Bermuda insurance and pensions company BF&M Limited today announced record profits of just over $12 million for the first six months of the year.

The total of $12,068,828 compares to $9,611,932 for the same period a year ago, and for shareholders represents a 20 percent return on equity.

John Wight, president & CEO of BF&M said: "We were very pleased with the results, experiencing very good financial performance from all our insurance and non insurance lines of business.

"Group contributions from general insurance, health and life insurance, real estate, asset management, pension administration, and BF&M's interest in the operations of the Insurance Corporation of Barbados Limited were strong.

"In addition, our life and health reinsurance activities in the Caribbean and Latin America have commenced which over time we anticipate contributing to our earnings."

Mr. Wight added that "while underwriting results were very positive investment performance was poor due to the weak US bond markets in the second quarter. This had a negative effect on half year earnings."

Total assets for the consolidated group at the end of June stood at $616m while shareholders equity was $126.2m.

Gross premiums written for the six-month period increased eight percent over 2006 to $100.2m but investment income decreased 25 percent to $5,285,144.

Commissions and other income increased 15 percent to $13m as claims, adjustment expenses and policy benefits decreased one percent to $42,626,263. Operating expenses increased one per to $16,468,706.

BF&M Limited recently had its A (excellent) rating by AM Best reaffirmed. This rating also applied to BF&M Life Insurance Company Limited and BF&M General Insurance Company Limited.

But Mr. Wight sounded a note of caution that while claims experience in the first six months was excellent, Bermuda was still in the midst of the hurricane season, with a busy time predicted which may on impact BF&M's earnings for 2007.