JOHNSTON, R.I., USA—Clients of commercial property insurer FM Global will collectively receive an estimated US$465 million in premium reduction when they renew their policies between June 30, 2014 and June 29, 2015. The “membership credit” is the largest the company has ever offered its clients and is a result of the mutual insurer’s continued financial success due, in large part, to policyholders’ diligent property loss prevention efforts. The credit each client will receive will be based on client tenure, with longer-term clients benefiting the most.
Approximately 1,900 clients qualify, some of which have been policyholders with FM Global since the late 1800s. Following this credit, FM Global clients will have benefited from approximately US$2.5 billion in membership credit since the program was introduced in 2001.
“Our favorable loss experience, due to the diligence our clients have shown toward property risk improvement, has made it possible for us to provide another premium credit to eligible policyholders,” said Shivan S. Subramaniam, chairman and chief executive officer. “As a mutual company, our policyholders are our owners, so, naturally they share in the benefits of taking prudent steps to protect their property and business continuity.”
FM Global clients holding policies consecutively for:
- fewer than five years will be eligible for a 5 percent credit;
- five to 19 consecutive years will be eligible for a 10 percent credit;
- 20 consecutive years or more will be eligible for a 15 percent credit
A more detailed overview of the 2014/2015 membership credit plan (including eligibility, timing and basis for calculations) is available in the 2014/2015 Membership Credit Executive Plan Summary.
Established in 1835, FM Global is a US$5.6 billion mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management. Its client-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.