net                  cash (used in) provided by financing activities                                                    | (21,226) |   | 124,915 |
|                                                                                                                    |   |   |   |
| NET                  INCREASE IN CASH AND CASH EQUIVALENTS                                                              | 49,805 |   | 22,063 |
| Cash                  and cash equivalents, January 1                                                                   | 11,508 |   | 9,256 |
| Cash                  and cash equivalents, June 30                                                                     | $                                        61,313 |   | $                                        31,319 |
|                                                                                                                    |   |   |   |
| The                  accompanying notes are an integral part of the consolidated financial                  statements. |

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

** (in        thousands, except per share data)**

**1.**
**Nature        of Operations**

**2.**
**Basis        of Presentation**

**3.**
**Debt**

**4.**
**Initial        Public Offering**

----

**5.**
**Net        Income per Share**

|                                                          | **Three                  Months Ended****June                  30,**                                        |   | **Six                  Months Ended****June                  30,**                                          |
|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
|                                                          | **2005**                                                                                                    |   | **2004**                                                                                                    |   | **2005** |   | **2004** |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Net                  income applicable to common stockholders | $                            13,121                       |   | $                            15,673                       |   | $                            29,942 |   | $                            30,219 |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Weighted                  average common shares - basic       | 30,971,987                                                                                                  |   | 31,226,618                                                                                                  |   | 31,243,792 |   | 29,852,208 |
| Effect                  of dilutive securities:               |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Options                                                       | 1,136,259                                                                                                   |   | 1,400,567                                                                                                   |   | 1,159,646 |   | 1,535,684 |
| Restricted                  stock                             | 61,672                                                                                                      |   | 11,290                                                                                                      |   | 57,330 |   | 5,645 |
| Warrants                                                      | 211,886                                                                                                     |   | 222,075                                                                                                     |   | 214,942 |   | 264,042 |
| Weighted                  average common shares - dilutive    | 32,381,804                                                                                                  |   | 32,860,550                                                                                                  |   | 32,675,710 |   | 31,657,579 |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Basic                  Earnings Per Share                     | $                                0.42 |   | $                                0.50 |   | $                                0.96 |   | $                                1.01 |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Diluted                  Earnings Per Share                   | $                                0.41 |   | $                                0.48 |   | $                                0.92 |   | $                                0.95 |

**6.**
**Stock        Options**

*Accounting        for Stock-Based Compensation-Transition and Disclosure.*
*Accounting        for Stock-Based Compensation*
*        Accounting for Stock Issued to Employees,*

|                                                                                                                                                                                    | **Three                  Months Ended June 30,**                                                                                    |   | **Six                  Months Ended June 30,**                                                                                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                    | **2005**                                                                                                                            |   | **2004**                                                                                                                            |   | **2005** |   | **2004** |
|                                                                                                                                                                                    |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
| Net                  income, as reported                                                                                                                                                | $                                13,121                       |   | $                                15,673                       |   | $                                29,942 |   | $                                 30,219 |
|                                                                                                                                                                                    |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
| Deduct:                  Total stock-based employee compensationexpense                  determined under fair value method for all awards,                  net of related tax effects | (67)                                                                                                                                |   | (68)                                                                                                                                |   | (150) |   | (127) |
|                                                                                                                                                                                    |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
| Pro                  forma net income                                                                                                                                                   | $                                13,054                       |   | $                                15,605                       |   | $                                29,792 |   | $                                 30,092 |
|                                                                                                                                                                                    |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
| **Net                  income per share**                                                                                                                                               |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
|                                                                                                                                                                                    |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
| Basic—As                  reported                                                                                                                                                | $                                    0.42 |   | $                                    0.50 |   | $                                    0.96 |   | $                                     1.01 |
| Basic—Pro                  forma                                                                                                                                                  | $                                    0.42 |   | $                                    0.50 |   | $                                    0.95 |   | $                                     1.01 |
|                                                                                                                                                                                    |                                                                                                                                |   |                                                                                                                                |   |   |   |   |
| Diluted—As                  reported                                                                                                                                              | $                                    0.41 |   | $                                    0.48 |   | $                                    0.92 |   | $                                     0.95 |
| Diluted—Pro                  forma                                                                                                                                                | $                                    0.40 |   | $                                    0.47 |   | $                                    0.91 |   | $                                     0.95 |

