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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C.  20549**

**FORM        10-Q**

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

**SECURITIES        EXCHANGE ACT OF 1934**

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

**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:                                                                                                                                    |     |
|                                                                                                            | Consolidated                  Balance Sheets as of September 30, 2005 and December 31, 2004                  (unaudited)                                        | 3        |
|                                                                                                            | Consolidated                  Statements of Income for the three months and nine months ended                  September 30, 2005 and 2004 (unaudited)               | 4        |
|                                                                                                            | Consolidated                  Statements of Changes in Stockholders’ Equity for the nine months ended                  September 30, 2005 and 2004 (unaudited) | 5        |
|                                                                                                            | Consolidated                  Statements of Cash Flow for the nine months ended September 30, 2005                  and 2004 (unaudited)                             | 6        |
|                                                                                                            | Notes                  to Consolidated Financial Statements (unaudited)                                                                                                   | 7        |
| Item                  2.                                                                                        | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                             | 10       |
| Item                  3.                                                                                        | Quantitative                  and Qualitative Disclosure About Market Risk                                                                                                | 24       |
| Item                  4.                                                                                        | Controls                  and Procedures                                                                                                                                  | 25       |
|                                                                                                            |                                                                                                                                                                      |     |
| Part                  II                                                                                        | Other                  Information                                                                                                                                        | 25       |
| Item                  1.                                                                                        | Legal                  Proceedings                                                                                                                                        | 25       |
| Item                  2.                                                                                        | Unregistered                  Sales of Equity Securities and Use of                  Proceeds                                                                             | 26       |
| Item                  3.                                                                                        | Defaults                  Upon Senior Securities                                                                                                                          | 26       |
| Item                  4.                                                                                        | Submission                  of Matters to a Vote of Security Holders                                                                                                      | 26       |
| Item                  5.                                                                                        | Other                  Information                                                                                                                                        | 26       |
| Item                  6.                                                                                        | Exhibits                                                                                                                                                                  | 27       |
| Signatures                                                                                                      | 28                                                                                                                                                                        |
| Certifications                  Pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002 |                                                                                                                                                                      |
| Certification                  Pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002  |                                                                                                                                                                      |

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**PART        I-FINANCIAL INFORMATION**

**Item        1.  Financial Statements**

| **BRISTOL                WEST HOLDINGS, INC.**                                                                      |
|---------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                BALANCE SHEETS**                                                                      |
| **(Unaudited)**                                                                                                     |
|                                                                                                                |   |   |   |
|                                                                                                                | **September                30,** |   | **December                31,** |
|                                                                                                                | **2005** |   | **2004** |
|                                                                                                                | **(in                thousands, except share data)** |
| **Assets:**                                                                                                         |   |   |   |
| Investments:                                                                                                        |   |   |   |
| Fixed                maturities available-for-sale (amortized cost $451,782 and $280,578                at          |   |   |   |
| September                30, 2005 and December 31, 2004, respectively)                                              | $                           447,898 |   | $                           281,568 |
| Equity                securities (cost $2,000 at September 30, 2005 and December 31,                2004)           | 2,000 |   | 2,000 |
| Total                investments                                                                                    | 449,898 |   | 283,568 |
| Cash                and cash equivalents                                                                            | 39,879 |   | 11,508 |
| Accrued                investment income                                                                            | 4,730 |   | 2,958 |
| Premiums                and other receivables (net of allowance for doubtful accounts of                $9,097      |   |   |   |
| and                $15,845 at September 30, 2005 and December 31, 2004,                respectively)                | 166,798 |   | 180,289 |
| Reinsurance                recoverables on paid and unpaid losses & loss adjustment                expenses     | 24,994 |   | 155,326 |
| Prepaid                reinsurance                                                                                  | 22,013 |   | 108,601 |
| Ceding                commission receivable                                                                         | 7,977 |   | 138,092 |
| Deferred                policy acquisition costs                                                                    | 49,409 |   | 31,028 |
| Property,                software and equipment - net                                                               | 18,972 |   | 18,017 |
| Goodwill                                                                                                            | 101,611 |   | 101,611 |
| Other                assets                                                                                         | 8,364 |   | 9,922 |
| Total                assets                                                                                         | $            894,645 |   | $                        1,040,920 |
| **Liabilities                and Stockholders' Equity:**                                                            |   |   |   |
| Liabilities:                                                                                                        |   |   |   |
| Policy                liabilities:                                                                                  |   |   |   |
| Reserve                for losses and loss adjustment expenses                                                      | $                           221,518 |   | $                           222,326 |
| Drafts                outstanding                                                                                   | - |   | 1,239 |
| Unearned                premiums                                                                                    | 196,323 |   | 214,431 |
| Total                policy liabilities                                                                             | 417,841 |   | 437,996 |
| Reinsurance                payables                                                                                 | 30,207 |   | 166,513 |
| Accounts                payable and other liabilities                                                               | 39,489 |   | 31,421 |
| Deferred                income taxes                                                                                | 7,744 |   | 9,279 |
| Long-term                debt, including current portion                                                            | 70,900 |   | 73,388 |
| Total                liabilities                                                                                    | 566,181 |   | 718,597 |
| Commitments                and contingent liabilities (Note 7)                                                      |   |   |   |
| Stockholders'                equity:                                                                                |   |   |   |
| Preferred                stock, $0.01 par value (15,000,000 shares authorized; 0 shares                             |   |   |   |
| outstanding                at September 30, 2005 and December 31, 2004)                                             | - |   | - |
| Common                stock, $0.01 par value (200,000,000 shares authorized; 32,791,099                and          |   |   |   |
| 32,554,437                shares issued at September 30, 2005 and December 31, 2004,                respectively)   | 327 |   | 325 |
| Additional                paid-in capital                                                                           | 234,973 |   | 231,281 |
| Retained                earnings                                                                                    | 135,020 |   | 97,885 |
| Deferred                compensation on restricted stock                                                            | (6,285) |   | (4,723) |
| Treasury                stock at cost (2,495,095 and 683,036 shares held at September 30,                2005       |   |   |   |
| and                December 31, 2004, respectively)                                                                 | (33,022) |   | (2,965) |
| Stock                subscription receivable                                                                        | (68) |   | (120) |
| Accumulated                other comprehensive (loss) income                                                        | (2,481) |   | 640 |
| Total                stockholders' equity                                                                           | 328,464 |   | 322,323 |
| Total                liabilities and stockholders' equity                                                           | $                           894,645 |   | $                        1,040,920 |
|                                                                                                                |   |   |   |
| The                accompanying notes are an integral part of the consolidated financial                statements. |

