A.M. Best Affirms Ratings of BF&M Limited
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” of BF&M Life Insurance Company Limited and BF&M General Insurance Company Limited.
A.M. Best also has affirmed the ICR of “bbb” of BF&M Limited. The outlook for all ratings is stable. All companies are domiciled in Hamilton, Bermuda.
The ratings for BF&M Life reflect its consistently reported positive net income and premium growth for the past five years. The positive net income has contributed to the company’s strong capital level.
Offsetting factors include a decline in the level of earnings as margins on its health insurance business have been pressured due to increased medical expenditures and declining premium yield. BF&M Life operates mainly in the local Bermuda market, which concentrates its business and limits growth opportunities.
The ratings for BF&M General reflect its consistent overall profitability, excellent capitalization and top line premium growth. In addition, BF&M General continues to maintain a leading market share in the domestic Bermuda market.
Partially offsetting rating factors include the geographic concentration of its business in Bermuda, the level of intra-group receivables, and like its domestic peers, reliance on reinsurance to protect its earnings and capitalization.
