Insurance group BF&M yesterday posted profits of $11.4 million for the first six months of the year.

The figure is more than $6 million down on the same period last year.

But BF&M president and CEO John Wight said: “Financial results in the first half of 2015 continued to be strong.

“The core operating earnings in the first six months of 2015 were in line with the corresponding period of 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 half of 2014 that were not repeated in 2015, including a net fair value gain in 2014 of $4.1 million compared to a net fair value loss of $1 million in 2015.”

Mr Wight added that diversification in lines of business and geographically had helped keep profits up.

He said: “This diversification is fundamental to why the group has achieved such consistently solid annual returns in Bermuda and the Caribbean.”

Gross premiums written for the first six months were $181.2 million, down 2 per cent on the corresponding period of last year.

And investment income reflected a $5.5 million decrease in the value of investments as global concern about a default on loans by Greece and increasing long-term US interest rates hit the fair value of the company’s extensive fixed-income portfolio.

But the company said a $4.6 million decrease in the value of policyholder benefits potentially offset “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.”

Commissions and other income increased by 5 per cent to $20.4 million from improved reinsurance commission income, while short-term claims and adjustment expenses decreased by 12 per cent to $10.5 million.

Life and health policy benefits — recorded at fair value — decreased by 28 per cent to $46.1 million and operating expenses rose 1 per cent to $32.2 million.