Insurer and pension fund administrator BF&M Ltd. announced yesterday that their first-quarter profits had risen by over $1.5 million from the same period last year.

Net earnings for the first three months of the year were $7.88 million, compared to $6.31 million in the first quarter of 2007.

BF&M president and chief executive officer John Wight was pleased by the results, which also saw investment income rise.

"We are cautiously optimistic about the results for the next quarter as well, although volatility in the investment markets and new accounting rules for how investments are accounted make forecasting future profits more difficult," said Mr. Wight in a press release.

Gross premiums written for the three month period increased nine percent over 2007 to $48.57 million, while investment income increased 37 percent to $6.85 million as declining interest rates increased the value of the company's bond portfolio. Claims, policy benefits and claim expenses increased 15 percent to $24.4 million, while operating expenses increased nine percent to $8.7 million

Total assets for the group at the end of March reached $665.3 million, with shareholder equity at $146.8 million.