BF&M?s 2004 net earnings increased by more than five percent on the previous year due to good earnings from all but one line of business.

John Wight, President & CEO of BF&M Limited, said in the company?s financial release that net earnings for 2004 were $9,910,240, a 5.4 percent increase over 2003 earnings of $9,399,000. Return on shareholders equity was 13.4 percent.

?We were pleased overall with this result, experiencing very good earnings from most of our insurance and non insurance lines of business. Group contributions from general insurance business, real estate, asset management, and risk management services were strong. The one line of business that performed poorly was our health account which recorded its worst year on record, due principally to the frequency and severity of major medical claims overseas and outpatient hospital services and prescription drugs locally. We are very supportive of Government?s effort to expand the partnerships involved in the management of Bermuda?s Health Care system and deal with the industry?s critical issues.?

Total assets for the consolidated group increased from $278,706,016 to $290,925,907. Shareholders Equity increased 16.1 percent from $68,352,392 to $79,358,694. Premiums increased 18.9 percent over 2003 to $110,341,090. Claims, benefits and claim expenses increased by 18.6% to $66,755,127. BF&M shares opened 2004 at $12.00 and closed the year at $15.35. Shareholder dividends for the year totalled $3,273,645.

Mr. Wight said BF&M accomplished many things in 2004 including A.M. Best?s upgrade of the financial strength rating of the company to A (Excellent) from A- (Excellent), recognising ?BF&M?s consistently strong operating performance, excellent capitalisation, experienced and focused managed group and substantial market share in the Bermudian health care market?. Financial strength ratings of BF&M General Insurance Company Limited and BF&M Life Insurance Company Limited were also upgraded to A (Excellent) from A-(Excellent).