Ratings firm AM Best has affirmed the financial strength ratings of A (Excellent) and issuer credit ratings (ICR) of “a” of both BF&M’s Life and General Insurance companies.AM Best has affirmed the ICR of “bbb” of BF&M Limited (BF&M).The outlook for all ratings is stable.According to AM Best, the ratings of BF&M Life reflect its consistent favourable operating results, premium growth and strong level of capital.“Operating income for 2011 was the highest reported in the last five years, aided in part by a one-time credit for an adjustment to the retiree benefits liability,” AM Best said in a statement. “The positive net income has contributed to the company’s strong capital level through retained earnings while still maintaining a dividend to its parent company, BF&M.”“The ratings for BF&M General reflect its consistent overall profitability, excellent capitalisation and top line premium growth. In addition, BF&M General continues to maintain a leading market position in the domestic Bermuda market.”AM Best said that negative rating actions could occur if BF&M Life or BF&M General experience a significant deterioration of operating trends, there is a drastic decrease in either company’s level of capital or if the consistent low interest rate environment has a material adverse effect on operating results.