Profits increase at BF&M despite claims from Front Street fire
Bermuda-based BF&M, the holding company of several life and non-life insurers, increased its profits and enjoyed some growth in the first nine months of 2016 – despite being hit by claims associated with the Front Street fire in Bermuda that occurred in July 2016.
The company’s net income for the nine month period ended 30th September 2016 was $19.2 million, compared with $17.3 million in the same period a year earlier.
Its gross premiums written for the period were $274.4 million, an increase of 5 percent from the corresponding 2015 period.
President and CEO John Wight said: “Financial results for the first nine months of 2016 continue to be strong. The core operating earnings were largely in line in the first nine months of 2016, exclusive of fair value accounting for movements in the company’s investments and reserves, with the corresponding period in 2015.
“While our third quarter results do reflect the impact of a large commercial fire claim which occurred in Bermuda, they do not reflect losses associated with Hurricanes Matthew in the Bahamas and Nicole in Bermuda, which will be accounted for in the fourth quarter.”
BF&M operates in Bermuda and 15 islands in the Caribbean. As at the end of the third quarter, approximately 70 percent of the company’s earnings were generated in Bermuda, and 30 percent throughout the Caribbean. Approximately 54 percent was generated from property and casualty business, 40 percent from health, life, annuities, pensions, and investment advisory services, and 6 percent from Bermuda real estate.
Wight stated: “Our strategy of diversification by geography and by line of business continues to serve us well. Our financial strength ratings are the strongest in Bermuda and the Caribbean for a domestic insurance group. These factors, together with long-established relationships with our partners and customers, are the cornerstones of our success. We are well-positioned for the rest of 2016 and for the years to come.”
