JOHNSTON, R.I., May 2, 2024
/PRNewswire/ -- Commercial property insurer FM Global today
announced its largest-ever membership credit of approximately
US$1.4 billion, driven by the
company's strong financial performance in 2023, as detailed in its
2023 Annual Report.
"We are extremely proud to share our success in 2023 with our
clients," said Malcolm Roberts,
chairman and chief executive officer of FM Global. "Our record
membership credit is a testament to the strong partnerships we have
with our clients and our work together to mitigate risk and
minimize losses. In 2023, our clients reduced loss expectancies
associated with property risk by an estimated US$855 billion – a vital component to our mutual
financial success."
Roberts added: "Our mutual company structure and financial
strength allow us to give back to our client owners, and with
today's announcement, we will have returned more than US$2.2 billion through our membership credit
program over the last two years and US$6.5
billion since 2001."
In recognition of FM Global's 25th year as a merged
company, FM Global included two special one-off enhancements this
year. First, clients with 25 or more years of tenure will be
eligible for a credit of 25%. Second, the company increased the
credit percent for all other eligible clients by at least 25%.
FM Global's 2024/2025 membership credit includes the following
distribution structure:
- Clients with fewer than five consecutive years will be eligible
for a 7.5% credit.
- Clients with at least five consecutive years but fewer than 20
will be eligible for a 12.5% credit.
- Clients with at least 20 consecutive years will be eligible for
a 20% credit.
- Clients with at least 25 consecutive years will be eligible for
a 25% credit.
A detailed overview of the 2024/2025 membership credit plan –
including eligibility, timing and basis for calculations – is
available here. The amount an eligible policyholder will
receive will be based on the client's premium and tenure; the
credit will be applied as an offset against premium at a client's
renewal or anniversary date.
In addition to the membership credit, in 2023 FM Global
announced its second consecutive resilience credit to support
client investment in climate resilience solutions. In 2022 the
resilience credit totaled US$294
million; in 2023 it was US$357
million. Through application of these credits, FM Global
clients have reduced loss expectancies associated with climate
risks by an estimated US$35 billion,
and as a result made their business more resilient.
Through a mutual company structure, policyholders benefit from
the success of FM Global. With this announcement, FM Global will
have returned to eligible policyholders the equivalent of 80% of
its underwriting profit earned since the beginning of 2022.
About FM Global
Established nearly two centuries ago, FM Global is a mutual
insurance company whose capital, scientific research capability and
engineering expertise are solely dedicated to property risk
management and the resilience of its policyholder-owners. These
owners, who share the belief that the majority of property loss is
preventable, represent many of the world's largest organizations,
including one of every four Fortune 500 companies. They work with
FM Global to better understand the hazards that can impact their
business continuity to make cost-effective risk management
decisions, combining property loss prevention with insurance
protection.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/fm-global-announces-record-us1-4-billion-membership-credit-for-fm-globals-client-owners-302134618.html
SOURCE FM Global