----

**7.**
**Commitments        and Contingencies**

----

**Item        2. Management’s Discussion and Analysis of Financial        Condition and Results of Operations**

**General**

**Operating        Results - Key States**

----

| **DIRECT                  WRITTEN PREMIUM PRODUCTION BY STATE**                                      |
|------------------------------------------------------------------------------------------------------|
| **($                  in millions)**                                                                 |
|                                                                                                 |   |   |   |   |   |   |   |
|                                                                                                 | **Three                  months ended** |   |   |  **Six                  months ended** |   |
|                                                                                                 | **June                  30,** | **%** |   | **June                  30,** | **%** |
| **State**                                                                                            | **2005** | **2004** | **Change** |   | **2005** | **2004** | **Change** |
|                                                                                                 |   |   |   |   |   |   |   |
| California                                                                                           | $         72.2 | $      98.8 | -26.9% |   | $                        155.8 | $                     230.7 | -32.5% |
| Florida                                                                                              | 22.8 | 24.4 | -6.6% |   | 48.0 | 47.3 | 1.5% |
| Michigan                                                                                             | 20.3 | 16.7 | 21.6% |   | 42.8 | 34.2 | 25.1% |
| Texas                                                                                                | 5.6 | 3.4 | 64.7% |   | 11.8 | 6.6 | 78.8% |
| New                  Hampshire                                                                       | 4.2 | 3.5 | 20.0% |   | 8.0 | 6.4 | 25.0% |
| Pennsylvania                                                                                         | 4.1 | 4.1 | 0.0% |   | 7.5 | 8.2 | -8.5% |
| South                  Carolina                                                                      | 4.0 | 4.2 | -4.8% |   | 10.0 | 8.2 | 22.0% |
| Maine                                                                                                | 3.4 | 3.2 | 6.2% |   | 7.2 | 6.6 | 9.1% |
| Georgia                                                                                              | 2.1 | 3.0 | -30.0% |   | 5.0 | 6.1 | -18.0% |
| Virginia                                                                                             | 2.1 | 2.9 | -27.6% |   | 4.7 | 6.5 | -27.7% |
| All                  Other (includes 11 states)                                                      | 8.5 | 10.4 | -18.3% |   | 19.0 | 19.8 | -4.0% |
| **Total**                                                                                            | $                        149.3 | $    174.6 | -14.5% |   | $                        319.8 | $                     380.6 | -16.0% |
|                                                                                                 |   |   |   |   |   |   |   |
| Change                  in expected policy cancellation provision                                    | 8.5 | 0.6 | n/m |   | 8.3 | 0.3 | n/m |
|                                                                                                 |   |   |   |   |   |   |   |
| **Total,                  net of change in expected policy cancellation                  provision** | $                        157.8 | $                     175.2 | -9.9% |   | $                        328.1 | $                     380.9 | -13.9% |

|                                                   | **Three                    months ended June 30,**                                                   | **%**                                                                |       | **Six                    months ended June 30,** | **%**                                                                                                |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|------------|--------------------------------------------------|------------------------------------------------------------------------------------------------------|
|                                                   | **2005**                                                                                             | **2004**                                                             | **Change** |                                             | **2005**                                                                                             | **2004** | **Change** |
|                                                   | **(in                    thousands)**                                                                |                                                                 |       | **(in                    thousands)**            |                                                                                                 |
|                                                   |                                                                                                 |                                                                 |       |                                             |                                                                                                 |   |   |
| Average                    number of policies in force | 459.3                                                                                                | 490.6                                                                | -6.4%      |                                             | 467.3                                                                                                | 478.4 | -2.3% |
|                                                   |                                                                                                 |                                                                 |       |                                             |                                                                                                 |   |   |
| Gross                    earned premiums               | $                                166,228 | $          174,463 | -4.7%      |                                             | $                                335,977 | $                             337,709 | -0.5% |

