A.M. Best has affirmed insurer FM Global’s A+ (superior) rating due to “the group’s superior capitalization, prominent market position within the commercial property market and the long- term benefits to be gained from FM Global’s re-underwriting efforts, its continued commitment towards loss prevention technology and property conservation and the recent price firming in the commercial property marketplace.”
Due to the inherent volatility associated with the company’s underwriting of property risks and the over-weighting of equity securities in the company’s investment portfolio, A.M. Best placed a negative outlook on the rating, but pointed out that FM Global “maintains solid capitalization, strong liquidity and positive long-term earnings prospects” and “has remained a consistent provider of enhanced engineering technology and insurance solutions to a growing number of insureds.”
The ratings company noted 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.”
A.M. Best credited the July 1999 merger that formed FM Global 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.”
According to A.M. Best, FM Global’s “success is evidenced in its high customer retention levels” stemming from “its customer-centric approach, its global reach, stable capacity, unsurpassed engineering and loss prevention technology and shared commitment to property protection among its policyholders.”
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