JOHNSTON, R.I., USA, April 28, 2023 – Commercial property insurer FM Global has announced its largest ever membership credit of approximately US$800 million on the back of ‘outstanding’ financial results, as detailed in its 2022 Annual Report.
“Through increased risk mitigation and fewer losses, we are creating a circle of resilience,” said Malcolm Roberts, president and chief executive officer. “Our leading research, data and engineering expertise provides our clients with actionable risk mitigation recommendations. This allows our client-owners to be proactive and take the right steps to protect their business and purpose. These partnerships are the reason behind our outstanding financial performance and these results represent one of the best years in the company’s history.
“Our financial strength and mutual business model mean our clients share in our success. The more we prevent loss, the more we can give back to our client-owners. This is demonstrated in another record membership credit. In such a volatile market, the year ahead will be a challenge once again, but we face it from a position of strength and look forward with more optimism than ever before.”
Among the innovative solutions offered to clients in 2022 was a first-of-its kind resilience credit that provided an additional $300 million to help clients invest in climate resilience solutions. According to FM Global data, the credit has the potential to help organizations reduce total loss expectancies related to wind, flood, and wildfire exposure by more than US$120 billion.
The membership credit an eligible policyholder will receive will be based on its premium and tenure and applied as an offset against premium at a client’s renewal or anniversary date. FM Global clients holding policies for:
- fewer than 5 consecutive years will be eligible for a 5% credit.
- at least 5 consecutive years but fewer than 20 will be eligible for a 10% credit.
- at least 20 consecutive years will be eligible for a 15% credit.
A detailed overview of the 2022 membership credit plan (including eligibility, timing and basis for calculations) is available here. FM Global has now returned more than US$5 billion in credits since 2001.
About FM Global
Established nearly two centuries 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 policyholder-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 four Fortune 500 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.