million in its first annual report since selling its domestic operations to BF&M Ltd. last July.

The profit is entirely due to the $32.1 million the company received from the sale of all its domestic business last July to then newly-formed BF&M Ltd.

under a reorganisation plan.

After the changes, Bermuda Fire and Marine Insurance was left only with international business which is in run-off, with no intentions to introduce new business to the company.

Although there have been confusions caused by the similarities of their names, Bermuda Fire and Marine Insurance and BF&M are two unrelated companies with different shareholders and separate office locations.

Without the revenue from the one-off sale of all its on-going business, Bermuda Fire and Marine Insurance would have made a loss of $4.27 million.

Bermuda Fire and Marine Insurance's principal activity is the run-off of its disastrous involvement with the H.S. Weavers (Underwriting) Agencies Ltd. Pool from 1968 to 1983.

Other business concerns its involvement with the Bermuda London Underwriting Agency Ltd. Pool and small amounts of inwards reinsurance written directly by the company.

In Bermuda Fire and Marine Insurance's annual report, chairman Mr. Charles Collis said the company had substantial reserves for all of its discontinued business.

He also indicated that the company was experiencing difficulties in assessing accurately its liabilities over Weavers due to a lack of information being made available.

He added: "Since 1984, this company has annually engaged the services of an independent firm of actuaries and loss reserve specialists to assess its liabilities in respect of the Weavers business.

"These actuaries were instructed to repeat this exercise as at December 31, 1991, but were prevented from doing so because Weavers refused to make necessary data available.

"It is this lack of information which has prevented our auditors from being able to express an opinion on the financial statements. This is a most unsatisfactory situation.

"You may have heard of the difficulties faced by London United Investments Ltd. and their various subsidiaries, including Weavers. This has caused severe problems throughout 1991 for the many companies involved in this business in London and elsewhere.

"Weavers defaulted on our agency agreement and we contracted with a third party for this run-off.

"Subsequently, Weavers refused to supply the remaining data required by our actuaries and further refused to allow our London managers access to the records in order to extract the needed information.

"Legal counsel in London have confirmed our rights to the information in question and we are determined to use every means available to obtain the required data from Weavers so that the actuarial review can be completed.'' Bermuda Fire and Marine Insurance's balance sheet as at December 31, 1991, showed assets of $61.8 million and liabilities of $52.7 million.

The net loss on its continuing run-off operations came to $2.8 million. The profit of its domestic operations up until the time they were sold at the beginning of July was $3.6 million.

BERMUDA FIRE AND MARINE INSURANCE 1991 RESULTS Profit $27.8m Net loss on run-off $2.8m Assets $61.8m Liabilities $52.7m.