Bermuda insurance company BF&M has already paid out more than $10 million in claims stemming from hurricanes Fay and Gonzalo, the company said in its third quarter results release. But it added that its reinsurance programme has limited losses and the overall effect on its earnings.
The company made a net profit of $21.6 million in the first nine months of the year compared with $15.8 million a year earlier. Its gross premiums written for the period were $265.9 million, a decrease of 3% over 2013.
John Wight, the company’s chief executive, said that while its core operating earnings were slightly improved, there were certain anomalies such as a change in interest rates, which moved in the company's favour for the first nine months of 2014.
“The financial impact of Hurricane's Fay and Gonzalo will be recorded mostly in Q4. The amount of claims incurred by BF&M resulting from the storms since the end of the third quarter is not inconsequential,” said Wight.
“The company has paid out over $10 million in respect of the storms thus far. The Company does however have a conservative reinsurance program which limits the effects on earnings to a manageable level."
BF&M is the holding company of the BF&M Insurance Group. The two largest operating companies within the Group are BF&M Life Insurance Company, a provider of life, health and pensions products, and BF&M General Insurance Company, a general insurer providing all forms of property, casualty, motor and marine products.
BF&M, Bermuda, Insurance, Reinsurance, John Wight