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BF&M Limited acquires shares from The Bermuda Fire & Marine Insurance Company Limited (in liquidation) (“BFMIC”)

BF&M Limited
Hamilton, Bermuda
31 March 2005

John Wight, President & CEO of BF&M Limited, today announced that BF&M Limited had acquired 352,279 shares from The Bermuda Fire & Marine Insurance Company Limited (in liquidation) (“BFMIC”) on the Bermuda Stock Exchange. Mr. Wight added that BF&M would be acquiring a further 352,279 shares from BFMIC on 31st December 2005, and 352,038 shares on 31st December 2006. “When BF&M Limited acquired BF&M General Insurance Company Limited, BF&M Life Insurance Company Limited and various other companies from BFMIC in 1991, part of the purchase price consideration was 1,000,000 convertible cumulative redeemable preference shares. The preference shares still held by BFMIC in 2002 were then converted to common shares when the Company exercised its conversion rights to convert all BF&M preference shares to common shares”.

“The purchase of these 1,056,596 shares in three tranches represents an important event for BF&M because it will effectively end any BFMIC ownership in the Company resulting from this 1991 transaction. The Company is in a very strong financial position and is able to acquire these shares through surplus funds generated through normal operations of the BF&M Insurance Group”.

The price to be paid by BF&M for each tranche will be calculated as 10% above the weighted average closing price of the shares of the Company traded on the Bermuda Stock Exchange over the period one hundred and eighty days immediately prior to the value date. The value date will be seven days prior to the tranche date sale date for which the sale price is to be determined. The price to be used in the calculation of the purchase price for the 31st December 2005 and 31st December 2006 transactions shall be no less than the weighted average closing price for the shares as calculated with effect 31st January, 2005.

BF&M intends to cancel the 352,279 shares following today’s purchase.

BF&M Limited is the holding company of the BF&M Insurance Group. The two largest operating companies within the Group are BF&M Life Insurance Company Limited, a leading provider of life, health and pensions products, and BF&M General Insurance Company Limited, the leading general insurer providing all forms of property, casualty, motor and marine products. The group includes several other companies including BF&M Management Limited, Marchmont Insurance Company Limited, BF&M Investment Services and BF&M Properties Limited, (including Scarborough Property Holdings Limited and Barr’s Bay Properties Limited)

Further information will be released at a later date.

R. John Wight, President & Chief Executive Officer
Phone 295 5566, Fax 292 8831

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