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Commerical Property Insurer FM Global Reports Financial Results

LONDON, UK-FM Global, one of the world's largest business property insurers, announced today that 2015 was one of its best years on record.

The mutual insurance company's combined ratio was 85.3 percent, and the combination of strong underwriting performance and investment results increased FM Global's surplus by 3.8 percent to US$11 billion. Additionally, FM Global's client retention rate was 95 percent, significantly higher than the industry average.

Consolidated gross in-force premium was US$5.4 billion, a 2.5 percent decline from 2014, due to the continued strengthening of the U.S. dollar.

"These outstanding financial results as well as the superior client retention rate substantiate the enduring strength of our mutual business model, specialty focus and balance sheet. They are also positive indicators of a healthy, thriving organisation, solely focused on helping keep our client-owners resilient," said Thomas A. Lawson, president and chief executive officer, FM Global.

Other 2015 highlights include:

  • Eighty-eight percent of master policies were delivered to clients on or before the effective date of the contract, and 96 percent were delivered within 30 days.
  • The company announced it would provide a third, consecutive membership credit-its eighth overall-to eligible policyholders renewing between June 30, 2015, and June 29, 2016. By the end of June 2016, FM Global will have provided nearly US$3 billion in total membership credit to its clients since 2001.
  • A.M. Best and Fitch reaffirmed their 'A+' (Superior) and 'AA' (Very Strong) ratings, respectively, of FM Global, which remain unchanged since 2007. FM Global is also rated 'A+' by Standard & Poor's, with a "Stable" outlook.
  • FM Global's loss prevention engineers spent nearly 536,000 hours visiting more than 68,000 client locations to help policyholders manage property risk.
  • Affiliated FM, which specialises in middle-market business, was rebranded to AFM.
  • Risk managers ranked FM Global highest for property claims management, according to an independent study conducted by Advisen, an insurance research provider.
  • FM Global topped the rankings in all categories in StrategicRISK's UK Corporate Insurance Buyers' Survey.
  • Global Finance magazine acknowledged FM Global as the "world's best supply chain insurance provider."
  • The FM Global Resilience Index, the first data-driven tool to rank the supply chain resilience of 130 countries and territories around the world, was recognised by Business Insurance magazine with an innovation award.

"As we look to 2016, we'll continue to explore new ways to invest our capital into products and services that most benefit our clients," said Lawson. "In particular, we will continue to capitalize on our engineering, research and analytics capabilities which will allow us to open new doors to helping our clients drive down their cost of risk and remain resilient. We also will be introducing an enhanced version of the world-leading FM Global Advantage® policy that will include more than a dozen enhancements."

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. FM Global works 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. FM Global is rated 'A+' by Standard & Poor's, 'A+' (Superior) by A.M. Best, and 'AA' (Very Strong) by Fitch. In the United Kingdom, FM Global is the communicative name for FM Insurance Company Limited.