AM Best Affirms Credit Ratings of BF&M Limited and Its Subsidiaries.
ENPNewswire-September 22, 2021--AM Best Affirms Credit Ratings of BF&M Limited and Its Subsidiaries
(C)2021 ENPublishing - http://www.enpublishing.co.uk
Release date- 21092021 - AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a' (Excellent) of BF&M Life Insurance Company Limited (BF&M Life), BF&M General Insurance Company Limited (BF&M General) and Island Heritage Insurance Company, Ltd. (Island Heritage) (Cayman Islands).
AM Best also has affirmed the Long-Term ICR of 'bbb' (Good) of the parent company, BF&M Limited (BF&M). All companies are domiciled in Hamilton, Bermuda, unless otherwise stated. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect BF&M's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
BF&M's ratings and outlooks are underpinned by the strongest assessment, as measured by Best's Capital Adequacy Ratio (BCAR). BF&M has a history of maintaining levels of capitalization more than sufficient to cover the underwriting and investment risks. BF&M's financial results in 2020 were strong and primarily driven by the lower utilization rates driven by shelter-in-place measures directed by the Bermuda government in the first half of the year, as the COVID-19 pandemic rapidly affected the island. The company's business profile is reflective of the solid market share it garners in its domestic market of Bermuda and geographic diversification of business throughout the Caribbean through its Island Heritage subsidiary, where it adds primarily property/casualty (P/C) premium. BF&M is focused on profitable growth, and in 2020, divested its majority ownership of Insurance Corporation of Barbados Ltd (ICBL), as ICBL's financial results were not meeting BF&M's expectations.
Premium growth from BF&M's health line of business has been stagnant since the local government moved to fund its largest health provider and its authority, the Bermuda Hospital Board, with a block grant annually in 2019. This was considered phase one in what was expected to be a lengthy process toward a national plan, which has been delayed due to COVID-19 and general uncertainty of the longevity of the pandemic. AM Best will...
To continue reading
Request your trial