AM Best has placed under review with developing implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of BF&M Life Insurance Company Limited, BF&M General Insurance Company Limited and Island Heritage Insurance Company, Ltd. (Island Heritage) (Cayman Islands). AM Best has also placed under review with developing implications the Long-Term ICR of “bbb” (Good) of the parent company, BF&M Limited (BF&M). All companies are domiciled in Hamilton, Bermuda, unless otherwise stated.

The Credit Ratings (ratings) reflect BF&M’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings have been placed under review following BF&M’s and Argus Group Holdings Limited’s (Argus Group) joint announcement on June 28, 2024, that the two companies have signed a definitive agreement in which BF&M and Argus Group will combine in an all-stock transaction. Should this transaction close as announced, AM Best expects BF&M to maintain its current financial strength and operating performance as part of a combined BF&M-Argus Group entity and likely benefit from improved geographic and product diversification, as well as a more-favorable market position. It is currently presumed that the combined organization would provide credit enhancement to the debt expected to be issued by Bermuda Life Insurance Company Limited, a subsidiary of Argus Group, to finance the purchase of BF&M shares from Camellia Plc. This additional leverage is included in AM Best’s expectation of continued balance sheet strength.

The ratings will remain under review with developing implications pending regulatory approvals from the Bermuda Monetary Authority, which is expected in late 2024.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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