Despite a "difficult year" with lower earnings than the previous year, Bermuda insurer BF&M posted net earnings in 2001 of $10.49 million.

This is just down from the previous year's results with a posted profit of $10.8 million in 2000. Company president Glenn Titterton said of the results for the year ended December 31, 2001: "2001 was a very difficult year for business, both in Bermuda and internationally. BF&M had a very successful year, despite these challenges."

Mr. Titterton continued: "The economic downturn, uncertainty in financial markets, rapidly increasing reinsurance costs (especially after the tragedies of September 11 and the developments which followed), all contributed to a difficult year.

"It was a year of mixed fortunes for BF&M, as is often the case in the industry. Net earnings for BF&M reduced from the preceding year, due partially to a substantial increase in claims.

"However, this was offset by profits in BF&M Life and BF&M Properties and by other factors, demonstrating the strength of our diversity," Mr. Titterton said.

BF&M chairman, Lt. Col. Michael Darling, echoed Mr. Titterton's sentiments by saying the company had "produced excellent results in a most extraordinary year."

He continued: "The absence of tourist travel after 11th September destroyed what remained of an already discouraging year for Bermuda's businesses and residents who rely so heavily, directly or indirectly, on tourism. Many are our customers and we focused on ensuring that they were able to maintain essential insurance protection during this time of hardship. In addition we were challenged by higher reinsurance costs, an economic downturn, higher costs including changing claims experience and a challenging investment climate."

At 31 December 2001, BF&M reported its assets stood at $204.77 million, while shareholders equity had increased by 16 percent to $52.6 million. Gross Premiums for the year reportedly increased to $72.69 million and investment income was stable despite turmoil in the market. In addition, expenses increased by 5 percent.

Meanwhile, the company saw "third party endorsement" with a first-time financial strength rating from AM Best of "A- (Excellent)". Mr. Titterton added that BF&M, which is one of the Island's largest local insurance companies, can attribute last year's successful results to the company remaining focused on its core business.

Mr. Titterton concluded: "We continue to invest heavily in the development of our people and in new technology, believing that there is no substitute for being the best in these key capabilities. This focus is essential for us to be winners in the business environment of tomorrow," he concluded.