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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C.  20549**

**FORM      10-Q**

| **(Mark                One)**                                                              |                                                                                                                                           |
|--------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| x                                                                                          | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934**            |
| **For                the quarterly period ended March 31, 2007**                           |
| **Or**                                                                                     |
| o                                                                                          | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT                OF 1934** |
| **For                the transition period                from    to** |

**Commission      File No. 001-31984**

**BRISTOL      WEST HOLDINGS, INC.**

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

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**INDEX      TO QUARTERLY REPORT**

**ON      FORM 10-Q**

|                           |   |   |                                                                                                                                                                        | Page   |   |
|--------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Part                  I        |   |   | Financial                  Information                                                                                                                                      |   |   |   |   |
| Item                  1.       |   |   | Financial                  Statements:                                                                                                                                      |   |   |  |   |
|                           |   |   | Condensed                  Consolidated Balance Sheets as of March 31, 2007 and December 31,                  2006                  (unaudited)                             |   |   | 1 |   |
|                           |   |   | Condensed                  Consolidated Statements of Income for the three months ended March                  31,                  2007 and 2006 (unaudited)               |   |   | 2 |   |
|                           |   |   | Condensed                  Consolidated Statements of Changes in Stockholders’ Equity for the three                  months ended March 31, 2007 and 2006 (unaudited) |   |   | 3 |   |
|                           |   |   | Condensed                  Consolidated Statements of Cash Flows for the three months ended                  March 31,                  2007 and 2006 (unaudited)           |   |   | 4 |   |
|                           |   |   | Notes                  to Condensed Consolidated Financial Statements (unaudited)                                                                                           |   |   | 5 |   |
| Item                  2.       |   |   | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                               |   |   | 13 |   |
| Item                  3.       |   |   | Quantitative                  and Qualitative Disclosures About Market Risk                                                                                                 |   |   | 29 |   |
| Item                  4.       |   |   | Controls                  and Procedures                                                                                                                                    |   |   | 30 |   |
|                           |   |   |                                                                                                                                                                        |   |   |   |   |
| Part                  II       |   |   | Other                  Information                                                                                                                                          |   |   |   |   |
| Item                  1.       |   |   | Legal                  Proceedings                                                                                                                                          |   |   | 30 |   |
| Item                  1A.      |   |   | Risk                  Factors                                                                                                                                               |   |   | 31 |   |
| Item                  2.       |   |   | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                                |   |   | 31 |   |
| Item                  6.       |   |   | Exhibits                                                                                                                                                                    |   |   | 31 |   |
| Signatures                     |   |   | 33                                                                                                                                                                          |   |
| Exhibit                  Index |   |   | 34                                                                                                                                                                          |   |

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**BRISTOL      WEST HOLDINGS, INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

|                                                                                                                                  |   | **March                  31,**                         |    | **December                  31,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|-----------------------------------|--------|
|                                                                                                                                  |   | **2007**                                               |    | **2006**                          |   |
|                                                                                                                                  |   | **(in                  thousands, except share data)** |    |
| **Assets:**                                                                                                                           |   |                                                   |    |                              |   |
| Investments:                                                                                                                          |   |                                                   |    |                              |   |
| Fixed                  maturities available-for-sale (amortized cost $488,412 and $496,813                  at                        |   |                                                   |    |                              |   |
| March                  31, 2007 and December 31, 2006, respectively)                                                                  |   | $                                                      | 486,499 |                              | $      | 493,727 |   |
| Equity                  securities (cost $2,500 and $2,000 at March 31, 2007 and December                  31,                  2006) |   |                                                   | 2,500   |                              |   | 2,000 |   |
| Total                  investments                                                                                                    |   |                                                   | 488,999 |                              |   | 495,727 |   |
| Cash                  and cash equivalents                                                                                            |   |                                                   | 58,598  |                              |   | 49,293 |   |
| Accrued                  investment income                                                                                            |   |                                                   | 5,231   |                              |   | 5,637 |   |
| Premiums                  and other receivables (net of allowance for doubtful accounts of                  $6,517                    |   |                                                   |    |                              |   |   |   |
| and                  $6,096 at March 31, 2007 and December 31, 2006,                  respectively)                                   |   |                                                   | 174,693 |                              |   | 175,892 |   |
| Reinsurance                  recoverables on paid and unpaid losses and loss adjustment                  expenses                     |   |                                                   | 46,901  |                              |   | 37,911 |   |
| Prepaid                  reinsurance                                                                                                  |   |                                                   | 3,063   |                              |   | 2,730 |   |
| Deferred                  policy acquisition costs                                                                                    |   |                                                   | 47,171  |                              |   | 47,243 |   |
| Property,                  software and equipment - net                                                                               |   |                                                   | 20,009  |                              |   | 20,036 |   |
| Goodwill                                                                                                                              |   |                                                   | 101,481 |                              |   | 101,481 |   |
| Other                  assets                                                                                                         |   |                                                   | 12,132  |                              |   | 8,609 |   |
| Total                  assets                                                                                                         |   | $                                                      | 958,278 |                              | $      | 944,559 |   |
| **Liabilities                  and Stockholders' Equity:**                                                                            |   |                                                   |    |                              |   |   |   |
| Liabilities:                                                                                                                          |   |                                                   |    |                              |   |   |   |
| Policy                  liabilities:                                                                                                  |   |                                                   |    |                              |   |   |   |
| Reserve                  for losses and loss adjustment expenses                                                                      |   | $                                                      | 250,879 |                              | $      | 239,177 |   |
| Unearned                  premiums                                                                                                    |   |                                                   | 197,626 |                              |   | 189,605 |   |
| Total                  policy liabilities                                                                                             |   |                                                   | 448,505 |                              |   | 428,782 |   |
| Reinsurance                  payables                                                                                                 |   |                                                   | 4,240   |                              |   | 3,265 |   |
| Accounts                  payable and other liabilities                                                                               |   |                                                   | 35,314  |                              |   | 45,858 |   |
| Deferred                  income taxes                                                                                                |   |                                                   | 9,718   |                              |   | 9,903 |   |
| Long-term                  debt, including current portion                                                                            |   |                                                   | 100,000 |                              |   | 100,000 |   |
| Total                  liabilities                                                                                                    |   |                                                   | 597,777 |                              |   | 587,808 |   |
| Commitments                  and contingent liabilities (Note 7)                                                                      |   |                                                   |    |                              |   |   |   |
| Stockholders'                  equity:                                                                                                |   |                                                   |    |                              |   |   |   |
| Preferred                  stock, $0.01 par value (15,000,000 shares authorized; 0 shares                                             |   |                                                   |    |                              |   |   |   |
| outstanding                  at March 31, 2007 and December 31, 2006)                                                                 |   |                                                   | -       |                              |   | - |   |
| Common                  stock, $0.01 par value (200,000,000 shares authorized; 33,346,514                  and                        |   |                                                   |    |                              |   |   |   |
| 33,269,364                  shares issued at March 31, 2007 and December 31, 2006,                  respectively)                     |   |                                                   | 333     |                              |   | 332 |   |
| Additional                  paid-in capital                                                                                           |   |                                                   | 236,272 |                              |   | 235,086 |   |
| Retained                  earnings                                                                                                    |   |                                                   | 180,224 |                              |   | 178,270 |   |
| Treasury                  stock at cost (3,777,068 and 3,768,670 shares held at March 31,                  2007 and                   |   |                                                   |    |                              |   |   |   |
| December                  31, 2006, respectively)                                                                                     |   |                                                   | (55,083 | )                                 |   | (54,937 | ) |
| Stock                  subscription receivable                                                                                        |   |                                                   | (22     | )                                 |   | (27 | ) |
| Accumulated                  other comprehensive loss                                                                                 |   |                                                   | (1,223  | )                                 |   | (1,973 | ) |
| Total                  stockholders' equity                                                                                           |   |                                                   | 360,501 |                              |   | 356,751 |   |
| Total                  liabilities and stockholders' equity                                                                           |   | $                                                      | 958,278 |                              | $      | 944,559 |   |

