2023 was a landmark moment in BF&M’s history — our 120th year of operations. I am pleased to report we demonstrated agility, resilience, and strategic foresight as we navigated a unique blend of opportunities and challenges. We achieved excellent financial results and successfully repositioned ourselves strategically around three core pillars – growth, efficiency, and service. Most importantly, we are just getting started on our journey to capitalise on significant opportunities to enhance value for our shareholders and all our stakeholders.
Expanding our foundation of financial strength in 2023
In 2023, BF&M delivered outstanding results, demonstrating the resilience of our core business, the discipline of our underwriting teams, and our unwavering ambition to achieve excellence.
For the full year, we reported net income of $27.2 million, marking a sharp improvement from the restated net loss of $(11.0) million in 2022. We were able to capitalise on improving market conditions in North America and higher interest rates to deliver strong core investment income. During an active hurricane season, our Property & Casualty business had a very strong year, which is a testament to our highly diversified operations across the Caribbean islands, our deep understanding of the jurisdictions in which we operate, and our robust risk management approach. We also successfully navigated challenges that included increased claims activity in our health business, difficult reinsurance market conditions, and the ever-present threat of climate change.
Total Equity attributable to shareholders was $300 million at 31 December 2023. Across our group of companies, AM Best affirmed our “A” (Excellent) financial strength rating, reinforcing our financial stability and ability to meet the ongoing needs of our policyholders.
Importantly, our strong performance and robust financial position drove enhanced shareholder returns in 2023. The Board of Directors increased the quarterly dividend by 16.6% to $0.28 per share, reflecting our company’s commitment to delivering long-term value and competitive returns on investment to our shareholders. Over the last five years, BF&M has paid out close to $45 million in dividends. Our annualised total shareholder returns, including share price gains and dividends, was 12% over the last three years ending December 31, 2023.
I am confident that our strong capital position, proactive strategies, and dedicated team have positioned us to ensure sustained growth and operational excellence across our three core pillars of growth, efficiency, and service.
Expanding our foundation of financial strength in 2023
In 2023, BF&M delivered outstanding results, demonstrating the resilience of our core business, the discipline of our underwriting teams, and our unwavering ambition to achieve excellence.
For the full year, we reported net income of $27.2 million, marking a sharp improvement from the restated net loss of $(11.0) million in 2022. We were able to capitalise on improving market conditions in North America and higher interest rates to deliver strong core investment income. During an active hurricane season, our Property & Casualty business had a very strong year, which is a testament to our highly diversified operations across the Caribbean islands, our deep understanding of the jurisdictions in which we operate, and our robust risk management approach. We also successfully navigated challenges that included increased claims activity in our health business, difficult reinsurance market conditions, and the ever-present threat of climate change.
Total Equity attributable to shareholders was $300 million at 31 December 2023. Across our group of companies, AM Best affirmed our “A” (Excellent) financial strength rating, reinforcing our financial stability and ability to meet the ongoing needs of our policyholders.
Importantly, our strong performance and robust financial position drove enhanced shareholder returns in 2023. The Board of Directors increased the quarterly dividend by 16.6% to $0.28 per share, reflecting our company’s commitment to delivering long-term value and competitive returns on investment to our shareholders. Over the last five years, BF&M has paid out close to $45 million in dividends. Our annualised total shareholder returns, including share price gains and dividends, was 12% over the last three years ending December 31, 2023.
I am confident that our strong capital position, proactive strategies, and dedicated team have positioned us to ensure sustained growth and operational excellence across our three core pillars of growth, efficiency, and service.
I am confident that our strong capital position, proactive strategies, and dedicated team have positioned us to ensure sustained growth and operational excellence across our three core pillars of growth, efficiency, and service.
Exciting opportunities for growth
In 2022, we outlined a five-year diversification and growth strategy, which includes transitioning towards promising products and markets to broaden our revenue streams.
We advanced this strategy in 2023 by remaining focused on sound fundamentals — leveraging technical expertise, attracting, and nurturing talent, fostering a culture of continuous improvement and innovation, educating policyholders, and optimising capital allocation. Each of these actions contributed meaningfully to our continued growth and reinforced our commitment to delivering value and excellence in everything we do.
We continue to see tremendous opportunity for diversification and growth by expanding our products in Cayman. During the year, we successfully implemented our Group Life and Disability product offering into Cayman and expanded our Property & Casualty offerings into the Eastern islands.
As always, our growth is not only reflected in numbers but in the trust and relationships we have built through strategic partnerships and collaborations aimed at broadening our ecosystem and enhancing our service capabilities. These partnerships reflect a blueprint for our future where integrated solutions and partnerships are key to delivering comprehensive and tailored financial security.
Improving efficiency to drive operational excellence
At the heart of our journey to create a nimbler and more efficient organisational structure is our ongoing digital transformation. We recognise the importance of transitioning away from legacy systems that no longer promote the agility and innovation required in the market today. To that end, we are re-evaluating our core strategies, operational and business processes, and technological foundations to better prepare for a more fast-paced, digital-first future. We are upgrading existing platforms and developing new customer-centric digital solutions that improve internal efficiencies and provide superior value and service to customers.
