BF&M posts $6.7m Q1 loss on rising interest rates

BF&M has reported a net loss for the three months ended 31 March 2022, of $6.7 million as compared to the shareholders’ net income for the comparative period in 2021 of $6.5 million.

“Our first quarter results were negatively impacted by investment income losses driven by rising interest rates and high stock market volatility,” John Wight, group chairman and CEO, said.

“While rising interest rates will benefit the company over the longer term, the fair value losses experienced in the quarter depressed earnings. In addition underwriting results in both the P&C and Life and Health businesses did not meet expectations.”

Increases in P&C premiums were not sufficient to adequately cover the increases in reinsurance costs, the company said, while a backlog of patients seeking elective or diagnostic care is now working its way through the system, which resulted in higher-than-expected medical claims in the first quarter.

Gross written premium written for first quarter increased slightly from the prior year to $86.5 million, driven by increased property and group health premiums and new business.

Short-term claims and adjustment expenses increased by 10% to $4.6 million. Life and health policy benefits decreased by 161% to -$3.1 million.

BF&M offers property and casualty products as well as health, life, annuities, pension products, investment advisory and financial planning services.