Report to shareholders
Abigail Clifford
Group President and Chief Executive Officer
L. Anthony Joaquin
Group Chair
We are very pleased to share with you the 2024 Annual Report for BF&M Limited. As we reflect on another year of progress, this report marks a pivotal moment in our journey, as it will be the final one issued for BF&M as a standalone entity. BF&M and Argus are moving forward together, and all future annual reports will reflect the financial results of the combined group.
Key business highlights
In 2024, the business remained resilient against a backdrop of escalating cost pressures. The company reported IFRS net income of $13.9 million for the year ended 31 December 2024, compared to $27.2 million in the prior year. However, excluding the impact of external market factors over which we have limited control, such as the change in the fair value of investments and/or one-off exceptional items, our 2024 operating result was $17.9 million, in line with 2023’s $18.7 million.
Our Pensions business delivered strong performance, contributing $16.6 million before allocated expenses, up from $13.3 million in 2023, driven by an increase in assets under management and solid investment returns.
Our Health Insurance segment reported income before allocated expenses of $3.6 million. This result reflected rising healthcare claims costs, particularly from medication and overseas treatment, which were a headwind for the business in 2024. This challenge continues into 2025, and we are committed to leveraging our newly combined scale to mitigate it.
Our Property & Casualty (P&C) business faced continued high reinsurance costs in 2024, which impacted profitability. Income before allocated expenses was $7.6 million, compared to $22.6 million in 2023. While Bermuda and Cayman saw robust property rates in 2024, results in certain other jurisdictions did not meet expectations. As a result, we are reviewing our business in those locations where returns on capital were below target levels. Notably, 2024 was free from significant catastrophe losses.
Our core investment income remained strong at $19.3 million, benefiting from favourable bond and bank income, a testament to our disciplined investment strategy. The year also saw net fair value gains of $17.7 million across our asset-liability matched, general insurance, and surplus portfolios, further strengthening our financial position.
In recognition of our resilient performance this year, our Board of Directors declared a dividend of $0.28 per BF&M share paid in April 2025.
Key business highlights
In 2024, the business remained resilient against a backdrop of escalating cost pressures. The company reported IFRS net income of $13.9 million for the year ended 31 December 2024, compared to $27.2 million in the prior year. However, excluding the impact of external market factors over which we have limited control, such as the change in the fair value of investments and/or one-off exceptional items, our 2024 operating result* was $17.9 million, in line with 2023’s $18.7 million.
Our Pensions business delivered strong performance, contributing $16.6 million before allocated expenses, up from $13.3 million in 2023, driven by an increase in assets under management and solid investment returns.
Our Health Insurance segment reported income before allocated expenses of $3.6 million. This result reflected rising healthcare claims costs, particularly from medication and overseas treatment, which were a headwind for the business in 2024. This challenge continues into 2025, and we are committed to leveraging our newly combined scale to mitigate it.
Our Property & Casualty (P&C) business faced continued high reinsurance costs in 2024, which impacted profitability. Income before allocated expenses was $7.6 million, compared to $22.6 million in 2023. While Bermuda and Cayman saw robust property rates in 2024, results in certain other jurisdictions did not meet expectations. As a result, we are reviewing our business in those locations where returns on capital were below target levels. Notably, 2024 was free from significant catastrophe losses.
Our core investment income remained strong at $19.3 million, benefiting from favourable bond and bank income, a testament to our disciplined investment strategy. The year also saw net fair value gains of $17.7 million across our asset-liability matched, general insurance, and surplus portfolios, further strengthening our financial position.
In recognition of our resilient performance this year, our Board of Directors declared a dividend of $0.28 per BF&M share paid in April 2025.
Workforce and community engagement
We are proud of our role in Bermuda and remain steadfast in our commitment to improving outcomes for the island.
In 2024, we focused on expanding employee engagement across our offices. Through education and meaningful dialogue, we deepened our understanding of race, gender equity, and allyship while equipping our leaders with the tools to foster a more inclusive environment. We also hosted company-wide celebrations and learning sessions for Black History Month, International Women's Day, and Pride Month. Additionally, we participated in and sponsored Bermuda’s local Pride Parade in August, demonstrating our dedication to equality and visibility for all.
We launched an internal campaign focused on allyship, helping employees explore what it means to be a good ally in the workplace. Our leaders received tailored inclusivity training, while our DEI committee enhanced its expertise through participation in industry conferences and coalitions.
Through these initiatives, we reinforced our dedication to a more inclusive and supportive workplace.
At BF&M, we believe in the power of giving back and strengthening the communities in which we operate. In 2024, across our group of companies, we contributed more than $600,000 to local charities, programmes, and initiatives focused on education, health and wellness, and social development. We provided scholarships and mentorship opportunities to support young Bermudians in their academic and professional journeys. Our sponsorships of local sports teams and wellness initiatives underscored our commitment to promoting a healthier Bermuda. Additionally, we continued our partnerships with non-profit organisations dedicated to food security, youth development, and environmental sustainability.
