Best Affirms ‘A+’ Rating of U.K.’s FM Insurance

A.M. Best Co. has affirmed the financial strength rating of “A+” (Superior) of U.K.-based FM Insurance Company Limited (FMI) with a stable outlook.

“A.M. Best regards FMI as a core subsidiary of its ultimate parent, Factory Mutual Insurance Company, a U.S.-based mutual property insurer,” said the announcement. “The rating reflects FMI’s excellent prospective underwriting performance (A.M. Best believes a combined ratio below 100 percent is likely in 2004), supported by the company’s strict approach to risk assessment.”

The bulletin noted: “FMI is a leading underwriter of highly protected risks within the commercial property market benefiting from its extensive loss control, risk management and engineering capabilities. The company writes business in the United Kingdom, continental Europe and Australia.

“FMI’s consolidated risk-adjusted capital position is likely to remain superior in 2004 despite increasing its premium retention to 20 percent (up from 10 percent in 2003). FMI continues to have a comprehensive reinsurance programme in place with the parent company and a number of highly-rated third party reinsurers.”