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| **BRISTOL                  WEST HOLDINGS, INC.**                                                                        |
|-------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF INCOME**                                                                  |
| **(Unaudited)**                                                                                                         |
|                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                    | **Three                  Months Ended****September                  30,** |   | **Nine                  Months Ended****September                  30,** |
|                                                                                                                    | **2005** |   | **2004** |   | **2005** |   | **2004** |
|                                                                                                                    | **(in                  thousands, except per share data)** |
| **Revenues:**                                                                                                           |   |   |   |   |   |   |   |
| Net                  earned premium                                                                                     | $                           142,571 |   | $                             86,539 |   | $                           459,566 |   | $                           237,249 |
| Net                  investment income                                                                                  | 4,435 |   | 2,397 |   | 12,470 |   | 6,460 |
| Realized                  (loss) gain on investments, net                                                               | 9 |   | (51) |   | (17) |   | 18 |
| Policy                  service fee revenue                                                                             | 14,877 |   | 18,673 |   | 49,155 |   | 55,027 |
| Other                  income                                                                                           | 684 |   | 636 |   | 2,110 |   | 1,706 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Total                  revenues                                                                                         | 162,576 |   | 108,194 |   | 523,284 |   | 300,460 |
|                                                                                                                    |   |   |   |   |   |   |   |
| **Costs                  and Expenses:**                                                                                |   |   |   |   |   |   |   |
| Losses                  and loss adjustment expenses incurred                                                           | 93,410 |   | 58,391 |   | 304,728 |   | 160,609 |
| Commissions                  and other underwriting expenses                                                            | 37,236 |   | 15,955 |   | 118,847 |   | 39,342 |
| Other                  operating and general expenses                                                                   | 9,750 |   | 8,574 |   | 27,560 |   | 23,988 |
| Interest                  expense                                                                                       | 1,069 |   | 749 |   | 3,071 |   | 2,123 |
| Extinguishment                  of debt                                                                                 | - |   | - |   | - |   | 1,613 |
| Stock                  based compensation expense                                                                       | 587 |   | 284 |   | 1,586 |   | 955 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Total                  costs and expenses                                                                               | 142,052 |   | 83,953 |   | 455,792 |   | 228,630 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Income                  before income taxes                                                                             | 20,524 |   | 24,241 |   | 67,492 |   | 71,830 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Income                  taxes                                                                                           | 7,440 |   | 8,848 |   | 24,466 |   | 26,218 |
|                                                                                                                    |   |   |   |   |   |   |   |
| **Net                  Income**                                                                                         | $                             13,084 |   | $                             15,393 |   | $            43,026 |   | $                             45,612 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Net                  income per common share - basic                                                                    | $                                 0.43 |   | $                                 0.49 |   | $                                 1.39 |   | $                                 1.50 |
| Net                  income per common share - diluted                                                                  | $                                 0.41 |   | $                                 0.47 |   | $                                 1.33 |   | $                                 1.42 |
|                                                                                                                    |   |   |   |   |   |   |   |
| Dividends                  declared per common share                                                                    | $                                 0.07 |   | $                                 0.05 |   | $                                 0.19 |   | $                0.10 |
|                                                                                                                    |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of the consolidated financial                  statements. |

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| **BRISTOL                  WEST HOLDINGS, INC.**                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY**                                                   |
| **(Unaudited)**                                                                                                                         |
|                                                                                                                                    |   |   |   |
|                                                                                                                                    | **Nine                  Months Ended****September                  30,** |
|                                                                                                                                    | **2005** |   | **2004** |
|                                                                                                                                    | **(in                  thousands, except share data)** |
| **STOCKHOLDERS'                  EQUITY:**                                                                                              |   |   |   |
|                                                                                                                                    |   |   |   |
| **Common                  Stock**                                                                                                       |   |   |   |
| Balance,                  beginning of period                                                                                           | $                                    325 |   | $                  245 |
| Issuance                  of common stock in initial public offering (6,250,000 shares--2004)                                           | - |   | 63 |
| Exercise                  of options and warrants, including tax benefit (40,059 shares--2005,                  1,376,316 shares--2004) | - |   | 13 |
| Shares                  issued for services (13,066 shares--2005, 33,046 shares--2004)                                                  | - |   | - |
| Issuance                  of restricted common stock (183,413 shares--2005, 296,035 shares--2004)                                       | 2 |   | 3 |
| Shares                  issued in payment of dividend (123 shares--2005)                                                                | - |   | - |
| Balance,                  end of period                                                                                                 | 327 |   | 324 |
|                                                                                                                                    |   |   |   |
| **Additional                  Paid-In Capital**                                                                                         |   |   |   |
| Balance,                  beginning of period                                                                                           | 231,281 |   | 97,810 |
| Issuance                  of common stock in initial public offering (6,250,000 shares--2004)                                           | - |   | 113,344 |
| Exercise                  of options and warrants, including tax benefit (40,059 shares--2005,                  1,376,316 shares--2004) | 348 |   | 12,998 |
| Shares                  issued for services (13,066 shares--2005, 33,046 shares--2004)                                                  | 252 |   | 589 |
| Issuance                  of restricted common stock (183,413 shares--2005, 296,035 shares--2004)                                       | 3,090 |   | 5,444 |
| Shares                  issued in payment of dividend (123 shares--2005)                                                                | 2 |   | - |
| Balance,                  end of period                                                                                                 | 234,973 |   | 230,185 |
|                                                                                                                                    |   |   |   |
| **Retained                  Earnings**                                                                                                  |   |   |   |
| Balance,                  beginning of period                                                                                           | 97,885 |   | 41,504 |
| Net                  income                                                                                                             | 43,026 |   | 45,612 |
| Dividend                  to common shareholders ($0.19 per share--2005, $0.10 per share--2004)                                         | (5,891) |   | (3,166) |
| Balance,                  end of period                                                                                                 | 135,020 |   | 83,950 |
|                                                                                                                                    |   |   |   |
| **Deferred                  Compensation on Restricted Stock**                                                                          |   |   |   |
| Balance,                  beginning of period                                                                                           | (4,723) |   | - |
| Issuance                  of restricted common stock (183,413 shares--2005, 296,035 shares--2004)                                       | (3,092) |   | (5,447) |
| Amortization                  of deferred compensation on restricted stock                                                              | 1,473 |   | 420 |
| Restricted                  stock forfeited (3,336 shares--2005, 18,098 shares--2004)                                                   | 57 |   | 333 |
| Balance,                  end of period                                                                                                 | (6,285) |   | (4,694) |
|                                                                                                                                    |   |   |   |
| **Treasury                  Stock**                                                                                                     |   |   |   |
| Balance,                  beginning of period                                                                                           | (2,965) |   | (2,563) |
| Acquisition                  of treasury stock (1,808,723 shares--2005, 2,608 shares--2004)                                             | (30,000) |   | (69) |
| Restricted                  stock forfeited (3,336 shares--2005, 18,098 shares--2004)                                                   | (57) |   | (333) |
| Balance,                  end of period                                                                                                 | (33,022) |   | (2,965) |
|                                                                                                                                    |   |   |   |
| **Stock                  Subscription Receivable**                                                                                      |   |   |   |
| Balance,                  beginning of period                                                                                           | (120) |   | (393) |
| Payment                  of stock subscriptions receivable                                                                              | 52 |   | 239 |
| Balance,                  end of period                                                                                                 | (68) |   | (154) |
|                                                                                                                                    |   |   |   |
| **Accumulated                  Other Comprehensive (Loss) Income**                                                                      |   |   |   |
| Balance,                  beginning of period                                                                                           | 640 |   | 2,132 |
| Unrealized                  holdings losses arising during the period                                                                   | (2,977) |   | (929) |
| Reclassification                  adjustment                                                                                            | (144) |   | (215) |
| Net                  unrealized losses on securities                                                                                    | (3,121) |   | (1,144) |
| Balance,                  end of period                                                                                                 | (2,481) |   | 988 |
|                                                                                                                                    |   |   |   |
| **Total                  Stockholders' Equity**                                                                                         | $              328,464 |   | $           307,634 |
|                                                                                                                                    |   |   |   |
| **COMPREHENSIVE                  INCOME:**                                                                                              |   |   |   |
|                                                                                                                                    |   |   |   |
| Net                  income                                                                                                             | $                                 43,026 |   | $             45,612 |
| Net                  unrealized losses on securities                                                                                    | (3,121) |   | (1,144) |
| **Comprehensive                  Income**                                                                                               | $                                 39,905 |   | $                              44,468 |
|                                                                                                                                    |   |   |   |
| The                  accompanying notes are an integral part of the consolidated financial                  statements.                 |

