BF&M ratings affirmed by AM Best – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password

BF&M ratings affirmed by AM Best

AM Best has affirmed the financial strength ratings of BF & M and its subsidiaries citing its consistent overall profitability and leading market position in Bermuda.

“The ratings of BF & M Life reflect its consistent favourable operating results, premium growth and strong level of capital and sizeable market share in Bermuda,” AM Best said.

“Net income has remained positive over the last five years and has contributed to the company's strong capital level through retained earnings while still maintaining a dividend to BF & M.

“During 2012, the loss ratio at BF & M Life improved substantially and was primarily driven by lower health claims costs.” AM Best continued: “Partially offsetting these positive rating factors are BF & M Life's margin pressure due to competition and economic conditions as well as the effect of the low interest rate environment on its pension business and investment income.

“BF & M Life mainly operates in the local Bermuda market, which concentrates its business geographically and limits domestic growth opportunities.

“The ratings for BF & M General recognise its favourable underwriting performance, excellent capitalisation and consistent overall profitability.

In addition, BF & M General continues to maintain a leading market position in the domestic Bermuda market.” AM Best added: “Partially offsetting these positive rating factors are the geographic concentration of BF & M General's business in Bermuda, its level of intra-group receivables and similar to its domestic peers, reliance on reinsurance to protect its earnings and capitalisation.

“BF & M Life and BF & M General are well positioned at their current rating levels. Factors that can lead to negative rating actions include deterioration of operating performance and/or capitalisation, weakening within their business profiles (especially as it relates to BF & M Life's health line of business) as well as potential losses in the mortgage portfolio of BF & M Life.”

AM Best affirmed the A (Excellent) and issuer credit ratings

(ICR) of “a” of BF & M Life Insurance Company Limited (BF & M Life) and BF & M General Insurance Company Limited (BF & M General).

The agency also affirmed the ICR of “bbb” of the parent, BF & M Limited (BF & M).

The outlook for all ratings is stable.

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

Published September 11, 2013 at 7:06 pm (Updated September 11, 2013 at 7:07 pm)

BF&M ratings affirmed by AM Best

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