----

**Operations**

----

**Reinsurance**

| Cash                                                                                                             | $                                196,648  |
|------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Reinsurance                  recoverable on paid and unpaid losses and loss adjustment                  expenses |                    (147,683)                                                                                    |
| Prepaid                  reinsurance                                                                             |                    (106,310)                                                                                    |
| Ceding                  commission receivable                                                                    |  (138,197)                                                                                                      |
| Reinsurance                  payables                                                                            |  (164,824)                                                                                                      |
| Deferred                  policy acquisition costs                                                               |  30,609                                                                                                         |

----

**Results        of Operations**

|                                                                                                                                                                                                                                                                                                                                                                                                       | **Three                  Months Ended****June                  30,**                                                                            |   | **Six                  Months Ended**** June                  30,**                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                       | **2005**                                                                                                                                        |   | **2004**                                                                                                                                        |   | **2005** |   | **2004** |
|                                                                                                                                                                                                                                                                                                                                                                                                       | **(in                  thousands, except per share data)**                                                                                      |   | **(in                  thousands, except per share data)**                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Statement                  of Operations Data:**                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Revenue:**                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Net                  earned premium                                                                                                                                                                                                                                                                                                                                                                        | $                                153,536                                  |   | $                                  81,101                       |   | $                                316,995 |   | $                                 150,710 |
| Net                  investment income                                                                                                                                                                                                                                                                                                                                                                     | 4,402                                                                                                                                           |   | 2,258                                                                                                                                           |   | 8,035 |   | 4,063 |
| Realized                  (loss) gain on investments, net                                                                                                                                                                                                                                                                                                                                                  | (25)                                                                                                                                            |   | 69                                                                                                                                              |   | (26) |   | 69 |
| Policy                  service fee revenues                                                                                                                                                                                                                                                                                                                                                               | 16,512                                                                                                                                          |   | 18,504                                                                                                                                          |   | 34,278 |   | 36,354 |
| Other                  income                                                                                                                                                                                                                                                                                                                                                                              | 678                                                                                                                                             |   | 457                                                                                                                                             |   | 1,426 |   | 1,070 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Total                  revenue                                                                                                                                                                                                                                                                                                                                                                             | 175,103                                                                                                                                         |   | 102,389                                                                                                                                         |   | 360,708 |   | 192,266 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Costs                  and Expenses:**                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Losses                  and loss adjustment expenses incurred                                                                                                                                                                                                                                                                                                                                              | 103,553                                                                                                                                         |   | 54,652                                                                                                                                          |   | 211,318 |   | 102,218 |
| Commissions                  and other underwriting expenses                                                                                                                                                                                                                                                                                                                                               | 40,796                                                                                                                                          |   | 13,890                                                                                                                                          |   | 81,611 |   | 23,387 |
| Other                  operating and general expenses                                                                                                                                                                                                                                                                                                                                                      | 8,545                                                                                                                                           |   | 8,350                                                                                                                                           |   | 17,810 |   | 15,414 |
| Interest                  expense                                                                                                                                                                                                                                                                                                                                                                          | 1,034                                                                                                                                           |   | 723                                                                                                                                             |   | 2,002 |   | 1,374 |
| Extinguishment                  of debt                                                                                                                                                                                                                                                                                                                                                                    | -                                                                                                                                               |   | -                                                                                                                                               |   | - |   | 1,613 |
| Stock                  based compensation expense                                                                                                                                                                                                                                                                                                                                                          | 593                                                                                                                                             |   | 92                                                                                                                                              |   | 999 |   | 671 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Total                  costs and expenses                                                                                                                                                                                                                                                                                                                                                                  | 154,521                                                                                                                                         |   | 77,707                                                                                                                                          |   | 313,740 |   | 144,677 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Income                  before income taxes                                                                                                                                                                                                                                                                                                                                                                | 20,582                                                                                                                                          |   | 24,682                                                                                                                                          |   | 46,968 |   | 47,589 |
| Income                  taxes                                                                                                                                                                                                                                                                                                                                                                              | 7,461                                                                                                                                           |   | 9,009                                                                                                                                           |   | 17,026 |   | 17,370 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Net                  Income**                                                                                                                                                                                                                                                                                                                                                                            | $                                  13,121                       |   | $                 15,673                                   |   | $                                  29,942 |   | $                                   30,219 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Per                  Share Data:**                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Net                  income per common share - Basic                                                                                                                                                                                                                                                                                                                                                       | $                     0.42             |   | $                                      0.50 |   | $                                      0.96 |   | $                                       1.01 |
| Net                  income per common share - Diluted                                                                                                                                                                                                                                                                                                                                                     | $                                      0.41 |   | $                                      0.48 |   | $                                      0.92 |   | $                                       0.95 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Operating                  Data:**                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Gross                  written premium                                                                                                                                                                                                                                                                                                                                                                     | $                                157,780                                  |   | $                                175,238                                  |   | $                                328,130 |   | $                                 380,855 |
| Net                  written premium                                                                                                                                                                                                                                                                                                                                                                       | 140,442                                                                                                                                         |   | 85,793                                                                                                                                          |   | 397,137 |   | 185,564 |
| Gross                  earned premium                                                                                                                                                                                                                                                                                                                                                                      | 166,228                                                                                                                                         |   | 174,463                                                                                                                                         |   | 335,977 |   | 337,709 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| **Ratios:**                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Loss                  ratio (a)                                                                                                                                                                                                                                                                                                                                                                            | 60.7%                                                                                                                                           |   | 54.6%                                                                                                                                           |   | 59.9% |   | 54.3% |
| Expense                  ratio (b)                                                                                                                                                                                                                                                                                                                                                                         | 28.9%                                                                                                                                           |   | 22.2%                                                                                                                                           |   | 28.2% |   | 20.6% |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| Combined                  ratio (c)                                                                                                                                                                                                                                                                                                                                                                        | 89.6%                                                                                                                                           |   | 76.8%                                                                                                                                           |   | 88.1% |   | 74.9% |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| (a)                  Loss ratio is the ratio, expressed as a percentage, of (i) losses                  and loss                  adjustment expenses incurred, divided by (ii) the sum of (A)                  net earned premium, (B) policy service fee revenues and (C) other                  income.                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                       |
| (b)                  Expense ratio is the ratio, expressed as a percentage, of (i) the                  sum of                  (A) commissions and other undewriting expenses and (B) other                  operating and general expenses divided by (ii) the sum of (A) net                  earned                  premium, (B) policy service fee revenues and (C)                    other income. |
|                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                            |   |                                                                                                                                            |   |   |   |   |
| (c)                  Combined ratio is the sum of the loss ratio and the expense ratio.                  This                  ratio is used by our management to evaluate our  operating                  profitability.                                                                                                                                                                             |

