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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C.  20549**

**FORM      10-Q**

| **(Mark                One)**                                                                                      |   |
|--------------------------------------------------------------------------------------------------------------------|--------|
| **x**                                                                                                              |        | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934** |
| **For                the quarterly period ended March 31, 2006**                                                   |
| **or**                                                                                                             |
| **o**                                                                                                              |        | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT                OF 1934** |
| **For                the transition period                from    to    ** |

**Commission      File No. 001-31984**

**BRISTOL      WEST HOLDINGS, INC.**

| **Delaware**                                                                                |   | **13-3994449**                                                    |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or other jurisdictionof                incorporation or organization) |   | (I.R.S.                EmployerIdentification                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:                                                                                                                                                        |     |
|                         | Condensed                Consolidated                Balance Sheets as of March 31, 2006 and December 31,                2005                (unaudited)                          | 3        |
|                         | Condensed                Consolidated                Statements of Income for the three months ended March 31, 2006 and                2005 (unaudited)                                | 4        |
|                         | Condensed                Consolidated                Statements of Changes in Stockholders’ Equity for the three months ended                March 31, 2006 and 2005 (unaudited) | 5        |
|                         | Condensed                Consolidated                Statements of Cash Flow for the three months ended March 31, 2006                and 2005                (unaudited)                   | 6        |
|                         | Notes                to Condensed Consolidated Financial Statements                (unaudited)                                                                                              | 7        |
| Item                2.       | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                                   | 11       |
| Item                3.       | Quantitative                and Qualitative Disclosures About Market Risk                                                                                                                   | 26       |
| Item                4.       | Controls                and Procedures                                                                                                                                                      | 26       |
|                         |                                                                                                                                                                                        |     |
| Part                II       | Other                Information                                                                                                                                                            | 26       |
| Item                1.       | Legal                Proceedings                                                                                                                                                            | 26       |
| Item                1A.      | Risk                Factors                                                                                                                                                                 | 27       |
| Item                2.       | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                                                                  | 27       |
| Item                6.       | Exhibits                                                                                                                                                                                    | 27       |
| Signatures                   | 28                                                                                                                                                                                          |
| Exhibit                Index | 29                                                                                                                                                                                          |
|                         |                                                                                                                                                                                        |
|                         |                                                                                                                                                                                        |

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**

| **BRISTOL                  WEST HOLDINGS, INC.**                                                                                                  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                  CONSOLIDATED BALANCE SHEETS**                                                                                        |   |
| **(Unaudited)**                                                                                                                                   |   |
|                                                                                                                                              |   | **March                  31,** | **December                  31,** |
|                                                                                                                                              |   | **2006** |  | **2005** |   |
|                                                                                                                                              |   | **(in                  thousands, except share data)** |   |
| **Assets:**                                                                                                                                       |   |   |   |   |   |
| Investments:                                                                                                                                      |   |   |   |   |   |
|                     Fixed maturities available-for-sale (amortized cost $470,320 and                  $458,175                  at      |   |   |   |   |   |
|                       March 31, 2006 and December 31, 2005, respectively)                                                     |   | $ | 461,637 |   | $ | 452,872 |   |
|                     Equity securities (cost $2,000 at March 31, 2006 and December 31,                  2005)                            |   |   | 2,000 |   |  |   | 2,000 |   |
|                            Total investments                                                         |   |   | 463,637 |   |   | 454,872 |   |
| Cash                  and cash equivalents                                                                                                        |   |   | 20,651 |   |   | 32,399 |   |
| Accrued                  investment income                                                                                                        |   |   | 4,713 |   |   | 5,156 |   |
| Premiums                  and other receivables (net of allowance for doubtful accounts of                  $7,043                  and           |   |   |  |   |   |  |   |
|                       and $6,758 at March 31, 2006 and December 31, 2005,                  respectively)                      |   |   | 169,758 |   |   | 164,033 |   |
| Reinsurance                  recoverables on paid and unpaid losses and loss adjustment                  expenses                                 |   |   | 18,204 |   |   | 31,517 |   |
| Prepaid                  reinsurance                                                                                                              |   |   | 3,137 |   |   | 21,470 |   |
| Ceding                  commission receivable                                                                                                     |   |   | - |   |   | 8,671 |   |
| Deferred                  policy acquisition costs                                                                                                |   |   | 52,731 |   |   | 46,283 |   |
| Property,                  software and equipment - net                                                                                           |   |   | 19,183 |   |   | 19,145 |   |
| Goodwill                                                                                                                                          |   |   | 101,546 |   |   | 101,546 |   |
| Other                  assets                                                                                                                     |   |   | 9,371 |   |  |   | 8,264 |   |
| Total                  assets                                                                                                                     |   | $ | 862,931 |   |  | $ | 893,356 |   |
| **Liabilities                  and Stockholders' Equity:**                                                                                        |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                      |   |   |   |   |   |   |   |
|                     Policy liabilities:                                                                                                 |   |   |   |   |   |   |   |
|                       Reserve for losses and loss adjustment expenses                                                         |   | $ | 216,901 |   | $ | 221,445 |   |
|                       Unearned premiums                                                                                       |   |   | 195,767 |   |  |   | 185,360 |   |
|                            Total policy liabilities                                                  |   |   | 412,668 |   |   | 406,805 |   |
| Reinsurance                  payables                                                                                                             |   |   | 3,793 |   |   | 30,590 |   |
| Accounts                  payable and other liabilities                                                                                           |   |   | 34,330 |   |   | 41,862 |   |
| Deferred                  income taxes                                                                                                            |   |   | 6,167 |   |   | 7,219 |   |
| Long-term                  debt, including current portion                                                                                        |   |   | 68,950 |   |  |   | 69,925 |   |
|                            Total liabilities                                                         |   |   | 525,908 |   |  |   | 556,401 |   |
| Commitments                  and contingent liabilities (Note 6)                                                                                  |   |   |   |   |   |   |   |
| Stockholders'                  equity:                                                                                                            |   |   |   |   |   |   |   |
|                     Preferred stock, $0.01 par value (15,000,000 shares authorized;                  0 shares                           |   |   |   |   |   |   |   |
|                       outstanding at March 31, 2006 and December 31, 2005)                                                    |   |   | - |   |   | - |   |
|                     Common stock, $0.01 par value (200,000,000 shares authorized; 33,209,157                  and                       |   |   |   |   |   |   |   |
|                       32,819,209 shares issued at March 31, 2006 and December 31, 2005,                  respectively)        |   |   | 332 |   |   | 328 |   |
|                     Additional paid-in capital                                                                                          |   |   | 231,521 |   |   | 235,308 |   |
|                     Retained earnings                                                                                                   |   |   | 153,713 |   |   | 144,609 |   |
|                     Deferred compensation on restricted stock                                                                           |   |   | - |   |   | (5,763 | ) |
|                     Treasury stock at cost (3,030,935 and 2,551,649 shares held at                  March 31,                  2006 and |   |   |   |   |   |   |   |
|                     December 31, 2005, respectively)                                                                                    |   |   | (42,945 | ) |   | (34,078 | ) |
|                     Stock subscription receivable                                                                                       |   |   | (44 | ) |   | (59 | ) |
|                     Accumulated other comprehensive loss                                                                                |   |   | (5,554 | ) |  |   | (3,390 | ) |
|                            Total stockholders' equity                                                |   |   | 337,023 |   |  |   | 336,955 |   |
| Total                  liabilities and stockholders' equity                                                                                       |   | $ | 862,931 |   |  | $ | 893,356 |   |
|                                                                                                                                              |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed consolidated                  financial statements.                 |