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| **BRISTOL                  WEST HOLDINGS, INC.**                                                                        |
|-------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENTS OF CASH FLOW**                                                               |
| **(Unaudited)**                                                                                                         |
|                                                                                                                    |   |   |   |
|                                                                                                                    | **Nine                  Months Ended September 30,** |
|                                                                                                                    | **2005** |   | **2004** |
|                                                                                                                    | **(in                  thousands)** |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                              |   |   |   |
| Net                  income                                                                                             | $                                        43,026 |   | $                                        45,612 |
| Adjustments                  to reconcile net income to net cash provided by                                            |   |   |   |
| operating                  activities:                                                                                  |   |   |   |
| Accretion                  of fixed maturity investments                                                                | 3,086 |   | 1,474 |
| Depreciation                  and amortization                                                                          | 5,038 |   | 3,730 |
| Realized                  investment losses (gains)                                                                     | 17 |   | (18) |
| Deferred                  federal income taxes                                                                          | 220 |   | 844 |
| Stock                  based compensation                                                                               | 1,586 |   | 955 |
| Extinguishment                  of debt                                                                                 | - |   | 1,613 |
| Changes                  in assets and liabilities:                                                                     |   |   |   |
| Premiums                  and other receivables                                                                         | 13,491 |   | (79,808) |
| Reinsurance                  receivables                                                                                | 260,447 |   | (40,343) |
| Prepaid                  reinsurance                                                                                    | 86,588 |   | (28,747) |
| Deferred                  policy acquisition costs                                                                      | (18,381) |   | (10,881) |
| Reserve                  for losses and loss adjustment expenses                                                        | (808) |   | 12,663 |
| Unearned                  premiums                                                                                      | (18,108) |   | 86,826 |
| Drafts                  outstanding                                                                                     | (1,239) |   | (303) |
| Reinsurance                  payables                                                                                   | (136,306) |   | 23,725 |
| Other                  assets and liabilities                                                                           | 2,682 |   | 22,222 |
| Tax                  benefit on exercise of stock options                                                               | 184 |   | - |
| Net                  cash provided by operating activities                                                              | 241,523 |   | 39,564 |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                              |   |   |   |
| Purchase                  of fixed maturity investments - available-for-sale                                            | (180,096) |   | (157,682) |
| Sales                  and maturities of fixed maturity investments -                  available-for-sale               | 10,785 |   | 32,353 |
| Purchases                  of equity securities                                                                         | - |   | (400) |
| Sales                  of equity securities                                                                             | - |   | 10 |
| Acquisition                  of property, software and equipment                                                        | (5,680) |   | (7,044) |
| Net                  cash used in investing activities                                                                  | (174,991) |   | (132,763) |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                              |   |   |   |
| Proceeds                  from initial public offering of stock                                                         | - |   | 113,407 |
| Proceeds                  from exercise of stock options                                                                | 164 |   | 13,011 |
| Acquisition                  of treasury stock                                                                          | (30,000) |   | (69) |
| Principal                  repayment at time of debt extinguishment                                                     | - |   | (71,500) |
| Principal                  payments on long-term debt                                                                   | (2,488) |   | (1,075) |
| Proceeds                  from acquisition of long-term bank debt                                                       | - |   | 75,000 |
| Payment                  of fees and expenses related to acquisition of long-term debt                                  | - |   | (2,325) |
| Payment                  of dividends to stockholders                                                                   | (5,889) |   | (3,138) |
| Other                                                                                                                   | 52 |   | 188 |
| Net                  cash (used in) provided by financing activities                                                    | (38,161) |   | 123,499 |
|                                                                                                                    |   |   |   |
| NET                  INCREASE IN CASH AND CASH EQUIVALENTS                                                              | 28,371 |   | 30,300 |
| Cash                  and cash equivalents, January 1                                                                   | 11,508 |   | 9,256 |
| Cash                  and cash equivalents, September 30                                                                | $                                        39,879 |   | $                                        39,556 |
|                                                                                                                    |   |   |   |
| The                  accompanying notes are an integral part of the consolidated financial                  statements. |

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**BRISTOL      WEST HOLDINGS, INC.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

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

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

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

**3.**
**Debt**

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

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**BRISTOL          WEST HOLDINGS, INC.**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

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

|                                                          | **Three                  Months Ended September 30,**                                                       |   | **Nine                  Months Ended September 30,**                                                        |
|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
|                                                          | **2005**                                                                                                    |   | **2004**                                                                                                    |   | **2005** |   | **2004** |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Net                  income applicable to common stockholders | $           13,084                                   |   | $                            15,393                            |   | $                            43,026 |   | $                            45,612 |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Weighted                  average common shares - basic       | 30,314,772                                                                                                  |   | 31,453,539                                                                                                  |   | 30,930,716 |   | 30,389,882 |
| Effect                  of dilutive securities:               |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Options                                                       | 1,141,633                                                                                                   |   | 1,207,284                                                                                                   |   | 1,153,642 |   | 1,426,217 |
| Restricted                  stock                             | 112,580                                                                                                     |   | 7,603                                                                                                       |   | 75,747 |   | 6,298 |
| Warrants                                                      | 214,995                                                                                                     |   | 214,032                                                                                                     |   | 214,960 |   | 247,372 |
| Weighted                  average common shares - dilutive    | 31,783,980                                                                                                  |   | 32,882,458                                                                                                  |   | 32,375,065 |   | 32,069,769 |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Basic                  Earnings Per Share                     | $                                0.43 |   | $                                0.49 |   | $                                1.39 |   | $               1.50 |
|                                                          |                                                                                                        |   |                                                                                                        |   |   |   |   |
| Diluted                  Earnings Per Share                   | $               0.41             |   | $                                0.47      |   | $                                1.33 |   | $                                1.42 |

