Insurance rating firm AM Best has reaffirmed BF&M’s credit ratings after the announcement of its proposed acquisition of Cayman-based insurer Island Heritage.“AM Best anticipates that the proposed transaction will not stress BF&M’s leverage or coverage position,” the company said in a statement. “Furthermore, the proposed acquisition will allow BF&M to expand its presence in the property and casualty segment, as well as extend its geographical market outside the island of Bermuda.”The AM Best ratings of BF&M Ltd and its insurance subsidiaries remain unchanged. Currently BF&M’s financial strength rating is A (excellent).BF&M agreed to buy Island Heritage and its subsidiaries for around $68 million in cash.Island Heritage is majority owned by Flagstone Reinsurance Holdings SA, the Luxembourg-based reinsurer with underwriting operations in Bermuda. Flagstone will receive around $40.8 million for its 60 percent stake.BF&M CEO John Wight said the deal, which is expected to close in the second quarter, would help the company achieve its aim of becoming a major insurer in the Caribbean.“It is BF&M’s strategy to enhance our footprint in the Caribbean region,” said Mr Wight. “The acquisition by BF&M of Island Heritage is part of the company’s strategic goal of becoming a major insurer in the Caribbean region.”Founded in 1899, AM Best Company is the world’s oldest insurance rating and information source.For more information, visit www.ambest.com