Bermuda insurer, pension provider and investment firm BF&M Ltd. yesterday announced a $13.2 million profit for the first six months of this year — up eight percent on the same period last year.

Return on shareholders' equity was 20 percent, as chief executive officer John Wight reported a good performance across all lines of business.

'Fair value' accounting rules impacted results as the value of some assets were written down by some $4.5 million — a figure that is included in the net income column. BF&M's results statement said this impact on earnings was largely offset by corresponding changes in the fair value of actuarial liabilities, which are supported by these investments.

Mr. Wight said low claims had helped to boost results, but cautioned that the ongoing hurricane season could potentially impact profits in the second half of the year.

He added that the company has purchased reinsurance that would significantly limit the negative impact of numerous claims in the event of a major storm.

"We were very pleased with the results, experiencing very good financial performance from all our insurance and non-insurance lines of business," Mr. Wight said.

"Group contributions from general insurance, health and life insurance, real estate, asset management, pension administration, and BF&M's interest in the operations of the Insurance Corporation of Barbados Ltd. were strong."

Gross premiums written for the six-month period increased eight percent over 2007 to $108.5 million. Investment income increased three percent to $8.6 million.

Commissions and other income increased three percent to $13.5 million. Claims and adjustment expenses decreased by 10 percent to $9.6 million and policy benefits increased five percent to $33.9 million. Operating expenses increased 13 percent to $18.6 million.

Total assets for the consolidated group at June 30, 2008, were $682.2 million. Shareholders' equity was $152.1 million.

Last week, rating agency AM Best affirmed BF&M's A (excellent) financial strength rating.