JOHNSTON – FM Global, an international property insurer, boasted 2016 profit growing 8 percent to $796.8 million compared with a year earlier.
The Johnston-based giant realized year-over-year revenue growing 1.1 percent to $4.1 billion. The company reported an improved combined ratio of 83.2 percent, representing incurred losses and expenses divided by earned premium, marking a fourth consecutive year with market-leading results, according to a financial report.
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“This outstanding performance validates the strength of our business model,” said Thomas A. Lawson, president and CEO. “Our mutuality and strong specialty focus remain unique to FM Global, differentiate us in the market and provide a distinct advantage for our company and keeping our clients resilient.”
Total policyholders’ surplus grew 8 percent to $11.9 billion, which the company attributes to strong underwriting performance and investment results. The company’s 2016 investment portfolio returned 6.65 percent compared with 1.53 percent a year earlier. It beat returns of a theoretical comparable benchmark plan both years.
Total losses, loss adjustment and other expenses fell 1.5 percent to $3.2 billion.
Client retention rate for the near 200-year-old company was 96 percent with an average client tenure of 18.4 years.
“FM Global continues to build on who we are and to help protect the value created by our clients’ businesses,” Lawson added. “We believe strongly that an alliance with FM Global helps build its own unique set of competitive advantages in any industry. As we move into 2017 and beyond, we’re certain our clients will indeed enjoy those benefits and take major strides right along with us.”
The global mutual insurance company specializes in property risk management. It represents several of the world’s largest companies, claiming to cover one in every three Fortune 1,000 companies.
It recently started construction on a new training and operations center in Singapore, and is expanding a training facility in Norwood, Mass.
Eli Sherman is a PBN staff writer.
