View this article online: https://www.insurancejournal.com/news/east/2016/05/03/407375.htm
Johnston, Rhode Island-based commercial and industrial property insurer FM Global said its clients will collectively receive an estimated $465 million in premium credit when they renew their policies between June 30, 2016, and June 29, 2017.
FM Global said the membership credit is a result of its strong operational and financial results in 2015. The insurer posted a profitable combined ratio of 85.3 percent in 2015 and had a policyholder surplus of $11 billion.
“Our clients’ dedication and focus on risk improvement and business resilience is central to the reduction and frequency of losses experienced last year, making it possible for us to provide a membership credit for the fourth straight year,” said Thomas A. Lawson, president and CEO of FM Global.
The membership credit each policyholder receives will be based on annual premium and client tenure. Approximately 1,900 clients qualify, some of which have been FM Global policyholders since the late 1800s.
FM Global clients holding policies consecutively for fewer than five years will be eligible for a 5 percent credit; clients holding policies for five to 19 consecutive years will be eligible for a 10 percent credit; and clients holding policies for 20 consecutive years or more will be eligible for a 15 percent credit.