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| **BRISTOL                WEST HOLDINGS, INC.**                                                                                |                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF INCOME**                                                                |                                                                 |
| **(Unaudited)**                                                                                                               |                                                                 |
|                                                                                                                          |                                                                 |   |   |   |   |
|                                                                                                                          |                                                                 | **Three                Months Ended March 31,** |
|                                                                                                                          |                                                                 | **2006** |   | **2005** |   |
|                                                                                                                          |   **(in                thousands, except per share data)** |
| **Revenues:**                                                                                                                 |                                                                 |   |   |   |   |
|                   Net earned premium                                                                                |                                                                 | $ | 144,278 |   | $ | 163,459 |   |
|                   Net investment income                                                                             |                                                                 |   | 4,967 |   |   | 3,633 |   |
|                   Realized gain (loss) on investments, net                                                          |                                                                 |   | 68 |   |   | (1 | ) |
|                   Policy service fee revenue                                                                        |                                                                 |   | 13,836 |   |   | 17,766 |   |
|                   Other income                                                                                      |                                                                 |   | 734 |   |   |                  748    |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
|                          Total revenues                                          |                                                                 |   | 163,883 |   |   | 185,605 |   |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| **Costs                and Expenses:**                                                                                        |                                                                 |   |   |   |   |   |   |
|                   Losses and loss adjustment expenses incurred                                                      |                                                                 |   | 97,658 |   |   | 107,765 |   |
|                   Commissions and other underwriting expenses                                                       |                                                                 |   | 37,526 |   |   | 40,815 |   |
|                   Other operating and general expenses                                                              |                                                                 |   | 10,383 |   |   | 9,671 |   |
|                   Interest expense                                                                                  |                                                                 |   | 1,206 |   |   | 968    |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
|           Total                costs and expenses                           |                                                                 |   | 146,773 |   |   | 159,219    |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| Income                before income taxes                                                                                     |                                                                 |   | 17,110 |   |   | 26,386    |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| Income                taxes                                                                                                   |                                                                 |   | 5,920 |   |   | 9,565    |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| **Net                Income**                                                                                                 |                                                                 | $ | 11,190 |   | $ | 16,821                   |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| Net                income per common share - Basic                                                                            |                                                                 | $ | 0.38 |   | $ | 0.53 |   |
| Net                income per common share - Diluted                                                                          |                                                                 | $ | 0.36 |   | $ | 0.51 |   |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| Dividends                declared per common share                                                                            |                                                                 | $ | 0.07 |   | $ | 0.05 |   |
|                                                                                                                          |                                                                 |   |   |   |   |   |   |
| The                accompanying notes are an integral part of the condensed consolidated                financial statements. |                                                                 |

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| **BRISTOL                  WEST HOLDINGS, INC.**                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY**                                      |   |
| **(Unaudited)**                                                                                                                      |   |
|                                                                                                                                 |   |   |   |   |   |
|                                                                                                                                 |   | **Three                  Months Ended March 31,** |
|                                                                                                                                 |   | **2006** |   | **2005** |   |
|                                                                                                                                 |   | **(in                  thousands, except share data)** |   |
| **STOCKHOLDERS'                  EQUITY:**                                                                                           |   |   |   |   |   |
|                                                                                                                                 |   |   |   |   |   |
| **Common                  Stock**                                                                                                    |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   | $ | 328 |   | $ | 325 |   |
| Exercise                  of options and warrants, including tax benefit (127,075 shares--2006;                  3,265 shares--2005) |   |   | 1 |   |   | - |   |
| Shares                  issued for services (3,470 shares--2006; 4,137 shares--2005)                                                 |   |   | - |   |   | - |   |
| Issuance                  of restricted common stock (259,322 shares--2006; 167,669 shares--2005)                                    |   |   | 3 |   |   | 2 |   |
| Shares                  issued in payment of dividend (81 shares--2006; 23 shares--2005)                                             |   |   | - |   |   | - |   |
| Balance,                  end of period                                                                                              |   |   | 332 |   |   | 327 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Additional                  Paid-In Capital**                                                                                      |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   |   | 235,308 |   |   | 231,281 |   |
| Exercise                  of options and warrants, including tax benefit (127,075 shares--2006;                  3,265 shares--2005) |   |   | 1,179 |   |   | 29 |   |
| Shares                  issued for services (3,470 shares--2006; 4,137 shares--2005)                                                 |   |   | 88 |   |   | 84 |   |
| Issuance                  of restricted common stock (259,322 shares - 2006; 167,669 shares--2005)                                   |   |   | (3 | ) |   | 2,840 |   |
| Shares                issued in payment of dividend (81 shares--2006; 23                shares--2005)                           |   |   | 1 |   |   | - |   |
| Forfeiture                  of restricted common stock (2,724 shares--2006)                                                          |   |   | 51 |   |   | - |   |
| Amortization                  of deferred compensation on restricted stock                                                           |   |   | 660 |   |   | - |   |
| Reclassification                  resulting from adoption of accounting principle (SFAS No. 123R)                                    |   |   | (5,763 | ) |   | - |   |
| Balance,                  end of period                                                                                              |   |   | 231,521 |   |   | 234,234 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Retained                  Earnings**                                                                                               |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   |   | 144,609 |   |   | 97,885 |   |
| Net                  income                                                                                                          |   |   | 11,190 |   |   | 16,821 |   |
| Dividend                  to common shareholders ($0.07 per share--2006; $0.05 per share--2005)                                      |   |   | (2,086 | ) |   | (1,601 | ) |
| Balance,                  end of period                                                                                              |   |   | 153,713 |   |   | 113,105 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Deferred                  Compensation on Restricted Stock**                                                                       |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   |   | (5,763 | ) |   | (4,723 | ) |
| Issuance                  of restricted common stock (167,669 shares--2005)                                                          |   |   | - |   |   | (2,842 | ) |
| Amortization                  of deferred compensation on restricted stock                                                           |   |   | - |   |   | 399 |   |
| Reclassification                  resulting from adoption of accounting principle (SFAS No. 123R)                                    |   |   | 5,763 |   |   | - |   |
| Balance,                  end of period                                                                                              |   |   | - |   |   | (7,166 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Treasury                  Stock**                                                                                                  |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   |   | (34,078 | ) |   | (2,965 | ) |
| Acquisition                  of treasury stock (476,562 shares--2006; 434,100 shares--2005)                                          |   |   | (8,816 | ) |   | (6,778 | ) |
| Restricted                  stock forfeited (2,724 shares--2006)                                                                     |   |   | (51 | ) |   | - |   |
| Balance,                  end of period                                                                                              |   |   | (42,945 | ) |   | (9,743 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Stock                  Subscription Receivable**                                                                                   |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   |   | (59 | ) |   | (120 | ) |
| Payment                  of stock subscriptions receivable                                                                           |   |   | 15 |   |   | 13 |   |
| Balance,                  end of period                                                                                              |   |   | (44 | ) |   | (107 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Accumulated                  Other Comprehensive Loss**                                                                            |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                                        |   |   | (3,390 | ) |   | 640 |   |
| Unrealized                  holdings losses arising during the period                                                                |   |   | (2,171 | ) |   | (3,617 | ) |
| Reclassification                  adjustment                                                                                         |   |   | 7 |   |   | (32 | ) |
| Net                  unrealized losses on securities                                                                                 |   |   | (2,164 | ) |   | (3,649 | ) |
| Balance,                  end of period                                                                                              |   |   | (5,554 | ) |   | (3,009 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **Total                  Stockholders' Equity**                                                                                      |   | $ | 337,023 |   | $ | 327,641 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| **COMPREHENSIVE                  INCOME:**                                                                                           |   |   |   |   |   |   |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| Net                  income                                                                                                          |   | $ | 11,190 |   | $ | 16,821 |   |
|                     Net unrealized losses on securities                                                                    |   |   | (2,164 | ) |   | (3,649 | ) |
| **Comprehensive                  Income**                                                                                            |   | $ | 9,026 |   | $ | 13,172 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed consolidated                  financial statements.    |   |

