BF&M earns $17.3m in first nine months
Insurer BF&M has reported earnings of $17.3 million for the nine months to the end of September.
The firm said that the impact of the fair value adjustment in net assets led to a $4.6 million drop in net earnings over the prior year as BF&M reported a current year loss of $1.4 million compared to the previous year's gain of $3.2 million.
BF&M chief executive officer John Wight said “financial results in the first nine months of 2015 continued to be strong.
“The core operating earnings in the first nine months of 2015 were in line with the corresponding period in 2014.”
Mr Wight added that the BF&M had bought up Kitson Insurance Services, a Bermuda insurance agency and brokerage business, earlier this year.
He said: “This acquisition aligned with the group's strategy of selectively acquiring successful insurance businesses in Bermuda and the Caribbean.”
BF&M has operations in Bermuda and 15 islands in the Caribbean. It has four main insurance operating companies.
Mr Wight said: “There is no domestic insurance group in Bermuda or the Caribbean with stronger ratings.”
Equity attributable to shareholders at September 30, 2015 was $252.8 million. General fund assets totalled $1.1 billion of which $111.7 million was held in cash and cash equivalents.
Gross premiums written for the nine months were $262.2 million, a decrease of 1 per cent from 2014.
Investment income for the nine months reflected a $2.3 million decrease in the value of investments for the period on poor returns in the global financial markets and increasing long-term US interest rates negatively impacted the fair value of the company's extensive fixed-income portfolio.
Partially offsetting this was a $0.9 million decrease in the value of policyholder benefits as a result of the company's disciplined asset liability matching policy which limits volatility of reported earnings as a result of interest-rate swings. Commission and other income increased 8 per cent to $30.8 million from improved reinsurance commission income. Short-term claims and adjustment expenses increased by 7 per cent to $16.9 million.
Life and health policy benefits, which are recorded at fair value, decreased by 14 per cent to $76.1 million. Operating expenses decreased by 2 per cent to $47.6 million.