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

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

|                                                                                                                                                                                     | **Three                  Months Ended September 30,**                                                  |   | **Nine                  Months Ended September 30,**                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                     | **2005**                                                                                               |   | **2004**                                                                                               |   | **2005** |   | **2004** |
|                                                                                                                                                                                     |                                                                                                   |   |                                                                                                   |   |   |   |   |
| Net                  income, as reported                                                                                                                                                 | $                            13,084                  |   | $                            15,393                  |   | $                            43,026 |   | $                            45,612 |
| Deduct:                  Total stock-based employee compensation expense                  determined under fair value method for all awards,                  net of related tax effects | (30)                                                                                                   |   | (67)                                                                                                   |   | (180) |   | (194) |
|                                                                                                                                                                                     |                                                                                                   |   |                                                                                                   |   |   |   |   |
| Pro                  forma net income                                                                                                                                                    | $                            13,054                       |   | $                            15,326                       |   | $                            42,846 |   | $                            45,418 |
|                                                                                                                                                                                     |                                                                                                   |   |                                                                                                   |   |   |   |   |
| **Net                  income per share**                                                                                                                                                |                                                                                                   |   |                                                                                                   |   |   |   |   |
|                                                                                                                                                                                     |                                                                                                   |   |                                                                                                   |   |   |   |   |
| Basic—As                  reported                                                                                                                                                 | $               0.43        |   | $                                0.49 |   | $                                1.39 |   | $               1.50 |
| Basic—Pro                  forma                                                                                                                                                   | $                                0.43 |   | $                                0.49 |   | $                                1.39 |   | $                                1.49 |
|                                                                                                                                                                                     |                                                                                                   |   |                                                                                                   |   |   |   |   |
| Diluted—As                  reported                                                                                                                                               | $                                0.41 |   | $                                0.47 |   | $                                1.33 |   | $                                1.42 |
| Diluted—Pro                  forma                                                                                                                                                 | $                                0.41 |   | $               0.47        |   | $                                1.32 |   | $                                1.42 |

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

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

**8. **Subsequent        Event****

----

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

**General**

**Operating        Results - Key States**

----

|                                                                                                 | **Three                  months ended**                            |                                                   |       | **Nine                  months ended**     |                                                         |
|------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------|------------|--------------------------------------------|--------------------------------------------------------------|
|                                                                                                 | **September                  30,**                                 | **%**                                                  |       | **September                  30,**         | **%**                                                        |
| **State**                                                                                            | **2005**                                                           | **2004**                                               | **Change** |                                       | **2005**                                                     | **2004** | **Change** |
|                                                                                                 |  (in                  millions)                               |                                                   |       |   (in                  millions) |                                                         |
|                                                                                                 |                                                               |                                                   |       |                                       |                                                         |   |   |
| California                                                                                           | $                          64.1 | $        90.1  | -28.9%     |                                       | $       219.9             | $      320.9 | -31.5% |
| Florida                                                                                              | 21.9                                                               | 30.9                                                   | -29.1%     |                                       | 69.9                                                         | 78.2 | -10.6% |
| Michigan                                                                                             | 21.1                                                               | 18.7                                                   | 12.8%      |                                       | 63.9                                                         | 52.9 | 20.8% |
| Texas                                                                                                | 5.7                                                                | 4.7                                                    | 21.3%      |                                       | 17.5                                                         | 11.2 | 56.3% |
| South                  Carolina                                                                      | 5.3                                                                | 5.0                                                    | 6.0%       |                                       | 15.3                                                         | 13.2 | 15.9% |
| Pennsylvania                                                                                         | 4.6                                                                | 3.7                                                    | 24.3%      |                                       | 12.1                                                         | 11.9 | 1.7% |
| New                  Hampshire                                                                       | 3.8                                                                | 3.0                                                    | 26.7%      |                                       | 11.8                                                         | 9.5 | 24.2% |
| Maine                                                                                                | 3.7                                                                | 3.5                                                    | 5.7%       |                                       | 10.8                                                         | 10.1 | 6.9% |
| Virginia                                                                                             | 2.2                                                                | 2.7                                                    | -18.5%     |                                       | 6.9                                                          | 9.1 | -24.2% |
| Georgia                                                                                              | 1.9                                                                | 2.6                                                    | -26.9%     |                                       | 6.9                                                          | 8.6 | -19.8% |
| All                  Other (includes 11 states)                                                      | 9.9                                                                | 10.8                                                   | -8.3%      |                                       | 29.1                                                         | 30.7 | -5.2% |
| **Total**                                                                                            | $                        144.2            | $                       175.7 | -17.9%     |                                       | $                        464.1 | $                       556.3 | -16.6% |
|                                                                                                 |                                                               |                                                   |       |                                       |                                                         |   |   |
| Change                  in expected policy cancellation provision                                    | 3.9                                                                | 46.8                                                   | n/m        |                                       | 12.2                                                         | 47.1 | n/m |
|                                                                                                 |                                                               |                                                   |       |                                       |                                                         |   |   |
| **Total,                  net of change in expected policy cancellation                  provision** | $                        148.1       | $      222.5             | -33.4%     |                                       | $                        476.3      | $      603.4 | -21.1% |

|                                                 | **Three                  months ended****September                  30,**                                             | **%**                                                                                                     |       | **Nine                  months ended****September                  30,** | **%**                                                                                                            |
|------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
|                                                 | **2005**                                                                                                              | **2004**                                                                                                  | **Change** |                                                                     | **2005**                                                                                                         | **2004** | **Change** |
|                                                 | **(in                  thousands)**                                                                                   |                                                                                                      |       | **(in                  thousands)**                                      |                                                                                                             |
|                                                 |                                                                                                                  |                                                                                                      |       |                                                                     |                                                                                                             |   |   |
| Average                  number of policies in force | 435.4                                                                                                                 | 500.9                                                                                                     | -13.1%     |                                                                     | 456.7                                                                                                            | 485.9 | -6.0% |
|                                                 |                                                                                                                  |                                                                                                      |       |                                                                     |                                                                                                             |   |   |
| Gross                  earned premium                | $                                  158,388 | $                                178,813 | -11.4%     |                                                                     | $                                  494,365 | $                                516,522 | -4.3% |

