Commercial property insurer FM Global has announced a record US$1.4 billion membership credit for FM Global’s Client Owners.
This is, according to the announcement, the firm’s largest-ever membership credit, which was driven by FM Global’s strong financial performance in 2023.
Malcolm Roberts, chairman and chief executive officer of FM Global, commented: “We are extremely proud to share our success in 2023 with our clients.
“Our record membership credit is a testament to the strong partnerships we have with our clients and our work together to mitigate risk and minimise 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 continued: “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 $6.5 billion since 2001.”
FM Global included two special one-off enhancements this year in recognition of its 25th year as a merged company.
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%.
In addition to the membership credit, in 2023 FM Global announced its second consecutive resilience credit to support client investment in climate resilience solutions, which in 2022 totalled US$294 million and US$357 million in 2023.
“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,” FM Global noted.
Adding: “As a mutual company, 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.”
