BF&M profit reflects 'resilience in extraordinary year'
BF&M Limited’s net income for 2020 was $20.5 million, up about $8.5 million on the prior year.
John Wight, group chairman and chief executive officer, said: “BF&M reported strong operating results for 2020, demonstrating resilience in an extraordinary year. Against a backdrop defined by the Covid-19 pandemic, drivers of our performance included a reduction in claims offset by lower premiums received and higher reinsurance rates.”
He added: “We demonstrated agility in our response to change, underpinned by our commitment to being there for our customers through challenging times.
“Looking ahead, we expect to see an increase in claims activity once vaccination programmes curb the impacts of Covid-19. The reality is we cannot say with certainty when that will be and we must plan accordingly for the long term. We are well-positioned for 2021 and beyond.”
Equity attributable to shareholders at December 31, 2020 was $295.1 million. General fund assets totalled $1.1 billion, of which $153.6 million was held in cash and cash equivalents.
Gross premiums written for the period decreased from the prior year by 7 per cent to $308.1 million. The company said this was driven by an expected shift of health premiums between the company and the amounts allocated to the Bermuda Government as part of Bermuda’s health financing reforms, along with lower property and casualty premiums and life premiums stemming from Covid-19 impact.
Short term claims and adjustment expenses decreased by 48 per cent to $9.7 million. Life and health policy benefits decreased by 21 per cent to $101.4 million.
Operating expenses increased 7 per cent to $52 million for the period in comparison to last year, contributed to by higher uncollectible premiums from customers stemming from Covid-19 impact.
BF&M offers property and casualty products as well as health, life, annuities, pension products, investment advisory and financial planning services.