----

**BRISTOL        WEST HOLDINGS, INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF INCOME**

**(Unaudited)**

|                                                          |   | **Three                  Months Ended March 31,**          |    |
|---------------------------------------------------------------|--------|------------------------------------------------------------|---------|
|                                                          |   | **2007**                                                   |    | **2006** |   |
|                                                          |   | **(in                  thousands, except per share data)** |    |
| **Revenues:**                                                 |   |                                                       |    |   |   |
| Net                  earned premium                           |   | $                                                          | 151,179 |   | $ | 144,278 |   |
| Net                  investment income                        |   |                                                       | 6,055   |   |   | 4,967 |   |
| Realized                  gain on investments, net            |   |                                                       | 17      |   |   | 68 |   |
| Policy                  service fee revenue                   |   |                                                       | 14,101  |   |   | 13,836 |   |
| Other                  income                                 |   |                                                       | 1,009   |   |   | 734 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| Total                  revenues                               |   |                                                       | 172,361 |   |   | 163,883 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| **Costs                  and Expenses:**                      |   |                                                       |    |   |   |   |   |
| Losses                  and loss adjustment expenses incurred |   |                                                       | 112,703 |   |   | 97,658 |   |
| Commissions                  and other underwriting expenses  |   |                                                       | 39,723  |   |   | 37,526 |   |
| Other                  operating and general expenses         |   |                                                       | 11,913  |   |   | 10,383 |   |
| Interest                  expense                             |   |                                                       | 1,640   |   |   | 1,206 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| Total                  costs and expenses                     |   |                                                       | 165,979 |   |   | 146,773 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| Income                  before income taxes                   |   |                                                       | 6,382   |   |   | 17,110 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| Income                  taxes                                 |   |                                                       | 2,119   |   |   | 5,920 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| **Net                  Income**                               |   | $                                                          | 4,263   |   | $ | 11,190 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| Net                  income per common share - Basic          |   | $                                                          | 0.15    |   | $ | 0.38 |   |
| Net                  income per common share - Diluted        |   | $                                                          | 0.14    |   | $ | 0.36 |   |
|                                                          |   |                                                       |    |   |   |   |   |
| Dividends                  declared per common share          |   | $                                                          | 0.08    |   | $ | 0.07 |   |

----

**BRISTOL        WEST HOLDINGS, INC. **

**CONDENSED          CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY**

**(Unaudited)**

|                                                                                                                                  |   | **Three                  Months Ended March**          |    |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                                                                                                                  |   | **2007**                                               |    | **2006** |   |
|                                                                                                                                  |   | **(in                  thousands, except share data)** |    |
| **STOCKHOLDERS'                  EQUITY:**                                                                                            |   |                                                   |    |   |   |
|                                                                                                                                  |   |                                                   |    |   |   |
| **Common                  Stock**                                                                                                     |   |                                                   |    |   |   |
| Balance,                  beginning of period                                                                                         |   | $                                                      | 332     |   | $ | 328 |   |
| Exercise                  of options and warrants, including tax benefit (21,843 shares--2007;                  127,075 shares--2006) |   |                                                   | -       |   |   | 1 |   |
| Shares                  issued for services (2,357 shares--2007; 3,470 shares--2006)                                                  |   |                                                   | -       |   |   | - |   |
| Issuance                  of restricted common stock (52,862 shares--2007; 259,322 shares--2006)                                      |   |                                                   | 1       |   |   | 3 |   |
| Shares                  issued in payment of dividend (87 shares--2007; 81 shares--2006)                                              |   |                                                   | -       |   |   | - |   |
| Balance,                  end of period                                                                                               |   |                                                   | 333     |   |   | 332 |   |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Additional                  Paid-In Capital**                                                                                       |   |                                                   |    |   |   |   |   |
| Balance,                  beginning of period                                                                                         |   |                                                   | 235,086 |   |   | 235,308 |   |
| Exercise                  of options and warrants, including tax benefit (21,843 shares--2007;                  127,075 shares--2006) |   |                                                   | 368     |   |   | 1,179 |   |
| Shares                  issued for services (2,357 shares--2007; 3,470 shares--2006)                                                  |   |                                                   | 52      |   |   | 88 |   |
| Issuance                  of restricted common stock (52,862 shares--2007; 259,322 shares--2006)                                      |   |                                                   | -       |   |   | (3 | ) |
| Shares                  issued in payment of dividend (87 shares--2007; 81 shares--2006)                                              |   |                                                   | 2       |   |   | 1 |   |
| Restricted                  stock forfeited (437 shares--2007; 2,724 shares--2006)                                                    |   |                                                   | 8       |   |   | 51 |   |
| Amortization                  of deferred compensation on restricted stock                                                            |   |                                                   | 755     |   |   | 660 |   |
| Tax                  benefit on vesting of restricted stock                                                                           |   |                                                   | 1       |   |   | - |   |
| Reclassification                  resulting from adoption of accounting principle (SFAS No. 123R)                                     |   |                                                   | -       |   |   | (5,763 | ) |
| Balance,                  end of period                                                                                               |   |                                                   | 236,272 |   |   | 231,521 |   |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Retained                  Earnings**                                                                                                |   |                                                   |    |   |   |   |   |
| Balance,                  beginning of period                                                                                         |   |                                                   | 178,270 |   |   | 144,609 |   |
| Net                  income                                                                                                           |   |                                                   | 4,263   |   |   | 11,190 |   |
| Dividend                  to common shareholders ($0.08 per share--2007; $0.07 per share--2006)                                       |   |                                                   | (2,309  | ) |   | (2,086 | ) |
| Balance,                  end of period                                                                                               |   |                                                   | 180,224 |   |   | 153,713 |   |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Deferred                  Compensation on Restricted Stock**                                                                        |   |                                                   |    |   |   |   |   |
| Balance,                  beginning of period                                                                                         |   |                                                   | -       |   |   | (5,763 | ) |
| Reclassification                  resulting from adoption of accounting principle (SFAS No. 123R)                                     |   |                                                   | -       |   |   | 5,763 |   |
| Balance,                  end of period                                                                                               |   |                                                   | -       |   |   | - |   |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Treasury                  Stock**                                                                                                   |   |                                                   |    |   |   |   |   |
| Balance,                  beginning of period                                                                                         |   |                                                   | (54,937 | ) |   | (34,078 | ) |
| Acquisition                  of treasury stock (7,961 shares--2007; 476,562 shares--2006)                                             |   |                                                   | (138    | ) |   | (8,816 | ) |
| Restricted                  stock forfeited (437 shares--2007; 2,724 shares--2006)                                                    |   |                                                   | (8      | ) |   | (51 | ) |
| Balance,                  end of period                                                                                               |   |                                                   | (55,083 | ) |   | (42,945 | ) |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Stock                  Subscription Receivable**                                                                                    |   |                                                   |    |   |   |   |   |
| Balance,                  beginning of period                                                                                         |   |                                                   | (27     | ) |   | (59 | ) |
| Payment                  of stock subscriptions receivable                                                                            |   |                                                   | 5       |   |   | 15 |   |
| Balance,                  end of period                                                                                               |   |                                                   | (22     | ) |   | (44 | ) |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Accumulated                  Other Comprehensive Loss**                                                                             |   |                                                   |    |   |   |   |   |
| Balance,                  beginning of period                                                                                         |   |                                                   | (1,973  | ) |   | (3,390 | ) |
| Unrealized                  holdings gains/(losses) arising during the period                                                         |   |                                                   | 741     |   |   | (2,171 | ) |
| Reclassification                  adjustment                                                                                          |   |                                                   | 9       |   |   | 7 |   |
| Net                  unrealized gain/(losses) on securities                                                                           |   |                                                   | 750     |   |   | (2,164 | ) |
| Balance,                  end of period                                                                                               |   |                                                   | (1,223  | ) |   | (5,554 | ) |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **Total                  Stockholders' Equity**                                                                                       |   | $                                                      | 360,501 |   | $ | 337,023 |   |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| **COMPREHENSIVE                  INCOME:**                                                                                            |   |                                                   |    |   |   |   |   |
|                                                                                                                                  |   |                                                   |    |   |   |   |   |
| Net                  income                                                                                                           |   | $                                                      | 4,263   |   | $ | 11,190 |   |
| Net                  unrealized gain/(losses) on securities                                                                           |   |                                                   | 750     |   |   | (2,164 | ) |
| **Comprehensive                  Income**                                                                                             |   | $                                                      | 5,013   |   | $ | 9,026 |   |

