A.M. Best Affirm Ratings of BF&M Life Insurance Company Limited and BF&M General Insurance Company Limited.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of BF&M Life Insurance Company Limited (BF&M Life) and BF&M General Insurance Company Limited (BF&M General) (both of Hamilton, Bermuda).

A.M. Best also has withdrawn the FSR of A (Excellent) and adjusted the ICR to "bbb" from "a" of the group's holding company, BF&M Limited (Hamilton, Bermuda). The outlook for all ratings is stable.

A.M. Best's financial strength rating is defined as an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policies and contract obligations. Since, BF&M Limited is a non-operating public holding company with no direct policyholders, the financial strength rating is not needed and has been withdrawn. A.M. Best's issuer credit rating is an opinion regarding the relative future credit risk of an entity and is assigned to publicly traded holding companies where a significant portion of cash flow is provided by insurance operations. A.M. Best's methodology typically notches a non-operating holding company three below the lead operating company, which in this case is BF&M Life. The withdrawal of the FSR and the adjustment of the ICR are not due to any changes in the financial fundamentals of the organization but were taken in order to align and conform BF&M Limited's ratings to A.M. Best's standard holding company rating methodology.

The rating affirmations reflect the organization's consistently positive net income, steady premium growth and strong capitalization. BF&M Life and BF&M General have consistently recorded premium growth and positive net income for the last five years. The positive operating results have contributed to the strong level of capitalization for the organization. The capital levels at BF&M Life and BF&M General are more than adequate to support their current level of business and risk profiles.

Partially offsetting these positive rating factors is the concentration of the organization's book of business in the local Bermuda market, limited domestic growth opportunities and exposure of the group's property business to catastrophe risk. In order to achieve some geographic diversification, BF&M Limited acquired a majority ownership of Insurance Corporation of Barbados Limited, the largest property/casualty insurance company in Barbados. BF&M Limited mitigates its catastrophe exposure by maintaining reinsurance coverage, which limits its retained losses.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.