sparkling 15 percent improvement over the 1993 results, pushing earnings per share from $1.73 to $2.09.

Total assets, apart from managed funds, grew by a respectable seven percent to $153,896,000 and shareholders' equity increased by 12 percent to $44,597,014.

Chairman the Hon. Charles Collis said in the company's annual report that the year was difficult for local and overseas investments, while income remained stable.

But he said: "Increased earnings resulted from underwriting success across many lines of business. A combination of higher income and better than expected loss experience produced strong results.'' Gross premiums earned rose 12 percent to more than $51 million from nearly $45.5 million. Net premiums earned were up from $31.1 million to $33.9 million. Investment income was down only marginally from $8,318,438 to $8,298,654, as the company took a stronger cash position in 1994.

But the report on the health portfolio of BF&M Life Insurance Company Ltd.

raised concern that "medical care inflation is increasing at two to three times the rate of the Consumer Price index. We do not expect this alarming rate of increase to abate in 1995.'' The report from president and CEO, Mr. Glenn Titterton warned: "Locally, the cost of care rendered in doctor's offices has escalated since the beginning of this decade and continues to rise in an uncontrolled manner.

"Claims for overseas treatment continue to increase both in numbers and in size. The number of `catastrophic' claims for overseas treatment is increasing. We maintain reinsurance against such catastrophic health claims but an increasing incidence of large dollar claims is adversely affecting the cost of such reinsurance protection.'' There was also what has become an annual warning over cycle thefts, as the firm experienced a claims increase of 125 percent, year over year, with that section's accounts described by the firm as "completely unacceptable''.

The report stated: "The epidemic in cycle thefts has now reached such serious proportions that, unless the community finds a solution to this social ill, insurance cover against theft may become unavailable.'' The report also mentioned the controversial $2.3-million extension to the ACE Building, a building owned by Scarborough Property Holdings Ltd., 60 percent owned by BF&M Ltd.

Overall, Mr. Titterton said: "1994 was a difficult year for local and overseas investment markets and this income was substantially unchanged.

Claims and benefits were some four percent higher year on year and this represents a particularly good year.'' Reinsurance costs rose 20 percent, due largely to increases in windstorm reinsurance costs. Operating expenses increased by 11 percent.

Mr. Collis said the board was confident that BF&M's share price would "return to levels which reflect the secure and highly competitive nature of our shares.'