BFMIC buys more shares

The Bermuda Fire and Marine Insurance Company Limited (in liquidation) has exercised its option to subscribe for a further 275,000 shares of BF&M Ltd.

BF&M said that the shares will be called and subsequently cancelled.

The transaction stems from BF&M Limited's acquisition of BF&M General Insurance Company Limited, BF&M Life Insurance Company Limited and various other companies from BFMIC in 1991. Part of the purchase price consideration was 1,000,000 convertible cumulative redeemable preference shares.

An amendment to a November 30, 1999 agreement between BF&M and BFMIC enabled BFMIC to subscribe for up to to 1,100,000 shares of BF&M during years 2004 through 2006. The agreement also enabled BF&M to call some or all of BFMIC shares subscribed for.

BFMIC also exercised its option to subscribe for 275,000 shares of BF&M in December last year, following which the shares were called and cancelled.