LONDON, UK—Clients of commercial property insurer FM Global will collectively receive an estimated US$465 million (£275 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 (£1.48 billion) in membership credit since the programme was introduced in 2001.
“Our favourable loss experience, due to the diligence our clients have shown towards 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 at www.fmglobal.co.uk.
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, as well as the 2013 CIR Risk Management Insurance Partnership of the Year Award. In the United Kingdom, FM Global is the communicative name for FM Insurance Company Limited, which celebrated its 50thanniversary of international operation in 2013.