FM Global, one of the globe's leading business-property insurers, reports that its net income for 2012 was $774 million—and that the mutual posted a profitable combined ratio of 85.7 percent, despite the impact of Superstorm Sandy—the insurer's single largest net aggregate natural disaster loss to date, which resulted in approximately 2,200 claims.

The Johnston, R.I.-based company ended 2012 with US$5.5 billion of consolidated gross premium in force, an increase of 8.6 percent. Additionally, policyholder surplus grew 14.9 percent to US$7.9 billion.

"FM Global's financial capacity enabled us to absorb the losses we incurred from one of the costliest natural disasters in our company's 178-year history with manageable impact to our bottom line," said Shivan S. Subramaniam, chairman and CEO, in a statement. "Likewise, our engineering expertise and superior claims-handling helped minimize those losses further. Such outstanding results reinforce the strength of our mutual business model, our balance sheet and our unique focus and effectiveness to ensure our clients' business resilience."

Among the company's other 2012 highlights:

  • FM Global's client retention rate held firm at 94 percent.
  • Premium from new business grew by 6.5 percent.
  • The company created a division based in Singapore to support the growth of its mutual policyholders in locations in the Asia/Pacific region.
  • For the second consecutive year, Greenwich Associates ranked FM Global No. 1 for underwriting expertise, customer service and claims processing responsiveness.
  • Global Finance magazine named FM Global the "world's best supply chain risk insurance provider."
  • Ratings companies A.M. Best and Fitch reaffirmed FM Global's financial strength at A+ and AA, respectively, which remain unchanged since 2007.

"As a provider of knowledge-based services in a commodity marketplace, our focus remains singular: providing solutions for our policyholders to remain resilient in business," Subramaniam said.  "We will accomplish that goal by continuing to develop and deliver efficient and effective risk-improvement solutions to our policyholders across the world, while providing stable risk-transfer solutions that are compliant with local regulatory requirements."

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