----

**Operations**

----

**Reinsurance**

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

----

**Results        of Operations**

|                                                          | **Three                  Months Ended September 30,**                                                                                                 |   | **Nine                  Months Ended September 30,**                                                                                             |
|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                          | **2005**                                                                                                                                              |   | **2004**                                                                                                                                         |   | **2005** |   | **2004** |
|                                                          | **(in                  thousands, except per share data)**                                                                                            |   | **(in                  thousands, except per share data)**                                                                                       |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Statement                  of Operations Data:**            |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Revenue:**                                                  |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Net                  earned premium                           | $                                 142,571                                       |   | $                                   86,539                       |   | $                                 459,566 |   | $                                 237,249 |
| Net                  investment income                        | 4,435                                                                                                                                                 |   | 2,397                                                                                                                                            |   | 12,470 |   | 6,460 |
| Realized                  (loss) gain on investments, net     | 9                                                                                                                                                     |   | (51)                                                                                                                                             |   | (17) |   | 18 |
| Policy                  service fee revenue                   | 14,877                                                                                                                                                |   | 18,673                                                                                                                                           |   | 49,155 |   | 55,027 |
| Other                  income                                 | 684                                                                                                                                                   |   | 636                                                                                                                                              |   | 2,110 |   | 1,706 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Total                  revenue                                | 162,576                                                                                                                                               |   | 108,194                                                                                                                                          |   | 523,284 |   | 300,460 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Costs                  and Expenses:**                      |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Losses                  and loss adjustment expenses incurred | 93,410                                                                                                                                                |   | 58,391                                                                                                                                           |   | 304,728 |   | 160,609 |
| Commissions                  and other underwriting expenses  | 37,236                                                                                                                                                |   | 15,955                                                                                                                                           |   | 118,847 |   | 39,342 |
| Other                  operating and general expenses         | 9,750                                                                                                                                                 |   | 8,574                                                                                                                                            |   | 27,560 |   | 23,988 |
| Interest                  expense                             | 1,069                                                                                                                                                 |   | 749                                                                                                                                              |   | 3,071 |   | 2,123 |
| Extinguishment                  of debt                       | -                                                                                                                                                     |   | -                                                                                                                                                |   | - |   | 1,613 |
| Stock                  based compensation expense             | 587                                                                                                                                                   |   | 284                                                                                                                                              |   | 1,586 |   | 955 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Total                  costs and expenses                     | 142,052                                                                                                                                               |   | 83,953                                                                                                                                           |   | 455,792 |   | 228,630 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Income                  before income taxes                   | 20,524                                                                                                                                                |   | 24,241                                                                                                                                           |   | 67,492 |   | 71,830 |
| Income                  taxes                                 | 7,440                                                                                                                                                 |   | 8,848                                                                                                                                            |   | 24,466 |   | 26,218 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Net                  Income**                               | $                                   13,084                            |   | $                                   15,393                       |   | $                                   43,026 |   | $                                   45,612 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Per                  Share Data:**                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Net                  income per common share - basic          | $                                       0.43 |   | $                                       0.49 |   | $                                                        1.39 |   | $                      1.50 |
| Net                  income per common share - diluted        | $                                       0.41      |   | $                                       0.47 |   | $                                       1.33 |   | $                      1.42 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Operating                  Data:**                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Gross                  written premium                        | $                                 148,127                                       |   | $                                 222,494                                  |   | $                                 476,257 |   | $                                 603,349 |
| Net                  written premium                          | 130,908                                                                                                                                               |   | 109,763                                                                                                                                          |   | 528,045 |   | 295,327 |
| Gross                  earned premium                         | 158,388                                                                                                                                               |   | 178,813                                                                                                                                          |   | 494,365 |   | 516,522 |
|                                                          |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| **Ratios:**                                                   |                                                                                                                                                  |   |                                                                                                                                             |   |   |   |   |
| Loss                  ratio                                   | 65.5%                                                                                                                                                 |   | 67.5%                                                                                                                                            |   | 66.3% |   | 67.7% |
| Expense                  ratio                                | 22.0%                                                                                                                                                 |   | 6.0%                                                                                                                                             |   | 20.7% |   | 2.8% |
| Combined                  ratio                               | 87.5%                                                                                                                                                 |   | 73.5%                                                                                                                                            |   | 87.0% |   | 70.5% |

**Note        About Trade Ratios**

----

| Loss                    Ratio     | =      |   | Losses                    and loss adjustment expenses incurred                                                                                                                                                             |   |
|-----------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                              |   |   | Net                    earned premium                                                                                                                                                                                       |   |
|                              |   |   |                                                                                                                                                                                                                        |   |
|                              |   |   |                                                                                                                                                                                                                        |   |
| Expense                    Ratio  | =      | (      |  +                    Commissions and other underwriting expenses+                      Other operating and general expenses-                        Policy service fee revenue-                          Other income | )      |
|                              |   |   | Net                    earned premium                                                                                                                                                                                       |   |
|                              |   |   |                                                                                                                                                                                                                        |   |
|                              |   |   |                                                                                                                                                                                                                        |   |
| Combined                    Ratio | =      |   | Loss                    Ratio + Expense Ratio                                                                                                                                                                               |   |

***Overview          of Operating Results***

----

|                                                                                                             | **Three                      months ended****September                      30,** |   | **Nine                      months ended****September                      30,** |
|------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|
|                                                                                                             | **2005**                                                                          |   | **2004**                                                                         |   | **2005** |   | **2004** |
|                                                                                                             | **(in                      thousands)**                                           |   | **(in                      thousands)**                                          |
|                                                                                                             |                                                                              |   |                                                                             |   |   |   |   |
| Refinancing                      of credit facility, net of related tax effects                                  | -                                                                                 |   | -                                                                                |   | - |   | 1,024 |
| Stock                      awards to employees, net of related tax effects                                       | -                                                                                 |   | -                                                                                |   | - |   | 543 |
| Hurricane                      losses, net of related tax effects                                                | 191                                                                               |   | 635                                                                              |   | 191 |   | 635 |
| Costs                      associated with regulatory inquiries, net of related tax                      effects | 829                                                                               |   | -                                                                                |   | 1,439 |   | - |
|                                                                                                             |                                                                              |   |                                                                             |   |   |   |   |
| Total,                      net of related tax effects                                                           | 1,020                                                                             |   | 635                                                                              |   | 1,630 |   | 2,202 |

***Three          Months and Nine Months Ended September 30, 2005 compared to Three Months          and Nine Months Ended September 30, 2004***

|                                                                            | **Three                      months ended****September                      30,** |   | **Nine                      months ended****September                      30,** |
|---------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|
|                                                                            | **2005**                                                                          |   | **2004**                                                                         |   | **2005** |   | **2004** |
|                                                                            | **(in                      thousands)**                                           |   | **(in                      thousands)**                                          |
|                                                                            |                                                                              |   |                                                                             |   |   |   |   |
| Gross                      written premium                                      | $                               148,127   |   | $          222,494             |   | $                               476,257 |   | $                               603,349 |
|                                                                            |                                                                              |   |                                                                             |   |   |   |   |
| Ceded                      written premium                                      | 17,219                                                                            |   | 112,731                                                                          |   | (51,788) |   | 308,022 |
| Effect                      of reinsurance commutation on ceded written premium | -                                                                                 |   | -                                                                                |   | 106,310 | * | - |
| Ceded                      written premium, excluding effect                    |                                                                              |   |                                                                             |   |   |   |   |
| of                      reinsurance commutation                                 | 17,219                                                                            |   | 112,731                                                                          |   | 54,522 |   | 308,022 |
|                                                                            |                                                                              |   |                                                                             |   |   |   |   |
| %                      Ceded, excluding effect of reinsurance commutation       | 11.6%                                                                             |   | 50.7%                                                                            |   | 11.4% |   | 51.1% |
|                                                                            |                                                                              |   |                                                                             |   |   |   |   |
| Gross                      earned premium                                       | $                               158,388   |   | $          178,813             |   | $          494,365 |   | $                               516,522 |
| Ceded                      earned premium                                       | 15,817                                                                            |   | 92,274                                                                           |   | 34,799 |   | 279,273 |
| %                      Ceded                                                    | 10.0%                                                                             |   | 51.6%                                                                            |   | 7.0% |   | 54.1% |

