Commercial property insurer FM Global has announced its clients will collectively receive an estimated $800 million in premium credit—the largest amount ever—because of the company’s “outstanding” financial results. The membership credit each eligible policyholder will receive will be based on annual premium and client tenure and applied as an offset against premium at a client’s renewal or anniversary date.
Following this credit, FM Global clients will have benefited from about $5 billion in membership credit since the program was introduced in 2001.
“Our financial strength and mutual business model mean our clients share in our success,” said Malcolm Roberts, FM Global’s president and CEO. “The more we prevent loss, the more we can give back to our client-owners. This is demonstrated in another record membership credit. In such a volatile market, the year ahead will be a challenge once again, but we face it from a position of strength and look forward with more optimism than ever before.”
FM Global clients holding policies consecutively for less than five years will be eligible for a 5% credit; five to 19 consecutive years will be eligible for a 10% credit; and 20 consecutive years or more will be eligible for a 15% credit.
According to FM Global’s annual report, in 2022, the company had $8.838 billion in total gross premiums, a 49.9% loss ratio and a 26.8% expense ratio.
View more information about the 2022 membership credit plan and FM Global’s annual report.
