In announcing the results the Chairman, Lt. Col. Michael Darling, said that the Company had "produced excellent results in a most extraordinary year." "The absence of tourist travel after 11th September destroyed what remained of an already discouraging year for Bermuda's businesses and residents who rely so heavily, directly or indirectly, on tourism. Many are our customers and we focused on ensuring that they were able to maintain essential insurance protection during this time of hardship. In addition we were challenged by higher reinsurance costs, an economic downturn, higher costs including changing claims experience and a challenging investment climate."
At 31st December 2001 Assets stood at $204.77 million, while Shareholders Equity had increased by 16% to $52.6 million. Gross Premiums for the year increased to $72.69 million and Investment Income was stable despite turmoil in the market. Expenses increased by 5%.
President & Chief Executive Officer, Glenn Titterton said that, "2001 was a challenging year for businesses and for the community generally. The economic downturn, uncertainty in financial markets, rapidly increasing reinsurance costs (especially after the tragedies of 11th September and the developments which followed) and other factors, all contributed to a difficult year. It was a year of mixed fortunes for BF&M, as is often the case in this industry. Net Earnings for BF&M General reduced from the preceding year, due partially to a substantial increase in claims. However, this was offset by profits in BF&M Life and BF&M Properties and by other factors, demonstrating the strength of our diversity."
Mr. Titterton said that BF&M had achieved considerable success during the year. "BF&M's success in 2001 is measured in Net Earnings in excess of $10 million in a very difficult year; in the continued growth of Shareholders Equity and a 20 % increase in shareholders dividends; in the third party endorsement of A. M. Best who awarded us a financial strength rating of "A- (Excellent)" on our first application; in the new products and on-line real-time customer services and facilities being rolled out continuously at our market leading e-commerce service at www.bfm.bm; in the continued recognition received for this service, including the three WebSAwards for Best Technical Achievement, Best Service Site and Best Health Site; in the introduction of new products such as the Global Health Series to meet the differing needs of Bermuda's population; in the plans for Barr's Bay Properties Limited to build a new 5 floor office building starting in 2002 and in the success of our employees and the strength of our business."
Mr. Titterton said that "BF&M was successful because, even during a year as difficult as 2001, we remained focused on our core business. We continue to invest heavily in the development of our people and in new technology, believing that there is no substitute for being the best in these key capabilities. This focus is essential for us to be winners in the business environment of tomorrow."