BF&M Announce 2013 Earnings Of $25.2 Million
BF&M Limited has released its 2013 fiscal numbers, showing that shareholders’ net income for the year ended December 31, 2013 was $25.2 million, resulting in an annualized return on shareholders’ equity of 11.7 percent.
Shareholders’ net income for the comparative period of 2012 was $21.9 million.
President & CEO, John Wight [pictured] stated that, “This marked the thirteenth straight year that BF&M has achieved a return on equity of 10% or greater.”
“For the first time, over half of BF&M’s profits came from businesses outside of Bermuda. Island Heritage Insurance Company, headquartered in Cayman and operating in 13 Caribbean countries, had record profits,” continued Mr. Wight.
“Financial results from Bermuda-based businesses were good, but continue to reflect the ongoing challenges that still impact certain of our individual, commercial, and group customers. There are certain signs of recovery in the Bermuda economy, which is encouraging.”
Mr. Wight added, “The company’s balance sheet continues to be very strong, both in terms of capitalization and liquidity. Equity attributable to shareholders at 31st December 2013 was $227.8 million. General fund assets totaled $1.1 billion of which $74.0 million was held in cash and cash equivalents. Based on the company’s strong balance sheet, the Board of Directors maintained the dividend of 20c per share for shareholders of record at 31st March 2014.”
A.M. Best’s financial strength ratings for BF&M’s two principal Bermuda based operating subsidiaries; BF&M General Insurance Company Limited and BF&M Life Insurance Company Limited are A [Excellent]. There is no insurance company in Bermuda writing domestic insurance business with ratings this strong.
A.M. Best cited BF&M’s “consistent positive net income, steady premium growth, high level of capital, and strong market share.”
BF&M’s other two principal operating businesses, the Insurance Corporation of Barbados Limited and Island Heritage Insurance Company Ltd, have financial strength ratings of A- [Excellent]. There are no other direct insurers in Barbados and Cayman with stronger ratings than those two companies.
Gross premiums written for the year were $345.6 million, an increase of 8.6 percent over 2012. Investment income for the year reflected a $22.5 million decrease in the value of investments for the period as the increase in interest rates decreased the fair value of the company’s extensive fixed income portfolio.
Offsetting this was an $20.5 million decrease in the reserve held in respect of future policy-holder benefits as a result of the company’s disciplined asset liability matching policy which limits volatility of reported earnings as a result of interest rate swings in either direction.
Commission and other income decreased 16 percent to $40.0 million. Short term claims and adjustment expenses increased by 21.3 percent to $22.2 million and life and health policy benefits decreased by 21.7 percent to $83.8 million. Operating expenses increased 10 percent to $63.1 million.
That’s what employee/ employer double digit rate increases will get you year over year…
So when do they stop denying dental claims and perhaps try decreasing medical insurance prices!
I would not insure a dead horse with them. !!!!!!!!!!!!