As we build for the future, it is our strong financial position that sets us apart. I am pleased that BF&M continues to deliver value to its shareholders and that our policyholders and business partners can look to our balance sheet as a source of trust and stability. Our AM Best rating of A (Excellent) is a testament to this enduring commitment.
A year of strong and resilient performance
The past year has been marked by many significant achievements, which have reinforced BF&M’s strong market position. The Company’s financial performance recovered strongly from 2022, driven by our Property & Casualty business and excellent investment results which benefitted from improving market sentiment in North America, as well as higher interest rates and the additional flexibility afforded by our strong capital position.
Despite a challenging reinsurance market, particularly in our Caribbean Property & Casualty operation, we have continued to demonstrate discipline and selectivity in our underwriting process – ensuring that we write the right business at the right price. Our diversified business model offers an additional layer of resilience and flexibility, with income from our Pension segment increasing strongly as a result of double-digit growth in Assets Under Management (AUM).
Product line and geographical diversification have and will continue to be instrumental in offsetting the pressures faced by our Group Health business where claims continue to trend negatively, and the frequency and severity of more complex cases continues to climb.
Addressing these trends is a challenge we must all face, and we are proactively collaborating with our preferred providers and partners to effectively reduce costs, and prudently price the business.
In May 2023, BF&M further demonstrated its commitment to delivering long-term value to shareholders as we increased our quarterly dividend by 16.6%, from $0.24 to $0.28.
The adoption of IFRS 17 and IFRS 9, new accounting standards for insurance contracts and the measurement of financial assets, was a pivotal focus for BF&M in 2023, marking a significant milestone in our journey towards enhanced transparency and consistency in financial reporting. We successfully navigated this complex transition, ensuring as minimal an impact on our business operations as possible. The new standard should ultimately provide a consistent set of principles for all stakeholders to be able to gain better insight into our business going forward.
Looking ahead
Our financial strategies for the coming year revolve around product line and geographical diversification, continuing rate adjustments in Property & Casualty and Life & Health, active expense monitoring, and an effective and efficient reinsurance strategy to minimise the impact of potential catastrophic loss. These efforts are designed not only to ensure that BF&M is well equipped to withstand the pressures of the current market, but also to position the organisation for sustained growth moving forward.
We will continue to make prudent investment decisions aligned with our long-term goals, emphasising an optimal balance between risk and return and allowing us to navigate the fluctuations in investment markets with resilience.
With the first year of IFRS 17 now behind us, we will now turn our attention to apply the learnings of the transition to further enhance our processes and begin to leverage advancing technologies to improve our modelling and forecasting capabilities. Our commitment to financial prudence and effective cost management will continue to be our grounding principles as we navigate the future.
With a solid foundation and a clear vision, we are well-positioned to meet the opportunities as well as the challenges that lie ahead, ensuring BF&M’s continued growth and stability. I would like to thank the entire Finance team for their hard work, dedication, and collegiality over the last year. Their contributions are deeply appreciated.
Bruce Walker
EVP, Group Chief Financial Officer
Best-in-class ratings from AM Best
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Bermuda
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Bermuda
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Best-in-class ratings from AM Best
Best-in-class ratings from AM Best
