Premiums, income rise at BF&M
Domestic insurer BF&M Limited has reported net income for the six months ended June 30 of $14.8 million as compared to net income for the comparative period in 2020 of $10.4 million.
Earnings for the period for 2021 equated to an annualised Return on Equity of 9.7 per cent as compared with 7.1 per cent for 2020.
Group chairman and CEO John Wight stated: “The BF&M Group has achieved strong results for the six months ended 30 June 2021. Both our p&c and group benefits businesses performed well, as reflected in the increase in premiums earned and commission income.”
Equity attributable to shareholders at 30 June 2021, was $306.5 million. General fund assets totalled $1.2 billion, of which $93.7 million was held in cash and cash equivalents.
Gross premiums written for the period increased from the prior year by 15 per cent to $170.9 million, driven by increased property premiums in the Caribbean and from health & annuities premiums in Bermuda.
The firm added: “The majority of property business written by the BF&M Group is undertaken in certain islands in the Caribbean. The company has experienced growth in premiums in Cayman and the Bahamas.
“In Bermuda, the growth in premiums is attributable to annuities sold by the company. When pension policyholders retire, one option offered is to convert their pensions into a guaranteed retirement stream of income - which annuity products do.”
Short term claims and adjustment expenses increased by 64 per cent to $6.9 million. Life and health policy benefits decreased by 43 per cent to $33.7 million.
The company explained: “Short term claims and adjustment expenses are a function of both claims paid, and changes in reserves due to changing interest rates.
“In the first six months of 2021 interest rates increased thus reducing the amount recorded in 2021 versus 2020.
“At the same time, we are observing an increase in medical claims paid in Bermuda in the first half of 2021 versus 2020 as many more policyholders are able to have medical services performed that had previously been deferred.”
Operating expenses increased by two per cent to $27.0 million for the period.
BF&M offers property and casualty products as well as health, life, annuities, pension products, investment advisory and financial planning services.
The BF&M Group consists of three main insurance operating companies, with the following A.M. Best financial strength ratings: BF&M General Insurance Company Limited A (Excellent) Bermuda BF&M Life Insurance Company Limited A (Excellent) Bermuda Island Heritage Insurance Company, Ltd. A (Excellent) Cayman BF&M Limited.