----

**BRISTOL        WEST HOLDINGS, INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                       |   | **Three                  Months Ended March 31,** |    |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                                                       |   | **2007**                                          |    | **2006** |   |
|                                                                                                       |   | **(in                  thousands)**               |    |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                 |   |                                              |    |   |   |
| Net                  income                                                                                |   | $                                                 | 4,263   |   | $ | 11,190 |   |
| Adjustments                  to reconcile net income to net cash provided by                               |   |                                              |    |   |   |   |   |
| operating                  activities:                                                                     |   |                                              |    |   |   |   |   |
| Accretion                  of fixed maturity investments                                                   |   |                                              | 900     |   |   | 1,116 |   |
| Depreciation                  and amortization                                                             |   |                                              | 1,829   |   |   | 1,705 |   |
| Realized                  loss on disposal of property, software and equipment                             |   |                                              | 17      |   |   | - |   |
| Realized                  investment gain                                                                  |   |                                              | (17     | ) |   | (68 | ) |
| Deferred                  federal and state income taxes                                                   |   |                                              | (613    | ) |   | 165 |   |
| Stock                  based compensation                                                                  |   |                                              | 814     |   |   | 734 |   |
| Changes                  in assets and liabilities:                                                        |   |                                              |    |   |   |   |   |
| Accrued                  investment income                                                                 |   |                                              | 406     |   |   | 443 |   |
| Premiums                  and other receivables                                                            |   |                                              | 1,199   |   |   | (5,725 | ) |
| Reinsurance                  receivables                                                                   |   |                                              | (8,990  | ) |   | 21,984 |   |
| Prepaid                  reinsurance premiums                                                              |   |                                              | (333    | ) |   | 18,333 |   |
| Deferred                  policy acquisition costs                                                         |   |                                              | 72      |   |   | (6,448 | ) |
| Losses                  and loss adjustment expenses                                                       |   |                                              | 11,702  |   |   | (4,544 | ) |
| Unearned                  premiums                                                                         |   |                                              | 8,021   |   |   | 10,407 |   |
| Reinsurance                  payables                                                                      |   |                                              | 975     |   |   | (26,797 | ) |
| Other                  assets and liabilities                                                              |   |                                              | (3,683  | ) |   | (9,517 | ) |
|                                                                                                       |   |                                              |    |   |   |   |   |
| Net                  cash provided by operating activities                                                 |   |                                              | 16,562  |   |   | 12,978 |   |
|                                                                                                       |   |                                              |    |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                                 |   |                                              |    |   |   |   |   |
| Purchase                  of fixed maturity investments - available-for-sale                               |   |                                              | (37,171 | ) |   | (24,523 | ) |
| Sales                  and maturities of fixed maturity investments -                  available-for-sale  |   |                                              | 34,104  |   |   | 11,311 |   |
| Purchase                  of equity securities                                                             |   |                                              | (500    | ) |   | - |   |
| Acquisition                  of property, software and equipment                                           |   |                                              | (1,764  | ) |   | (1,298 | ) |
|                                                                                                       |   |                                              |    |   |   |   |   |
| Net                  cash used in investing activities                                                     |   |                                              | (5,331  | ) |   | (14,510 | ) |
|                                                                                                       |   |                                              |    |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                 |   |                                              |    |   |   |   |   |
| Proceeds                  from exercise of stock options                                                   |   |                                              | 309     |   |   | 62 |   |
| Tax                  benefit on exercise of stock options and vesting of restricted                  stock |   |                                              | 67      |   |   | 693 |   |
| Acquisition                  of treasury stock                                                             |   |                                              | -       |   |   | (7,927 | ) |
| Principal                  payments on long-term debt                                                      |   |                                              | -       |   |   | (975 | ) |
| Payment                  of dividends to stockholders                                                      |   |                                              | (2,307  | ) |   | (2,084 | ) |
| Other                                                                                                      |   |                                              | 5       |   |   | 15 |   |
|                                                                                                       |   |                                              |    |   |   |   |   |
| Net                  cash used in financing activities                                                     |   |                                              | (1,926  | ) |   | (10,216 | ) |
|                                                                                                       |   |                                              |    |   |   |   |   |
| **NET                  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**                                  |   |                                              | 9,305   |   |   | (11,748 | ) |
|                                                                                                       |   |                                              |    |   |   |   |   |
| Cash                  and cash equivalents, January 1                                                      |   |                                              | 49,293  |   |   | 32,399 |   |
|                                                                                                       |   |                                              |    |   |   |   |   |
| Cash                  and cash equivalents, March 31                                                       |   | $                                                 | 58,598  |   | $ | 20,651 |   |

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

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

*Merger      of Bristol West and a Subsidiary of Farmers Group, Inc.*

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

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

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

**3.          **
**Recent      Accounting Pronouncements**

*The      Fair Value Option for Financial Assets and Financial Liabilities-including      an      amendment of SFAS 115”*

*Fair      Value Measurements” *

*Accounting      for Uncertainty in Income Taxes*
*Accounting      for Income Taxes”*

*Accounting      for Certain Hybrid Financial Instruments”*
*Accounting      for Derivative Instruments and Hedging Activity”*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities.”*

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

**4.          **
**Stock      Ownership**

**(Number      of shares, options, warrants, and share prices expressed in whole      numbers)**

*Employee      Stock Options*

| **Option                  shares**             |   | **Number****of                  Shares** |      | **Weighted                  Average Exercise Price** |   |
|------------------------------------------------|--------|------------------------------------------|-----------|------------------------------------------------------|--------|
|                                           |   |                                     |      |                                                 |   |
| Outstanding                  December 31, 2006 |   |                                     | 1,295,128 |                                                 | $      | 4.54 |   |
|                                           |   |                                     |      |                                                 |   |   |   |
| Exercised                  during 2007         |   |                                     | (21,843   | )                                                    |   | 14.14 |   |
| Expired                  during 2007           |   |                                     | (774      | )                                                    |   | 9.39 |   |
|                                           |   |                                     |      |                                                 |   |   |   |
| Outstanding                  March 31, 2007    |   |                                     | 1,272,511 |                                                 | $      | 4.37 |   |

|                                |   | **Options                  Outstanding** |      | **Options                  Exercisable** |   |
|-------------------------------------|--------|------------------------------------------|-----------|------------------------------------------|--------|
|                                |   |                                     |      | **Weighted**                             |   | **Remaining** |   |   |   | **Weighted** |   |
|                                |   |                                     |      | **Average**                              |   | **Term** |   |   |   | **Average** |   |
| **Exercise                  Price** |   | **Shares**                               |      | **Price**                                |   | **(in                  years)** |   | **Shares** |   | **Price** |   |
|                                |   |                                     |      |                                     |   |   |   |   |   |   |   |
| $3.83                               |   |                                     | 1,167,530 |                                     | $      | 3.83 |   |   | 1.44 |   |   | 1,133,238 |   | $ | 3.83 |   |
| $7.67                  - $20.91     |   |                                     | 104,981   |                                     |   | 10.36 |   |   | 5.45 |   |   | 85,683 |   |   | 10.96 |   |
|                                |   |                                     | 1,272,511 |                                     | $      | 4.37 |   |   | 1.77 |   |   | 1,218,921 |   | $ | 4.33 |   |

*Non-Employee      Options and Warrants*

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

*Restricted      Shares*

*Share-Based      Payments (revised 2004)*

| Shares                  outstanding, December 31, 2006 |   |   | 668,113 |   |
|--------------------------------------------------------|--------|--------|---------|--------|
| Shares                  granted                        |   |   | 52,862  |   |
| Shares                  forfeited                      |   |   | (437    | )      |
| Shares                  vested                         |   |   | (42,833 | )      |
| Shares                  outstanding, March 31, 2007    |   |   | 677,705 |   |

*Recent      Accounting Pronouncements*

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

**5.          **
**Debt**

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

**6.          **
**Net      Income per Share**

|                                                            |   | **Three                    Months Ended March 31,** |       |
|-----------------------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                                            |   | **2007**                                            |       | **2006** |   |
|                                                            |   |                                                |       |   |   |
| Net                    income applicable to common stockholders |   | $                                                   | 4,263      |   | $ | 11,190 |   |
|                                                            |   |                                                |       |   |   |   |   |
| Weighted                    average common shares - basic       |   |                                                | 28,852,708 |   |   | 29,733,363 |   |
| Effect                    of dilutive securities:               |   |                                                |       |   |   |   |   |
| Options                                                         |   |                                                | 1,068,242  |   |   | 1,169,306 |   |
| Restricted                    stock                             |   |                                                | 302,755    |   |   | 197,557 |   |
| Warrants                                                        |   |                                                | 217,329    |   |   | 224,809 |   |
| Weighted                    average common shares - dilutive    |   |                                                | 30,441,034 |   |   | 31,325,035 |   |
|                                                            |   |                                                |       |   |   |   |   |
| Basic                    Earnings Per Share                     |   | $                                                   | 0.15       |   | $ | 0.38 |   |
|                                                            |   |                                                |       |   |   |   |   |
| Diluted                    Earnings Per Share                   |   | $                                                   | 0.14       |   | $ | 0.36 |   |

