BF&M nine-month profit jumps to $24.2m

Bermuda domestic insurer BF&M increased its nine-month profit by 70% to $24.2 million on the back of strong investment returns and an improved underwriting profit. 

The insurer, which is due to merge with local rival Argus Group, said its combined insurance service and net investment result under IFRS 17 was $48.4 million versus $34.4 million in 2023, as a result of marked to market increases in investments backing reserves, improving results in group health, partially offset by higher net reinsurance expenses in property and casualty.

"We are pleased to report another strong quarter of performance,” said Abigail Clifford, group president and chief executive officer. “On the insurance side, we observed further improvements in our Group Health and Group Life business, reflecting the positive impact of ongoing cost containment strategies and revenue optimisation.”

Clifford said higher investment income partially offset increased reinsurance costs and slightly higher attritional losses. 

“Our pension business maintained its momentum, delivering excellent results in this positive investment environment,” she said.  

Equity attributable to shareholders at September 30, 2024, was $310.6 million versus $300.0 million at December 31, 2023. 

General fund assets have increased by 6.7% year-to-date and totalled $1.03 billion, of which $165.7 million was held in cash and cash equivalents. 

BF&M and Argus have stated they hope to close their merger by the end of the year, subject to regulatory and shareholder approvals. 

Argus reported its six-month results this week, saying  profits rose 18% to $5.9 million from $5 million in the first half of the year as fee-based income increases offset rises in healthcare claims. It also said one-off costs from the merger had eaten into its net profit with its underlying profit increasing from $9 million to $11 million. 

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