----

***Overview        of Operating Results***

***Three        Months and Six Months Ended June 30, 2005 compared to Three Months        and Six        Months Ended June 30, 2004***

|                                                                                                 | **Three                  months ended**** June                  30,** |   | **Six                  months ended****June                  30,** |
|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                                                                 | **2005**                                                                   |   | **2004**                                                           |   | **2005** |   | **2004** |
|                                                                                                 | **(in                  thousands)**                                        |   | **(in                  thousands)**                                |
|                                                                                                 |                                                                       |   |                                                               |   |   |   |   |
| Gross                  written premium                                                               | $                        157,780             |   | $                        175,238     |   | $                        328,130 |   | $                        380,855 |
|                                                                                                 |                                                                       |   |                                                               |   |   |   |   |
| Ceded                  written premium                                                               | 17,338                                                                     |   | 89,445                                                             |   | (69,007) |   | 195,291 |
| Effect                  of reinsurance commutation on ceded written premium                          | -                                                                          |   | -                                                                  |   | 106,310 | * | - |
| Ceded                  written premium, excluding effect of                  reinsurance commutation |                  17,338                                               |   |                  89,445                                       |   |                  37,303 |   |                  195,291 |
|                                                                                                 |                                                                       |   |                                                               |   |   |   |   |
| %                  Ceded, excluding effect of reinsurance commutation                                | 11.0%                                                                      |   | 51.0%                                                              |   | 11.4% |   | 51.3% |
|                                                                                                 |                                                                       |   |                                                               |   |   |   |   |
| Gross                  Earned Premium                                                                | $                        166,228             |   | $                        174,463     |   | $                        335,977 |   | $                        337,709 |
| Ceded                  Earned Premium                                                                | 12,692                                                                     |   | 93,362                                                             |   | 18,982 |   | 186,999 |
| %                  Ceded                                                                             | 7.6%                                                                       |   | 53.5%                                                              |   | 5.6% |   | 55.4% |

