BF&M Life Insurance Co. Ltd. and BF&M General Insurance Co. Ltd. have been affirmed the financial strength ratings (FSR) of A (excellent) and issuer credit ratings (ICR) of "a" by AM Best Co.

Best has also withdrawn the FSR of A (excellent) and adjusted the ICR to "bbb" from "a" of the group's holding company, BF&M Ltd. The outlook for all ratings is stable.

Since BF&M is a non-operating public holding company with no direct policyholders, the financial strength rating is not needed and has been withdrawn.

The ratings agency's methodology typically notches a non-operating holding company three below the main operating business - in this case is BF&M Life.

The withdrawal of the FSR and the adjustment of the ICR are not due to any changes in the financial fundamentals of the organisation, but were taken in order to align and conform BF&M's ratings to Best's standard holding company rating methodology.

The rating affirmations reflect the organisation's consistently positive net income, steady premium growth and strong capitalisation over the past five years.

Partially offsetting these positive rating factors was the concentration of the organisation's book of business in the local Bermuda market, limited domestic growth opportunities and exposure of the group's property business to catastrophe risk.