Commercial Property Insurer FM Global Reports 2014 Financial Results
JOHNSTON, R.I., Feb. 27, 2015 /PRNewswire/ -- 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 premium earned 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 recognized by Business Insurance magazine with an Innovation Award for its SimZone training facility.
- FM Global was honored 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
Marking 180 years in business in 2015, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management. Those owners, who share the belief that the majority of property loss is preventable, represent many of the world's largest organizations, including one of every three FORTUNE 1000 companies. They work with FM Global to better understand the key property hazards that can impact their business continuity to make cost-effective risk management decisions combining property loss prevention with insurance protection.
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SOURCE FM Global
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