*    Gross        Written        Premium*

----

*    Net        Written        Premium. *

*    Net        Earned        Premium. *

*    Net        Investment Income. *

*    Policy        Service Fee Revenues*

***Costs        and Expenses***

*    Losses        and        Loss Adjustment Expenses*

----

|                                                         | **Three                  months ended June 30,**                                                   |   | **Six                  months ended June 30,**                                                                |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
|                                                         | **2005**                                                                                           |   | **2004**                                                                                                      |   | **2005** |   | **2004** |
|                                                         | **(in                  thousands)**                                                                |   | **(in                  thousands)**                                                                           |
|                                                         |                                                                                               |   |                                                                                                          |   |   |   |   |
| Current                  Accident Year Loss and LAE Incurred | $                              103,579 |   | $                                54,374 |   | $                              211,456 |   | $                               100,627 |
| Prior                  Accident Years Loss and LAE Incurred  | (26)                                                                                               |   | 278                                                                                                           |   | (138) |   | 1,591 |
| Total                  Net Loss and LAE Incurred             | $                              103,553 |   | $                                54,652 |   | $                              211,318 |   | $                               102,218 |
|                                                         |                                                                                               |   |                                                                                                          |   |   |   |   |
| Current                  Accident Year Loss and LAE Ratio    | 60.7%                                                                                              |   | 54.3%                                                                                                         |   | 60.0% |   | 53.5% |
| Prior                  Accident Years Loss and LAE Ratio     | 0.0%                                                                                               |   | 0.3%                                                                                                          |   | 0.0% |   | 0.8% |
| Total                  Net Loss and LAE Ratio                | 60.7%                                                                                              |   | 54.6%                                                                                                         |   | 59.9% |   | 54.3% |

*    Commissions        and Other Underwriting Expenses. *

|                                                         | **Three                  months ended**** June                  30,**                                    |   | **Six                  months ended****June                  30,**                                            |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
|                                                         | **2005**                                                                                                      |   | **2004**                                                                                                      |   | **2005** |   | **2004** |
|                                                         | **(in                  thousands)**                                                                           |   | **(in                  thousands)**                                                                           |
|                                                         |                                                                                                          |   |                                                                                                          |   |   |   |   |
| Gross                  commissions                           | $                                24,445 |   | $               24,647             |   | $                                49,843 |   | $                                 49,596 |
| Other                  underwriting expenses                 | 19,209                                                                                                        |   | 16,788                                                                                                        |   | 35,845 |   | 30,518 |
| Gross                  expenses                              | 43,654                                                                                                        |   | 41,435                                                                                                        |   | 85,688 |   | 80,114 |
|                                                         |                                                                                                          |   |                                                                                                          |   |   |   |   |
| Ceding                  commissions                          | 2,858                                                                                                         |   | 27,545                                                                                                        |   | 4,077 |   | 56,727 |
|                                                         |                                                                                                          |   |                                                                                                          |   |   |   |   |
| Commissions                  and other underwriting expenses | $                                40,796 |   | $                                13,890 |   | $                                81,611 |   | $                                 23,387 |
|                                                         |                                                                                                          |   |                                                                                                          |   |   |   |   |
| Gross                  expense ratio                         | 28.5%                                                                                                         |   | 25.7%                                                                                                         |   | 27.8% |   | 25.5% |
| Net                  expense ratio                           | 28.9%                                                                                                         |   | 22.2%                                                                                                         |   | 28.2% |   | 20.6% |

