BF&M bounces back to profit in first half of year

Bermuda domestic insurer BF&M, which is fighting off a hostile bid by rival Argus for a stake in the company, has reported a turnaround in net income for the first half of the year.

BF&M said it earned $13.9 million in the first half of the year compared to a loss of $12.2 million in the same period in 2022.

The Company’s combined insurance service and net investment result under IFRS 17, a measure of operating performance was a gain of $31.3 million, driven by higher core investment income, increases in bond and equity assets and an increase in profit commissions on certain reinsurance contracts. This compared to a loss of $31.9 million in Q2 2022 as restated under IFRS 17.

Chief executive officer Abigail Clifford said: “We are proud to report another strong quarter of solid financial results, marked by our ongoing efforts to raise appropriate rates and adopt a more discerning approach to risk underwriting.

“Our commitment to operational excellence, service and prudent risk management continues to pay off. These strong results are a testament to the hard work and strategic vision of our entire team who remain dedicated to offering unparalleled protection and peace of mind to our valued policyholders.”

Equity attributable to shareholders at 30 June 2023, was $295.6 million. General fund assets totalled $937.9 million, of which $126.5 million was held in cash and cash equivalents.

No other financial information was provided in the release to the Bermuda Stock Exchange.

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.