BF&M Limited announced yesterday that the Bermuda Fire & Marine Insurance Company Limited, now in liquidation, will be exercising an option for BF&M shares.

The development was said to be pursuant to Section 4 of the 1999 agreement between BF&M Limited and the Bermuda Fire & Marine Insurance Company Limited, with the result that the Bermuda Fire & Marine Insurance Company Limited (a company out of which BF&M Limited grew) has exercised their option to subscribe for 275,000 common shares of BF&M Limited.

BF&M Limited has also advised that pursuant to Section 6 of the agreement, BF&M Limited has served notice on the Bermuda Fire & Marine Insurance Company Limited that these shares will be called.