----

*    Other        Operating and General Expenses. *

*    Interest        Expense*

*    Ratios*

*    Income        Taxe*

**Financial        Condition**

***    Liquidity        and        Capital Resources***

----

**Investments**

----

|                                                   | **Cost                  /**                                                                                                                                        |   | **Fair**                                                                       |   | **%                  of Total**    |
|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|------------------------------------|
|                                                   | **Amortized                  Cost**                                                                                                                                |   | **Value**                                                                      |   | **at                  Fair Value** |
|                                                   | **(in                  millions)**                                                                                                                                 |   |                                                                           |
|                                                   |                                                                                                                                                               |   |                                                                           |   |                               |
| Debt                  securities, available for sale   | $                        429.2             |   | $            429.6 |   | 87.2%                              |
| Equity                  securities, available for sale | 2.0                                                                                                                                                                |   | 2.0                                                                            |   | 0.4%                               |
| Cash                  and cash equivalents             | 61.3                                                                                                                                                               |   | 61.3                                                                           |   | 12.4%                              |
|                                                   |                                                                                                                                                               |   |                                                                           |   |                               |
| Total                                                  | $                                         492.5 |   | $            492.9 |   | 100.0%                             |

*    Investment        Strategy.*

*    Investment        Portfolio. *

| Cash                  and cash equivalents                | $                               61.3 |   | 12.4%  |
|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------|--------|
| U.S.                  Government securities               | 4.3                                                                                              |   | 0.9%   |
| Mortgage                  backed bonds                    | 52.0                                                                                             |   | 10.5%  |
| Tax-exempt                  bonds                         | 195.4                                                                                            |   | 39.7%  |
| Collateralized                  mortgage obligations      | 20.8                                                                                             |   | 4.2%   |
| Corporate                  and other                      | 156.7                                                                                            |   | 31.8%  |
| Preferred                  stocks                         | 2.0                                                                                              |   | 0.4%   |
| Net                  unrealized gains on fixed maturities | 0.4                                                                                              |   | 0.1%   |
|                                                      |                                                                                             |   |   |
| Total                  investments at market value        | $                             492.9       |   | 100.0% |

----

|                                                 | **Amortized**                                                                                              |   | **Unrealized**                                                                                                                   |   | **Unrealized**                                                                                                                   |   | **Estimated**                                                                                                                      |
|------------------------------------------------------|------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|
|                                                 | **Cost**                                                                                                   |   | **Gains**                                                                                                                        |   | **Losses**                                                                                                                       |   | **Market                  Value**                                                                                                  |
|                                                 | **(in                  millions)**                                                                         |
|                                                 |                                                                                                       |   |                                                                                                                             |   |                                                                                                                             |   |                                                                                                                               |
| U.S.                  Government securities          | $                 4.3 |   | $                            -         |   | $                             -        |   | $                                    4.3 |
| Mortgage                  backed bonds               | 52.0                                                                                                       |   | 0.1                                                                                                                              |   | 0.5                                                                                                                              |   | 51.6                                                                                                                               |
| Tax-exempt                  bonds                    | 195.4                                                                                                      |   | 1.9                                                                                                                              |   | 0.5                                                                                                                              |   | 196.8                                                                                                                              |
| Collateralized                  mortgage obligations | 20.8                                                                                                       |   | 0.1                                                                                                                              |   | 0.1                                                                                                                              |   | 20.8                                                                                                                               |
| Corporate                  and other                 | 156.7                                                                                                      |   | 0.7                                                                                                                              |   | 1.3                                                                                                                              |   | 156.1                                                                                                                              |
|                                                 |                                                                                                       |   |                                                                                                                             |   |                                                                                                                             |   |                                                                                                                               |
| Total                  fixed maturities              | 429.2                                                                                                      |   | 2.8                                                                                                                              |   | 2.4                                                                                                                              |   | 429.6                                                                                                                              |
|                                                 |                                                                                                       |   |                                                                                                                             |   |                                                                                                                             |   |                                                                                                                               |
| Preferred                  stock                     | 2.0                                                                                                        |   |                        -                                                                           |   |                          -                                                                    |   | 2.0                                                                                                                                |
|                                                 |                                                                                                       |   |                                                                                                                             |   |                                                                                                                             |   |                                                                                                                               |
| Total                                                | $                              431.2           |   | $                                2.8                       |   | $                                2.4                       |   | $                                431.6                       |

