Allshores recorded underlying earnings from operations of $62.4 million for 2025 — the insurer’s first financial year since the business was formed by the amalgamation of BF&M and Argus.

Operating results, compared with the combined results of the two separate companies in the previous year, showed a significant pick-up.

The underlying operating return on equity was 16.8 per cent, compared to the 2024 combined (pro forma) return of 10 per cent, Allshores said in a statement filed with the Bermuda Stock Exchange.

Abigail Clifford, chief executive officer of Allshores, said: “2025 was the first full year following the amalgamation of BF&M and Argus, and the materially improved operating result reflects our progress in capturing the anticipated benefits of the combination.

“Our focus is on continuing to find ways to be a valued and trusted partner for our clients, while sustaining this earnings momentum, improving capital efficiency and strengthening long-term value creation for shareholders.”

In 2026 we will also be delivering the next phase of integration. This will entail further investment in our people, systems and growth to improve operational efficiency, and strengthening the quality, sustainability, and cash generation of underlying earnings from operations.

Operating revenue, net of reinsurance, was $559.5 million. Underwriting performance improved, producing a net loss ratio of 84.6 per cent, compared to 90.8 per cent in 2024, while the combined operating ratio improved to 90.8 per cent from 96.4 per cent.

The improvement reflects premium rate actions and the benefits of a consolidated reinsurance programme following the amalgamation. Offsetting these positives was the continued increase in cost of claims in the health insurance business.

Gross investment income for the year was $55.5 million, or approximately $50 million net of corresponding interest-rate-driven liability adjustments. Core investment income of $34.6 million was modestly higher than the prior year.

Underlying earnings from operations represent earnings generated from the group’s core operations and exclude one-off and certain non-cash items.

“The IFRS reported result for the year ended 31 December 2025 was $135.1 million,” Allshores stated. “This included significant non-cash items, the largest of which was a $45.8 million non-cash accounting adjustment, known as a ‘bargain purchase gain’.”

A large proportion of Allshores’ earnings came from its health division, which delivered net income before investments of $29.4 million, representing an increase over the prior year, supported by average premium rate increases and improved claims trends.

The net loss ratio of 89 per cent — representing the proportion of premiums spent on medical claims — includes a $3.9 million reinsurance recovery relating to 2024 claims.

“Claims severity remains elevated, particularly in Major Medical,” the company added. “Healthcare delivery performed in line with previous years.”

Allshores said its Pensions and Wealth Management division delivered stable underlying earnings. Pensions generated net income of $15.8 million, supported by strong market-driven investment growth in underlying pension assets.

“Average pension fund assets under management were $3.7 billion, reflecting weighted average investment returns of 13.7 per cent,” Allshores stated.

Property and casualty insurance contributed net income before investments of $23.2 million — with the company’s Bermuda operations contributing $18.9 million of that, supported by “a relatively quiet storm season in the North Atlantic”.

European operations delivered net income before investments of $4.9 million, driven by favourable claim movements, particularly in the Malta motor book.

Caribbean operations recorded a net loss before investments of $0.7 million, a material improvement versus the $7.1 million loss in the prior year.

“The improvement reflects restructuring of the catastrophe reinsurance programme and improved claims experience, notwithstanding continued premium pressure,” Allshores stated.

Looking ahead, Allshores added: “We expect 2026 to continue to be characterised by claims cost inflation, particularly in healthcare due to the rising costs of overseas healthcare services and pharmaceuticals.

“These are wider trends that affect insurers across all the markets in which we operate. We continue to take steps to address these rises — for example through our recent initiative to manage the rapid increase in high-cost pharmaceuticals.

“In so doing, we can moderate the rate at which premiums need to rise.”

The next phase of integration this year “will entail further investment in our people, systems and growth to improve operational efficiency, and strengthening the quality, sustainability, and cash generation of underlying earnings from operations”, Allshores added.

Shareholders’ equity at December 31, 2025 was $442.1 million, up from the $356.5 million, on a pro forma basis, a year earlier.

This growth was supported by net comprehensive income of $144 million for the year.

Allshores’ dividend distributions totalled $11.8 million, while it also repurchased approximately $1 million of its own stock over the year.

The Board has declared a dividend of 40 cents per share for the fourth quarter of 2025. This dividend is expected to be paid on or about May 7 to shareholders on the register at close of business on May 4.