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BF&M Limited Announces Earnings of $19.6 Million for 2009
Hamilton, Bermuda – 13 April, 2010 – BF&M Limited (Ticker: BFM.BH) today announced net earnings for the year ended 31st December 2009 of $19,648,220, resulting in a return on shareholders equity of 12% which President & CEO John Wight stated “represented a good return for a multi line insurer in 2009”. Mr. Wight added that “2009 was a challenging year for Bermuda as the global economic downturn affected the Island’s businesses in every sector. Businesses employed fewer people, and individuals purchased fewer new cars, boats, and postponed building renovations. All of this contributed to less business volume for companies servicing Bermuda’s insurance needs, and BF&M was not immune to the issues facing these businesses and individuals.”
Mr. Wight stated that “we were pleased that rating agency A.M. Best maintained their Financial Strength Rating “A” Excellent for BF&M’s two principal operating companies BF&M Life Insurance Company Limited (“BF&M Life”) and BF&M General Insurance Company Limited (“BF&M General”). A.M. Best’s rating system is designed to provide an opinion of an insurer’s financial strength and ability to meet ongoing obligations to policyholders. Their opinions are derived from an evaluation of a company’s balance sheet strength, operating performance and business profile. A. M. Best’s “A” Excellent rating rationale cited “the organization’s consistently positive net income, steady premium growth, and strong capitalization”. These “A” Excellent ratings for BF&M Life and BF&M General are the strongest of any local insurer in the Bermuda marketplace.”
“The company’s balance sheet has never been stronger. Shareholders equity at 31st December 2009 was $169,419,732. Assets totaled $731,537,082, of which $58,252,701 was held in cash and short tem deposits. Based on the company’s strong balance sheet and continuing strong financial performance the Board of Directors maintained the dividend of 20c per share for shareholders of record at 31st March 2010.
Gross Premiums Written for the year increased 6% over 2008 to $225,507,351. Investment income decreased 4% to $16,758,043. The fair value of assets classified as held for trading decreased earnings by $3,397,968 principally due to the drop in the value of local Bermuda equities held by the company. Commissions and other income decreased 1% to $24,050,160. Claims and adjustment expenses decreased by 7% to $18,696,599 and policy benefits increased 9% to $97,971,270. Operating expenses increased 8% to $43,378,461.
Editors Notes
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 Bermuda International Insurance Company Limited, Bermuda International Reinsurance Services Limited, Marchmont Insurance Company Limited, BF&M Investment Services Limited, BF&M Properties Limited, (including Scarborough Property Holdings Limited and Barr’s Bay Properties Limited), Hamilton Financial Limited, and a 51.7% interest in the Insurance Corporation of Barbados Limited.
For further information contact:-
R. John Wight C.A,, President & Chief Executive Officer
Phone 295 5566, Fax 292 8831, e-mail jwight@bfm.bm