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

----

**BRISTOL        WEST HOLDINGS, INC.**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

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

**8.          **
**Income      Taxes**

----

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

**Overview**

***General***

----

*Item      1. Business*

*Important      Additional Information Will Be Filed With the SEC*

----

***Products      and Services***

** **
**,      **
**.      **

***Distribution      and Marketing***

|                            |   | **Producers**                       |   | **Producer                  Locations** |   |
|---------------------------------|--------|-------------------------------------|--------|-----------------------------------------|--------|
| **State**                       |   | **March                  31, 2007** |   | **March                  31, 2006**     |   | **March                  31, 2007** |   | **March                  31, 2006** |   |
|                            |   |                                |   |                                    |   |   |   |   |   |
| California                      |   |                                | 1,669  |                                    |   | 1,175 |   |   | 2,484 |   |   | 1,970 |   |
| Florida                         |   |                                | 1,711  |                                    |   | 1,405 |   |   | 2,211 |   |   | 1,712 |   |
| Michigan                        |   |                                | 649    |                                    |   | 644 |   |   | 954 |   |   | 886 |   |
| South                  Carolina |   |                                | 404    |                                    |   | 395 |   |   | 459 |   |   | 440 |   |
| Texas                           |   |                                | 976    |                                    |   | 826 |   |   | 1,583 |   |   | 1,280 |   |
| All                  Others     |   |                                | 4,274  |                                    |   | 3,778 |   |   | 5,365 |   |   | 4,659 |   |
|                            |   |                                |   |                                    |   |   |   |   |   |   |   |   |   |
| Totals                          |   |                                | 9,683  |                                    |   | 8,223 |   |   | 13,056 |   |   | 10,947 |   |

----

***Policies-in-Force***

|                                               |   | **Three                months ended March 31,** |    | %        |   |
|----------------------------------------------------|--------|-------------------------------------------------|---------|----------|--------|
|                                               |   | **2007**                                        |    | **2006** |   | **Change** |   |
|                                               |   | **(in                thousands)**               |    |     |   |
|                                               |   |                                            |    |     |   |   |   |
| Average                number of policies in force |   |                                            | 429.7   |     |   | 410.4 |   |   | 4.7 | % |
|                                               |   |                                            |    |     |   |  |   |   |   |   |
| Gross                earned premium                |   | $                                               | 153,491 |     | $      | 146,779 |   |   | 4.6 | % |

***Operating      Results - Key States***

|                                      |   | **Three                  months ended March 31, 2007** |   |
|-------------------------------------------|--------|--------------------------------------------------------|--------|
| **State**                                 |   | **Increases**                                          |   | **Decreases** |   | **Revenue-neutral** |   | **Total** |   |
|                                      |   |                                                   |   |   |   |   |   |   |   |
| California                                |   |                                                   | 1      |   |   | 6 |   |   | 29 |   |   | 36 |   |
| Florida                                   |   |                                                   | 10     |   |   | 4 |   |   | 7 |   |   | 21 |   |
| Michigan                                  |   |                                                   | 6      |   |   | 1 |   |   | - |   |   | 7 |   |
| South                  Carolina           |   |                                                   | -      |   |   | 1 |   |   | 1 |   |   | 2 |   |
| Texas                                     |   |                                                   | 1      |   |   | - |   |   | 1 |   |   | 2 |   |
| All                  Other                |   |                                                   | 35     |   |   | 40 |   |   | 85 |   |   | 160 |   |
|                                      |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                  Rate Revisions** |   |                                                   | 53     |   |   | 52 |   |   | 123 |   |   | 228 |   |

----

*Results      of Operations -*
*Three      Months Ended March 31, 2007 Compared to Three Months Ended March 31, 2006 -      Revenues - Gross Written Premium*

|                                                              |   | **Three                  months ended**    |   |     |   |
|-------------------------------------------------------------------|--------|--------------------------------------------|--------|----------|--------|
|                                                              |   | **March                  31,**             |   | %        |   |
| **State**                                                         |   | **2007**                                   |   | **2006** |   | **Change** |   |
|                                                              |   | **(dollars                  in millions)** |   |     |   |
|                                                              |   |                                       |   |     |   |   |   |
| California                                                        |   | $                                          | 58.0   |     | $      | 68.7 |   |   | -15.6 | % |
| Florida                                                           |   |                                       | 35.9   |     |   | 25.3 |   |   | 41.9 | % |
| Michigan                                                          |   |                                       | 20.7   |     |   | 19.5 |   |   | 6.2 | % |
| South                  Carolina                                   |   |                                       | 8.8    |     |   | 6.6 |   |   | 33.3 | % |
| Texas                                                             |   |                                       | 8.2    |     |   | 6.1 |   |   | 34.4 | % |
| Colorado                                                          |   |                                       | 4.2    |     |   | 2.1 |   |   | 100.0 | % |
| Pennsylvania                                                      |   |                                       | 4.2    |     |   | 5.9 |   |   | -28.8 | % |
| Indiana                                                           |   |                                       | 3.3    |     |   | 2.4 |   |   | 37.5 | % |
| New                  Hampshire                                    |   |                                       | 2.9    |     |   | 3.9 |   |   | -25.6 | % |
| Wisconsin                                                         |   |                                       | 2.8    |     |   | 0.8 |   |   | 250.0 | % |
| All                  Other (includes 13 states)                   |   |                                       | 14.9   |     |   | 15.2 |   |   | -2.0 | % |
| **Gross                  written premium, before change in**      |   |                                       |   |     |   |   |   |   |   |   |
| **expected                  policy cancellation provision**       |   | $                                          | 163.9  |     | $      | 156.5 |   |   | 4.7 | % |
|                                                              |   |                                       |   |     |   |   |   |   |   |   |
| Change                  in expected policy cancellation provision |   |                                       | (2.4   | )        |   | 0.7 |   |   | n/m |   |
|                                                              |   |                                       |   |     |   |   |   |   |   |   |
| **Gross                  written premium**                        |   | $                                          | 161.5  |     | $      | 157.2 |   |   | 2.7 | % |

----

----

**Results      of Operations**

***Selected      Financial Data***

|                                                          |   | **Three                  Months Ended** |    |
|---------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                          |   | **March                  31,**          |    |
|                                                          |   | **2007**                                |    | **2006** |   |
| **Statement                  of Operations Data:**            |   |                                    |    |   |   |
| **Revenues:**                                                 |   |                                    |    |   |   |
| Net                  earned premium                           |   | $                                       | 151,179 |   | $ | 144,278 |   |
| Net                  investment income                        |   |                                    | 6,055   |   |   | 4,967 |   |
| Realized                  gain on investments, net            |   |                                    | 17      |   |   | 68 |   |
| Policy                  service fee revenue                   |   |                                    | 14,101  |   |   | 13,836 |   |
| Other                  income                                 |   |                                    | 1,009   |   |   | 734 |   |
| Total                  revenues                               |   |                                    | 172,361 |   |   | 163,883 |   |
|                                                          |   |                                    |    |   |   |   |   |
| **Cost                  and Expenses:**                       |   |                                    |    |   |   |   |   |
| Losses                  and loss adjustment expenses incurred |   |                                    | 112,703 |   |   | 97,658 |   |
| Commissions                  and other underwriting expenses  |   |                                    | 39,723  |   |   | 37,526 |   |
| Other                  operating and general expenses         |   |                                    | 11,913  |   |   | 10,383 |   |
| Interest                  expense                             |   |                                    | 1,640   |   |   | 1,206 |   |
| Total                  costs and expenses                     |   |                                    | 165,979 |   |   | 146,773 |   |
|                                                          |   |                                    |    |   |   |   |   |
| Income                  before income taxes                   |   |                                    | 6,382   |   |   | 17,110 |   |
|                                                          |   |                                    |    |   |   |   |   |
| Income                  taxes                                 |   |                                    | 2,119   |   |   | 5,920 |   |
|                                                          |   |                                    |    |   |   |   |   |
| **Net                  income**                               |   | $                                       | 4,263   |   | $ | 11,190 |   |
|                                                          |   |                                    |    |   |   |   |   |
| **Operating                  Data:**                          |   |                                    |    |   |   |   |   |
| Gross                  written premium                        |   | $                                       | 161,512 |   | $ | 157,187 |   |
| Net                  written premium                          |   |                                    | 158,867 |   |   | 173,018 |   |
| Gross                  earned premium                         |   |                                    | 153,491 |   |   | 146,779 |   |
|                                                          |   |                                    |    |   |   |   |   |
| **Per                  Share Data:**                          |   |                                    |    |   |   |   |   |
| Earnings                  per share - basic                   |   | $                                       | 0.15    |   | $ | 0.38 |   |
| Earnings                  per share - diluted                 |   | $                                       | 0.14    |   | $ | 0.36 |   |
|                                                          |   |                                    |    |   |   |   |   |
| **Ratios:**                                                   |   |                                    |    |   |   |   |   |
| Loss                  ratio                                   |   |                                    | 74.5    | % |   | 67.7 | % |
| Expense                  ratio                                |   |                                    | 24.2    | % |   | 23.1 | % |
| Combined                  ratio                               |   |                                    | 98.7    | % |   | 90.8 | % |

|                                                              |   | **March                  31,** |    | **December                  31,** |   |
|-------------------------------------------------------------------|--------|--------------------------------|---------|-----------------------------------|--------|
|                                                              |   | **2007**                       |    | **2006**                          |   |
| **Balance                  Sheet Data:**                          |   |                           |    |                              |   |
| Cash                  and investments                             |   | $                              | 547,597 |                              | $      | 545,020 |   |
| Total                  assets                                     |   |                           | 958,278 |                              |   | 944,559 |   |
| Reserves                  for losses and loss adjustment expenses |   |                           | 250,879 |                              |   | 239,177 |   |
| Long-term                  debt, including current portion        |   |                           | 100,000 |                              |   | 100,000 |   |
| Total                  liabilities                                |   |                           | 597,777 |                              |   | 587,808 |   |
| Stockholders'                  equity                             |   |                           | 360,501 |                              |   | 356,751 |   |
|                                                              |   |                           |    |                              |   |   |   |
| Book                  value per share                             |   | $                              | 12.19   |                              | $      | 12.09 |   |