By investing in our community, we reaffirm our responsibility to help build a stronger, more resilient Bermuda—one where businesses and individuals alike can thrive.
Workforce and community engagement
We are proud of our role in Bermuda and remain steadfast in our commitment to improving outcomes for the island.
In 2024, we focused on expanding employee engagement across our offices. Through education and meaningful dialogue, we deepened our understanding of race, gender equity, and allyship while equipping our leaders with the tools to foster a more inclusive environment. We also hosted company-wide celebrations and learning sessions for Black History Month, International Women's Day, and Pride Month. Additionally, we participated in and sponsored Bermuda’s local Pride Parade in August, demonstrating our dedication to equality and visibility for all.
We launched an internal campaign focused on allyship, helping employees explore what it means to be a good ally in the workplace. Our leaders received tailored inclusivity training, while our DEI committee enhanced its expertise through participation in industry conferences and coalitions.
Through these initiatives, we reinforced our dedication to a more inclusive and supportive workplace.
At BF&M, we believe in the power of giving back and strengthening the communities in which we operate. In 2024, across our group of companies, we contributed more than $600,000 to local charities, programmes, and initiatives focused on education, health and wellness, and social development. We provided scholarships and mentorship opportunities to support young Bermudians in their academic and professional journeys. Our sponsorships of local sports teams and wellness initiatives underscored our commitment to promoting a healthier Bermuda. Additionally, we continued our partnerships with non-profit organisations dedicated to food security, youth development, and environmental sustainability.
By investing in our community, we reaffirm our responsibility to help build a stronger, more resilient Bermuda—one where businesses and individuals alike can thrive.
Looking ahead with confidence
As we explained in our December 2024 circular to shareholders about the combination with Argus, the BF&M Board believes that the combination will provide a compelling opportunity to enhance value creation for our shareholders.
In 2025, we will be focused on driving growth and enhanced operational excellence; first, by leveraging our greater scale to mitigate rising costs; second, by operating with enhanced efficiency; and third, by providing greater resources to invest in growth and expand into new international markets.
While we view the future with renewed confidence, we are committed to ensuring that this work never comes at the expense of “business as usual.” We recognise our duty to support our customers in moments that matter – whether through natural disasters or medical emergencies – and we will never take that responsibility lightly.
Looking ahead with confidence
As we explained in our December 2024 circular to shareholders about the combination with Argus, the BF&M Board believes that the combination will provide a compelling opportunity to enhance value creation for our shareholders.
In 2025, we will be focused on driving growth and enhanced operational excellence; first, by leveraging our greater scale to mitigate rising costs; second, by operating with enhanced efficiency; and third, by providing greater resources to invest in growth and expand into new international markets.
While we view the future with renewed confidence, we are committed to ensuring that this work never comes at the expense of “business as usual.” We recognise our duty to support our customers in moments that matter – whether through natural disasters or medical emergencies – and we will never take that responsibility lightly.
Conclusion
We extend our sincere appreciation to the Board for their guidance and support during this period of significant transformation. Their leadership has been instrumental in shaping our path forward. In particular, we would like to thank those BF&M Board members who departed at the time of the combination and whose contribution will be remembered.
We are grateful for the continued trust of our customers, employees, and shareholders. With the foundation we have built, the talented teams we have assembled, and the strategic direction we have set, we look forward to 2025 with optimism and determination.
Yours sincerely,
Conclusion
We extend our sincere appreciation to the Board for their guidance and support during this period of significant transformation. Their leadership has been instrumental in shaping our path forward. In particular, we would like to thank those BF&M Board members who departed at the time of the combination and whose contribution will be remembered.
We are grateful for the continued trust of our customers, employees, and shareholders. With the foundation we have built, the talented teams we have assembled, and the strategic direction we have set, we look forward to 2025 with optimism and determination.
Yours sincerely,
Conclusion
We extend our sincere appreciation to the Board for their guidance and support during this period of significant transformation. Their leadership has been instrumental in shaping our path forward. In particular, we would like to thank those BF&M Board members who departed at the time of the combination and whose contribution will be remembered.
We are grateful for the continued trust of our customers, employees, and shareholders. With the foundation we have built, the talented teams we have assembled, and the strategic direction we have set, we look forward to 2025 with optimism and determination.
Yours sincerely,
Conclusion
We extend our sincere appreciation to the Board for their guidance and support during this period of significant transformation. Their leadership has been instrumental in shaping our path forward. In particular, we would like to thank those BF&M Board members who departed at the time of the combination and whose contribution will be remembered.
We are grateful for the continued trust of our customers, employees, and shareholders. With the foundation we have built, the talented teams we have assembled, and the strategic direction we have set, we look forward to 2025 with optimism and determination.
Yours sincerely,