BF&M Announce 2011 Q1 Earnings: $5.7 Million
BF&M Limited today [June 23] announced net earnings for the 3 month period ended 31st March 2011 of $5,698,673, resulting in a return on shareholders equity of 10%. These results compared with net earnings of $5,916,313 for the comparable 3 month period in 2010.
President & CEO, John Wight stated that “we were satisfied overall with the company’s financial results given the current economic climate in Bermuda. The company’s earnings from underwriting activities were negatively impacted by higher health claims which resulted in a loss for this major line of business.”
“Of note, payments to King Edward Memorial Hospital in-patient claims increased by 16% or approximately $500,000 over the same period in 2010. In addition, major medical claims for overseas treatments increased by 18% or approximately $600,000 over the same period in 2010.”
“All other lines of insurance business performed more or less the same as that of the corresponding prior period, and in line with expectations,” concluded Mr Wight.
Shareholders equity at 31st March 2011 was $171,362,005. Assets totaled $816,114,947, of which $74,145,273 was held in cash and short term deposits. Based on the company’s strong balance sheet and financial performance, the Board of Directors maintained the dividend of 20c per share for shareholders of record at 30th June 2011.
Gross Premiums Written for the period increased 7% over 2010 to $63,253,764. Investment income decreased 2% to $4,298,664. The fair value of assets classified as held for trading decreased earnings by $1,956,183 principally due to the drop in the value of US$ denominated bonds in the quarter.
Commissions and other income increased 4% to $5,535,650. Claims and adjustment expenses increased by 15% to $6,439,831 and policy benefits decreased 15% to $23,899,472. Operating expenses increased 9% to $10,880,645.
Recession my ass. Companies are still raking in the dough, while screwing the little guy.