JOHNSTON, R.I., USA—FM Global, one of the world’s largest commercial and industrial property insurers, ended 2017 with 5 percent growth in gross premium to US$5.70 billion and 9.3 percent growth in policyholder surplus to US$13.03 billion.
The company posted a combined ratio of 129.9 due primarily to an unprecedented year of natural disasters as well as a planned US$415.2 million membership credit provided to policyholders. Despite the combined ratio, net income was US$254 million versus US$797 million in 2016, on account of a combination of favorable investment results and U.S. tax law changes.
Additionally, FM Global outperformed catastrophe model predictions due to its loss prevention engineering differential, and the company’s financial strength rating was recently affirmed at ‘AA’ by Fitch Ratings and ‘A+’ by A.M. Best and S&P Global with a stable outlook from all three rating agencies.
“Our capital base is stronger than ever, which is a testament to the strength and stability of a business model built for volatility,” said Thomas A. Lawson, chairman and chief executive officer, FM Global. “As a mutual company owned by our policyholders, we know our resilience reflects our clients’ resilience. This past year, our engineering advice and strong balance sheet helped many of our clients deal with potentially devastating disasters and weather such events with minimal disruption.”
Among the 2017 highlights:
“In 2018, FM Global will continue to invest in research and technology that will speed the transfer of knowledge into client-focused loss prevention solutions,” added Lawson. “We also will open an Innovation Center to explore emerging technologies and how to leverage them to protect policyholders from loss. Additionally, we will continue to accelerate our time to market with new products and services that meet clients’ evolving property protection needs.”
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.