Insurance firm BF&M earned more than $8 million in the first quarter of the year.

The firm reported earnings of $8.2 million to the end of March — representing an annualised return on shareholders’ equity of 13 per cent.

The figure was $3.2 million down from the $11.4 million recorded for the same period last year.

BF&M president and CEO John Wight said: “The core operation earnings in the first three months of 2015 were in line with the corresponding period in 2014.

“However, there were certain anomalies in the prior-year results, such as one-time gains and the timing of certain revenues that occurred in the first quarter of 2014 that were not repeated in 2015.

“in addition, the financial effects of Hurricanes Fay and Gonzalo in Bermuda carried over to 2015 by reducing reinsurance commission from reinsurance contracts.”

The firm recorded general fund assets totalled $1.1 billion, of which $77.5 billion was held in cash and cash equivalents.

Gross premiums for the first three months of the year amounted to $80.9 million — up 1 per cent on the same period the year before.

And investment income for the quarter reflected a $7.2 million increase in the value of investments for the period as interest rates and credit spreads fell, increasing the value of the company’s extensive fixed-income portfolio.

But that was offset by a $6.1 million increase in the value policyholder benefits as a result of the company’s “disciplined asset liability matching policy which limits volatility of reported earnings as a result of interest rate swings”.

Commission and other income fell by eight per cent to $9.2 million on lower reinsurance commission income, while life and health policy benefits dropped by 13 per cent to $27.8 million.

The firm also reported a small drop in operating expenses to $15.2 million.

BF&M sold its offshore life insurance business to the Valor Group in April to focus on its core businesses of domestic insurance and investment advisory services in Bermuda and the Caribbean.