Bermuda insurer and investment company BF&M Ltd. achieved a seven percent increase in profits through the first nine months of the year, helped by rebounding financial markets.

Net earnings for the nine-month period ended September 30, 2009 were $16.4 million, compared to $15.4 million in the same period last year. These earnings represented a 12 percent return on shareholders equity.

Income from insurance premiums grew, as claims fell. However, policy benefits - which include health insurance claims for treatment locally and overseas - rocketed 47 percent.

"Overseas claims have been higher than expected due to the frequency and severity of treatment," the company stated.

John Wight, president and chief executive officer of BF&M, said: "We were pleased with our financial results which were positively impacted by overseas investment markets which rebounded in the third quarter.

"Improved investment returns combined with good overall underwriting performance from our core insurance businesses produced these strong nine-month figures.

"Our forecast at this time for year-end earnings is positive now that we are past the hurricane season and investment markets appear to be stabilising following signs of recovery in global economies".

The fair value of BF&M's investments increased $1.4 million through the first nine months of 2009. All of the company's investments that are rated are of investment grade, BF&M said in its earnings statement, and the company has no direct exposure to sub-prime mortgages.

Total assets at September 30, 2009 were $728.3 million. Shareholders equity was $167.7 million. Gross premiums written increased seven percent for the nine-month period in 2009 over the same period in 2008 to $171.8 million. Investment income increased two percent to $12.9 million.

Commissions and other income decreased six percent to $16.8 million as the assets under management on investments that the company advises on and administers decreased due to declining investment balances as compared to the corresponding period in 2008.

Claims and claim adjustment expenses decreased four percent over 2008 to $14.5 million.

The board of directors declared a dividend of 20 cents per share for shareholders of record on December 31, 2009, payable January 15, 2010.