BF&M reports income of $32.7m

THURSDAY, JUNE 7: Insurer BF&M had a net income of $32.7 million for 2011.

These results exceeded net income of $17.5 million for 2010.

President and CEO John Wight said: “We were satisfied with the company’s financial results. Normal operating results in 2011 were consistent with those in 2010, but a one time gain in 2011 of $9.6 million relating to the restructuring of post-retirement health insurance funding was the main reason for the large increase in net income in 2011 versus 2010.

“In addition, BF&M’s investment performance in 2011 was excellent, and the difference between the fair value of investments and reserves for BF&M’s life insurance companies produced a net gain of approximately $5 million.”

BF&M has nearly $900 million in assets at the end of 2011, of which $75.4 million were in cash and short term deposits.

The company announced it was maintaining its $0.20 per share dividend for shareholders of record at June 29.

During 2011, 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.

Gross premiums written for the year ended 2011 were $234 million. Investment income increased to $42.4 million versus $19.7 million in 2010.

Commission and other income decreased 8 per cent in 2011 versus 2010 to $24.3 million. Short term claims and adjustment expenses decreased 31 per cent to $15.7 million and life and health policy benefits increased 1 per cent to $115.4 million. Operating expenses increased 10 per cent to $49.7 million.