half year results by 4.3 percent, the company said yesterday.

The group of insurance companies said profit increased to $4.9 million between January 1 and June 30 from $4.7 million for the same period last year.

"We are pleased to report that, following a very successful 1994, the half year to June 30, 1995 was a period of strong performance for your company and for its principal operating subsidiaries,'' BF&M Ltd. president and CEO Mr.

Glenn Titterton said in the company's half year report.

BF&M is reporting an improved bottom line despite an economic and political environment in which growth would not normally be expected, he said.

"The first six months of 1995 did not produce the strong economic recovery which had been expected,'' he said.

"Weakness in the tourism sector and the uncertainty surrounding the closure of the foreign military bases and the independence referendum, undermined the already uncertain recovery.

"With the uncertainties caused by the independence referendum behind us and with a new Government committed to further economic development, it would be reasonable to expect growth in the economy,'' he said.

The Group's income rose 6.4 percent to $26.6 million compared to $25 million.

Expenses over the same period rose to $21.7 million from $20.3 million, an increase of 6.9 percent.

Premiums earned rose 7.8 percent to $18 million from $16.7 million.

The company reported investment income rose $46,650 to just over $4.3 million.

Fully diluted earnings per share rose to 85 cents from 82 cents.

Assets rose four percent to $156.8 million from $150.7 million.

Group subsidiary BF&M General Insurance Company Ltd.'s gross premiums increased 15 percent over the same period last year and claims remained low, Mr. Titterton said.

"However, a subsequent event, Hurricane Felix, will substantially increase claims in the latter half of the year,'' he said.

Because of reinsurance the impact of Felix on the company's bottom line is expected to be "minimal,'' said Mr. Titterton.

Gross premiums at BF&M Life Insurance Company Ltd., another of the Group's subsidiaries, rose eight percent.

BF&M last year published half-year results for the first time.

Mr. Titterton said the company believes the publishing of half-year results will become common practice in Bermuda.