Rhode Island-based FM Global, a commercial and industrial property insurer, has issued a statement commenting on A.M. Best’s recent decision to affirm the company’s ‘A+’ (Superior) rating, citing its “very strong earnings and cash flow generated during 2002” and “the ongoing expectation that such results will continue,” as supporting the rating and the “stable outlook” Best assigned.
“A.M. Best’s analysis has become the insurance industry’s standard measure of insurer financial performance. An A+ rating is assigned to companies that, according to A.M. Best, ‘have a very strong ability to meet their ongoing obligations to policyholders,'” said the bulletin.
It noted Best had stated that “FM Global is a clear market leader among providers of commercial property insurance in the United States, serving a significant number of Fortune 1000 companies worldwide, many of which have been clients of FM Global for more than 25 years. FM Global’s ability to consistently retain in excess of 90% of its customer base, even in the face of rising rates and tightening terms and conditions, stems from its stable capacity, unsurpassed engineering, global reach, loss prevention technology and shared commitment to property preservation among its policyholders.”
It also indicated that while many of FM Global’s competitors have exited the market in recent years, Best noted that the company “has remained a consistent provider of enhanced engineering technology and insurance solutions to a growing number of insureds. FM Global also maintains solid capitalization, strong liquidity and excellent long-term earnings prospects.”
The 1999 merger that formed FM Global was cited by Best as having “helped solidify FM Global’s leadership position in the highly protected risk market, offering its clients superior engineering, loss control and risk management services domestically and abroad.”
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