|                                              | **NAIC**   |   | **Amortized**                                                                                    |   | **Fair**                                                                                         |   | **%                  of Total**    |
|---------------------------------------------------|------------|--------|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|------------------------------------|
|                                              | **Rating** |   | **Cost**                                                                                         |   | **Value**                                                                                        |   | **at                  Fair Value** |
|                                              |       |   | **(in                  millions)**                                                               |   |                                                                                             |
| **Standard                  & Poor's Rating** |       |   |                                                                                             |   |                                                                                             |   |                               |
| AAA                                               | 1          |   | $                              293.0 |   | $                              293.0 |   | 68.2%                              |
| AA                                                | 1          |   | 75.9                                                                                             |   | 75.9                                                                                             |   | 17.7%                              |
| A                                                 | 1          |   | 52.5                                                                                             |   | 52.8                                                                                             |   | 12.3%                              |
| BBB                                               | 2          |   | 3.5                                                                                              |   | 3.6                                                                                              |   | 0.8%                               |
| U.S.                  Treasuries agencies         | 1          |   | 4.3                                                                                              |   | 4.3                                                                                              |   | 1.0%                               |
|                                              |       |   |                                                                                             |   |                                                                                             |   |                               |
| Total                  fixed maturity investments |       |   | $                              429.2 |   | $             429.6             |   | 100.0%                             |

**Forward-Looking        Statements**

----

**Item 3.        Quantitative and Qualitative Disclosures        About Market Risk**

***Interest        Rate Risk***

*    Investments.        *

*    Credit        Facility. *

***Credit        Risk***

*    Investments.        *

*    Reinsurance*

**Item 4.        Controls and Procedures**

----

**PART        II-OTHER INFORMATION**

**Item        1.  Legal Proceedings **

**Item 2.        Unregistered Sales of Equity Securities and        Use of Proceeds**

| **Repurchase                  of Equity Securities** |   |                                                                                                                      |   |                                                                                                                                                                                                     |   |
|------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                 |   |                                                                                                                      |   |                                                                                                                                                                                                     |   |   |   |   |
|                                                 |   |                                                                                                                      |   |                                                                                                                                                                                                     |   | **Total                  Number of** |   | **Maximum                  Dollar Value** |
|                                                 |   | **Total                  Number**                                                                                         |   | **Average**                                                                                                                                                                                              |   | **Shares                  Purchased as** |   | **of                  Shares that May Yet** |
|                                                 |   | **of                  Shares**                                                                                            |   | **Price                  Paid**                                                                                                                                                                          |   | **Part                  of Publicly Announced** |   | **Be                  Purchased Under** |
| **Period**                                           |   | **Purchased**                                                                                                             |   | **per                  Share**                                                                                                                                                                           |   | **Plans                  or Programs** |   | **the                  Plans or Programs** |
|                                                 |   |                                                                                                                      |   |                                                                                                                                                                                                     |   |   |   |   |
| April                  1, 2005 to April 30, 2005     |   |                                    - |   | $                                                - |   | -                        |   | $                                                             23,222,297 |
| May                  1, 2005 to May 31, 2005         |   | 285,700                                                                                                                   |   | 16.44                                                                                                                                                                                                    |   | 285,700 |   | 18,526,314 |
| June                  1, 2005 to June 30, 2005       |   | 262,800                                                                                                                   |   | 17.82                                                                                                                                                                                                    |   | 262,800 |   | 13,843,003 |
| Total                                                |   | 548,500                                                                                                                   |   | $                          17.10                                       |   | 548,500 |   | $                                                             13,843,003 |

