Bermudian-based insurance company BF&M Limited has reported first quarter net income of $3.3 million, substantially down from the $10.5 million profit for the three months ended 31 March 2023.

Abigail Clifford, BF&M group president and chief executive officer said: “Building on BF&M’s strong performance at the end of last year, we delivered a solid start to 2024.

“While the recovery in the equity and bond markets abated over Q1 2023, we continue to benefit from prolonged higher interest rates, driving an 11 per cent increase in core investment income.

“Within our Property & Casualty business, margins have tightened as we manage down volatility through purchasing additional reinsurance. Our focus continues to be on risk selection and rate action.

“Favourable investment market conditions have assisted our pension business, while the Life & Health portfolio has again been adversely impacted by higher claim costs in Group Health.

“Overall, we are confident that our diversified business model, proven resilience, and strategic focus across the three pillars of growth, efficiency, and service have positioned BF&M to successfully navigate market challenges and create long-term value for shareholders.”

The company said that equity attributable to shareholders at 31 March 2024, was $300.6 million. General fund assets totalled $960.5 million, of which $111.1 million was held in cash and cash equivalents.

The company’s combined insurance service, net investment and finance result under IFRS 17, a measure of operating performance, was $10 million, driven by higher core investment income and, a lower but still favourable, net fair value surplus and reserve impact along with a positive but reduced insurance service result in P&C versus a comparable insurance service, net investment and finance result of $16.6 million in 2023.