----

***Three      Months Ended March 31, 2007 compared to Three Months Ended March 31,      2006***

***Overview      of Operating Results***

*Costs      and Expenses - Ratios*

***Revenues***

|                                                                                                                                                                                                                                                                                                                                     |   | **Three                  months ended March 31,** |    |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|----------|
|                                                                                                                                                                                                                                                                                                                                     |   | **2007**                                          |    | **2006** |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   | **(dollars                  in thousands)**       |    |     |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |
| Gross                  written premium                                                                                                                                                                                                                                                                                                   |   | $                                                 | 161,512 |     | $ | 157,187 |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| Ceded                  written premium:                                                                                                                                                                                                                                                                                                  |   |                                              |    |     |   |   |   |   |
| Other                  reinsurance                                                                                                                                                                                                                                                                                                       |   |                                              | 2,645   |     |   | 2,456 |   |   |
| Effect                  of reinsurance commutation                                                                                                                                                                                                                                                                                       |   |                                              | -       |     |   | (18,287 | ) | (1) |
| Total                  ceded written premium                                                                                                                                                                                                                                                                                             |   |                                              | 2,645   |     |   | (15,831 | ) |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| Net                  written premium                                                                                                                                                                                                                                                                                                     |   |                                              | 158,867 |     |   | 173,018 |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| %                  Ceded, excluding effect of reinsurance commutation                                                                                                                                                                                                                                                                    |   |                                              | 1.6     | %        |   | 1.6 | % |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| Gross                  earned premium                                                                                                                                                                                                                                                                                                    |   | $                                                 | 153,491 |     | $ | 146,779 |   |   |
| Ceded                  earned premium                                                                                                                                                                                                                                                                                                    |   |                                              | 2,312   |     |   | 2,501 |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| Net                  earned premium                                                                                                                                                                                                                                                                                                      |   |                                              | 151,179 |     |   | 144,278 |   |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| %                  Ceded                                                                                                                                                                                                                                                                                                                 |   |                                              | 1.5     | %        |   | 1.7 | % |   |
|                                                                                                                                                                                                                                                                                                                                     |   |                                              |    |     |   |   |   |   |
| (1)                  Amount represents the unearned premium previously ceded under our                  2005                  quota share reinsurance                  agreement, which we received as a result of the termination and                  commutation of this agreement                  during the first quarter of 2006. |   |

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

----

*Net      Written Premium. *

*Net      Earned Premium. *

*Net      Investment Income. *

*Policy      Service Fee Revenue*

***Costs      and Expenses***

*Losses      and Loss Adjustment Expenses*

----

|                                                             |   | **Three                  months ended March 31,** |    |
|------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                             |   | **2007**                                          |    | **2006** |   |
|                                                             |   | **(dollars                  in thousands)**       |    |
|                                                             |   |                                              |    |   |   |
| Losses                  and LAE incurred - current accident year |   | $                                                 | 107,813 |   | $ | 97,323 |   |
| Losses                  and LAE incurred - prior accident years  |   |                                              | 4,890   |   |   | 335 |   |
| Total                  losses and LAE incurred                   |   | $                                                 | 112,703 |   | $ | 97,658 |   |
|                                                             |   |                                              |    |   |   |   |   |
| Loss                  ratio - current accident year              |   |                                              | 71.3    | % |   | 67.5 | % |
| Loss                  ratio - prior accident years               |   |                                              | 3.2     | % |   | 0.2 | % |
| Total                  loss ratio                                |   |                                              | 74.5    | % |   | 67.7 | % |

*Commissions      and Other Underwriting Expenses. *
*Operating      Results - Key States*

|                                                         |   | **Three                  months ended March 31,** |   |
|--------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                         |   | **2007**                                          |   | **2006** |   |
|                                                         |   | **(in                  thousands)**               |   |
|                                                         |   |                                              |   |   |   |
| Gross                  commissions                           |   | $                                                 | 23,364 |   | $ | 21,709 |   |
| Premium                  tax expense                         |   |                                              | 3,278  |   |   | 3,186 |   |
| Other                  underwriting expenses                 |   |                                              | 13,032 |   |   | 12,624 |   |
| Gross                  expenses                              |   |                                              | 39,674 |   |   | 37,519 |   |
|                                                         |   |                                              |   |   |   |   |   |
| Ceding                  commissions                          |   |                                              | (49    | ) |   | (7 | ) |
|                                                         |   |                                              |   |   |   |   |   |
| Commissions                  and other underwriting expenses |   | $                                                 | 39,723 |   | $ | 37,526 |   |

*Other      Operating and General Expenses. *

----

*Interest      Expense*
*Financial      Condition - Liquidity and Capital Resources*

*Income      Taxe*

*Ratios*

|                                                       |   | **Three                  months ended March 31,** |   |
|------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                       |   | **2007**                                          |   | **2006** |   |
|                                                       |   |                                              |   |   |   |
| Loss                  ratio                                |   |                                              | 74.5   | % |   | 67.7 | % |
|                                                       |   |                                              |   |   |   |   |   |
| Direct                  commission ratio                   |   |                                              | 15.5   | % |   | 15.0 | % |
| Ceding                  commission (income) ratio          |   |                                              | 0.0    | % |   | 0.0 | % |
| Underwriting                  expense ratio                |   |                                              | 10.8   | % |   | 11.0 | % |
| Other                  operating and general expense ratio |   |                                              | 7.9    | % |   | 7.2 | % |
| Fee                  (income) ratio                        |   |                                              | -10.0  | % |   | -10.1 | % |
| Net                  expense ratio                         |   |                                              | 24.2   | % |   | 23.1 | % |
|                                                       |   |                                              |   |   |   |   |   |
| Combined                  ratio                            |   |                                              | 98.7   | % |   | 90.8 | % |

*Losses      and Loss Adjustment Expenses*
*Commissions      and Other Underwriting Expenses*

