John Wight, Executive Vice President, Finance reported that "Gross Premiums Earned of $35.4 million was consistent with the previous year and Total Income increased by 2% to $34.8 million. Investment Income increased by 7% but this was partly the result of a loss in the preceding year. True investment performance was satisfactory, being consistent with the comparable period in 2000 despite falling interest rates and a general softening of the investment climate. At 30th June 2001 Total Assets stood at $163 million with Shareholders' Equity at $48 million."
Mr. Titterton said that " Loss experience was generally considered to be good, with some improvement in health claims. However property / casualty claims in the comparable year of 2000 were exceptionally low, whereas in 2001 they increased to anticipated levels. We still consider this to be a good result but when compared to the unusually good results for the same period in the previous year, net property / casualty claims increased by 76% or $650,000 with the resulting effect on Net Earnings."
Mr. Titterton said that, in addition to claims developments, the Company had projected a substantial increase in Expenses due to the many changes being initiated. He said that in the comparable period of 2000 the Company had an unusually large number of staff vacancies due partly to the re-focusing of the organization creating new positions and the raising of performance standards. Most of these positions and others created subsequently, were successfully filled with very capable individuals. In addition there had been substantial investment in information systems, including replacing the Pensions Administration system and further enhancements to BF&M's market leading e-commerce capabilities. "Our investment in systems and technology and in building our human resource capabilities, will continue and is critical to the future success of the Group. In the short term this will depress Net Earnings but these developments are necessary for the Company's future competitiveness and success."
Mr. Titterton pointed to BF&M's strong lead in e-commerce capabilities and the resulting re-engineering of other systems, the introduction of the Global Health Series of policies, and the formation of Barr's Bay Properties Limited to develop a new five storey office building adjoining BF&M's Insurance Building on Pitt's Bay Road, as three of the highlights of the first half of 2001. "Our business remains strong and profitable and we are focused on developing the capabilities that we will need to win in the business environment of tomorrow."