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Commercial Property Insurer FM Global Reports 2014 Financial Results

LONDON, UK — FM Global, one of the world’s largest business property insurers, announced today that 2014 was another successful year for the company from both an insurance and investment perspective. Net income increased by 2 percent to US$3.6 billion, policyholder surplus increased 9.5 percent to US$10.6 billion and the mutual insurance company posted a combined ratio of 79.4 percent.

Consolidated gross premium in force was US$5.5 billion, a 1.9 percent decline from 2013, due in part to the foreign exchange rate impact of the strengthening U.S. dollar.

“The financial numbers speak to the strength of our business model as a mutual insurer and to our balance sheet, long-term trusted client partnerships and our employees’ single-minded commitment to our policyholder-owners,” said Thomas A. Lawson, president and chief executive officer.

Among other 2014 highlights:

  • FM Global’s client retention rate was 95 percent, significantly higher than the industry average.
  • Eighty-six percent of property insurance policies were delivered on or before the effective date of the contract, and 96 percent were delivered within 30 days.
  • The company announced it would provide a membership credit of approximately US$465 million to eligible policyholders renewing between June 30, 2014 and June 29, 2015. By the end of June 2015, FM Global will have provided nearly US$2.5 billion in total membership credits since 2001.
  • A.M. Best and Fitch reaffirmed their A+ and AA ratings, respectively, of FM Global, which have remained unchanged since 2007. FM Global also is rated A+ by Standard & Poor’s.
  • Global Finance magazine again named FM Global “World’s Best Supply Chain Risk Insurance Provider.”
  • The company was recognised by Business Insurance magazine with an Innovation Award for its SimZone training facility.
  • FM Global was honoured with a BEST Award from the Association for Talent Development, the talent development industry’s most rigorous and coveted recognition.

“As we enter our 180th year in business in 2015, our emphasis will be on flawless execution and delivering value to our clients by providing them scientifically based, cost-effective risk management and insurance solutions that assist them in making their businesses more resilient,” said Lawson.

About FM Global

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 and the resilience of its client-owners. In 2015, FM Global celebrates its 180th year in operation; working with many of the world’s largest organisations to develop cost-effective property insurance and engineering solutions to protect their business operations from fire, natural disasters and other types of property risk. In 2015, Global Finance Magazine named FM Global the ‘World’s Best Supply Chain Insurance Provider.’ In the United Kingdom, FM Global is the communicative name for FM Insurance Company Limited.