*    Gross          Written          Premium*

----

*    Net          Written          Premium. *

*    Net          Earned          Premium. *

*    Net          Investment Income. *

*    Policy          Service Fee Revenue*

***Costs          and Expenses***

*    Losses          and          Loss Adjustment Expenses*

----

|                                                                 | **Three                      months ended****September                      30,**                                                                   |   | **Nine                      months ended****September                      30,**                                               |
|----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                 | **2005**                                                                                                                                            |   | **2004**                                                                                                                       |   | **2005** |   | **2004** |
|                                                                 | **(in                      thousands)**                                                                                                             |   | **(in                      thousands)**                                                                                        |
|                                                                 |                                                                                                                                                |   |                                                                                                                           |   |   |   |   |
| Losses                      and LAE incurred - current accident year | $                                       93,336                           |   | $                                       58,026 |   | $                                     304,792 |   | $                                     158,653 |
| Losses                      and LAE incurred - prior accident years  | 74                                                                                                                                                  |   | 365                                                                                                                            |   | (64) |   | 1,956 |
| Total                      losses and LAE incurred                   | $                                                            93,410 |   | $                                       58,391      |   | $                                     304,728 |   | $                                     160,609 |
|                                                                 |                                                                                                                                                |   |                                                                                                                           |   |   |   |   |
| Losses                      and LAE ratio - current accident year    | 65.5%                                                                                                                                               |   | 67.1%                                                                                                                          |   | 66.3% |   | 66.9% |
| Losses                      and LAE ratio - prior accident years     | 0.0%                                                                                                                                                |   | 0.4%                                                                                                                           |   | 0.0% |   | 0.8% |
| Total                      losses and LAE ratio                      | 65.5%                                                                                                                                               |   | 67.5%                                                                                                                          |   | 66.3% |   | 67.7% |

*    Commissions          and Other Underwriting Expenses. *

|                                                             | **Three                      months ended****September                      30,**                                        |   | **Nine                      months ended****September                      30,**                                         |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|
|                                                             | **2005**                                                                                                                 |   | **2004**                                                                                                                 |   | **2005** |   | **2004** |
|                                                             | **(in                      thousands)**                                                                                  |   | **(in                      thousands)**                                                                                  |
|                                                             |                                                                                                                     |   |                                                                                                                     |   |   |   |   |
| Gross                      commissions                           | $                                      23,460 |   | $                                      28,887 |   | $                 73,303 |   | $                                     78,483 |
| Other                      underwriting expenses                 | 17,717                                                                                                                   |   | 14,143                                                                                                                   |   | 53,562 |   | 44,661 |
| Gross                      expenses                              | 41,177                                                                                                                   |   | 43,030                                                                                                                   |   | 126,865 |   | 123,144 |
|                                                             |                                                                                                                     |   |                                                                                                                     |   |   |   |   |
| Ceding                      commissions                          | 3,941                                                                                                                    |   | 27,075                                                                                                                   |   | 8,018 |   | 83,802 |
|                                                             |                                                                                                                     |   |                                                                                                                     |   |   |   |   |
| Commissions                      and other underwriting expenses | $                                      37,236 |   | $                                      15,955 |   | $                                    118,847 |   | $                39,342 |
|                                                             |                                                                                                                     |   |                                                                                                                     |   |   |   |   |
| Gross                      expense ratio                         | 22.3%                                                                                                                    |   | 18.1%                                                                                                                    |   | 20.9% |   | 17.5% |
| Net                      expense ratio                           | 22.0%                                                                                                                    |   | 6.0%                                                                                                                     |   | 20.7% |   | 2.8% |

