BF&M Ltd. boosted its net earnings by three percent during the nine months ended September 30, 2010 driven by strong underwriting results across the board.

The insurer posted net earnings of $16.9 million compared to $16.4 million for the same period in 2009, representing a 12 percent return on shareholders equity.

The company, which announced its results yesterday, also experienced minimal impact in terms of losses from Hurricane Igor.

John Wight, president and CEO of BF&M said: "We were overall pleased with our financial results which showed positive underwriting contributions from all major lines of business, except for health insurance, where higher than expected medical claims have contributed to a slight loss for the nine month period.

"The impact on financial results due to Hurricane Igor were not material. Investment results were strong. The fair value of investments increased $11,697,747 for the nine-month period."

Total assets at September 30, 2010 were $786 million. Shareholders' equity was $181.5 million. Gross premiums written increased three percent for the nine-month period in 2010 over the same period in 2009 to $177.3 million.

Investment income decreased two percent to $12.6 million. All of the company's investments that are rated are of investment grade. Commissions and other income increased five percent to $17.6 million as the assets under management on investments that the company advises on and administers increased over the same period in 2009.

Claims and adjustment expenses increased 24 percent over 2009 to $18 million. Policy benefits, which include health claims for medical treatment received by policyholders locally and overseas, increased 22 percent.

Mr Wight added: "BF&M Limited's two principal operating subsidiaries 'BF&M General' and 'BF&M Life' were recently rated A (excellent) by AM Best. These financial strength ratings are the strongest of any insurer in the Bermuda domestic insurance market and reflect the strong performance and capitalisation of these companies."

The board of directors also declared a dividend of 20 cents per share for shareholders of record December 31, 2010, payable on January 14, 2011.