----

**Item      3.****          ****Defaults      Upon Senior Securities**

**Item        4.****          ****Submission        of Matters to a Vote of Security Holders**

| Name                             | Votes                  For  |   | Votes                  Withheld                                                       |
|---------------------------------------|----------------------------------|--------|--------------------------------------------------------------------------------------------|
|                                  |                             |   |                                                                                       |
| R.                  Cary Blair        | 30,259,652                       |   | 13,505                                                                                     |
| Richard                  T. Delaney   | 30,259,662                       |   | 13,495                                                                                     |
| James                  R. Fisher      | 30,156,667                       |   |                    116,490                                                            |
| Todd                  A. Fisher       | 21,530,766                       |   |                         8,742,391                            |
| Perry                  Golkin         | 21,493,166                       |   |                         8,779,991                            |
| Inder-Jeet                  S. Gujral | 29,922,452                       |   |                            350,705            |
| Mary                  R. Hennessy     | 30,259,952                       |   |                              13,205 |
| Eileen                  Hilton        | 30,259,652                       |   |                              13,505 |
| James                  N. Meehan      | 30,259,952                       |   |                              13,205 |
| Scott                  C. Nuttall     | 21,493,166                       |   |        8,779,991                                        |
| Arthur                  J. Rothkopf   | 30,219,692                       |   |                              53,465 |

| Votes                    For  |   | Against  |   | Abstained  |
|------------------------------------|--------|---------------|--------|-----------------|
|                               |   |          |   |            |
| 30,238,283                         |   | 29,333        |   | 5,541           |

**Item        5.****          ****Other        Information**

----

**Item 6.        Exhibits** 

| **Exhibit                  Number** |   | **Description                  of Document**                                                                                                                                                                |
|-------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |   |                                                                                                                                                                                                        |
| 31.1                                |   | Rule 13a-14(a)/15d-14(a)                  Certification of Chief Executive Officer (pursuant to Section 302                  of                  the Sarbanes-Oxley                  Act of 2002) |
|                                |   |                                                                                                                                                                                                        |
| 31.2                                |   | Rule 13a-14(a)/15d-14(a)                  Certification of Chief Financial Officer (pursuant to Section 302                  of                  the Sarbanes-Oxley                  Act of 2002) |
|                                |   |                                                                                                                                                                                                        |
| 32                                  |   | Section 1350                  Certification of Chief Executive Officer and Chief Financial Officer                  (pursuant to Section 906                  of the Sarbanes-Oxley Act of 2002)* |

----

**SIGNATURES**

|                             |   |   | BRISTOL                  WEST HOLDINGS, INC.(Registrant)                                                                                 |
|----------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|                             |   |   |                                                                                                                                     |
| August                  12, 2005 |   | By:    | /s/                  JAMES R. FISHER                                                                                                     |
| Date                             |   |   | (Signature)                                                                                                                              |
|                             |   |   |                                                                                                                                     |
|                             |   | Name:  | James                  R. Fisher                                                                                                         |
|                             |   | Title: | Chairman,                  Chief Executive Officer (PrincipalExecutive                  Officer)                                         |
|                             |   |   |                                                                                                                                     |
|                             |   |   |                                                                                                                                     |
| August                  12, 2005 |   | By:    | /s/                  CRAIG E. EISENACHER                                                                                                 |
| Date                             |   |   | (Signature)                                                                                                                              |
|                             |   |   |                                                                                                                                     |
|                             |   | Name:  | Craig                  E. Eisenacher                                                                                                     |
|                             |   | Title: | Chief                  Financial Officer (Principal FinancialOfficer                  and Principal Accounting                  Officer) |

----

**Exhibit 31.1**

**Certification**

| Date:                  August 12, 2005                |
|-------------------------------------------------------|
|                                                  |
| /s/  JAMES                  R. FISHER       |   |
| James                  R. Fisher                      |
| Chairman                  and Chief Executive Officer |

----

**Exhibit 31.2**

**Certification**

| Date:                  August 12, 2005                                              |
|-------------------------------------------------------------------------------------|
|                                                                                |
| /s/ CRAIG                  E. EISENACHER                                       |   |
| Craig                  E. Eisenacher                                                |
| Senior                  Vice President and Chief Financial                  Officer |

----

**Exhibit 32**

**CERTIFICATION        PURSUANT TO**

**18        U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906        OF THE SARBANES-OXLEY ACT OF 2002**

| /s/  JAMES                  R. FISHER       |   | /s/  CRAIG                  E. EISENACHER                                 |   |
|-------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|
| James                  R. Fisher                      |   | Craig                  E. Eisenacher                                                |
| Chairman                  and Chief Executive Officer |   | Senior                  Vice President and Chief Financial                  Officer |