BF&M Ltd.'s profits for the first nine months of the year fell 29 percent as the value of its investments plunged by almost $15 million.

The Bermuda-based insurer and pension provider recorded profits of $15.4 million through September 30 this year, compared to $21.6 million during the same nine-month period last year.

Chief executive officer John Wight pointed out that the company adopted new accounting rules last year, which mean a decline in the fair value of investments is recorded in the earnings statement. BF&M had previously warned that this would lead to increased volatility in earnings.

"The company's financial results were adversely affected by the depressed investment markets," Mr. Wight said.

The decrease in fair value of investments for the nine-month period ended September 30 was $14.9 million. This compared to a decrease of $492,842 for the same period in 2007.

Mr. Wight added: "We were however very pleased with the results from our core insurance and non-insurance operations as we experienced very good financial performance. Group contributions from general insurance, health and life insurance, real estate, asset management, pension administration, and BF&M's interest in the operations of the Insurance Corporation of Barbados Ltd. were strong."

The profits amounted to a return on shareholders' equity of 16 percent and revenue rose for the insurance segment of the company, as gross premiums written for the nine months increased four percent over 2007 to $159.9 million. Investment income decreased two percent to $12.6 million, while commissions and other income increased two percent to $17.9 million.

Claims and adjustment expenses increased by four percent to $15.2 million and policy benefits decreased 12 percent to $51.4 million. Operating expenses increased 10 percent to $27.8 million.

Total assets for the consolidated group at September 30 were $682.7 million, while shareholders' equity was $152.1 million.