AM Best affirms BF&M ratings
AM Best has affirmed ratings for BF&M Limited subsidiaries BF&M Life Insurance Company, BF&M General Insurance Company and Island Heritage Insurance Company. The companies received financial strength ratings of A (Excellent) and long-term issuer credit ratings (ICR) of “a” (Excellent).
The agency also affirmed BF&M Limited long-term ICR of “bbb” (Good) with a stable outlook.
“The ratings reflect BF&M’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management,” the rating agency said in a statement.
“BF&M’s financial results in 2020 were strong and primarily driven by the lower utilization rates driven by shelter-in-place measures directed by the Bermuda government in the first half of the year, as the Covid-19 pandemic rapidly affected the island,” it noted. “The company’s business profile is reflective of the solid market share it garners in its domestic market of Bermuda and geographic diversification of business throughout the Caribbean through its Island Heritage subsidiary, where it adds primarily property/casualty premium.”
The agency said that the group’s “strict underwriting guidelines” and easy transition to remote working contributed to its success. “The main headwind for Caribbean insurers was the Covid-19 pandemic and the resulting containment measures, social distancing requirements, border closures and declines in external demand that led to one of the worst economic contractions in the region’s history.”
It added: “BF&M’s significant catastrophe reinsurance protection and overall risk management philosophy are central to the organization’s efforts to mitigate negative financial impacts to the group.”
BF&M is the owner of Hamilton Reinsurance, among other businesses. It operates across 15 jurisdictions with offices located in Bermuda, Cayman, Barbados, Bahamas and Halifax, Canada.
