JOHNSTON, R.I., USA—FM Global, one of the world’s largest business property insurers, announced today that it ended 2011 with US$5.1 billion of gross premium in force, an increase of 5.4 percent, and that net earned premium grew by 5.8 percent to US$3.4 billion.
The mutual insurance company posted a combined ratio of 121 percent, driven by the 20 large natural disasters of 2011, and policyholder surplus declined by 5.5 percent to US$6.9 billion. Net losses incurred from disasters in 2011 exceeded losses incurred in 2010 by more than US$1 billion.
“The events of 2011 reinforced the strength of our promise to policyholders: to be a stable market, provide unique services and respond quickly when they have a loss, with a focus on helping them to resume business operations as swiftly as possible,” said Shivan S. Subramaniam, FM Global chairman and chief executive officer. “Although the frequency and severity of the natural disaster losses were our highest on record, we didn’t find it necessary to modify our risk assessment and risk improvement practices at the policy level, or suggest a redesign of our reinsurance practices.”
Among the company’s 2011 highlights, FM Global:
Received industry recognition from notable third-parties:
As FM Global looks ahead to the coming year and beyond, Subramaniam said the company must continue to focus on seamlessly, compliantly and cost-effectively delivering its products and services to clients’ as they grow in areas where local risk management practices, codes and standards result in less resilient properties that can lead to a significantly higher risk profile.
Above all, Subramaniam said, “FM Global will continue to ensure that we continue to deliver market-leading products and services that resonate with our clients and meet their ever-evolving needs on a worldwide basis.”
For more information, FM Global’s 2011 Annual Report can be viewed and downloaded on the company’s website at www.fmglobal.com
About FM Global
For 177 years, many of the world’s largest organizations have turned to FM Global to develop cost-effective property insurance and engineering solutions to protect their business operations from fire, natural disasters and other types of property risk. With clients in more than 130 countries, FM Global ranks #570 among FORTUNE magazine’s largest companies in America and is rated A+ (Superior) by A.M. Best and AA (Very Strong) by Fitch Ratings. The company has been named “Best Property Insurer in the World” by Euromoney magazineand “Best Global Property Insurer” by Global Finance magazine.