----

|                                                                   |   | **Three                  Months Ended March 31,** |    |
|------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                   |   | **2007**                                          |    | **2006** |   |
|                                                                   |   | **(dollars                  in thousands)**       |    |
| **Underwriting                  Results Before Reinsurance**           |   |                                              |    |   |   |
|                                                                   |   |                                              |    |   |   |
| **Revenues**                                                           |   |                                              |    |   |   |
| Gross                  earned premium                                  |   | $                                                 | 153,491 |   | $ | 146,779 |   |
|                                                                   |   |                                              |    |   |   |   |   |
| **Expenses**                                                           |   |                                              |    |   |   |   |   |
| Losses                  and loss adjustment expenses incurred          |   |                                              | 123,625 |   |   | 102,299 |   |
| Commissions                                                            |   |                                              | 23,364  |   |   | 21,709 |   |
| Other                  underwriting expenses                           |   |                                              | 16,310  |   |   | 15,810 |   |
| Other                  operating and general expenses                  |   |                                              | 11,913  |   |   | 10,383 |   |
| Total                  underwriting expenses                           |   |                                              | 175,212 |   |   | 150,201 |   |
| Gross                  underwriting result                             |   |                                              | (21,721 | ) |   | (3,422 | ) |
| Policy                  service fee revenue and other income           |   |                                              | 15,110  |   |   | 14,570 |   |
| Pretax                  underwriting (loss) income                |   | $                                                 | (6,611  | ) | $ | 11,148 |   |
|                                                                   |   |                                              |    |   |   |   |   |
| Gross                  loss ratio                                      |   |                                              | 80.5    | % |   | 69.7 | % |
| Gross                  expense ratio                                   |   |                                              | 23.8    | % |   | 22.7 | % |
| Gross                  combined ratio                                  |   |                                              | 104.3   | % |   | 92.4 | % |
|                                                                   |   |                                              |    |   |   |   |   |
| **Reinsurance                  Ceded Results**                         |   |                                              |    |   |   |   |   |
|                                                                   |   |                                              |    |   |   |   |   |
| **Revenues**                                                           |   |                                              |    |   |   |   |   |
| Ceded                  earned premium                                  |   | $                                                 | 2,312   |   | $ | 2,501 |   |
|                                                                   |   |                                              |    |   |   |   |   |
| **Expenses**                                                           |   |                                              |    |   |   |   |   |
| Ceded                  losses and loss adjustment expenses incurred(1) |   |                                              | 10,922  |   |   | 4,641 |   |
| Ceding                  commissions                                    |   |                                              | (49     | ) |   | (7 | ) |
| Total                  underwriting expenses                           |   |                                              | 10,873  |   |   | 4,634 |   |
| Ceded                  underwriting loss                               |   | $                                                 | (8,561  | ) | $ | (2,133 | ) |
|                                                                   |   |                                              |    |   |   |   |   |
| Ceded                  loss ratio                                      |   |                                              | 472.4   | % |   | 185.6 | % |
| Ceded                  expense ratio                                   |   |                                              | -2.1    | % |   | -0.3 | % |
| Ceded                  combined ratio                                  |   |                                              | 470.3   | % |   | 185.3 | % |
|                                                                   |   |                                              |    |   |   |   |   |
| **Net                  Underwriting Results**                          |   |                                              |    |   |   |   |   |
|                                                                   |   |                                              |    |   |   |   |   |
| **Revenues**                                                           |   |                                              |    |   |   |   |   |
| Net                  earned premium                                    |   | $                                                 | 151,179 |   | $ | 144,278 |   |
|                                                                   |   |                                              |    |   |   |   |   |
| **Expenses**                                                           |   |                                              |    |   |   |   |   |
| Net                  losses and loss adjustment expenses incurred      |   |                                              | 112,703 |   |   | 97,658 |   |
| Commissions                  - net of reinsurance                      |   |                                              | 23,413  |   |   | 21,716 |   |
| Other                  underwriting expenses                           |   |                                              | 16,310  |   |   | 15,810 |   |
| Other                  operating and general expenses                  |   |                                              | 11,913  |   |   | 10,383 |   |
| Total                  underwriting expenses                           |   |                                              | 164,339 |   |   | 145,567 |   |
|                                                                   |   |                                              |    |   |   |   |   |
| Net                  underwriting result                               |   |                                              | (13,160 | ) |   | (1,289 | ) |
| Policy                  service fee revenue and other income           |   |                                              | 15,110  |   |   | 14,570 |   |
| Pretax                  underwriting income                            |   | $                                                 | 1,950   |   | $ | 13,281 |   |
|                                                                   |   |                                              |    |   |   |   |   |
| Net                  loss ratio                                        |   |                                              | 74.5    | % |   | 67.7 | % |
| Net                  expense ratio                                     |   |                                              | 24.2    | % |   | 23.1 | % |
| Net                  combined ratio                                    |   |                                              | 98.7    | % |   | 90.8 | % |

|  | (1) | Amounts                include $10,873 and $4,634 for the three                months ended March 31, 2007 and 2006, respectively, of incurred losses                and                LAE ceded to the Michigan Catastrophic Claims Association, a mandatory                facility that provides excess of loss coverage for personal injury                protection in Michigan. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Financial      Condition**

***Liquidity      and Capital Resources***

----

**Investments**

|                                                   |   | **Cost                  /**         |   | **Fair**  |   | **%                  of Total**    |   |
|--------------------------------------------------------|--------|-------------------------------------|--------|-----------|--------|------------------------------------|--------|
|                                                   |   | **Amortized                  Cost** |   | **Value** |   | **at                  Fair Value** |   |
|                                                   |   | **(in                  millions)**  |   |      |   |
|                                                   |   |                                |   |      |   |                               |   |
| Debt                  securities, available for sale   |   | $                                   | 488.4  |      | $      | 486.5                              |   |   | 88.8 | % |
| Equity                  securities, available for sale |   |                                | 2.5    |      |   | 2.5                                |   |   | 0.5 | % |
| Cash                  and cash equivalents             |   |                                | 58.6   |      |   | 58.6                               |   |   | 10.7 | % |
|                                                   |   |                                |   |      |   |                               |   |   |   |   |
| Total                                                  |   | $                                   | 549.5  |      | $      | 547.6                              |   |   | 100.0 | % |

*Investment      Strategy.*

*Investment      Portfolio. *

|                                                         |   |   |   | **%                  of Total** |   |
|--------------------------------------------------------------|--------|--------|--------|---------------------------------|--------|
|                                                         |   |   |   |                            |   |
| Cash                  and cash equivalents                   |   | $      | 58.6   |                            |   | 10.7 | % |
| U.S.                  Government securities                  |   |   | 2.8    |                            |   | 0.5 | % |
| Mortgage                  backed bonds                       |   |   | 119.4  |                            |   | 21.8 | % |
| Tax-exempt                  bonds                            |   |   | 240.9  |                            |   | 44.0 | % |
| Collateralized                  mortgage obligations         |   |   | 11.9   |                            |   | 2.2 | % |
| Corporate                  and other                         |   |   | 113.4  |                            |   | 20.7 | % |
| Preferred                  stocks                            |   |   | 2.5    |                            |   | 0.4 | % |
| Net                  unrealized (losses) on fixed maturities |   |   | (1.9   | )                               |   | -0.3 | % |
|                                                         |   |   |   |                            |   |   |   |
| Total                  investments at market value           |   | $      | 547.6  |                            |   | 100.0 | % |

----

|                                                 |   | **Amortized**                      |   | **Unrealized** |   | **Unrealized** |   | **Estimated**                     |   |
|------------------------------------------------------|--------|------------------------------------|--------|----------------|--------|----------------|--------|-----------------------------------|--------|
|                                                 |   | **Cost**                           |   | **Gains**      |   | **Losses**     |   | **Market                  Value** |   |
|                                                 |   | **(in                  millions)** |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |
| U.S.                  Government securities          |   | $                                  | 2.8    |           | $      | -              |   | $                                 | -      |   | $ | 2.8 |   |
| Mortgage                  backed bonds               |   |                               | 119.4  |           |   | 1.1            |   |                              | 0.7    |   |   | 119.8 |   |
| Tax-exempt                  bonds                    |   |                               | 240.9  |           |   | 0.6            |   |                              | 2.1    |   |   | 239.4 |   |
| Collateralized                  mortgage obligations |   |                               | 11.9   |           |   | -              |   |                              | 0.2    |   |   | 11.7 |   |
| Corporate                  and other                 |   |                               | 113.4  |           |   | 0.4            |   |                              | 1.0    |   |   | 112.8 |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |   |   |   |   |
| Total                  fixed maturities              |   |                               | 488.4  |           |   | 2.1            |   |                              | 4.0    |   |   | 486.5 |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |   |   |   |   |
| Preferred                  stock                     |   |                               | 2.5    |           |   | -              |   |                              | -      |   |   | 2.5 |   |
|                                                 |   |                               |   |           |   |           |   |                              |   |   |   |   |   |
| Total                                                |   | $                                  | 490.9  |           | $      | 2.1            |   | $                                 | 4.0    |   | $ | 489.0 |   |

|                                              |   | **NAIC****Rating**                 |   | **Amortized****Cost** |   | **Fair****Value** |   | **%                  of Total****at                  Fair Value** |   |
|---------------------------------------------------|--------|------------------------------------|--------|-----------------------|--------|-------------------|--------|-------------------------------------------------------------------|--------|
|                                              |   | **(in                  millions)** |   |
| **Standard                  & Poor's Rating** |   |                               |   |                  |   |              |   |                                                              |   |
| AAA                                               |   |                               | 1      |                  | $      | 409.0             |   | $                                                                 | 407.6  |   |   | 83.8 | % |
| AA                                                |   |                               | 1      |                  |   | 54.0              |   |                                                              | 53.6   |   |   | 11.0 | % |
| A                                                 |   |                               | 1      |                  |   | 22.6              |   |                                                              | 22.5   |   |   | 4.6 | % |
| U.S.                  Treasuries agencies         |   |                               | 1      |                  |   | 2.8               |   |                                                              | 2.8    |   |   | 0.6 | % |
|                                              |   |                               |   |                  |   |              |   |                                                              |   |   |   |   |   |
| Total                  fixed maturity investments |   |                               |   |                  | $      | 488.4             |   | $                                                                 | 486.5  |   |   | 100.0 | % |

----

**Contractual      Obligations and Commitments**

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

|                                                                |   | **Remaining                  2007** |   | **2008** |   | **2009** |   | **2010** |   | **2011** |   | **2012                  or Later** |   | **Total** |   |
|---------------------------------------------------------------------|--------|-------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|------------------------------------|--------|-----------|--------|
|                                                                |   | **(in                  millions)**  |   |
| Operating                  Leases *(1)*                             |   | $                                   | 7.4    |     | $      | 6.5      |   | $        | 5.5    |     | $      | 4.1                                |   | $         | 3.9    |   | $ | 9.9 |   | $ | 37.3 |   |
| Loss                  and Loss Adjustment Expense Reserves *(1)(2)* |   |                                | 150.8  |     |   | 65.2     |   |     | 25.2   |     |   | 8.5                                |   |      | 1.1    |   |   | 0.1 |   |   | 250.9 |   |

