Fitch affirms FM Global’s AA rating

JOHNSTON – Fitch Ratings Inc. on Wednesday affirmed FM Global’s AA rating, which has gone unchanged since 2007.
The rating affirmation indicates the international insurer continues to have “very strong” capacity for payment of financial commitments and is not significantly vulnerable to foreseeable events.
Its rating outlook is stable, according to Fitch.
“The ratings continue to reflect FM Global’s strong capital and long-term underwriting profitability, 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 stated in its rating.
The international mutual insurance company specializes in property risk management. In 2014, the company also was assigned an A+ rating from A.M. Best and A+ from Standards & Poor’s.
FM Global has no outstanding debt, which Fitch regards as a positive credit factor “relative to other ‘AA’ rated companies,” according to Fitch.
“Fitch believes that FM Global’s favorable long-term underwriting performance is due in large part to the company’s ability to incorporate engineering expertise into the risk selection and underwriting processes,” Fitch stated in the rating. “Fitch views the company’s engineering capabilities and loss prevention services as key advantages that are difficult for competitors to replicate and believes this expertise will result in future underwriting results that are consistently better than peers.”

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