JOHNSTON, R.I., USA—FM Global, one of the world’s largest business property insurers, announced today that it ended 2010 with a very strong underwriting and investment performance, which resulted in the company’s largest surplus ever.
The mutual insurance company reported that, in 2010 policyholder surplus grew 16 percent to US$7.3 billion—a company best—due to a combination of solid underwriting and investment results, despite an uptick in small- and medium-sized insured natural disasters and significant volatility in the financial markets. Gross premium in force grew by approximately 2 percent to US$4.8 billion and net income was US$687 million.
Additionally, the company posted a profitable combined ratio of 82.8 percent, better than forecast, due in large part to policyholders’ diligent risk improvement efforts. FM Global’s client (account) retention rate held firm at 94 percent—significantly higher than industry averages—and has consistently since 2004.
Among the company’s 2010 highlights, FM Global:
“As FM Global reflected on the past during its anniversary year, we revisited our core values, which are as relevant and steadfast today as they were 175 years ago,” saidShivan S. Subramaniam, FM Global chairman and CEO. “What has changed, however, is that today we are protecting businesses that are vastly more sophisticated and global in scope. And as our clients formulate and implement strategies to better protect their businesses and make them more profitable in the future, we are right there with them, helping them keep their properties safe, and the value they provide, intact.”
Subramaniam offered an additional positive outlook for the coming year and beyond.
“We are off to a great start in this new decade, building on the successes we’ve achieved in the previous decade. We are confident that we can continue to effectively meet our policyholders’ needs and deliver a knowledge-based product that resonates with our clients. Our confidence in this endeavor is driven by a simple fact: our employees are focused, determined and passionate about what they do. This is a critical linchpin to our continued, long-term stability and success. And for that, we are most grateful.”
About FM Global
For more than 175 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 #545 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 magazine, “Best Global Property Insurer” by Global Finance magazine and was voted “Best Commercial Property Insurer” in Business Insurance’s 2010 annual Readers Choice Awards.