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| **BRISTOL                  WEST HOLDINGS, INC.**                                                                                      |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                  CONSOLIDATED STATEMENTS OF CASH FLOW**                                                                   |   |
| **(Unaudited)**                                                                                                                       |   |
|                                                                                                                                  |   |
|                                                                                                                                  |   | **Three                  Months Ended March 31,** |
|                                                                                                                                  |   | **2006** |   | **2005** |   |
|                                                                                                                                  |   | **(in                  thousands)** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                                            |   |   |   |   |   |
| Net                  income                                                                                                           |   | $ | 11,190 |   | $ | 16,821 |   |
| Adjustments                  to reconcile net income to net cash provided by                                                          |   |   |   |   |   |   |   |
|                     operating activities:                                                                                   |   |   |   |   |   |   |   |
|                        Accretion of fixed maturity investments                                               |   |   | 1,116 |   |   | 868 |   |
|                        Depreciation and amortization                                                         |   |   | 1,705 |   |   | 1,680 |   |
|                        Realized investment (gain) loss                                                       |   |   | (68 | ) |   | 1 |   |
|                        Deferred federal and state income taxes                                               |   |   | 165 |   |   | (2,156 | ) |
|                        Stock based compensation                                                              |   |   | 734 |   |   | 406 |   |
|                        Changes in assets and liabilities:                                                    |   |   |   |   |   |   |   |
|                            Accrued investment income                                     |   |   | 443 |   |   | (1,062 | ) |
|                            Premiums and other receivables                                |   |   | (5,725 | ) |   | 1,340 |   |
|                            Reinsurance receivables                                       |   |   | 21,984 |   |   | 277,436 |   |
|                            Prepaid reinsurance premiums                                  |   |   | 18,333 |   |   | 92,636 |   |
|                            Deferred policy acquisition costs                             |   |   | (6,448 | ) |   | (25,972 | ) |
|                            Losses and loss adjustment expenses                           |   |   | (4,544 | ) |   | (4,362 | ) |
|                            Unearned premiums                                             |   |   | 10,407 |   |   | 602 |   |
|                            Reinsurance payables                                          |   |   | (26,797 | ) |   | (146,271 | ) |
|                            Other assets and liabilities                                  |   |   | (9,517 | ) |   | 2,683 |   |
| Tax                  benefit on exercise of stock options                                                                             |   |   | - |   |   | 16 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
|                               Net cash provided by operating activities   |   |   | 12,978 |   |   | 214,666 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                                            |   |   |   |   |   |   |   |
|    Purchase                  of fixed maturity investments - available-for-sale                                        |   |   | (24,523 | ) |   | (126,292 | ) |
|                     Sales and maturities of fixed maturity investments -                  available-for-sale                |   |   | 11,311 |   |   | 1,829 |   |
|                     Acquisition of property, software and equipment                                                         |   |   | (1,298 | ) |   | (1,663 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |
|                                Net cash used in investing activities |   |   | (14,510 | ) |   | (126,126 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                                            |   |   |   |   |   |   |   |
|                     Proceeds from exercise of stock options                                                                 |   |   | 62 |   |   | 13 |   |
|                     Tax benefit on exercise of stock options                                                                |   |   | 693 |   |   | - |   |
|                     Acquisition of treasury stock                                                                           |   |   | (7,927 | ) |   | (6,778 | ) |
|                     Principal payments on long-term debt                                                                    |   |   | (975 | ) |   | (538 | ) |
|                     Payment of dividends to stockholders                                                                    |   |   | (2,084 | ) |   | (1,579 | ) |
|                     Other                                                                                                   |   |   | 15 |   |   | 13 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
|                                Net cash used in financing activities |   |   | (10,216 | ) |   | (8,869 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **NET                  (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS**                                                             |   |   | (11,748 | ) |   | 79,671 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash                  and cash equivalents, January 1                                                                                 |   |   | 32,399 |   |   | 11,508 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash                  and cash equivalents, March 31                                                                                  |   | $ | 20,651 |   | $ | 91,179 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed consolidated                  financial statements.     |   |

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

| **1.  ** | **Nature                of Operations** |
|--------------------|-----------------------------------------|

| **2.  ** | **Basis                of Presentation** |
|--------------------|------------------------------------------|

| **3.  ** | **Stock-based                Compensation** |
|--------------------|---------------------------------------------|

*Employee      Stock Options*

| **Option                    shares**             |   | **Number****of                    Shares** |      | **Weighted                    Average****Exercise                    Price** |
|--------------------------------------------------|--------|--------------------------------------------|-----------|------------------------------------------------------------------------------|
|                                             |   |                                       |      |                                                                         |   |
| Outstanding                    December 31, 2005 |   |                                       | 1,352,818 |                                                                         | $ | 4.77 |   |
|                                             |   |                                       |      |                                                                         |   |   |   |
| Exercised                    during 2006         |   |                                       | (16,252   | )                                                                            |   | 3.83 |   |
| Expired                    during 2006           |   |                                       | (247      | )                                                                            |   | 12.17 |   |
|                                             |   |                                       |      |                                                                         |   |   |   |
| Outstanding                    March 31, 2006    |   |                                       | 1,336,319 |                                                                         |  $ | 4.78 |   |

----

|                                |   | **Options                  Outstanding** |   | **Options                  Exercisable**        |
|-------------------------------------|--------|------------------------------------------|--------|-------------------------------------------------|
| **Exercise                  Price** |   | **Shares**                               |   | **Weighted****Average****Price**                |   | **Remaining****Term****(in                  years)** |   | **Shares** |   | **Weighted****Average****Price** |
|                                |   |                                     |   |                                            |   |   |   |   |   |   |
| $3.83                               |   | 1,181,004                                |   | $                      3.83 |   | 2.49 |   | 1,109,163 |   | $                       3.83 |
| $7.67                  - $20.91     |   |                     155,315    |   |                       11.97 |   | 7.06 |   |                       85,959 |   |                       11.12 |
|                                |   | 1,336,319                                |   | $                      4.78 |   | 3.02 |   | 1,195,122 |   | $                      4.35 |

*Non-employee      Options and Warrants*

* *

*Restricted      Shares*

|     Shares                  outstanding, December 31, 2005 |   |   | 460,023 |   |
|--------------------------------------------------------------------------------|--------|--------|---------|--------|
|     Shares                  granted                        |   |   | 244,349 |   |
|     Shares                  forfeited                      |   |   | (2,724  | )      |
|     Shares                  outstanding, March 31, 2006    |   |   | 701,648 |   |

*Recent      Accounting Pronouncement*

*      Share-Based Payments (revised 2004)*
*Accounting      for Stock Issued to Employees*

----

*Accounting      for Stock-Based Compensation*
*Accounting      for Stock-Based Compensation-Transition and Disclosure:*

| Net                  income, as reported                                                                                                                                                 |   | $      | 16,821  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|
| Deduct:                  Total stock-based employee compensation expense determined under                  fair value method for all awards, net of related tax                  effects |   |   | (83)         |
|                                                                                                                                                                                     |   |   |         |   |
| Pro                  forma net income                                                                                                                                                    |   | $      | 16,738       |
|                                                                                                                                                                                     |   |   |         |   |
| **Net                  income per share**                                                                                                                                                |   |   |         |   |
|                                                                                                                                                                                     |   |   |         |   |
| Basic—As                  reported                                                                                                                                                 |   | $      | 0.53         |
| Basic—Pro                  forma                                                                                                                                                   |   | $      | 0.53         |
|                                                                                                                                                                                     |   |   |         |   |
| Diluted—As                  reported                                                                                                                                               |   | $      | 0.51         |
| Diluted—Pro                  forma                                                                                                                                                 |   | $      | 0.51         |

