BF&M Limited made $18.4 million in net income for the nine months to the end of September, an improvement of $5.8 million when compared to the same period last year.

However, the company said the full impact of the Covid-19 pandemic on its financial results will not be seen until “well into 2021”.

Gross premiums written fell five per cent, year-over-year, to $232.7 million. BF&M said this was driven by an expected shift in health premiums between the company and the amounts allocated to the Bermuda government as part of the Bermuda’s health financing reforms. There was also lower property and casualty premiums and life premiums due to the impact of Covid-19.

John Wight, chief executive officer and group chairman, said the company had strong operating results for the period with favourable claims experience, which was partially offset by hurricane losses and lower gross premiums resulting from Covid-19.

Mr Wight said: “This is a uniquely complex time to talk about financial results. We won’t see the full consequences of Covid-19 reflected in our financial results until well into 2021. For example, in the health insurance business, fewer people sought elective or diagnostic care this year, but we are expecting an increase in claims in 2021 once the Covid-19 crisis subsides.

“In addition, there are uncertainties about the ability of many businesses and individuals to continue to pay premiums in 2021, after having relied on the support obtained from Government relief programs and other relief measures in 2020. As a leading insurer in Bermuda and the Caribbean, we are well positioned to meet the requirements of our policyholders and shareholders.”

Operating expenses increased 6 per cent to $38 million, year-over-year, driven by higher bad debt expenses stemming from Covid-19 impact. Short term claims and adjustment expenses fell 50 per cent to $7.9 million. Life and health policy benefits decreased by 29 per cent to $76 million.