BF&M insurance revenue increase offset by service expenses and reinsurance costs
BF&M’s insurance revenue rose by more than $20 million to $198.9 million in the first half of 2024, the company said as it released its detailed first half results.
The domestic insurer, which has agreed to merge with local rival Argus Group, said the increase in insurance revenues was offset by a $10 million increase insurance service expenses to $86 million and an increase in reinsurance costs from $72 million to $86 million.
This resulted in a drop in insurance service result to $9.2 million from $12.9 million.
The company also experienced a drop in investment income from $18.3 million to $12.3 million.
Overall, the company saw first half net income fall from $13.9 million to $7.5 million.
BF&M chairman Anthony Joaquin and chief executive officer Abigail Clifford said in the letter to shareholders that they expect the merger with Argus Group to close in the fourth quarter. The merger is subject to shareholder and regulatory approval.
“Our future with Argus is built on our shared heritage as Bermudian businesses and commitment to developing innovative solutions that improve the quality of life for our island and ensure expansive access to care,” they said.
“Together, we are planning to build a multi-line insurer with an enhanced portfolio of businesses across key geographies, greater scale to help mitigate rapidly rising costs, and the ability to invest in enhanced digital offerings – in addition to a higher quality earnings profile and strong capitalisation. We are extremely excited for what lies ahead as we pursue this amalgamation.
“We entered the proposed combination with the goal of meaningfully accelerating our progress across BF&M’s three strategic pillars – growth, efficiency, and service. As one unified enterprise, we will do just that, and be in an even better position to navigate an evolving insurance landscape for the benefit of our customers, shareholders, and the community.”
They also said the company had “proactively de-risked certain elements of our property portfolio” and was also preparing to launch a new marine cargo product in Cayman in September that is currently being socialised with brokers.
“In life and health, our primary focus is on cost containment strategies,” they said. “This includes negotiating with our overseas healthcare providers to secure lower fees for our customers.
“Meanwhile, our efforts to keep care on island have led to a new partnership with Arscott Surgical Suite, enabling select surgeries to be completed locally.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