**4.**
**Debt**

----

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

|                                                                    |   | **Three                  Months Ended March 31,** |       |
|-------------------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                                    |   | **2006**                                          |       | **2005** |   |
|                                                                    |   |                                              |       |   |   |
| Net                  income applicable to common stockholders           |   | $                                                 | 11,190     |   | $ | 16,821 |   |
|                                                                    |   |                                              |       |   |   |   |   |
|                     Weighted average common shares - basic    |   |                                              | 29,733,363 |   |   | 31,518,617 |   |
|                     Effect of dilutive securities:            |   |                                              |       |   |   |   |   |
|                        Options                 |   |                                              | 1,169,306  |   |   | 1,183,033 |   |
|                        Restricted stock        |   |                                              | 197,557    |   |   | 52,988 |   |
|                        Warrants                |   |                                              | 224,809    |   |   | 217,999 |   |
|                     Weighted average common shares - dilutive |   |                                              | 31,325,035 |   |   | 32,972,637 |   |
|                                                                    |   |                                              |       |   |   |   |   |
| Basic                  Earnings Per Share                               |   | $                                                 | 0.38       |   | $ | 0.53 |   |
|                                                                    |   |                                              |       |   |   |   |   |
| Diluted                  Earnings Per Share                             |   | $                                                 | 0.36       |   | $ | 0.51 |   |

**6**
**.**
**Commitments      and Contingencies**

----

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

**General**

*Item 1. Business*

**Operating      Results - Key States**

----

|                                                                                                                 |   | **Three                  months ended** |   |        |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|-------------|--------|
|                                                                                                                 |   | **March                  31,**          |   | **% ** |   |
| **State**                                                                                                            |   | **2006**                                |   | **2005**    |   | **Change** |   |
|                                                                                                                 |   | **($                  in millions)**    |   |        |   |
|                                                                                                                 |   |                                    |   |        |   |   |   |
| California                                                                                                           |   | $                                       | 68.7   |        | $      | 83.7 |   |   | -17.9 | % |
| Florida                                                                                                              |   |                                    | 25.3   |        |   | 25.2 |   |   | 0.4 | % |
| Michigan                                                                                                             |   |                                    | 19.5   |        |   | 22.5 |   |   | -13.3 | % |
| South                  Carolina                                                                                      |   |                                    | 6.6    |        |   | 6.1 |   |   | 8.2 | % |
| Texas                                                                                                                |   |                                    | 6.1    |        |   | 6.2 |   |   | -1.6 | % |
| Pennsylvania                                                                                                         |   |                                    | 5.9    |        |   | 3.4 |   |   | 73.5 | % |
| New                  Hampshire                                                                                       |   |                                    | 3.9    |        |   | 3.8 |   |   | 2.6 | % |
| Maine                                                                                                                |   |                                    | 3.3    |        |   | 3.8 |   |   | -13.2 | % |
| Virginia                                                                                                             |   |                                    | 3.0    |        |   | 2.6 |   |   | 15.4 | % |
| Arizona                                                                                                              |   |                                    | 3.0    |        |   | 1.1 |   |   | 172.7 | % |
| All                  Other (includes 11 states)                                                                      |   |                                    | 11.2   |        |   | 12.1 |   |   | -7.4 | % |
| **Gross                  written premium, before change in expected policy cancellation                  provision** |   | $                                       | 156.5  |        | $      | 170.5 |   |   | -8.2 | % |
|                                                                                                                 |   |                                    |   |        |   |   |   |   |   |   |
| Change                  in expected policy cancellation provision                                                    |   |                                    | 0.7    |        |   | (0.2 | ) |   | n/m |   |
|                                                                                                                 |   |                                    |   |        |   |   |   |   |   |   |
| **Gross                  written premium**                                                                           |   | $                                       | 157.2  |        | $      | 170.3 |   |   | -7.7 | % |

----

----

|                                                                         |   | **Three                  months ended March 31,** |   | %                                       |
|------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|----------------------------------------------|
|                                                                         |   | **2006**                                          |   | **2005**                                     |   | **Change** |
|                                                                         |   | **(in                  thousands)**               |   |                                         |
|                                                                         |   |                                              |   |                                         |   |   |
|     Average                  number of policies in force |   |  410.4                                       |   |  475.4                                  |   |  -13.7% |
|                                                                         |   |                                              |   |                                         |   |   |
|     Gross                  earned premium                |   | $                     146,779      |   | $                     169,749 |   |  -13.5% |

**Operations**

**Reinsurance**

----

| Cash                                                                                                                |   | $      | 11,004  |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Reinsurance                    recoverable on paid and upaid losses and loss adjustment                    expenses |   |   | (16,429 | )      |
| Prepaid                    reinsurance                                                                              |   |   | (18,287 | )      |
| Ceding                    commission receivable                                                                     |   |   | (8,928  | )      |
| Reinsurance                    payables                                                                             |   |   | (28,067 | )      |
| Deferred                    policy acquisition costs                                                                |   |   | 4,573   |   |

----

**Results      of Operations**

|                                                                                                                                                               |                                                                     | **Three                  Months Ended March 31,** |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------|---------|
|                                                                                                                                                               |                                                                     | **2006**                                          |    | **2005** |   |
|                                                                                                                                                               |  **(dollars                  in thousands, except per share data)** |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |
| **Statement                  of Operations Data:**                                                                                                                 |                                                                     |                                              |    |   |   |
| **Revenue:**                                                                                                                                                       |                                                                     |                                              |    |   |   |
|                     Net earned premium                                                                                                                   |                                                                     | $                                                 | 144,278 |   | $ | 163,459 |   |
|                     Net investment income                                                                                                                |                                                                     |                                              | 4,967   |   |   | 3,633 |   |
|                     Realized gain (loss) on investments, net                                                                                             |                                                                     |                                              | 68      |   |   | (1) |   |
|                     Policy service fee revenue                                                                                                           |                                                                     |                                              | 13,836  |   |   | 17,766 |   |
|                     Other income                                                                                                                         |                                                                     |                                              | 734     |   |   | 748 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
|                            Total revenue                                                                              |                                                                     |                                              | 163,883 |   |   | 185,605 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| **Costs                  and Expenses:**                                                                                                                           |                                                                     |                                              |    |   |   |   |   |
|                     Losses and loss adjustment expenses incurred                                                                                         |                                                                     |                                              | 97,658  |   |   | 107,765 |   |
|                     Commissions and other underwriting expenses                                                                                          |                                                                     |                                              | 37,526  |   |   | 40,815 |   |
|                     Other operating and general expenses (a)                                                                                             |                                                                     |                                              | 10,383  |   |   | 9,671 |   |
|                     Interest expense                                                                                                                     |                                                                     |                                              | 1,206   |   |   | 968 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
|                            Total costs and expenses                                                                   |                                                                     |                                              | 146,773 |   |   | 159,219 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| Income                  before income taxes                                                                                                                        |                                                                     |                                              | 17,110  |   |   | 26,386 |   |
| Income                  taxes                                                                                                                                      |                                                                     |                                              | 5,920   |   |   | 9,565 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| **Net                  Income**                                                                                                                                    |                                                                     | $                                                 | 11,190  |   | $ | 16,821 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| **Per                  Share Data:**                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| Net                  income per common share - Basic                                                                                                               |                                                                     | $                                                 | 0.38    |   | $ | 0.53 |   |
| Net                  income per common share - Diluted                                                                                                             |                                                                     | $                                                 | 0.36    |   | $ | 0.51 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| **Operating                  Data:**                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| Gross                  written premium                                                                                                                             |                                                                     | $                                                 | 157,187 |   | $ | 170,350 |   |
| Net                  written premium                                                                                                                               |                                                                     |                                              | 173,018 |   |   | 256,695 |   |
| Gross                  earned premium                                                                                                                              |                                                                     |                                              | 146,779 |   |   | 169,749 |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| **Ratios:**                                                                                                                                                        |                                                                     |                                              |    |   |   |   |   |
| Loss                  ratio                                                                                                                                        |                                                                     |                                              | 67.7%   |   |   | 65.9% |   |
| Expense                  ratio (a)                                                                                                                                 |                                                                     |                                              | 23.1%   |   |   | 19.6% |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| Combined                  ratio                                                                                                                                    |                                                                     |                                              | 90.8%   |   |   | 85.5% |   |
|                                                                                                                                                               |                                                                     |                                              |    |   |   |   |   |
| (a)                  Per SEC Staff Accounting Bulletin 107, Topic 14.F, "Classification                  of                  Compensation Expense Associated       |                                                                     |                                              |    |   |   |   |   |
| with                  Share-Based Payment Arrangements," stock-based compensation expense                  should                  be presented in the same        |                                                                     |                                              |    |   |   |   |   |
| lines                  as cash compensation. As such, stock-based compensation expense                  is no                  longer presented separately, and    |                                                                     |                                              |    |   |   |   |   |
| our                  expense ratio now includes this expense item. Prior period amounts                  have                  been reclassified to conform to the |                                                                     |                                              |    |   |   |   |   |
| 2006                  presentation.                                                                                                                                |                                                                     |                                              |    |   |   |   |   |

