FM Global Reports 2011 Results

LONDON, UK – FM Global, one of the world’s largest business property insurers, announced today that it ended 2011 with US$5.1 billion of gross premium in force, an increase of 5.4 percent, and that net earned premium grew by 5.8 percent to US$3.4 billion.

The mutual insurance company posted a combined ratio of 121 percent, driven by the 20 large natural disasters of 2011, and policyholder surplus declined by 5.5 percent to US$6.9 billion. Net losses incurred from disasters in 2011 exceeded losses incurred in 2010 by more than US$1 billion.

"The events of 2011 reinforced the strength of our promise to policyholders: to be a stable market, provide unique services and respond quickly when they have a loss, with a focus on helping them to resume business operations as swiftly as possible,” said Shivan S. Subramaniam, FM Global chairman and chief executive officer. “Although the frequency and severity of the natural disaster losses were our highest on record, we didn’t find it necessary to modify our risk assessment and risk improvement practices at the policy level, or suggest a redesign of our reinsurance practices."

Among the company's 2011 highlights, FM Global:

As FM Global looks ahead to the coming year and beyond, Subramaniam said the company must continue to focus on seamlessly, compliantly and cost-effectively delivering its products and services to clients as they grow in areas where local risk management practices, codes and standards result in less resilient properties that can lead to a significantly higher risk profile.

Above all, Subramaniam said, "FM Global will continue to ensure that we continue to deliver market-leading products and services that resonate with our clients and meet their ever-evolving needs on a worldwide basis."

For more information, FM Global’s 2011 Annual Report can be viewed and downloaded on the company’s website at

About FM Global 
FM Global works with many of the world’s largest organisations to develop robust property insurance and engineering solutions to protect their business operations from fire, natural disasters and other types of property risk. In recent years, 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. The company is rated A+ (Superior) by A.M. Best and AA (Very Strong) by Fitch Ratings. In the United Kingdom, FM Global is the communicative name for FM Insurance Company Limited, which is regulated by the Financial Services Authority.