Insurer BF&M’s operating units have had their financial strength rating of A affirmed by credit rating agency AM Best.The ratings, as well as an issuer credit ratings of “a”, apply to both BF&M Life Insurance Company Ltd and BF&M General Insurance Company Ltd. The outlook for all ratings is stable.Best said the ratings for BF&M Life reflect its consistently reported positive net income and premium growth for the past five years.The agency added that the positive net income had 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.Best added: “The ratings for BF&M General reflect its consistent overall profitability, excellent capitalisation 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 capitalisation.”