----

***Overview      of Operating Results***

***Three      Months Ended March 31, 2006 compared to Three Months Ended March 31,      2005***

***Revenues***

|                                                                                                                                      |   | **Three                  months ended March 31,** |     |      |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------|-----------|
|                                                                                                                                      |   | **2006**                                          | **2005** |      |   |
|                                                                                                                                      |   | **(dollars                  in thousands)**       |     |      |
|                                                                                                                                      |   |                                              |     |      |   |   |   |
| Gross                  written premium                                                                                                    |   | $                                                 | 157,187  |      |   | $ | 170,350 |   |   |   |
|                                                                                                                                      |   |                                              |     |      |   |   |   |   |   |   |
| Ceded                  written premium:                                                                                                   |   |                                              |     |      |   |   |   |   |   |   |
|                     Other reinsurance                                                                                           |   |                                              | 2,456    |      |   |   | 19,965 |   |   |   |
|                     Effect of reinsurance commutation                                                                           |   |                                              | (18,287) |  (1) |   |   | (106,310) |  (2) |   |
|                       Total ceded written premium                                                                     |   |                                              | (15,831) |      |   |   | (86,345) |   |   |   |
|                                                                                                                                      |   |                                              |     |      |   |   |   |   |   |   |
| %                  Ceded, excluding effect of reinsurance commutation                                                                     |   |                                              | 1.6%     |      |   |   | 11.7% |   |   |   |
|                                                                                                                                      |   |                                              |     |      |   |   |   |   |   |   |
| Gross                  Earned Premium                                                                                                     |   | $                                                 | 146,779  |      |   | $ | 169,749 |   |   |   |
| Ceded                  Earned Premium                                                                                                     |   |                                              | 2,501    |      |   |   | 6,290 |   |   |   |
| %                  Ceded                                                                                                                  |   |                                              | 1.7%     |      |   |   | 3.7% |   |   |   |
|                                                                                                                                      |   |                                              |     |      |   |   |   |   |   |   |
| (1)                  Amount represents the unearned premium previously ceded under our                  2005                  quota share |   |                                              |     |      |   |   |   |
| reinsurance                  agreement, which we received as a result of the termination and                  commutation of this         |   |                                              |     |      |   |   |   |
| agreement.                                                                                                                                |   |                                              |     |      |   |   |   |   |   |   |
|                                                                                                                                      |   |                                              |     |      |   |   |   |   |   |   |
| (2)                  Amount represents the unearned premium previously ceded under our                  2002-2004 quota share             |   |                                              |     |      |   |   |   |
| reinsurance                  agreement, which we received as a result of the termination and                  commutation of this         |   |                                              |     |      |   |   |   |
| agreement.                                                                                                                                |   |                                              |     |      |   |   |   |   |   |   |

*Gross      Written Premium*
*Operating      Results - Key States*

*Operating      Results - Key States*

*Net      Written Premium. *

----

*Net        Earned Premium. *
*Operating        Results - Key States*

*Net      Investment Income. *

*Policy      Service Fee Revenue*

***Costs      and Expenses***

*Losses      and Loss Adjustment Expenses*
*Item      6. Selected Financial Data - Note About Trade Ratios*

|                                                                    |   | **Three                  months ended March 31,** |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                                    |   | **2006**                                          |   | **2005** |   |
|                                                                    |   | **(dollars                  in thousands)**       |   |
|                                                                    |   |                                              |   |   |   |
| Losses                  and LAE incurred - current accident year        |   | $                                                 | 97,323 |   | $ | 107,877 |   |
| Losses                  and LAE incurred - prior accident years         |   |                                              | 335    |   |   | (112 | ) |
|                       Total losses and LAE incurred |   | $                                                 | 97,658 |   | $ | 107,765 |   |
|                                                                    |   |                                              |   |   |   |   |   |
| Loss                  ratio - current accident year                     |   |                                              | 67.5%  |   |   | 66.0% |   |
| Loss                  ratio - prior accident years                      |   |                                              | 0.2%   |   |   | -0.1% |   |
|                        Total loss ratio        |   |                                              | 67.7%  |   |   | 65.9% |   |

----

*Commissions      and Other Underwriting Expenses. *

|                                                         |   | **Three                  months ended March 31,** |   |
|--------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                         |   | **2006**                                          |   | **2005** |   |
|                                                         |   | **(in                  thousands)**               |   |
|                                                         |   |                                              |   |   |   |
|                                                         |   |                                              |   |   |   |
| Gross                  commissions                           |   | $                                                 | 21,709 |   | $ | 25,398 |   |
| Premium                  tax expense                         |   |                                              | 3,186  |   |   | 3,973 |   |
| Other                  underwriting expenses                 |   |                                              | 12,624 |   |   | 12,663 |   |
| Gross                  expenses                              |   |                                              | 37,519 |   |   | 42,034 |   |
|                                                         |   |                                              |   |   |   |   |   |
| Ceding                  commissions                          |   |                                              | (7     | ) |   | 1,219 |   |
|                                                         |   |                                              |   |   |   |   |   |
| Commissions                  and other underwriting expenses |   | $                                                 | 37,526 |   | $ | 40,815 |   |

*Other      Operating and General Expenses. *
*Share-Based      Payments (revised 2004)*
*Recent      Accounting Pronouncements*

*Interest      Expense*

*Income      Taxe*

*Ratios*

----

|                                                       |   | **Three                  months ended March 31,** |   |
|------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                       |   | **2006**                                          |   | **2005** |   |
|                                                       |   |                                              |   |   |   |
| Loss                  ratio                                |   |                                              | 67.7%  |   |   | 65.9% |   |
|                                                       |   |                                              |   |   |   |   |   |
| Direct                  commission ratio                   |   |                                              | 15.0%  |   |   | 15.5% |   |
| Ceding                  commission (income) ratio          |   |                                              | 0.0%   |   |   | -0.7% |   |
| Underwriting                  expense ratio                |   |                                              | 11.0%  |   |   | 10.2% |   |
| Other                  operating and general expense ratio |   |                                              | 7.2%   |   |   | 5.9% |   |
| Fee                  (income) ratio                        |   |                                              | -10.1% |   |   | -11.3% |   |
| Net                  expense ratio                         |   |                                              | 23.1%  |   |   | 19.6% |   |
|                                                       |   |                                              |   |   |   |   |   |
| Combined                  ratio                            |   |                                              | 90.8%  |   |   | 85.5% |   |