----

| *(1)* | The                amounts reflected in these rows do not reflect any potential impact                of the                closing of the Proposed Farmers Merger.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(2)* | The                payouts of loss and LAE reserves by year included in the above table                are                estimated based upon historical loss payment patterns. Since there                are not                definitive due dates for the payments, payments by year and in the                aggregate are subject to uncertainties.  See the disclosure under the                following headings in our Fiscal 2006 Form 10-K: “*Item                1. Business - Loss and Loss Adjustment Expense Reserves*” and                “*Item                7.* *Management’s                Discussion and Analysis of Financial Condition and Results of Operations                -                Critical Accounting Policies - Estimation of Unpaid Losses and Loss                Adjustment Expenses*.” |

**Recent      Accounting Pronouncements**

*The      Fair Value Option for Financial Assets and Financial Liabilities-including      an      amendment of SFAS 115*

*Fair      Value Measurements*

*Accounting      for Uncertainty in Income Taxes*
*Accounting      for Income Taxes”*

----

*Accounting      for Certain Hybrid Financial Instruments*
*Accounting      for Derivative Instruments and Hedging Activity*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*

**Forward-Looking      Statements**

*Item      1A. Risk Factors*

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

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

----

**Item 4.      Controls and Procedures**

**Disclosure      Controls and Procedures**

**Internal      Control Over Financial Reporting**

**PART      II-OTHER INFORMATION**

**Item      1.  Legal Proceedings**

*Item      3. Legal Proceedings*

----

**Item 1A.      Risk Factors **

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

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

**Purchase      of Equity Securities**

*Issuer      Purchases of Equity Securities*

| **Period**                             |   | **Total                  Number of****Shares                  Purchased (1)** |   | **Average                  Price****Paid                  Per Share** |   | **Total                  Number of****Shares                  Purchased****as                  a Part of a****Publicly****Announced                  Plan** |   | **Approximate****Dollar                  Value that****May                  Yet Be****Purchased                  Under****the                  Plan** |   |
|----------------------------------------|--------|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                   |   |                                                                          |   |                                                                  |   |                                                                                                                                                        |   |                                                                                                                                                  |   |
| February                  1 - 28, 2007 |   |                                                                          | 7,961  |                                                                  | $      | 17.41                                                                                                                                                       |   |                                                                                                                                                  | -      |   |   | - |   |
|                                   |   |                                                                          |   |                                                                  |   |                                                                                                                                                        |   |                                                                                                                                                  |   |   |   |   |   |
| Total                                  |   |                                                                          | 7,961  |                                                                  | $      | 17.41                                                                                                                                                       |   |                                                                                                                                                  | -      |   |   | - |   |

----

| (1) | The                amounts in this column constitute shares of restricted stock withheld                to                reimburse us for withholding taxes that we paid upon the vesting                of                restricted stock awarded to employees, at an average price of $17.41                per                share, based on the last reported closing price per share of our                Common                Stock, as reported by the NYSE on the vesting                date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item 6.      Exhibits**

----

| **Exhibit****Number**                                                                                                                                                                                                                                                                      |   | **Description                of Document**                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.1                                                                                                                                                                                                                                                                                       |   | Rule 13a-14(a)/15d-14(a)                Certification executed by Jeffrey J. Dailey, Chief Executive Officer                and                President of Bristol West Holdings, Inc. (pursuant to Section 302 of                the Sarbanes-Oxley Act of 2002) (exhibit 31.1 to this Quarterly Report                on                Form 10-Q)                                                         |
|                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.2                                                                                                                                                                                                                                                                                       |   | Rule 13a-14(a)/15d-14(a)                Certification executed by Robert D. Sadler, Senior Vice President-Chief                Financial Officer of Bristol West Holdings, Inc. (pursuant to                Section 302 of the Sarbanes-Oxley Act of 2002) (exhibit 31.2 to this                Quarterly Report on Form 10-Q)                                                                                |
|                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Additional                Exhibits.                     In accordance with Item 601(32)(ii) of Regulation S-K, Exhibit 32.1                is to be treated as “furnished” rather than “filed” as part of the                report. |
|                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 32.1                                                                                                                                                                                                                                                                                       |   | Section 1350                Certification executed by Jeffrey J. Dailey, Chief Executive Officer                and                President of Bristol West Holdings, Inc., and by Robert D. Sadler,                Senior                Vice President-Chief Financial Officer of Bristol West Holdings,                Inc.                (exhibit 32.1 to this Quarterly Report on                Form 10-Q) |

----

**SIGNATURES**

|   |   |   | BRISTOL                WEST HOLDINGS, INC.                                                                                                                                        |   |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |   |   |                                                                                                                                                                              |
|   |   | By:    | /s/                Jeffrey J. Dailey                                                                                                                                              |
|   |   | Name:  | Jeffrey                J. Dailey                                                                                                                                                  |
|   |   | Title: | Chief                Executive Officer and President (PrincipalExecutive                Officer and duly authorized officer)                                                      |
|   |   |   |                                                                                                                                                                              |
|   |   | Date:  | May                10, 2007                                                                                                                                                       |
|   |   |   |                                                                                                                                                                              |
|   |   | By:    | /s/                Robert D. Sadler                                                                                                                                               |
|   |   | Name:  | Robert                D. Sadler                                                                                                                                                   |
|   |   | Title: | Senior                Vice President-Chief Financial Officer (Principal Financial Officer                and                Chief Accounting Officer and duly authorized officer) |
|   |   |   |                                                                                                                                                                              |
|   |   | Date:  | May                10, 2007                                                                                                                                                       |

----

**EXHIBIT      INDEX**

| **Exhibit****Number** |   | **Description                of Document**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.1                   |   | Agreement                and Plan of Merger, dated as of March 1, 2007, among the Registrant,                Farmers Group, Inc. and BWH Acquisition Company (incorporated by                reference                to Exhibit 2.1 of Form 8-K filed on March 7, 2007)                                                                                                                                                                                                                                                                                                                                                                                                 |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.1                   |   | Amended                and Restated Certificate of Incorporation of the Registrant (incorporated                by reference to Exhibit 3.1 of Registrant’s Registration Statement                (File No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 3.2                   |   | Amended                and Restated Bylaws of the Registrant (incorporated by reference                to                Exhibit 3.2 of Registrant’s Registration Statement (File                No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.1                   |   | Form                of Certificate of Common Stock (incorporated by reference to                Exhibit 4.1 of Registrant’s Registration Statement (File                No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.2                   |   | Registration                Rights Agreement, dated as of July 10, 1998, between the Registrant                and Bristol West Associates LLC (incorporated by reference to                Exhibit 4.2 of Registrant’s Registration Statement                (File No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                               |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.3                   |   | Subscription                Agreement, dated as of July 9, 1998, between the Registrant and                Fisher Capital Corp. LLC (incorporated by reference to Exhibit 4.3 of                Registrant’s Registration Statement (File No. 333-111259) on                Form S-1)                                                                                                                                                                                                                                                                                                                                                          |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.4                   |   | Sale                Participation Agreement, dated as of July 9, 1998, among KKR Partners                II, L.P., KKR 1996 Fund L.P., Bristol West Associates LLC and Fisher                Capital Corp. LLC (incorporated by reference to Exhibit 4.4 of                Registrant’s Registration Statement (File No. 333-111259) on                Form S-1)                                                                                                                                                                                                                                                                                    |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.5                   |   | Equity                Contribution Agreement, dated as of July 10, 1998, between the Registrant,                Bristol West Associates LLC, Fisher Capital Corp. LLC, Jeanne Rosner,                Jeffrey Rosner, Sylvia Rosner, Wendy Schlesinger, and Donald Simon                (exhibit 4.5 to Registrant's Annual Report on Form 10-K for the                fiscal year ended December 31, 2006)                                                                                                                                                                                                                                                               |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.6                   |   | Form                of Employee Stockholder’s Agreement for Senior Management (incorporated by                reference to Exhibit 4.5 of Registrant’s Registration Statement (File                No. 333-111259) on Form S-1), as amended by form of Amendment to                Employee Stockholder’s Agreement effective as of December 29, 2005,                between the Registrant and the stockholder (exhibit 4.5 to Annual                Report                on Form 10-K for the fiscal year ended December 31,                2005)                                                                                        |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.7                   |   | Form                of Employee Stockholder’s Agreement for Employees (incorporated by                reference to Exhibit 4.6 of Registrant’s Registration Statement (File                No. 333-111259) on Form S-1), as amended by form of Amendment to                Employee Stockholder’s Agreement effective as of December 29, 2005,                between the Registrant and the stockholder (exhibit 4.5 to Annual                Report                on Form 10-K for the fiscal year ended December 31,                2005)                                                                                                |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.8                   |   | Form                of Sale Participation Agreement (incorporated by reference to                Exhibit 4.7 of Registrant’s Registration Statement (File                No. 333-111259) on Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.9                   |   | Employee                Stockholder’s Agreement between the Registrant and Simon Noonan dated as                of July 25, 2002 (incorporated by reference to Exhibit 10.32 of                Registrant’s Annual Report on Form 10-K for the fiscal year ended                December 31, 2004), as amended by Amendment to Employee Stockholder’s                Agreement effective as of December 29, 2005, between the Registrant                and                Simon Noonan (form of amendment is exhibit 4.5 to Annual Report on                Form                10-K for the fiscal year ended December 31,                2005) |

