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Abigail Clifford, president & CEO, BF&M.
30 March 2023News

BF&M CEO stresses solid business despite loss

Bermuda insurer BF&M’s CEO has highlighted what she described as an extraordinarily volatile year for financial markets as the company posted a loss in its 2022 results. Excluding fair value movements in investments, she noted it would have made a profit.

The insurer posted a net loss of $8.8 million for 2022, compared with a net profit of $25.2 million for 2021. Net income from operations excluding fair value movements in investments and goodwill impairment was $11.5 million versus $22 million in 2021.

Gross premiums written for the period increased by 3% from the prior year to $363 million, driven by increased property premiums offset by the nonrenewal of a large account which was fully reinsured. Short term P&C claims and adjustment expenses increased by 6.8% to $15.8 million.

Group president and CEO Abigail Clifford stated: “Our financial results for our fiscal year 2022 were impacted by an extraordinarily volatile year for financial markets. Significant increases in interest rates resulted in short-term fluctuations in the values of our fixed income portfolio.

“Both bond and equity asset prices declined, resulting in unrealised losses of -$19 million or -7.4%. A non-recurring, goodwill impairment charge of -$5 million was also recorded. Against the backdrop of continuing macroeconomic instability, the Company’s underlying business remains solid, reflecting the resilience of our diversified business portfolio and focus on operational efficiency.

“P&C continues to benefit from a robust rate environment and our group life results were strong. As expected, group health claims remained elevated just above pre-pandemic levels with a return to normalised levels expected in 2023. Volatility in financial markets impacted overall assets under management, however our pension and annuity businesses remain well-positioned as these markets recover.”

Clifford added: “Our balance sheet and capital position is exceptionally strong, supported by effective risk management and disciplined capital allocation across our diversified businesses. This is critically important as we face P&C market headwinds of rising reinsurance prices and constrained capacity.

“On the investment side, we ultimately expect to see the reversal of the market value losses experienced in 2022 as we start to realise the benefit of higher interest income. As we look at our business strategy against the current challenges, we remain confident and committed to deliver on our commitments to stakeholders, while making progress against strategic priorities.”




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3 April 2023   He has previously served with HSBC Bermuda, EY, Liberty Group and the BMA.

More on this story

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3 April 2023   He has previously served with HSBC Bermuda, EY, Liberty Group and the BMA.