----

|                                                            |   | **Three                Months Ended March 31,** |    |
|-----------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                            |   | **2006**                                        |    | **2005** |   |
|                                                            |   | **(dollars                in thousands)**       |    |
| **Underwriting                Results Before Reinsurance**      |   |                                            |    |   |   |
|                                                            |   |                                            |    |   |   |
| **Revenues**                                                    |   |                                            |    |   |   |
| Gross                earned premium                             |   | $                                               | 146,779 |   | $ | 169,749 |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Expenses**                                                    |   |                                            |    |   |   |   |   |
| Losses                and adjustment expenses incurred          |   |                                            | 102,299 |   |   | 112,170 |   |
| Commissions                                                     |   |                                            | 21,709  |   |   | 25,398 |   |
| Other                underwriting expenses                      |   |                                            | 15,810  |   |   | 16,636 |   |
| Other                operating and general expenses             |   |                                            | 10,383  |   |   | 9,671 |   |
| Total                underwriting expenses                      |   |                                            | 150,201 |   |   | 163,875 |   |
| Gross                underwriting result                        |   |                                            | (3,422  | ) |   | 5,874 |   |
| Fee                and other income                             |   |                                            | 14,570  |   |   | 18,514 |   |
| Pretax                underwriting income                       |   | $                                               | 11,148  |   | $ | 24,388 |   |
|                                                            |   |                                            |    |   |   |   |   |
| Gross                loss ratio                                 |   |                                            | 69.7%   |   |   | 66.1% |   |
| Gross                expense ratio                              |   |                                            | 22.7%   |   |   | 19.6% |   |
| Gross                combined ratio                             |   |                                            | 92.4%   |   |   | 85.7% |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Reinsurance                Ceded Results**                    |   |                                            |    |   |   |   |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Revenues**                                                    |   |                                            |    |   |   |   |   |
| Ceded                earned premium                             |   | $                                               | 2,501   |   | $ | 6,290 |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Expenses**                                                    |   |                                            |    |   |   |   |   |
| Ceded                losses and adjustment expenses incurred    |   |                                            | 4,641   |   |   | 4,405 |   |
| Ceding                commissions                               |   |                                            | (7      | ) |   | 1,219 |   |
| Total                underwriting expenses                      |   |                                            | 4,634   |   |   | 5,624 |   |
| Ceded                underwriting income                        |   | $                                               | (2,133  | ) | $ | 666 |   |
|                                                            |   |                                            |    |   |   |  |   |
| Ceded                loss ratio                                 |   |                                            | 185.6%  |   |   | 70.0% |   |
| Ceded                expense ratio                              |   |                                            | -0.3%   |   |   | 19.4% |   |
| Ceded                combined ratio                             |   |                                            | 185.3%  |   |   | 89.4% |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Net                Underwriting Results**                     |   |                                            |    |   |   |   |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Revenues**                                                    |   |                                            |    |   |   |   |   |
| Net                earned premium                               |   | $                                               | 144,278 |   | $ | 163,459 |   |
|                                                            |   |                                            |    |   |   |   |   |
| **Expenses**                                                    |   |                                            |    |   |   |   |   |
| Net                losses and loss adjustment expenses incurred |   |                                            | 97,658  |   |   | 107,765 |   |
| Commissions                - net of reinsurance                 |   |                                            | 21,716  |   |   | 24,179 |   |
| Other                underwriting expenses                      |   |                                            | 15,810  |   |   | 16,636 |   |
| Other                operating and general expenses             |   |                                            | 10,383  |   |   | 9,671 |   |
| Total                underwriting expenses                      |   |                                            | 145,567 |   |   | 158,251 |   |
|                                                            |   |                                            |    |   |   |   |   |
| Net                underwriting result                          |   |                                            | (1,289  | ) |   | 5,208 |   |
| Fee                and other income                             |   |                                            | 14,570  |   |   | 18,514 |   |
| Pretax                underwriting income                       |   | $                                               | 13,281  |   | $ | 23,722 |   |
|                                                            |   |                                            |    |   |   |   |   |
| Net                loss ratio                                   |   |                                            | 67.7%   |   |   | 65.9% |   |
| Net                expense ratio                                |   |                                            | 23.1%   |   |   | 19.6% |   |
| Net                combined ratio                               |   |                                            | 90.8%   |   |   | 85.5% |   |

----

**Financial      Condition**

***Liquidity      and Capital Resources***

----

**Investments**

|                                                   | **Cost                  /**         |   | **Fair**  |   | **%                  of Total**    |
|--------------------------------------------------------|-------------------------------------|--------|-----------|--------|------------------------------------|
|                                                   | **Amortized                  Cost** |   | **Value** |   | **at                  Fair Value** |
|                                                   | **(in                  millions)**  |   |      |
|                                                   |                                |   |      |   |                               |
| Debt                  securities, available for sale   | $                                   | 470.3  |      | $      | 461.6                              |   |   | 95.3% |
| Equity                  securities, available for sale |                                | 2.0    |      |   | 2.0                                |   |   | 0.4% |
| Cash                  and cash equivalents             |                                | 20.7   |      |   | 20.7                               |   |   | 4.3% |
|                                                   |                                |   |      |   |                               |   |   |   |
| Total                                                  | $                                   | 493.0  |      | $      | 484.3                              |   |   | 100.0% |

*Investment      Strategy.*

*Investment      Portfolio. *

----

|                                                         |   |   |   | **%                  of Total** |   |
|--------------------------------------------------------------|--------|--------|--------|---------------------------------|--------|
|                                                         |   |   |   |                            |   |
| Cash                  and cash equivalents                   |   | $      | 20.7   |                            |   | 4.3 | % |
| U.S.                  Government securities                  |   |   | 5.3    |                            |   | 1.1 | % |
| Mortgage                  backed bonds                       |   |   | 80.5   |                            |   | 16.6 | % |
| Tax-exempt                  bonds                            |   |   | 208.4  |                            |   | 43.0 | % |
| Collateralized                  mortgage obligations         |   |   | 12.7   |                            |   | 2.6 | % |
| Corporate                  and other                         |   |   | 163.4  |                            |   | 33.8 | % |
| Preferred                  stocks                            |   |   | 2.0    |                            |   | 0.4 | % |
| Net                  unrealized (losses) on fixed maturities |   |   | (8.7   | )                               |        |   | -1.8 | % |
|                                                         |   |   |   |                            |   |   |   |
| Total                  investments at market value           |   | $      | 484.3  |                            |        |   | 100.0 | % |

|                                                 |   | **Amortized**                      |   | **Unrealized** |   | **Unrealized** |   | **Estimated**                     |   |
|------------------------------------------------------|--------|------------------------------------|--------|----------------|--------|----------------|--------|-----------------------------------|--------|
|                                                 |   | **Cost**                           |   | **Gains**      |   | **Losses**     |   | **Market                  Value** |   |
|                                                 |   | **(in                  millions)** |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |
| U.S.                  Government securities          |   | $                                  | 5.3    |           | $      | -              |   | $                                 | -      |   | $ | 5.3 |   |
| Mortgage                  backed bonds               |   |                               | 80.5   |           |   | 0.1            |   |                              | 1.8    |   |   | 78.8 |   |
| Tax-exempt                  bonds                    |   |                               | 208.4  |           |   | 0.2            |   |                              | 4.1    |   |   | 204.5 |   |
| Collateralized                  mortgage obligations |   |                               | 12.7   |           |   | 0.0            |   |                              | 0.3    |   |   | 12.4 |   |
| Corporate                  and other                 |   |                               | 163.4  |           |   | 0.1            |   |                              | 2.9    |   |   | 160.6 |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |   |   |   |   |
| Total                  fixed maturities              |   |                               | 470.3  |           |   | 0.4            |   |                              | 9.1    |   |   | 461.6 |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |   |   |   |   |
| Preferred                  stock                     |   |                               | 2.0    |           |   | -              |   |                              | -      |   |   | 2.0 |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |   |   |   |   |
| Total                                                |   | $                                  | 472.3  |           | $      | 0.4            |   | $                                 | 9.1    |   | $ | 463.6 |   |

