Insurer BF&M Ltd recorded net income for 2013 of $25.2 million — and more than half of that profit came from outside Bermuda.

The company announced its full-year results this morning, noting that the return on shareholders’ equity was 11.7 percent, a double-digits return for the 13th consecutive year.

BF&M chief executive officer John Wight said he was seeing some signs of recovery in the Island’s economy.

Net income was up from the $21.9 million recorded in 2012 when $5 million was set aside for bad mortgages.

“For the first time, over half of BF&M’s profits came from businesses outside of Bermuda,” Mr Wight said in the company’s statement.

“Island Heritage Insurance Company, headquartered in Cayman and operating in 13 Caribbean countries, had record profits.

“Financial results from Bermuda-based businesses were good but continue to reflect the ongoing challenges that still impact certain of our individual, commercial, and group customers. There are certain signs of recovery in the Bermuda economy which is encouraging.”

Mr Wight added: “The company’s balance sheet continues to be very strong, both in terms of capitalisation and liquidity. Equity attributable to shareholders at December 31, 2013 was $227.8 million.”

General fund assets totalled $1.1 billion of which $74 million was held in cash and cash equivalents. The board of directors maintained the dividend of 20 cents per share for shareholders of record at March 31, 2014.

The company wrote more insurance business, with gross premiums written for the year rising 8.6 percent to $345.6 million.

Investment income for the year reflected a $22.5 million decrease in the value of investments for the period as the increase in interest rates decreased the fair value of the company’s extensive fixed-income portfolio.

Offsetting this was an $20.5 million decrease in the reserve held in respect of future policyholder benefits as a result of the company’s asset-liability matching policy which limits volatility of reported earnings as a result of interest rate swings in either direction.

Commission and other income decreased 16 percent to $40 million.

Short-term claims and adjustment expenses increased by 21.3 percent to $22.2 million and life and health policy benefits decreased by 21.7 percent to $83.8 million. Operating expenses increased ten percent to $63.1 million.