JOHNSTON, R.I., USA—FM Global, one of the world’s largest business property insurers, announced today that 2016 was another “very successful year.”

The company posted an improved combined ratio of 83.2 percent—compared to 85.3 percent a year earlier—which was a market-leading result for the fourth consecutive year.

Total gross premium in force increased to US$5.43 billion compared to US$5.39 billion the year prior, and net income rose 8 percent to US$796.8 million, despite extremely competitive market conditions.

Additionally, FM Global’s surplus strengthened by 8 percent to US$11.9 billion due to the combination of strong underwriting performance and investment results.

“This outstanding performance validates the strength of our business model,” said Thomas A. Lawson, president and chief executive officer, FM Global. “Our mutuality and strong specialty focus remain unique to FM Global, differentiate us in the market, and provide a distinct advantage for our company and keeping our clients resilient.”

Among the company’s 2016 highlights:

FM Global’s client retention rate was 96 percent with an average client tenure of 18.4 years, significantly higher than the industry average.

  • Construction began on a new major loss prevention training and operations center in Singapore, which is slated to open in early 2019.
  • The company began the expansion of its SimZone hands-on training facility in Norwood, Mass., USA, scheduled to be completed by mid-2017.
  • The company made more than one dozen enhancements to its FM Global Advantage® policy, including expanded cyber insurance coverage and new coverage for loss related to communicable disease.
  • The company issued its ninth membership credit to eligible policyholders since the program began in 2001, underscoring the company’s mutual structure and support of clients’ loss prevention focus. By the end of 2017, FM Global will have provided more than US$3.3 billion in total membership credit to its clients.
  • FM Global was named best carrier for property, business interruption, and boiler and machinery insurance in National Underwriter magazine’s Risk Manager Choice Awards, and the company received an Innovation Award from Business Insurance magazine for MyRisk®, the company’s client extranet.
  • The company was named one of “America’s Best Employers” by Forbes magazine.
  • The White House Office of Management and Budget recognized FM Global for its on-site risk assessments and loss prevention recommendations to support the resilience of schools, hospitals and transportation-related facilities.
  • A.M. Best, Fitch and S&P Global affirmed FM Global’s financial ratings at A+, AA and A+, respectively, with a ‘Stable’ outlook from all ratings agencies.

“FM Global continues to build on who we are and to help protect the value created by our clients’ businesses,” said Lawson. “We believe strongly that an alliance with FM Global helps build its own unique set of competitive advantages in any industry. As we move into 2017 and beyond, we’re certain our clients will indeed enjoy those benefits and take major strides right along with us.”


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.