BF&M announces $16m in net earnings

THURSDAY, NOV. 17: BF&M is holding its own in the Great Recession.

The company announced $16.7M in net earnings for the nine-month period ending on September 30.

This compares with $16.9M from the same period last year.

John Wight, president and CEO of BF&M, said: “We were satisfied overall with the company’s financial results given the current economic climate in Bermuda and the resulting challenges faced by many of our policyholders.”

Mr. Wight added that “in August, AM Best reaffirmed the financial strength ratings of A (Excellent) to BF&M’s two principal operating subsidiaries, BF&M General Insurance Company Limited and BF&M Life Insurance Company Limited.

“There is no insurance company in Bermuda writing domestic insurance business with ratings this strong.

“AM Best cited BF&M’s ‘consistent positive net income, steady premium growth, high level of capital, and strong market share’.”

Equity attributable to owners on September 30, 2011, was $178,760,033.

Assets totalled $870,168,038, of which $69,050,679 was held in cash and short term deposits.

BF&M’s board of directors maintained the dividend of 20c per share for shareholders of record on December 30, 2011.

Gross Premiums Written for nine-month period increased seven per cent over 2010 to $189,674,637.

Investment income decreased two per cent to $12,319,956.

The fair value of BF&M’s investments increased by $23,919,695 during the nine month period, principally as a result of the company’s planned overweighting in safe investments such as US long term Treasuries, which increased in value significantly due to the flight to quality during a time of increased uncertainty in the global investment markets.

Commissions and other income decreased three per cent to $17,106,838.

Claims and adjustment expenses decreased by two per cent to $17,578,013 and policy benefits increased two per cent to $93,591,517.

Operating expenses increased 19 per cent to $36,309,460, due to several onetime expenses that are not expected to recur in 2012.