BF&M Ltd posted net income of $16.9 million for the first nine months of the year, helped by an 8 per cent reduction in operating expenses.

The profits were up threefold from last year’s corresponding period, when hurricane losses in the Caribbean islands impacted results.

John Wight, BF&M’s chief executive officer, said: “BF&M reported strong earnings for the nine months in 2018, along with strong operating results for the third quarter.

“Our earnings were driven by the solid performance of both the life and health business and property and casualty operations, with continued support from income on non-insurance operations.”

The company said operating expenses fell 8 per cent to $46.2 million for the period.

Gross premiums for the nine months totalled $262.3 million, reflecting an increase of 2 per cent from the corresponding 2017 period.

BF&M offers property and casualty products as well as health, life, annuities and pension products, and investment advisory services.

Mr Wight added: “Our strategy of diversification by geography and by line of business, and our leading financial strength ratings continue to form the cornerstones of our success.”

Equity attributable to shareholders at September 30, 2018 was $273.3 million. General fund assets totalled $1.3 billion of which $163.8 million was held in cash and cash equivalents.

Commission and other income increased from the prior year by 7 per cent to $38.8 million.

The company said “2017 hurricanes continued to negatively impact commission income in the current year, but the impact was more than offset by commissions earned on additional reinsurance coverage and higher levels of proportional reinsurance ceded due to changes in our reinsurance programme and profit share reported on non property business”.

Investment income for the year reflected a $14.6 million decrease in the fair value of investments for the period, compared to an $8.9 million increase in 2017.

As a result of the company’s disciplined asset-liability matching policy which looks to limit volatility of reported earnings as a result of interest rate swings the Company reported a $3.9 million net gain on the difference between the fair value of investments which support certain liabilities and reported reserves.

Short-term claims and adjustment expenses fell 32 per cent to $19.4 million of which $12.5 million was a decline from 2017 storm claims.

Life and health policy benefits decreased by 20 per cent to $65.6 million. “Life and health policy benefits” includes changes in life insurance reserves which decreased in 2018 compared to a smaller increase in 2017 in the same period.

These reserve movements were primarily driven by differences in market interest rates over the respective periods.