BF&M vaults to $27m profit in 2023
Bermuda domestic insurer BF&M recorded a $38 million turnaround in its annual results as it reported a $27.2 million profit for 2023 compared to a $11 million loss in 2022.
The Company’s combined insurance service and net investment result under IFRS 17, a measure of operating performance, was $66.5 million, versus a loss of $16.3 million in 2022 as restated under IFRS 17. This year’s results were driven by higher core investment income, increases in bond and equity values as well as an increase in ceded profit commissions.
While the company did not release its detailed financial results, the performance mirrored a strong first half performance when it recorded a $13.9 million profit compared to a $12.23 million loss in 2022.
Abigail Clifford, group president and CEO, stated: “This year has been significant for us, overcoming numerous obstacles to mark a period of notable achievement including record results.
"It was a good year for our Property & Casualty business with a disciplined focus on underwriting and excellent loss experience in what was an active but ultimately favourable hurricane season. Our pension business benefitted from more advantageous market conditions with investment markets having made a strong comeback in 2023."
She indicated that the health segment faced more challenging market conditions, saying: "Despite challenges within our health business, which was impacted by an increase in both the severity and frequency of group health claims, we remain committed to securing suitable rates and working closely with partners to control expenses. This ensures our clients will continue to enjoy the high-quality coverage they expect from BF&M."
She added: This year’s results are a clear indication that we are on the right track and reflects the dedication of our team who strive to provide peace of mind to our valued policyholders."
Equity attributable to shareholders at December 31, 2023, was $300 million. General fund assets totalled $966.3 million, of which $83.7 million was held in cash and cash equivalents.
BF&M is fighting off an attempt by Argus to buy 36.9% of the company for $100 million. It has adopted a poison pill defence designed to dilute the value of the shares if they are bought.
It has also agreed a strategic partnership with Equilibria Capital Management, a Bermuda-headquartered global asset management company and the largest shareholder of Argus.
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