JOHNSTON – Insurer FM Global said it ended 2010 with “very strong” underwriting and investment performance, in a news release on Tuesday.
The news release offered selected highlights from its 2010 earnings report; the company said a more comprehensive version of its audited financials would be available through its annual report on March 21.
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FM Global said the policyholder surplus – or the cash available to pay claims – grew 16 percent to $7.3 billion – a company best, it said – fueled by “solid” underwriting and investment results despite an uptick in small and medium-sized insured natural disasters and “significant volatility” in the financial markets.
Gross premium in force – the insurance industry’s equivalent of revenue – grew by approximately 2 percent to $4.8 billion and net income was $687 million, it said.
The profitable combined ratio – the percentage of expenses of claims paid on every $1 of revenue – was 82.8 percent, which FM Global said was better than forecast largely due to the policyholders’ diligent risk improvement efforts.
Its account retention rate was 94 percent.
During the course of the year, FM Global implemented a $420 million credit to its policyholders, the fifth and largest-ever membership credit, the company said. FM Global will have credited $1.7 billion to eligible policyholders by June 30, 2011 since first introducing the credit in 2001.
