BF&M Ltd made a profit of $13.7 million for the first nine months of the year, down $3 million from the corresponding period in 2011 as investment income slumped.The insurer’s president and CEO John Wight said: “We were pleased with the operating performance of the company against the backdrop of continuing recessionary pressures on our customers in Bermuda and the Caribbean where BF&M operates its businesses.“The results for the nine-month period include, from April 1, 2012, those of Island Heritage Holdings Ltd, a leading Cayman based company that writes principally property and casualty insurance in certain Caribbean islands through one of its subsidiary companies.“This acquisition of Island Heritage further strengthened BF&M’s position as a strong regional insurer in the Caribbean, operating in thirteen countries, with three principal offices in Bermuda, Barbados, and Cayman. There were several non-recurring expenses related to this major acquisition that were recorded in 2012. These one-time expenses combined with lower than expected investment income in the third quarter resulted in earnings for BF&M in 2012 being less than the comparative period in 2011.”The nine-month net income represents an annualised return on shareholders’ equity of 9.7 percent.Mr Wight added: “The company’s balance sheet continues to be very strong. Equity attributable to shareholders at 30 September, 2012 was $203.4 million. Assets, including segregated funds, totalled $1.6 billion of which $91.5 million was held in cash and short term deposits.“Based on the company’s strong balance sheet, the board of directors will maintain the dividend of 20 cents per share for shareholders of record at 31 December, 2012.”Year-on-year comparisons of figures are influenced by the operating results of Island Heritage since being consolidated into BF&M at the start of the second calendar quarter. Gross premiums written for the period increased 31 percent over 2011 to $247.9 million.Investment income decreased 43 percent over 2011 to $20.7 million as a result of a decline in the change in fair value of investments held.Commission and other income increased 79 percent to $30.6 million. Short term claim and adjustment expenses decreased four percent to $16.9 million and life and health policy benefits decreased five percent to $79.3 million.Operating expenses increased 32 percent to $47.8 million, reflecting the acquisition costs of Island Heritage and that company’s operating expenses for the period since acquisition included in BF&M’s consolidated figures.