BF&M Ltd has reported consolidated net income for the six months to June 30 of nearly $13.9 million.

This was an increase of 213.6 per cent compared to the first half of 2022, when BF&M lost $12.3 million.

The combined insurance service and net investment result was a gain of $31.3 million, driven by higher core investment income, increases in bond and equity assets and an increase in profit commissions, the company said.

This compared to a net income loss of $12.2 million in the comparable period in 2022.

Shareholders’ equity remains strong at $295.6 million, an increase of 3 per cent over December 31, 2022, supported by a high-quality general fund asset portfolio totalling $937.9 million.

The company said the investment portfolio performed exceptionally well, driven by improving market fundamentals and the positive impact of rising interest rates, which bolstered core investment income.

BF&M said: “We anticipate that our investment income will sustain its momentum as our portfolio continues to benefit from the higher interest-rate environment over the next several years.

“Our property and casualty business continues to drive rate increases across our markets as we initiate a selective approach to underwriting risks to mitigate the impact of a hard reinsurance market and the associated increased cost of reinsurance.

“Our property and casualty results benefited from lower property loss experience.

“Within our life and health business, we remain committed to counteracting the rising loss trends within our group health business. We are actively collaborating with our strategic partners to manage costs effectively while ensuring that our valued customers receive best-in-class coverage.

“Our pension business continues to be a strength, with positive financial contributions and a healthy influx of new business.”

In reflecting on the future, the company said: “With the industry facing the challenges of the rise in reinsurance pricing and reduced capacity, insurers like BF&M must assume more exposure on our balance sheet.

“A similar challenge is felt across our life and health business, where we continue to see the impact on pricing of inflation and utilisation,” group president Abigail Clifford said. “It has therefore never been more critical that we can demonstrate disciplined underwriting, understanding the risk we are taking on and pricing it appropriately. This is one tool we can use to withstand the market challenges we face.”

As of June 30, BF&M had total assets worth $2,205.7 billion compared to the previous half of the year when they had $2,052.9 billion. Total liability was $1,903.3 billion compared to $1,759.6 billion for the previous period, and equity was $2,205.7 billion compared to $2,052.9 billion.

Insurance revenue was $178.6 billion compared to $177.7 billion in the same period in 2022.