*    Other          Operating and General Expenses. *

----

*    Interest          Expense*

*    Income          Taxe*

*    Ratios*

----

|                                                                | **Three                    Months Ended****September                    30,**                                                   |   | **Nine                    Months Ended****September                    30,**                                         |
|---------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|
|                                                                | **2005**                                                                                                                        |   | **2004**                                                                                                             |   | **2005** |   | **2004** |
|                                                                | **(in                    thousands)**                                                                                           |   | **(in                    thousands)**                                                                                |
| **Underwriting                    Results Before Reinsurance**      |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Revenues**                                                        |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Gross                    earned premium                             | $                               158,388                                       |   | $                               178,813                            |   | $                               494,365 |   | $                               516,522 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Expenses**                                                        |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Losses                    and adjustment expenses incurred          | 104,372                                                                                                                         |   | 121,083                                                                                                              |   | 329,041 |   | 343,700 |
| Commissions                                                         | 23,460                                                                                                                          |   | 28,887                                                                                                               |   | 73,303 |   | 78,483 |
| Other                    underwriting expenses                      | 17,717                                                                                                                          |   | 14,143                                                                                                               |   | 53,562 |   | 44,661 |
| Other                    operating and general expenses             | 9,750                                                                                                                           |   | 8,574                                                                                                                |   | 27,560 |   | 23,988 |
| Total                    underwriting expenses                      | 155,299                                                                                                                         |   | 172,687                                                                                                              |   | 483,466 |   | 490,832 |
| Gross                    underwriting result                        | 3,089                                                                                                                           |   | 6,126                                                                                                                |   | 10,899 |   | 25,690 |
| Fee                    and other income                             | 15,561                                                                                                                          |   | 19,309                                                                                                               |   | 51,265 |   | 56,733 |
| Pretax                    underwriting income                       | $                                 18,650                            |   | $                                 25,435                 |   | $                                 62,164 |   | $                                 82,423 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Gross                    loss ratio                                 | 65.9%                                                                                                                           |   | 67.7%                                                                                                                |   | 66.6% |   | 66.5% |
| Gross                    expense ratio                              | 22.3%                                                                                                                           |   | 18.1%                                                                                                                |   | 20.9% |   | 17.5% |
| Gross                    combined ratio                             | 88.2%                                                                                                                           |   | 85.8%                                                                                                                |   | 87.5% |   | 84.0% |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Reinsurance                    Ceded Results**                    |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Revenues**                                                        |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Ceded                    earned premium                             | $                                 15,817                            |   | $                                 92,274                 |   | $                                 34,799 |   | $                               279,273 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Expenses**                                                        |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Ceded                    losses and adjustment expenses incurred    | 10,962                                                                                                                          |   | 62,692                                                                                                               |   | 24,313 |   | 183,091 |
| Ceding                    commissions                               | 3,941                                                                                                                           |   | 27,075                                                                                                               |   | 8,018 |   | 83,802 |
| Total                    underwriting expenses                      | 14,903                                                                                                                          |   | 89,767                                                                                                               |   | 32,331 |   | 266,893 |
| Ceded                    underwriting income                        | $                                      914 |   | $                                   2,507 |   | $                                   2,468 |   | $                                 12,380 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Ceded                    loss ratio                                 | 69.3%                                                                                                                           |   | 67.9%                                                                                                                |   | 69.9% |   | 65.6% |
| Ceded                    expense ratio                              | 24.9%                                                                                                                           |   | 29.3%                                                                                                                |   | 23.0% |   | 30.0% |
| Ceded                    combined ratio                             | 94.2%                                                                                                                           |   | 97.2%                                                                                                                |   | 92.9% |   | 95.6% |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Net                    Underwriting Results**                     |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Revenues**                                                        |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Net                    earned premium                               | $                               142,571                                  |   | $                                 86,539                 |   | $                               459,566 |   | $                               237,249 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| **Expenses**                                                        |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Net                    losses and loss adjustment expenses incurred | 93,410                                                                                                                          |   | 58,391                                                                                                               |   | 304,728 |   | 160,609 |
| Commissions                    - net of reinsurance                 | 19,519                                                                                                                          |   | 1,812                                                                                                                |   | 65,285 |   | (5,319) |
| Other                    underwriting expenses                      | 17,717                                                                                                                          |   | 14,143                                                                                                               |   | 53,562 |   | 44,661 |
| Other                    operating and general expenses             | 9,750                                                                                                                           |   | 8,574                                                                                                                |   | 27,560 |   | 23,988 |
| Total                    underwriting expenses                      | 140,396                                                                                                                         |   | 82,920                                                                                                               |   | 451,135 |   | 223,939 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Net                    underwriting result                          | 2,175                                                                                                                           |   | 3,619                                                                                                                |   | 8,431 |   | 13,310 |
| Fee                    and other income                             | 15,561                                                                                                                          |   | 19,309                                                                                                               |   | 51,265 |   | 56,733 |
| Pretax                    underwriting income                       | $                                 17,736                            |   | $                                 22,928            |   | $                                 59,696 |   | $                                 70,043 |
|                                                                |                                                                                                                            |   |                                                                                                                 |   |   |   |   |
| Net                    loss ratio                                   | 65.5%                                                                                                                           |   | 67.5%                                                                                                                |   | 66.3% |   | 67.7% |
| Net                    expense ratio                                | 22.0%                                                                                                                           |   | 6.0%                                                                                                                 |   | 20.7% |   | 2.8% |
| Net                    combined ratio                               | 87.5%                                                                                                                           |   | 73.5%                                                                                                                |   | 87.0% |   | 70.5% |

----

**Financial          Condition**

***    Liquidity          and          Capital Resources***

----

**Investments**

|                                                       | **Cost                      /**                                                                                               |   | **Fair**                                                                                                                           |   | **%                      of Total**    |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|
|                                                       | **Amortized                      Cost**                                                                                       |   | **Value**                                                                                                                          |   | **at                      Fair Value** |
|                                                       | **(in                      millions)**                                                                                        |   |                                                                                                                               |
|                                                       |                                                                                                                          |   |                                                                                                                               |   |                                   |
| Debt                      securities, available for sale   | $                                       451.8 |   | $                                       447.9 |   | 91.5%                                  |
| Equity                      securities, available for sale | 2.0                                                                                                                           |   | 2.0                                                                                                                                |   | 0.4%                                   |
| Cash                      and cash equivalents             | 39.9                                                                                                                          |   | 39.9                                                                                                                               |   | 8.1%                                   |
|                                                       |                                                                                                                          |   |                                                                                                                               |   |                                   |
| Total                                                      | $                  493.7            |   | $                                       489.8      |   | 100.0%                                 |

*    Investment          Strategy.*

*    Investment          Portfolio. *

----

| Cash                      and cash equivalents                 | $                                39.9 |   | 8.1%   |
|----------------------------------------------------------------|------------------------------------------------------------------------------------|--------|--------|
| U.S.                      Government securities                | 4.4                                                                                |   | 0.9%   |
| Mortgage                      backed bonds                     | 62.0                                                                               |   | 12.7%  |
| Tax-exempt                      bonds                          | 205.2                                                                              |   | 41.9%  |
| Collateralized                      mortgage obligations       | 21.7                                                                               |   | 4.4%   |
| Corporate                      and other                       | 158.5                                                                              |   | 32.4%  |
| Preferred                      stocks                          | 2.0                                                                                |   | 0.4%   |
| Net                      unrealized losses on fixed maturities | (3.9)                                                                              |   | -0.8%  |
|                                                           |                                                                               |   |   |
| Total                      investments at market value         | $                              489.8            |   | 100.0% |

|                                                     | **Amortized**                                                                                                                                                   |   | **Unrealized**                                                                                                                                                                        |   | **Unrealized**                                                                                                                                                                             |   | **Estimated**                                                                                                                                                   |
|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     | **Cost**                                                                                                                                                        |   | **Gains**                                                                                                                                                                             |   | **Losses**                                                                                                                                                                                 |   | **Market                      Value**                                                                                                                           |
|                                                     | **(in                      millions)**                                                                                                                          |
|                                                     |                                                                                                                                                            |   |                                                                                                                                                                                  |   |                                                                                                                                                                                       |   |                                                                                                                                                            |
| U.S.                      Government securities          | $                                             4.4 |   | $                                                 - |   | $                         0.1                                 |   | $                                             4.3 |
| Mortgage                      backed bonds               | 62.0                                                                                                                                                            |   | 0.1                                                                                                                                                                                   |   | 0.8                                                                                                                                                                                        |   | 61.3                                                                                                                                                            |
| Tax-exempt                      bonds                    | 205.2                                                                                                                                                           |   | 0.7                                                                                                                                                                                   |   | 1.9                                                                                                                                                                                        |   | 204.0                                                                                                                                                           |
| Collateralized                      mortgage obligations | 21.7                                                                                                                                                            |   | -                                                                                                                                                                                     |   | 0.2                                                                                                                                                                                        |   | 21.5                                                                                                                                                            |
| Corporate                      and other                 | 158.5                                                                                                                                                           |   | 0.5                                                                                                                                                                                   |   | 2.2                                                                                                                                                                                        |   | 156.8                                                                                                                                                           |
|                                                     |                                                                                                                                                            |   |                                                                                                                                                                                  |   |                                                                                                                                                                                       |   |                                                                                                                                                            |
| Total                      fixed maturities              | 451.8                                                                                                                                                           |   | 1.3                                                                                                                                                                                   |   | 5.2                                                                                                                                                                                        |   | 447.9                                                                                                                                                           |
|                                                     |                                                                                                                                                            |   |                                                                                                                                                                                  |   |                                                                                                                                                                                       |   |                                                                                                                                                            |
| Preferred                      stock                     | 2.0                                                                                                                                                             |   | -                                                                                                                                                                                     |   | -                                                                                                                                                                                          |   | 2.0                                                                                                                                                             |
|                                                     |                                                                                                                                                            |   |                                                                                                                                                                                  |   |                                                                                                                                                                                       |   |                                                                                                                                                            |
| Total                                                    | $                                         453.8                       |   | $                                                                  1.3  |   | $                                                                   5.2 |   | $                                         449.9                       |

