Increased expenses incurred in the first quarter of 2006 contributed to a decline in BF&M Limited?s net earnings.

BF&M Limited had recorded net earnings for the three month period to March 31 of $4,728,977, resulting in a return on shareholders equity of 22 percent.

Earnings for the comparative three month period in 2005 were $5,159,702.

BF&M Limited CEO John Wright said: ?Although earnings were down slightly from our record 2005 period, we were very pleased with the result.?

Increased expenses in the first quarter of 2006 were incurred relating to the development of Bermuda International Insurance Services Limited, BF&M?s wholly owned subsidiary marketing and distributing life insurance products to high net worth clients in the international marketplace.? Mr. Wight stated that results for the first three months of 2006 included those of BF&M?s 51.7 percent owned subsidiary, the Insurance Corporation of Barbados Limited. This followed the execution of an agreement on December 28, 2005 to acquire shares in the company, principally from the Government of Barbados. Total assets for the consolidated group at March 31 were $544,901,025. Shareholders Equity was $83,114,867.

Gross premiums written for the three month period increased 48 percent over 2005 to $42,763,288. Claims, benefits and claim expenses increased 46 percent to $20,855,441.