Financial services investment holding company Somers Limited has reported net income of $69 million for 2020, that compares with a $9.7 million loss the previous year.

It had gains on investments of $60.9 million, up from $4.3 million in 2019.

Somers has a 100 per cent shareholding in Bermuda Commercial Bank Ltd, an investment that was valued at $66.7 million at the end of it financial year on September 30. It is in the process of selling BCB to Provident Holdings Limited. The sale is subject to Government and regulatory approvals, and Somers is hopeful the transaction will be completed in the first quarter of 2021.

Following the company’s annual meeting on Wednesday, Peter Durhager is the new chairman, succeeding Warren McLeland who had served as chairman of Somers since its incorporation in 2012.

In Somers’ annual report for 2020, Mr McLeland said that when the sale of BCB has been completed it would release capital that would enable Somers to reduce debt and make new investments.

Somers’ largest investment as of the end of September was $258.9 million in Resimac Group, a residential mortgage lending business in Australia. It also has a $71.8 million investment in Waverton Investment Management Group, and a $31.9 million investment in PCF Group plc. These, together with its ownership in BCB, are Somers’ four major investments and account for 85.8 per cent of its total investments.

More than half of the company’s investments are in Australia, with a further 21.7 per cent in Britain. In previous years it has been negatively impacted by foreign currency movements. In the 2020 annual report, Mr McLeland said: “I am pleased to report that during 2020, both sterling and the Australian dollar strengthened against the US dollar, by 5 per cent and 6.1 per cent respectively, and this has positively impacted the valuations of a number of our larger investments.”

Referring to the Covid-19 pandemic, he said this was the most challenging time in the global economy since the great financial crisis. He also said: “Somers is looking to the future cautiously, but with optimism that once we emerge from the pandemic our investee companies will be well placed to prosper and there will be opportunities for both them and Somers.”

Somers’ total assets increased during the year to $508.6 million, up from $423.1 million a year previous. The company had a net asset value per share of $19.78, and shareholders’ equity of $422.1 million as at September 30. Shareholders’ equity at the end of the 2019 financial year was $353.5 million.

Total borrowings increased to $76 million from $67.9 million a year earlier.

Somers’ share price ended the period at $13.75, down from $15 at September 30, 2019.