LONDON, UK—Fitch has affirmed commercial property insurer FM Global’s ‘AA’ (Very Strong) financial strength rating with a “Stable” outlook, following an analysis to gauge how resilient insurers’ balance sheets are to weathering the coronavirus.
The ‘stress test,’ a follow-up to FM Global’s November 2019 rating affirmation by Fitch, was based on set criteria and assumptions related to how COVID-19 might impact insurers and how prepared they are to meet their financial commitments.
According to Fitch, “the ratings affirmation reflects FM Global's long-term underwriting profitability, very strong capitalisation and competitive advantages derived from the company's engineering expertise and global presence in specialty commercial property insurance markets, as well as benefits drawn from the company's mutual company status. Fitch continues to view FM Global's underwriting performance as very strong…under rating and stress case pro-forma results.”
The rating also applies to the company’s affiliates, including FM Insurance Europe S.A., FM Insurance Company Limited, FM Global de Mexico, S.A. de C.V., Appalachian Insurance Company and Affiliated FM Insurance Company.
About FM Global
Established nearly 200 years 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 client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organisations, including one of every three Fortune 1000 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.