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.
“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.