BF&M net income drops 68% in first quarter
Bermuda domestic insurer BF&M said net income dropped 68% to $3.3 million in the first quarter as health insurance claims and additional reinsurance purchases in the property and casualty segment cut into its profits.
But the insurer was buoyed by improved core investment results.
The company said its combined insurance service, net investment and finance result under IFRS 17, a measure of operating performance, dropped $6.6 million to $10 million, driven by higher core investment income and, a lower but still favourable net fair value surplus and reserve impact along with a positive but reduced insurance service result in P&C.
Abigail Clifford, group president and CEO, stated: “Building on BF&M’s strong performance at the end of last year, we delivered a solid start to 2024. While the recovery in the equity and bond markets abated over Q1 2023, we continue to benefit from prolonged higher interest rates, driving an 11% increase in core investment income.
"Within our property & casualty business, margins have tightened as we manage down volatility through purchasing additional reinsurance. Our focus continues to be on risk selection and rate action. Favourable investment market conditions have assisted our pension business, while the Life & Health portfolio has again been adversely impacted by higher claim costs in group health.”
"Overall, we are confident that our diversified business model, proven resilience, and strategic focus across the three pillars of growth, efficiency, and service have positioned BF&M to successfully navigate market challenges and create long-term value for shareholders.”
Equity attributable to shareholders at 31 March 2024, was $300.6 million. General fund assets totalled $960.5 million, of which $111.1 million was held in cash and cash equivalents.
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