Five years of rising profits and premium growth at BF&M Ltd. were a major factor in rating agency AM Best's decision to affirm the Bermuda insurer's excellent ratings.

Best said yesterday that BF&M's financial strength rating would remain A and its issuer credit ratings "a", as would the ratings of the company's main operating subsidiaries, BF&M Life Insurance Company Ltd. and BF&M General Insurance Company Ltd. The outlook for all ratings is stable.

"The rating affirmations reflect the organisation's consistently positive net income, steady premium growth and strong capitalisation," Best's statement said. "BF&M Life and BF&M General have consistently recorded premium growth, positive net income and net income growth for the last five years. The positive operating results have contributed to the strong level of capitalisation for the organisation. The capital levels at BF&M Life and BF&M General are more than adequate to support their current level of business and risk profiles.

"Partially offsetting these positive rating factors is the organisation's concentrated book of business in the local Bermuda market, limited domestic growth opportunities and exposure of the group's property business to hurricane risk."

Last year, BF&M posted record annual net income of $27.3 million, helped by expansion overseas in recent years, particularly into Barbados and the Bahamas.