JOHNSTON, R.I., USA—Commercial and industrial property insurer FM Global has again received a ‘AA’ (Very Strong) financial strength rating from Fitch with a “Stable” outlook. Fitch said the mutual company’s strong 2015 underwriting results and combined ratio of 85 percent were among the key drivers of the rating affirmation. The rating also applies to the company’s affiliates, including FM Insurance Company Limited and Affiliated FM Insurance Company.
Fitch noted, “the ratings continue to reflect FM Global’s strong capital and long-term underwriting profitability, competitive advantages derived from the company’s engineering expertise and global presence in specialty commercial property insurance markets, as well as benefits drawn from the company’s mutual company status.”
Fitch added that the “the company’s long-term operating performance continues to be strong and supportive of the current rating level.” Additionally, Fitch said it “believes that FM Global’s favorable long-term underwriting performance is due in large part to the company’s ability to incorporate engineering expertise into the risk selection and underwriting processes.”
The rating agency also said it views the company’s engineering and loss prevention capabilities as “key advantages that are difficult for competitors to replicate, and believes this expertise will result in future underwriting results that are consistently better than peers.”
About FM Global
Established nearly 200 years ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every three Fortune 1000 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.