The company has also kicked off significant product platform projects, underscoring a move towards modernised technology infrastructure with a focus on cloud services and more robust security practices. For example, we are harmonising our Property & Casualty products across our operations, which will result in an aligned process ready for future efficiencies and system upgrades.
Over time, I am confident these initiatives to shift towards advanced, fully digital technologies will bolster BF&M’s growth and ability to innovate, ensuring a competitive edge in a constantly evolving market.
Exciting opportunities for growth
In 2022, we outlined a five-year diversification and growth strategy, which includes transitioning towards promising products and markets to broaden our revenue streams.
We advanced this strategy in 2023 by remaining focused on sound fundamentals — leveraging technical expertise, attracting, and nurturing talent, fostering a culture of continuous improvement and innovation, educating policyholders, and optimising capital allocation. Each of these actions contributed meaningfully to our continued growth and reinforced our commitment to delivering value and excellence in everything we do.
We continue to see tremendous opportunity for diversification and growth by expanding our products in Cayman. During the year, we successfully implemented our Group Life and Disability product offering into Cayman and expanded our Property & Casualty offerings into the Eastern islands.
As always, our growth is not only reflected in numbers but in the trust and relationships we have built through strategic partnerships and collaborations aimed at broadening our ecosystem and enhancing our service capabilities. These partnerships reflect a blueprint for our future where integrated solutions and partnerships are key to delivering comprehensive and tailored financial security.
Improving efficiency to drive operational excellence
At the heart of our journey to create a nimbler and more efficient organisational structure is our ongoing digital transformation. We recognise the importance of transitioning away from legacy systems that no longer promote the agility and innovation required in the market today. To that end, we are re-evaluating our core strategies, operational and business processes, and technological foundations to better prepare for a more fast-paced, digital-first future. We are upgrading existing platforms and developing new customer-centric digital solutions that improve internal efficiencies and provide superior value and service to customers.
The company has also kicked off significant product platform projects, underscoring a move towards modernised technology infrastructure with a focus on cloud services and more robust security practices. For example, we are harmonising our Property & Casualty products across our operations, which will result in an aligned process ready for future efficiencies and system upgrades.
Over time, I am confident these initiatives to shift towards advanced, fully digital technologies will bolster BF&M’s growth and ability to innovate, ensuring a competitive edge in a constantly evolving market.
Delivering best-in-class service
Of course, the trust of our customers is essential to our ongoing success, and excellence in customer service remains our top priority. This year, we launched several initiatives designed to improve customer engagement and satisfaction, ensuring we not only meet our customers’ present needs, but also anticipate their future demands — building for tomorrow, today. We aligned dedicated and knowledgeable customer support teams for personalised assistance and relationship building. We enhanced our customer touchpoints by defining clear and transparent communication strategies to keep customers informed about policy changes, industry trends, and legislative updates. And with a focus on timely claims resolution so our customers can get back to normal as quickly as possible, in 2023, we settled 88% of our property claims in under 30 days.
An important prerequisite to providing best-in-class service to our customers is investing in our people and ensuring our team is equipped with the skills and knowledge to excel in a rapidly changing environment. By prioritising professional development and fostering a culture of excellence, we are building a workforce ready to lead our company into the future.
Aligning equity and inclusion initiatives with our vision
We recognise the importance of responding to the evolving diversity landscape within the workforce. We are implementing measures for long-term equity, measuring the impact of our Diversity, Equity, and Inclusion (DEI) initiatives, and striving for continuous improvement. Our dedication to building an inclusive and equitable workplace is focused on amplifying the employee voice, fostering inclusive leadership, identifying, and removing barriers to DEI, nurturing partnerships with outside organisations, and embedding DEI practices into our daily operations.
In 2023, we intensified our DEI efforts through employee education, raising awareness about DEI concerns, and encouraging inclusivity in interactions among our colleagues and customers. These efforts represent significant steps towards creating a workplace where diversity is celebrated, equity is upheld, and inclusion is embedded in every facet of our operations. I am proud of this work and our commitment to continue to improve.
By prioritising professional development and fostering a culture of excellence, we are building a workforce ready to lead our company into the future.
Looking ahead
The landscape is evolving, with rapid technological advancements, changing consumer expectations, and an increasing focus on sustainability. As we look to the future, our strategy is anchored in pursuing thoughtful expansion, exceeding the expectations of our customers and partners, achieving sustainable profitability, and delivering attractive return on equity for our shareholders.
Our achievements in 2023 serve as both a foundation and a springboard for our long-term vision, and we are energised by the opportunities that lie before us. Our strategic focus remains on our core pillars of growth, efficiency, and service as we build a legacy of trust that allows our customers, employees, and communities to thrive. Throughout this report, our Executive Committee members share updates on our progress against specific objectives within these three strategic pillars.
Acknowledgements
I am incredibly thankful for the BF&M team’s resilience and dedication, especially in the face of market challenges. Thank you all for being an integral part of the BF&M story. My thanks also go to our Board of Directors for their wise counsel and leadership throughout this journey. Finally, I must extend my sincere gratitude to both our new and longstanding partners for their unwavering support and confidence in BF&M throughout 2023.
Looking forward, I am optimistic for what lies ahead and confident in our collective ability to achieve our ambitious vision. I am thrilled to join the entire BF&M team on this journey of building for tomorrow, today.
Abigail Clifford
Group President and Chief Executive Officer