BF&M Announces 2009 Earnings of $19 Million
BF&M Limited announced net earnings for the year ended 31st December 2009 of $19,648,220 resulting in a return on shareholder’s equity of 12%.
President & CEO Mr. John Wight said:
2009 was a challenging year for Bermuda as the global economic downturn affected the Island’s businesses in every sector. Businesses employed fewer people, and individuals purchased fewer new cars, boats, and postponed building renovations. All of this contributed to less business volume for companies servicing Bermuda’s insurance needs, and BF&M was not immune to the issues facing these businesses and individuals.
Mr Wight was pleased that rating agency A.M.Best maintained an “A” Excellent rating for BF&M’s two principal operating companies, BF&M Life Insurance Company Limited (“BF&M Life”) and BF&M General Insurance Company Limited (“BF&M General”). A.M.Best’s “A” Excellent rating cited the “organization’s consistently positive net income, steady premium growth, and strong capitalization. These ratings make BF&M Life and BF&M General the strongest of any local insurer in the Bermuda marketplace.
Mr Wight said: “The company’s balance sheet has never been stronger. Shareholders equity at 31st December 2009 was $169,419,732. Assets totaled $731,537,082 of which $58,252,701 was held in cash and short term deposits.”
Gross Premiums Written for the year increased 6% over 2008 to $225,507,351. Investment income decreased 4% to $16,758,043. The fair value of assets classified as held for trading decreased earnings by $3,397,968 principally due to the drop in the value of local Bermuda equities held by the company. Commissions and other income decreased 1% to $24,050,160. Claims and adjustment expenses decreased by 7% to $18,696,599 and policy benefits increased 9% to $97,971,270. Operating expenses increased 8% to $43,378,461.
Based on the company’s strong balance sheet and continuing strong financial performance the Board of Directors maintained the dividend of 20c per share for shareholders of record at 31st March 2010.
