BF&M Reports Shareholders $8.8M Net Loss
BF&M Limited reported a shareholders’ net loss of $8.8 million for the year ended 31 December 2022, as compared to shareholders’ net income of $25.2 million for 2021.
A spokesperson said, “Net income from operations excluding fair value movements in investments and goodwill impairment was $11.5 million versus $22.0 million in 2021.”
Group President and CEO Abigail Clifford stated: “Our financial results for our fiscal year 2022 were impacted by an extraordinarily volatile year for financial markets. Significant increases in interest rates resulted in short-term fluctuations in the values of our fixed income portfolio. Both bond and equity asset prices declined, resulting in unrealised losses of -$19 million or -7.4%. A non-recurring, goodwill impairment charge of -$5 million was also recorded.
“Against the backdrop of continuing macroeconomic instability, the Company’s underlying business remains solid, reflecting the resilience of our diversified business portfolio and focus on operational efficiency. P&C continues to benefit from a robust rate environment and our group life results were strong. As expected, group health claims remained elevated just above pre-pandemic levels with a return to normalised levels expected in 2023. Volatility in financial markets impacted overall assets under management, however our pension and annuity businesses remain well-positioned as these markets recover.”
Ms. Clifford added: “Our balance sheet and capital position is exceptionally strong, supported by effective risk management and disciplined capital allocation across our diversified businesses. This is critically important as we face P&C market headwinds of rising reinsurance prices and constrained capacity. On the investment side, we ultimately expect to see the reversal of the market value losses experienced in 2022 as we start to realise the benefit of higher interest income. As we look at our business strategy against the current challenges, we remain confident and committed to deliver on our commitments to stakeholders, while making progress against strategic priorities.”
The spokesperson said, “Equity attributable to shareholders at 31 December 2022 was $296.8 million. General fund assets totalled $1.0 billion, of which $75.8 million was held in cash and cash equivalents. Gross premiums written for the period increased by 3% from the prior year to $363.0 million, driven by increased property premiums offset by the non-renewal of a large account which was fully reinsured. Short term P&C claims and adjustment expenses increased by 6.8% to $15.8 million. Excluding fair value impact, life and health policy benefits increased by 9% to $96.8 million.
“The BF&M Group consists of three main insurance operating companies, with the following AM Best financial strength ratings:
- BF&M General Insurance Company Limited A [Excellent] Bermuda
- BF&M Life Insurance Company Limited A [Excellent] Bermuda
- Island Heritage Insurance Company, Ltd. A [Excellent] Cayman”
