Subramaniam stepping down as FM Global CEO, will remain chair

AS PART OF THE TRANSITION brought about by the end-of-year retirement of CEO Shivan S. Subramaniam, Executive Vice President Jonathan W. Hall is becoming FM Global's chief operating officer on Aug. 1. / COURTESY FM GLOBAL
AS PART OF THE TRANSITION brought about by the end-of-year retirement of CEO Shivan S. Subramaniam, Executive Vice President Jonathan W. Hall is becoming FM Global's chief operating officer on Aug. 1. / COURTESY FM GLOBAL

(Updated, 5:05 p.m.)
JOHNSTON – FM Global Chairman and CEO Shivan S. Subramaniam will retire at the end of 2014 after 40 years with the company he helped grow from an enterprise with $1 billion in annual revenue to one with yearly revenue of $5.6 billion, the company announced Thursday.

Subramaniam will remain chairman of FM Global’s board of directors.

As CEO since 1999, Subramanian has guided the 179-year-old Johnston-based company to substantial achievements in profits, as well as in client and employee retention.

One of the world’s largest commercial and industrial property insurers, FM Global had 2013 net income of $1.02 billion, a 31.9 percent increase over $774.4 million in 2012.

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“2013 was a very successful year, which can be attributed to the commitment we share with our policyholder-owners to make their facilities and businesses more resilient,” Subramaniam said in May. “These results reinforce the quality of our mutual business model, our balance sheet strength and the trusted partnerships we have formed with our clients.”

FM Global reported a 95 percent client retention rate in 2013.

“Looking ahead to 2014, which marks our 179th year in business, FM Global will continue to focus on developing and delivering proven, cost-effective solutions to make our policyholders’ organizations more resilient to business interruption anywhere in the world, while providing stable risk-transfer solutions that are compliant with local regulatory requirements,” Subramaniam said in May.

Subramaniam will retire on Dec. 31 and on Jan. 1, 2015, Executive Vice President Thomas A. Lawson will move into the position of CEO. Lawson, who has been with FM Global since 1979 and was appointed executive vice president in 2009, was elected to the company’s board of directors and named president effective Aug. 1.

In addition, Executive Vice President Jonathan W. Hall, has been named chief operating officer, effective Aug. 1.

“I have worked with Tom and Jon for nearly 16 years and have the upmost respect for their countless contributions they have made to help our policy-holder owners be more resilient,” said Subramaniam. “Their vast experience, leadership and deep understanding of our clients’ complex needs, combined with FM Global’s timeless business model, will ensure the continued success we share with our policyholders.”

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