Insurer BF&M Ltd's profits fell 3.7 percent to $5.7 million in the first quarter of this year, as soaring health insurance claims took their toll.The company's chief executive officer John Wight said there had been an increase of $600,000 in claims for major overseas medical treatments, representing a rise of 18 percent. There was also a $500,000, or 16 percent, increase in claims from King Edward VII Memorial Hospitalin-patients.“We were satisfied overall with the company's financial results given the current economic climate in Bermuda,” Mr Wight added.Premium revenue increased seven percent over the first three months of 2010 to $63.25 million, while investment income fell two percent to $4.3 million.Insurance lines other than health had performed similarly to the first quarter of 2010 and in line with expectations, the company said in a statement.BF&M's board of directors maintained the dividend of 20 cents per share for shareholders of record at June 30, 2011.The profit represented a return on equity of ten percent.Shareholders' equity at March 31 was $171.36 million, while assets totalled $816.11 million, of which $74.15 million was held in cash and short-term deposits.The fair value of assets classified as held for trading decreased earnings by $1.96 million, principally due to the drop in the value of US dollar-denominated bonds in the quarter.Commissions and other income increased four percent to $5.56 million. Claims and adjustment expenses increased by 15 percent to $6.44 million and policy benefits decreased 15 percent to $23.9 million. Operating expenses increased nine percent to $10.88 million.