Domestic insurer BF&M Ltd has reported net income of $7.5 million for the first half of the year.

That compares with net income for the comparative period in 2023 of $13.9 million.

The company said its combined insurance service and net investment result under IFRS 17 was $21.6 million versus $31.3 million in 2023 as a result of favourable but reduced net fair value surplus and favourable reserve release offset by higher net reinsurance expenses in P&C.

Abigail Clifford, group president and chief executive, said: “We are pleased with our company’s performance in the first half of the year, despite ongoing macroeconomic headwinds.

“Our core investment income was strong, continuing to benefit from higher-for-longer interest rates and a robust stock and bond market environment.

“Our pension business also performed well in this buoyant investment climate, delivering excellent results.

“On the insurance side, we observed slight improvements in our group health and group life results as we navigate an extremely challenging environment alongside our customers.

“Earlier this year in P&C, we proactively de-risked certain elements of our property portfolio, which, as anticipated, led to a short-term impact on our underwriting results.”

It was revealed in June that BF&M and Argus Group had entered into a definitive amalgamation agreement in which the two companies will combine in an all-stock transaction.

Subject to regulatory and shareholder approvals, a planned completion date is envisioned in the fourth quarter of 2024.

Ms Clifford, who is to become group president and chief executive of the combined entity, said: “Our recent announcement of the transaction with Argus marks an exciting and pivotal moment for the BF&M Group.

“This represents a compelling opportunity to build a stronger, more diversified organisation that will benefit all stakeholders and enhance our ability to serve our customers, shareholders and the community.”

BF&M Ltd is the holding company of the BF&M group of companies. The two largest operating companies within the BF&M Group are BF&M Life Insurance Company Ltd, a provider of life, health and pensions products, and BF&M General Insurance Company Ltd, the general insurer providing all forms of property, casualty, motor and marine products.

The BF&M Group also includes BF&M Investment Services Ltd, BF&M Properties Ltd (including Scarborough Property Holdings Ltd and Barr’s Bay Properties Ltd), and Island Heritage Insurance Company Ltd.