|                                                  | **NAIC**   |   | **Amortized**                                                                                                                             |   | **Fair**                                                                                                                                  |   | **%                      of Total**    |
|-------------------------------------------------------|------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|
|                                                  | **Rating** |   | **Cost**                                                                                                                                  |   | **Value**                                                                                                                                 |   | **at                      Fair Value** |
|                                                  |       |   | **(in                      millions)**                                                                                                    |   |                                                                                                                                      |
| **Standard                      & Poor's Rating** |       |   |                                                                                                                                      |   |                                                                                                                                      |   |                                   |
| AAA                                                   | 1          |   | $                    313.4            |   | $                                         310.3 |   | 69.3%                                  |
| AA                                                    | 1          |   | 77.2                                                                                                                                      |   | 76.6                                                                                                                                      |   | 17.1%                                  |
| A                                                     | 1          |   | 53.3                                                                                                                                      |   | 53.1                                                                                                                                      |   | 11.8%                                  |
| BBB                                                   | 2          |   | 3.5                                                                                                                                       |   | 3.6                                                                                                                                       |   | 0.8%                                   |
| U.S.                      Treasuries agencies         | 1          |   | 4.4                                                                                                                                       |   | 4.3                                                                                                                                       |   | 1.0%                                   |
|                                                  |       |   |                                                                                                                                      |   |                                                                                                                                      |   |                                   |
| Total                      fixed maturity investments |       |   | $                                         451.8 |   | $                                         447.9 |   | 100.0%                                 |

----

**Forward-Looking          Statements**

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

***Interest          Rate Risk***

*    Investments.          *

*    Credit          Facility. *

----

***Credit          Risk***

*    Investments.          *

*    Reinsurance*

**Item 4.          Controls and Procedures**

**PART          II-OTHER INFORMATION**

**Item          1.  Legal Proceedings** 

----

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

| **Repurchase                      of Equity Securities**     |   |                                  |   |                                                                                                                                                                      |   |                                                |   |                                                                                                                                                                                                                                                                                                                         |
|--------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                         |   |                                  |   |                                                                                                                                                                      |   |                                                |   |                                                                                                                                                                                                                                                                                                                         |
|                                                         |   |                                  |   |                                                                                                                                                                      |   | **Total                      Number of**            |   | **Maximum                      Dollar Value**                                                                                                                                                                                                                                                                                |
|                                                         |   | **Total                      Number** |   | **Average**                                                                                                                                                               |   | **Shares                      Purchased as**        |   | **of                      Shares that May Yet**                                                                                                                                                                                                                                                                              |
|                                                         |   | **of                      Shares**    |   | **Price                      Paid**                                                                                                                                       |   | **Part                      of Publicly Announced** |   | **Be                      Purchased Under**                                                                                                                                                                                                                                                                                  |
| **Period**                                                   |   | **Purchased**                         |   | **per                      Share**                                                                                                                                        |   | **Plans                      or Programs**          |   | **the                      Plans or Programs**                                                                                                                                                                                                                                                                               |
|                                                         |   |                                  |   |                                                                                                                                                                      |   |                                                |   |                                                                                                                                                                                                                                                                                                                         |
| July                      1, 2005 to July 31, 2005           |   | -                                     |   | $                                               - |   | -                                                   |   | $                               13,843,003                                                                                                                        |
| August                      1, 2005 to August 31, 2005       |   | 759,700                               |   | 16.71                                                                                                                                                                     |   | 759,700                                             |   | 1,151,472                                                                                                                                                                                                                                                                                                                    |
| September                      1, 2005 to September 30, 2005 |   | 66,423                                |   | 17.34                                                                                                                                                                     |   | 66,423                                              |   | -                                                                                                                                                                                                                                                                                                                            |
| Total                                                        |   | 826,123                               |   | $                                       16.76                                             |   | 826,123                                             |   | $                                                                                         - |

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

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

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

----

**Item 6.          Exhibits**

| **Exhibit****Number** |               | **Description                    of Document**                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.1             |     | Agreement                  to                  terminate and commute the 2005-2006 Quota Share Reinsurance Contract                  by                  and among National Union Fire Insurance Company of Pittsburgh,                  PA and                  Coast National Insurance Company, Security National Insurance Company,                  Bristol West Insurance Company and Bristol West Casualty Insurance                  Company, dated October 31, 2005 |
| 10.2                  |               | Services                    Agreement by and among BRW Acquisition, Inc. and Firemark Partners,                    LLC,                    dated July 24, 2002                                                                                                                                                                                                                                                                                                          |
| 10.3                  |               | Correction and Amendment of the July 24,                    2002 Services                    Agreement between BRW Acquisition, Inc. and Firemark Partners,                    LLC, dated                    November 8, 2005                                                                                                                                                                                                                                           |
| 31.1                  |               | Rule 13a-14(a)/15d-14(a)                    Certification of                    Chief Executive Officer (pursuant to Section 302 of the                    Sarbanes-Oxley Act of 2002)                                                                                                                                                                                                                                                                        |
| 31.2                  |               | Rule 13a-14(a)/15d-14(a)                    Certification of Chief Financial Officer (pursuant to Section 302 of                    the Sarbanes-Oxley Act of 2002)                                                                                                                                                                                                                                                                                           |
| 32                    |               | Section 1350                    Certification of Chief Executive Officer and Chief Financial                    Officer                    (pursuant to Section 906 of the Sarbanes-Oxley Act of                    2002)*                                                                                                                                                                                                                                    |

----

**SIGNATURES**

|                                 |   |   | BRISTOL                    WEST HOLDINGS, INC.(Registrant)                                                                  |
|--------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|                                 |   |   |                                                                                                                        |
| November                    14, 2005 |   | By:    | /s/                    JAMES R. FISHER                                                                                      |
| Date                                 |   |   | (Signature)                                                                                                                 |
|                                 |   |   |                                                                                                                        |
|                                 |   | Name:  | James                    R. Fisher                                                                                          |
|                                 |   | Title: | Chairman,                    Chief Executive Officer (PrincipalExecutive                    Officer)                        |
|                                 |   |   |                                                                                                                        |
|                                 |   |   |                                                                                                                        |
| November                    14, 2005 |   | By:    | /s/                    CRAIG E. EISENACHER                                                                                  |
| Date                                 |   |   | (Signature)                                                                                                                 |
|                                 |   |   |                                                                                                                        |
|                                 |   | Name:  | Craig                    E. Eisenacher                                                                                      |
|                                 |   | Title: | Chief                    Financial Officer (Principal FinancialOfficer                    and Principal Accounting Officer) |

----