BF&M Limited, the holding company for the companies comprising the BF&M Insurance Group, yesterday announced net earnings of $9.8 million for the year ended December 31 2002.

This was six percent less than in the preceding year but was considered very satisfactory in an exceedingly difficult year.

At December 31 2002 total assets stood at $210 million and shareholders' equity increased by 12 percent to $59 million.

BF&M's financial strength rating was confirmed by A. M. Best at "A- (Excellent)" with a "positive outlook".

In announcing the results the chairman, Lt. Col. Michael Darling, said: "2002 was not a good year for business generally. Given the challenges confronting the insurance industry in 2002 and the results being produced by insurers elsewhere, we might reasonably have expected net earnings to be more seriously impacted. BF&M is financially strong and we believe that we are well positioned for future growth."

President and chief executive officer Glenn Titterton said: "There was a great deal of pressure on income and we were therefore very pleased that we were able to produce strong top line growth with gross premiums written increased by 13 percent to almost $82 million.

"This offset a 22 percent increase in reinsurance costs.

"We had anticipated a fall in total income primarily due to the turbulent investment market and were therefore pleased that total income increased modestly by 1 percent, despite a 33 percent decline in investment income."

Talking generally about BF&M, Mr. Titterton said: "We are the market leader and innovator.

"We continue to add services to our real-time on-line personal lines quote and buy facility at www.bfm.bm and our substantial lead in e-business continues unchallenged.

"In 2002 we became the first company in Bermuda to be accredited as an "Investor in People" since the pilot project and the first major employer to endorse and adopt the International Computer Drivers Licence as a core development tool to enhance the skills of all employees.

"Our networking agreement with Sun Life will bring real benefit to both parties but particularly to our customers.

"The development of PXRE House by our 60 percent owned subsidiary, Barr's Bay Properties Limited, is moving ahead rapidly with completion scheduled for spring 2004.

"We have a very strong platform and are well positioned to take full advantage of changing markets and an improving economy."