Log In

Reset Password

BF&M plunges to first quarter $6.7m loss

Poor performance in investments and underwriting dropped domestic insurer BF&M to a first quarter loss for the period to the end of March.

The company said the $6.7 million loss is compared to the shareholders’ net income for the comparative period in 2021 of $6.5 million.

John Wight, the group chairman and CEO stated: “Our first quarter results were negatively impacted by investment income losses driven by rising interest rates and high stock market volatility. While rising interest rates will benefit the Company over the longer term, the fair value losses experienced in the quarter depressed earnings.”

He added: “In addition underwriting results in both the P&C and Life and Health businesses did not meet expectations.

“Increases in P&C premiums were not sufficient to adequately cover the increases in reinsurance costs. In addition, we are now seeing dynamics which we anticipated several quarters ago during the worst of the pandemic: a backlog of patients seeking elective or diagnostic care is now working its way through the system. This resulted in higher than expected medical claims in the first quarter.

“As a leading insurer in Bermuda and the Caribbean, our capital position remains very strong. As we head into hurricane season, we are ready to meet the needs of our policyholders and shareholders.”

The company reported that equity attributable to shareholders at 31 March 2022, was $304.4 million. General fund assets totalled $1.1 billion, of which $88.0 million was held in cash and cash equivalents. Gross premiums written for the period increased slightly from the prior year to $86.5 million, driven by increased property and group health premiums and new business.

Short term claims and adjustment expenses increased by 10 per cent to $4.6 million. Life and health policy benefits decreased by 161 per cent to -$3.1 million. Operating expenses increased by 2 per cent to $14.0 million for the period.

John Wight, group chairman and CEO of BF&M (Photograph supplied)

You must be Registered or to post comment or to vote.

Published June 22, 2022 at 7:58 am (Updated June 23, 2022 at 8:08 am)

BF&M plunges to first quarter $6.7m loss

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon