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BF&M Limited (“BF&M”) BF&M reports first quarter earnings
Hamilton, Bermuda: June 13, 2016 - In a filing with the Bermuda Stock Exchange (“BSX”), BF&M Limited (the "Company"; Ticker: BFM.BH) report first quarter earnings. The filing stated:
BF&M Limited today reported shareholders’ net income for the three month period ended 31st March 2016 of $7.1 million, resulting in an annualized return on shareholders’ equity of 10.7%. Shareholders’ net income for the comparative three month period of 2015 was $8.2 million.
President & CEO John Wight stated that “2016 has started off for BF&M with strong financial results. The core operating earnings in the first three months of 2016 were ahead of the corresponding period in 2015. The results for the first quarter of 2015 had certain one-time gains which did not re-occur throughout the remainder of the year.
BF&M operates in Bermuda and 15 islands in the Caribbean. In the first quarter, approximately 50% of the Company’s earnings were generated in Bermuda, and 50% throughout the Caribbean. Approximately 50% was generated from property and casualty business, and 50% from health, life, annuities, pensions, and investment advisory services. This model of diversification has served the Company extremely well in the past and will continue to in the future.”
The BF&M Group has four 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
Insurance Corporation of Barbados Limited A- (Excellent) Barbados
Mr. Wight stated that “there is no domestic insurance group in Bermuda or the Caribbean with stronger ratings.”
Equity attributable to shareholders at 31st March 2016 was $263.0 million. General fund assets totaled $1.1 billion of which $121.9 million was held in cash and cash equivalents.
Gross premiums written for the period were $86.5 million, an increase of 7% from the corresponding 2015 period.
Investment income for the three months reflected a $10.3 million increase (2015 - $7.2 million increase) in the value of investments for the period on falling US interest rates. This interest rate decrease positively impacted the fair value of the company’s extensive fixed income portfolio. Offsetting this was a $11.2 million increase (2015 - $6.1 million increase) in the value of life and health policyholder benefits as a result of the company’s disciplined asset liability matching policy which looks to limit volatility of reported earnings as a result of interest rate swings.
Commission and other income increased 5% to $9.7 million from improved reinsurance commission income.
Short term claims and adjustment expenses decreased by 6% to $5.6 million due to limited storm and fire claim related activity in 2016 as well as favourable development on motor losses.
Life and health policy benefits, which are recorded at fair value, increased by 19% to $36.0 million, primarily as a result of the previously mentioned interest rate decreases and the Group’s asset liability matching policy. The increase can also be attributed to higher local health claims reported in Bermuda.
Operating expenses increased by 4% to $15.6 million.
ENDS
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 BF&M Investment Services Limited, BF&M Properties Limited, (including Scarborough Property Holdings Limited and Barr’s Bay Properties Limited), Hamilton Financial Limited, Island Heritage Insurance Company Ltd, and a 51.3% interest in the Insurance Corporation of Barbados Limited.
For further information contact:-
R. John Wight, CPA, CA, CPCU, Group President & Chief Executive Officer
Phone 295 5566, Fax 292 8831, e-mail jwight@bfm.bm
Interim Results to March 31st 2016 can be found using the following link: