Log In

Reset Password

BF&M profit rises to $18.4m

Nine-month earnings: BF&M said the full consequences of Covid-19 will not be reflected in its financial results until well into the new year (File photograph)

BF&M Limited made $18.4 million in net income for the nine months to the end of September, an improvement of $5.8 million when compared to the same period last year.

However, the company said the full impact of the Covid-19 pandemic on its financial results will not be seen until “well into 2021”.

Gross premiums written fell five per cent, year-over-year, to $232.7 million. BF&M said this was driven by an expected shift in health premiums between the company and the amounts allocated to the Bermuda government as part of the Bermuda’s health financing reforms. There was also lower property and casualty premiums and life premiums due to the impact of Covid-19.

John Wight, chief executive officer and group chairman, said the company had strong operating results for the period with favourable claims experience, which was partially offset by hurricane losses and lower gross premiums resulting from Covid-19.

Mr Wight said: “This is a uniquely complex time to talk about financial results. We won’t see the full consequences of Covid-19 reflected in our financial results until well into 2021. For example, in the health insurance business, fewer people sought elective or diagnostic care this year, but we are expecting an increase in claims in 2021 once the Covid-19 crisis subsides.

“In addition, there are uncertainties about the ability of many businesses and individuals to continue to pay premiums in 2021, after having relied on the support obtained from Government relief programs and other relief measures in 2020. As a leading insurer in Bermuda and the Caribbean, we are well positioned to meet the requirements of our policyholders and shareholders.”

Operating expenses increased 6 per cent to $38 million, year-over-year, driven by higher bad debt expenses stemming from Covid-19 impact. Short term claims and adjustment expenses fell 50 per cent to $7.9 million. Life and health policy benefits decreased by 29 per cent to $76 million.

You must be Registered or to post comment or to vote.

Published December 08, 2020 at 10:46 am (Updated December 08, 2020 at 10:45 am)

BF&M profit rises to $18.4m

What you
Need to
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