BF&M Limited, one of Bermuda?s largest domestic insurers, yesterday said it is planning a special offering to sell more shares to existing investors in hopes of raising some $22.5 million to finance expansion.

?This Rights Offering is a key element of our strategic plan for growth and we feel that our shareholders will be sufficiently encouraged by our positive financial results to exercise their rights,? said chief executive John Wight, pointing out the company?s record 2005 profit, reported a month ago, of $16.8 million.

The offering will allow shareholders to purchase additional shares at a ?significant discount to the current market value?, he added, in a prepared statement.

BF&M?s proceeds are slated to fund growth including within Bermuda International Insurance Services Limited, a company formed to market and distribute life insurance products to high net worth clients around the world.

The Bank of Bermuda Limited is underwriting the offering.

?This capital will also provide BF&M with the ability to act on future expansion opportunities as they arise,? said Mr. Wright. In the last year BF&M expanded its global reach by buying up a majority stake in a Barbados insurer, as well as growing in the Bermuda market through acquisitions.

Investors must have a Bermuda address and be listed on the the company?s shareholder register by Tuesday, May 30 in order to take part in the offering, which gives the right to one transferable share for every four common shares owned.

Each right will entitle the holder to purchase one new share of common stock at the subscription price of $15.15.

This represents a substantial discount from $18.75, the price the company?s shares were trading at on the Bermuda Stock Exchange yesterday.

BF&M will issue nearly 1.5 million new common shares in the offering.

The subscription rights are exercisable from Tuesday, June 6, through July 7. And it is anticipated that the rights will be available for trading on the BSX between Monday, June 19 and Friday, June 30, BF&M said.