BF&M’s ratings affirmed by AM Best

Make text smaller Make text larger

  • Ratings affirmed: John Wight, CEO of BF&M

    Ratings affirmed: John Wight, CEO of BF&M


AM Best has affirmed the credit ratings of island insurer BF&M Ltd.

Three of the group’s operating companies — BF&M General Insurance Company, BF&M Life Insurance Company and Cayman-based Island Heritage Insurance Company — retain their financial strength rating of A (excellent).

The Barbadian subsidiary, Insurance Corporation of Barbados, maintains its A- financial strength rating.

AM Best has a stable outlook for all ratings.

John Wight, chief executive officer of BF&M Ltd, said: “These ratings remain the strongest of any domestic insurance group operating in Bermuda and the Caribbean. They form the cornerstone of our promise to pay and to be there for our policyholders over the long term.”

The ratings of BF&M Life, BF&M General and Island Heritage are supported by risk-adjusted capitalisation “at the strongest level”, Best commented.

“The quality of the group’s capital has been driven by a trend of positive net gains, as well as support from its diversified product portfolio and geographic operations,” the agency added.

However, Best noted that “the group’s capital position and earnings were negatively affected by a sizeable writedown of a large commercial mortgage loan and subsequent need for reserve strengthening during 2017”.

Best added: “While AM Best has some concerns regarding BF&M’s low-liquid Bermuda commercial mortgage holdings, the overall exposure to this asset class has declined over the years.

“The core results in 2017 added a favourable offset to losses incurred from property business in the Cayman Islands, and BF&M’s use of reinsurance and its approach to risk management also contributed to mitigating financial impact [of last year’s hurricanes in the Caribbean] to the group.”

You must be registered or signed-in to post comment or to vote.

Published Sep 6, 2018 at 12:55 pm (Updated Sep 6, 2018 at 2:23 pm)

BF&M’s ratings affirmed by AM Best

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries

    eMoo Posts