|                                                    |   | **NAIC**   |   | **Amortized**                      |   | **Fair**  |   | **%                  of Total**    |   |
|---------------------------------------------------------|--------|------------|--------|------------------------------------|--------|-----------|--------|------------------------------------|--------|
|                                                    |   | **Rating** |   | **Cost**                           |   | **Value** |   | **at                  Fair Value** |   |
|                                                    |   |       |   | **(in                  millions)** |   |      |   |
|  **Standard                  & Poor's Rating** |   |       |   |                               |   |      |   |                               |   |
|                                                    |   |       |   |                               |   |      |   |                               |   |
| AAA                                                     |   |  1    |   | $                                  | 336.9  |      | $      | 330.2                              |   |   | 71.6% |   |
| AA                                                      |   |  1    |   |                               | 77.2   |      |   | 75.9                               |   |   | 16.4% |   |
| A                                                       |   |  1    |   |                               | 49.9   |      |   | 49.2                               |   |   | 10.7% |   |
| BBB                                                     |   |  2    |   |                               | 1.0    |      |   | 1.0                                |   |   | 0.2% |   |
| U.S.                  Treasuries agencies               |   |  1    |   |                               | 5.3    |      |   | 5.3                                |   |   | 1.1% |   |
|                                                    |   |       |   |                               |   |      |   |                               |   |   |   |   |
| Total                  fixed maturity investments       |   |       |   | $                                  | 470.3  |      | $      | 461.6                              |   |   | 100.0% |   |

----

**Contractual      Obligations and Commitments**

*Item      7. Management’s Discussion and Analysis of Financial Condition and Results of      Operations - Contractual Obligations and Commitments”*
*** ***

**Recent      Accounting Pronouncements**

*Accounting      for Stock Issued to Employees*

**Forward-Looking      Statements**

*Item      1A. Risk Factors*

----

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

**Interest      Rate Risk**

*Item      7A. Quantitative and Qualitative Disclosures About Market Risk*

**Item 4.      Controls and Procedures**

**Disclosure      Controls and Procedures**

**Internal      Control Over Financial Reporting**

**PART      II-OTHER INFORMATION**

**Item      1.  Legal Proceedings **

----

*Item      3. Legal Proceedings*

**Item 1A.      Risk Factors **

*Item      1A. - Risk Factors*
*** ***
*Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of      Operations - Forward-Looking Statements*

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

**Purchase      of Equity Securities**

| **Period**                                                                                                                                                                   |   | **Total                  Number****of                  Shares Purchased** |    | **Average****Price                  Paid****per                  Share** |   |                                                                                                                                                                             | **Total                  Number of****Shares                  Purchased as****Part                  of Publicly Announced****Plans                  or Programs** |   |  **Maximum                  Dollare Value of Shares that May Yet****Be                  Purchased Under****the                  Plans or Programs                  (1)** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                         |   |                                                                      |    |                                                                     |   |                                                                                                                                                                             |                                                                                                                                                              |   |                                                                                                                                                                          |   |   |
| January                  1, 2006 to January 31, 2006                                                                                                                         |   |                                                                      | -       |                                                                     |   | $                                                           - |                                                                                                                                                              |   |                                                                                                                                                                          | - |   |   |   | $                                                                             - |   |
| February                  1, 2006 to February 28, 2006                                                                                                                       |   |                                                                      | 33,500  |                                                                     |   | 18.52                                                                                                                                                                            |                                                                                                                                                              |   |                                                                                                                                                                          | 33,500 |   |   |   | 18,427,679 |   |
| March                  1, 2006 to March 31, 2006                                                                                                                             |   |                                                                      | 420,400 |                                                                     |   | 18.49                                                                                                                                                                            |                                                                                                                                                              |   |                                                                                                                                                                          | 420,400 |   |   |   | 10,656,086 |   |
|                                                                                                                                                                         |   |                                                                      |    |                                                                     |   |                                                                                                                                                                             |                                                                                                                                                              |   |                                                                                                                                                                          |   |   |   |   |   |   |
| Total                                                                                                                                                                        |   |                                                                      | 453,900 |                                                                     |   | $                                  18.49                                                         |                                                                                                                                                              |   |                                                                                                                                                                          | 453,900 |   |   |   | $                          10,656,086 |   |
|                                                                                                                                                                         |   |                                                                      |    |                                                                     |   |                                                                                                                                                                             |                                                                                                                                                              |   |                                                                                                                                                                          |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |                                                                      |    |                                                                     |   |                                                                                                                                                                             |                                                                                                                                                              |   |                                                                                                                                                                          |   |   |   |   |   |   |   |
| (1)                  On October 28, 2005, our Board of Directors authorized the repurchase                  of                  $20 million of our outstanding Common Stock. |   |

**Item 6.      Exhibits **

----

**SIGNATURES**

|                       |   |   | BRISTOL                WEST HOLDINGS, INC.(Registrant)                                                                                                                                           |   |
|----------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                       |   |   |                                                                                                                                                                                             |
| May                9, 2006 |   | By:    | /s/                JAMES R. FISHER                                                                                                                                                               |
| Date                       |   |   | (Signature)                                                                                                                                                                                      |
|                       |   |   |                                                                                                                                                                                             |
|                       |   | Name:  | James                R. Fisher                                                                                                                                                                   |
|                       |   | Title: | Chairman,                Chief Executive Officer (PrincipalExecutive                Officer and duly authorized officer)                                                                         |
|                       |   |   |                                                                                                                                                                                             |
|                       |   |   |                                                                                                                                                                                             |
| May                9, 2006 |   | By:    | /s/                CRAIG E. EISENACHER                                                                                                                                                           |
| Date                       |   |   | (Signature)                                                                                                                                                                                      |
|                       |   |   |                                                                                                                                                                                             |
|                       |   | Name:  | Craig                E. Eisenacher                                                                                                                                                               |
|                       |   | Title: | Senior                Vice President-Chief Financial Officer (Principal                Financial Officer and Chief Accounting                Officer and duly authorized                officer) |