----

| 4.10         |   | Employee                Stockholder’s Agreement between the Registrant and James J. Sclafani, Jr.                dated as of March 20, 2003 (incorporated by reference to                Exhibit 10.33 of Registrant’s Annual Report on Form 10-K for the                fiscal year ended December 31, 2004), as amended by Amendment to                Employee                Stockholder’s Agreement effective as of December 29, 2005, between the                Registrant and James J. Sclafani, Jr. (form of amendment is exhibit                4.5 to                Annual Report on Form 10-K for the fiscal year ended December 31,                2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1         |   | Credit                Agreement dated as of July 31, 2006, among the Registrant, the Lenders                (ING Capital LLC, JPMorgan Chase Bank, N.A., LaSalle Bank National                Association, Regions Bank, General Electric Capital Corporation,                and Bank                of Communications Co., Ltd., New York Branch), the Administrative                Agent                (ING Capital LLC), the Joint Bookrunners and Joint Lead Arrangers                (ING                Capital LLC and JP Morgan Securities, Inc.), and the Documentation                agent                (LaSalle Bank National Association) (incorporated by reference to                Exhibit                10.10 of Registrant's Quarterly Report on Form 10-Q for the fiscal                quarter                ended June 30, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2         |   | Form                of California Brokerage Agreement effective January 1, 2005 (incorporated                by reference to Exhibit 10.18 of Registrant's Annual Report on                Form 10-K for the fiscal year ended December 31,                2004)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.3         |   | Letter                Agreement, dated as of July 9, 1998, between the Registrant and                Fisher Capital Corp. LLC (incorporated by reference to Exhibit 10.13                of Registrant's Registration Statement (File No. 333-111259) on                Form S-1); as amended by an Amendatory Agreement between the                Registrant and Fisher Capital Corp. LLC, dated as of December 18,                2000 (incorporated by reference to Exhibit 10.14 of Registrant's                Registration Statement (File No. 333-111259) on Form S-1); and                as further amended by Amendatory Agreement to Letter Agreement between                the                Registrant and Fisher Capital Corp. LLC, dated as of January 1, 2002                (incorporated by reference to Exhibit 10.15 of Registrant's                Registration Statement (File No. 333-111259) on                Form S-1); as further amended by an Amendatory Agreement between                the Registrant and Fisher Capital Corp. LLC, dated as of January 1,                2004 (exhibit 10.3 to Registrant's Annual Report on Form 10-K for the                fiscal year ended December 31, 2006); and as further amended by a                Termination Agreement between the Registrant and Fisher Capital Corp.                LLC,                effective as of December 31, 2006 (exhibit 10.3 to Registrant's                Annual Report on Form 10-K for the fiscal year ended December 31,                2006) |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.4         |   | Letter                Agreement, dated as of July 10, 1998, between the Registrant and                Kohlberg                Kravis Roberts & Co. L.P. (exhibit 10.4 to Registrant's Annual Report                on Form 10-K for the fiscal year ended December 31,                2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10.5        |   | 1998                Stock Option Plan for the Management and Key Employees of the Registrant                and Subsidiaries (incorporated by reference to Exhibit 10.16 of                Registrant's Registration Statement (File No. 333-111259) on                Form S-1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10.6        |   | Employment                Agreement, dated as of May 25, 2006, between James R. Fisher and                the                Registrant (incorporated by reference to Exhibit 10.1 of Form 8-K                filed on                May 25, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| *10.7        |   | Amended                and Restated 2004 Stock Incentive Plan for the Registrant and Subsidiaries                (incorporated by reference to Exhibit 10.1 of Registrant's Quarterly                Report on Form 10-Q for the quarterly period ended September 30,                2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| *10.8        |   | Form                of Restricted Stock Award Agreement for Executives with two-year                vesting                schedule (incorporated by reference to Exhibit 10.1 of Form 8-K filed                on                February 27, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| *10.9        |   | Form                of Restricted Stock Award Agreement for Executives with a five-year                vesting schedule (incorporated by reference to Exhibit 10.2 of Form                8-K                filed on February 27, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| *10.10       |   | Form                of Restricted Stock Award Agreement for Directors with a two-year                vesting                schedule (incorporated by reference to Exhibit 10.6 of Form 8-K filed                on                February 27, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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| *10.11                                                                                                                                                                                                                                                                                   |   | Non-Employee                Directors' Deferred Compensation and Stock Award Plan (incorporated                by                reference to Exhibit 10.5 of Form 8-K filed on February 27,                2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| *10.12                                                                                                                                                                                                                                                                                   |   | Form                of Restricted Stock Award Agreement for Employees with two-year vesting                schedule (incorporated by reference to Exhibit 10.14 of Registrant's                Annual Report on Form 10-K for the fiscal year ended December 31,                2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| *10.13                                                                                                                                                                                                                                                                                   |   | Form                of Restricted Stock Award Agreement for Employees with five-year                vesting                schedule (incorporated by reference to Exhibit 10.15 of Registrant's                Annual Report on Form 10-K for the fiscal year ended December 31,                2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| *10.14                                                                                                                                                                                                                                                                                   |   | Form                of Restricted Stock Award Agreement for Employees with Equity Investment                (incorporated by reference to Exhibit 10.16 of Registrant's Annual                Report on Form 10-K for the fiscal year ended December 31,                2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| *10.15                                                                                                                                                                                                                                                                                   |   | Executive                Officer Incentive Plan (incorporated by reference to Exhibit 10.3                of Form                8-K filed on February 27, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| *10.16                                                                                                                                                                                                                                                                                   |   | Management                Incentive Plan (incorporated by reference to Exhibit 10.4 of Form                8-K                filed on February 27, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| 10.17                                                                                                                                                                                                                                                                                    |   | Services                Agreement by and among BRW Acquisition, Inc. and Firemark Partners,                LLC,                dated July 24, 2002 (incorporated by reference to Exhibit 10.2 of                Registrant's Quarterly Report on Form 10-Q for the fiscal quarter                ended September 30, 2005); as amended by Correction and Amendment                of the                July 24, 2002 Services Agreement between BRW Acquisition, Inc. and                Firemark Partners, LLC, dated November 8, 2005 (incorporated by reference                to Exhibit 10.3 of Registrant's Quarterly Report on Form 10-Q                for the fiscal quarter ended September 30, 2005); and as further                amended                by Amendment No. 2 dated as of October 1, 2006 (exhibit 10.17 to                Registrant's Annual Report on Form 10-K for the fiscal year ended                December 31, 2006) |
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| 10.18                                                                                                                                                                                                                                                                                    |   | Voting                Agreement, dated as of March 1, 2007, by and among the Registrant,                Farmers                Group, Inc., BWH Acquisition Company, Bristol West Associates LLC and                Aurora Investments II LLC (incorporated by reference to Exhibit 99.1                of                Form 8-K filed on March 7, 2007)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| 31.1                                                                                                                                                                                                                                                                                     |   | Rule 13a-14(a)/15d-14(a)                Certification executed by Jeffrey J. Dailey, Chief Executive Officer                of                Bristol West Holdings, Inc. (pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002) (exhibit 31.1 to this Quarterly Report                on                Form 10-Q)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| 31.2                                                                                                                                                                                                                                                                                     |   | Rule 13a-14(a)/15d-14(a)                Certification executed by Robert D. Sadler, Senior Vice President-Chief                Financial Officer of Bristol West Holdings, Inc. (pursuant to                Section 302 of the Sarbanes-Oxley Act of 2002) (exhibit 31.2 to this                Quarterly Report on Form 10-Q)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| *                                                                                                                                                                                                                                                                                   |   | Management                contract or compensatory plan or arrangement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|  Additional                Exhibits.                       In accordance with Item 601(32)(ii) of Regulation S-K, Exhibit 32.1                is to be treated as “furnished” rather than “filed” as part of the report. |
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| 32.1                                                                                                                                                                                                                                                                                     |   | Section 1350                Certification executed by Jeffrey J. Dailey, Chief Executive Officer                of                Bristol West Holdings, Inc., and by Robert D. Sadler, Senior Vice                President-Chief Financial Officer of Bristol West Holdings, Inc.                (exhibit                32.1 to this Quarterly Report on Form                10-Q)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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