BF&M Limited's 3 Month Results to 31st March 2006

Hamilton, Bermuda: June 8, 2006 -- John Wight, President & CEO of BF&M Limited, today announced that BF&M Limited had recorded net earnings for the three month period to 31^st March 2006 of $4,728,977, resulting in a return on shareholders equity of 22%. Earnings for the comparative three month period in 2005 were $5,159,702. Mr. Wight said that "although earnings were down slightly from our record 2005 period, we were very pleased with the result. Increased expenses in the first quarter of 2006 were incurred relating to the development of Bermuda International Insurance Services Limited, BF&M's wholly owned subsidiary marketing and distributing life insurance products to high net worth clients in the international marketplace."

Mr. Wight stated that results for the first three months of 2006 included those of BF&M's 51.7% owned subsidiary, the Insurance Corporation of Barbados Limited, following the execution of an agreement on 28^th December 2005 to acquire shares in the Company, principally from the Government of Barbados.

Total assets for the consolidated group at 31^st March 2006 were $544,901,025. Shareholders Equity was $83,114,867. Gross Premiums Written for the three month period increased 48% over 2005 to $42,763,288. Claims, benefits and claim expenses increased 46% to $20,855,441.

The consolidated financial statements for BF&M Limited for the 3 month period ended 31^st March 2006 will be included in the Prospectus for the company's Rights Offering. This document and other related documents was sent to each eligible shareholder on 6^th June 2006.

BACKGROUND
BF&M Limited is the holding company of the BF&M Insurance Group. The two largest operating companies within the Group are BF&M Life Insurance Company Limited, a leading provider of life, health and pensions products, and BF&M General Insurance Company Limited, the leading general insurer providing all forms of property, casualty, motor and marine products. The group includes several other companies including  Marchmont Insurance Company Limited, North Atlantic Asset Management Limited and BF&M Properties Limited (including Scarborough Property Holdings Limited and Barr's Bay Properties Limited), and a 51.7% interest in the Insurance Corporation of Barbados Limited.