LONDON, UK – FM Global, one of the world's largest business property insurers, announced today that it ended 2012 with US$5.5 billion of consolidated gross premium in force, an increase of 8.6 percent. Additionally, policyholder surplus grew 14.9 percent to US$7.9 billion.
Net income was US$774 million and the mutual insurance company posted a profitable combined ratio of 85.7 percent, despite the impact of Superstorm Sandy – the insurer's single largest net aggregate natural disaster loss to date, which resulted in approximately 2,200 claims.
"FM Global's financial capacity enabled us to absorb the losses we incurred from one of the costliest natural disasters in our company's 178-year history with manageable impact to our bottom line," said Shivan S. Subramaniam, chairman and chief executive officer. "Likewise, our engineering expertise and superior claims-handling helped minimise those losses further. Such outstanding results reinforce the strength of our mutual business model, our balance sheet and our unique focus and effectiveness to ensure our clients' business resilience."
Among the company's other 2012 highlights:
"As a provider of knowledge-based services in a commodity marketplace, our focus remains singular: providing solutions for our policyholders to remain resilient in business. We will accomplish that goal by continuing to develop and deliver efficient and effective risk improvement solutions to our policyholders across the world, while providing stable risk-transfer solutions that are compliant with local regulatory requirements," said Subramaniam.
About FM Global
For nearly two centuries, many of the world's largest organisations have turned to FM Global (www.fmglobal.co.uk) 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 has been named "Best Property Insurer in the World" by Euromoney magazine, "Best Global Property Insurer" by Global Finance magazine and received the prestigious Queen's Award for Enterprise. In the United Kingdom, FM Global is the communicative name for FM Insurance Company Limited, which is regulated by the Financial Services Authority.