JOHNSTON, R.I., USA, May 2, 2024 – Commercial property insurer FM Global today announced its largest-ever membership credit of approximately US$1.4 billion, driven by the company’s strong financial performance in 2023, as detailed in its 2023 Annual Report.

“We are extremely proud to share our success in 2023 with our clients,” said Malcolm Roberts, chairman and chief executive officer of FM Global. “Our record membership credit is a testament to the strong partnerships we have with our clients and our work together to mitigate risk and minimize losses. In 2023, our clients reduced loss expectancies associated with property risk by an estimated US$855 billion – a vital component to our mutual financial success.”

Roberts added: “Our mutual company structure and financial strength allow us to give back to our client owners, and with today’s announcement, we will have returned more than US$2.2 billion through our membership credit program over the last two years and US$6.5 billion since 2001.”

In recognition of FM Global’s 25th year as a merged company, FM Global included two special one-off enhancements this year. First, clients with 25 or more years of tenure will be eligible for a credit of 25%. Second, the company increased the credit percent for all other eligible clients by at least 25%.

FM Global’s 2024/2025 membership credit includes the following distribution structure:

  • Clients with fewer than five consecutive years will be eligible for a 7.5% credit.
  • Clients with at least five consecutive years but fewer than 20 will be eligible for a 12.5% credit.
  • Clients with at least 20 consecutive years will be eligible for a 20% credit.
  • Clients with at least 25 consecutive years will be eligible for a 25% credit.

A detailed overview of the 2024/2025 membership credit plan – including eligibility, timing and basis for calculations – is available here. The amount an eligible policyholder will receive will be based on the client’s premium and tenure; the credit will be applied as an offset against premium at a client’s renewal or anniversary date.

In addition to the membership credit, in 2023 FM Global announced its second consecutive resilience credit to support client investment in climate resilience solutions. In 2022 the resilience credit totaled US$294 million; in 2023 it was US$357 million. Through application of these credits, FM Global clients have reduced loss expectancies associated with climate risks by an estimated US$35 billion, and as a result made their business more resilient. 

Through a mutual company structure, policyholders benefit from the success of FM Global. With this announcement, FM Global will have returned to eligible policyholders the equivalent of 80% of its underwriting profit earned since the beginning of 2022.

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 to make cost-effective risk management decisions, combining property loss prevention with insurance protection.