----

**EXHIBIT      INDEX**

| **Exhibit****Number** |   | **Description                of Document**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.1                   |   | Amended                and Restated Certificate of Incorporation of the Registrant (incorporated                by reference to Exhibit 3.1                of Registrant’s Registration Statement (File No. 333-111259) on                Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                               |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.2                   |   | Amended                and Restated Bylaws of the Registrant (incorporated by reference                to                Exhibit 3.2 of Registrant’s                Registration Statement (File No. 333-111259) on                Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.1                   |   | Form                of Certificate of Common Stock (incorporated by reference to                Exhibit 4.1 of Registrant’s Registration                Statement (File No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.2                   |   | Registration                Rights Agreement, dated as of July 10, 1998, between the Registrant                and Bristol West Associates                LLC (incorporated by reference to Exhibit 4.2 of Registrant’s                Registration Statement (File No. 333-111259)                on Form S-1)                                                                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.3                   |   | Shareholder                Subscription Agreement, dated as of July 9, 1998, between the                Registrant and Fisher Capital                Corp. LLC (incorporated by reference to Exhibit 4.3 of Registrant’s                Registration Statement (File No. 333-111259)                on Form S-1)                                                                                                                                                                                                                                                                                                                                        |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.4                   |   | Sale                Participation Agreement, dated as of July 9, 1998, among KKR Partners                II, L.P., KKR 1996 Fund L.P.,                Bristol West Associates LLC and Fisher Capital Corp. LLC (incorporated                by                reference to Exhibit 4.4                of Registrant’s Registration Statement (File No. 333-111259) on                Form S-1)                                                                                                                                                                                                                                                               |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.5                   |   | Form                of Employee Stockholder’s Agreement for Senior Management (incorporated by                reference to Exhibit 4.5                of Registrant’s Registration Statement (File No. 333-111259) on                Form S-1), as amended by form                of Amendment to Employee Stockholder’s Agreement effective as of December                29, 2005, between Bristol                West Holdings, Inc. and the stockholder (exhibit 4.5 to Annual Report                on                Form 10-K for the                fiscal year ended December 31, 2005)                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.6                   |   | Form                of Employee Stockholder’s Agreement for Employees (incorporated by                reference to Exhibit 4.6 of Registrant’s                Registration Statement (File No. 333-111259) on Form S-1), as                amended by form of Amendment                to Employee Stockholder’s Agreement effective as of December 29, 2005,                between Bristol West                Holdings, Inc. and the stockholder (exhibit 4.5 to Annual Report                on Form                10-K for the fiscal year ended                December 31, 2005)                                                              |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.7                   |   | Form                of Sale Participation Agreement (incorporated by reference to                Exhibit 4.7 of Registrant’s Registration                Statement (File No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.8                   |   | Employee                Stockholder’s Agreement between BRW Acquisition, Inc. and Simon Noonan                (incorporated by                reference to Exhibit 10.32 of Registrant’s Annual Report on                Form 10-K for the fiscal year ended December                31, 2004), as amended by Amendment to Employee Stockholder’s Agreement                effective as of December                29, 2005, between Bristol West Holdings, Inc. and Simon Noonan (form                of                amendment is                exhibit 4.5 to Annual Report on Form 10-K for the fiscal year ended                December 31, 2005) |

----

|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.9                                                                                                                                                                                                                                                                                      |   | Employee                Stockholder’s Agreement between BRW Acquisition, Inc. and James J.                Sclafani, Jr. (incorporated                by reference to Exhibit 10.33 of Registrant’s Annual Report on                Form 10-K for the fiscal year                ended December 31, 2004), as amended by Amendment to Employee                Stockholder’s Agreement effective                as of December 29, 2005, between Bristol West Holdings, Inc. and                James J.                Sclafani, Jr. (form of                amendment is exhibit 4.5 to Annual Report on Form 10-K for the fiscal                year                ended December 31, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1                                                                                                                                                                                                                                                                                     |   | Termination                Agreement and Release, effective January 1, 2006, among Coast National                Insurance Company,                Security National Insurance Company, Bristol West Insurance Company,                Bristol West Casualty                Insurance Company, and National Union Fire Insurance Company of                Pittsburgh, PA (incorporated                by reference to Exhibit 99.1 of Form 8-K filed on January 13, 2006)                with                respect to Quota Share                Reinsurance Agreement, effective January 1, 2005, among Coast                National Insurance Company, Security                National Insurance Company, Bristol West Insurance Company, Bristol                West                Casualty Insurance                Company and National Union Fire Insurance Company of Pittsburgh,                PA                and                related Interests and                Liabilities Agreement (incorporated by reference to Exhibit 10.17                of                Quarterly Report on Form 10-Q                For the Quarter Ended June 30, 2004) |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| *10.2                                                                                                                                                                                                                                                                                    |   | Executive                Officer Incentive Plan (incorporated by reference to Exhibit 10.3                of Form                8-K filed on February                27, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| *10.3                                                                                                                                                                                                                                                                                    |   | Management                Incentive Plan (incorporated by reference to Exhibit 10.4 of Form                8-K                filed on February 27,                2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.1                                                                                                                                                                                                                                                                                     |   | Rule 13a-14(a)/15d-14(a)                Certification executed by James R. Fisher, Chairman and Chief Executive                Officer                of Bristol West Holdings, Inc. (pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002) (exhibit                to this Quarterly Report on Form 10-Q)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.2                                                                                                                                                                                                                                                                                     |   | Rule 13a-14(a)/15d-14(a)                Certification executed by Craig E. Eisenacher, Senior Vice President-Chief                Financial                Officer of Bristol West Holdings, Inc. (pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002)                (exhibit to this Quarterly Report on Form 10-Q)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| *                                                                                                                                                                                                                                                                                   |   | Management                contract or compensatory plan or arrangement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Additional                Exhibits.                       In accordance with Item 601(32)(ii) of Regulation S-K, Exhibit 32.1                is to be treated as “furnished” rather than “filed” as part of the report. |
|                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.1                                                                                                                                                                                                                                                                                     |   | Section 1350                Certification executed by James R. Fisher, Chairman and Chief Executive                Officer of Bristol                West Holdings, Inc., and by Craig E. Eisenacher, Senior Vice                President-Chief Financial Officer of                Bristol West Holdings, Inc. (exhibit to this Quarterly Report on                Form                10-Q)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

**Exhibit 31.1**

**Certification**

| 1.   | I                have reviewed this Quarterly Report on Form 10-Q of Bristol West                Holdings, Inc.; |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| 2.   | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material                fact necessary to make the statements made, in light of the circumstances                under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly                present in all material respects the financial condition, results                of                operations and cash flows of the registrant                as of, and for, the periods presented in this                report; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The                registrant's other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and                internal control over financial reporting (as defined in Exchange                Act                Rules 13a-15(f) and 15d-15(f)) for                the registrant and have: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Evaluated                the effectiveness of the registrant's disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Disclosed                in this report any change in the registrant's internal control over                financial reporting that occurred during the registrant's most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant's internal control over financial                reporting; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The                registrant's other certifying officer and I have disclosed, based                on our                most recent evaluation of internal control over financial reporting,                to                the registrant's auditors and the audit committee of the registrant's                board of directors (or persons performing the equivalent                functions): |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant's ability to                record,                process, summarize and report financial information;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                controls over financial reporting. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**Exhibit 31.2**

**Certification**

| 1.   | I                have reviewed this Quarterly Report on Form 10-Q of Bristol West                Holdings, Inc.; |
|----------------|----------------------------------------------------------------------------------------------------------------------------|

| 2.   | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The                registrant's other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and                internal control over financial reporting (as defined in Exchange                Act                Rules 13a-15(f) and 15d-15(f)) for                the registrant and have: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Evaluated                the effectiveness of the registrant's disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Disclosed                in this report any change in the registrant's internal control over                financial reporting that occurred during the registrant's most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant's internal control over financial                reporting; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The                registrant's other certifying officer and I have disclosed, based                on our                most recent evaluation of internal control over financial reporting,                to                the registrant's auditors and the audit committee of the registrant's                board of directors (or persons performing the equivalent                functions): |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant's ability to                record,                process, summarize and report financial information;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant's internal                controls over financial reporting. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**Exhibit 32.1**

**CERTIFICATION      PURSUANT TO**

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

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

| 1.   | The                report fully complies with the requirements of section 13 (a) or                15 (d) of the Securities Exchange Act of 1934, as amended;                and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The                information contained in the report fairly presents, in all material                respects, the financial condition and results of operations of the                registrant. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/                  James R. Fisher                  | /s/                  Craig E. Eisenacher                       |
|-------------------------------------------------------|----------------------------------------------------------------|
| James                  R. Fisher                      | Craig                  E. Eisenacher                           |
| Chairman                  and Chief Executive Officer | Senior                  Vice President-Chief Financial Officer |
| May                  9, 2006                          | May                  9, 2006                                   |

----