FM Global, one of the world's largest commercial and industrial property insurers, ended 2017 with 5 percent growth in gross premium to $5.7 billion and 9.3 percent growth in policyholder surplus to $13.03 billion.
The company posted a combined ratio of 129.9 primarily resulting from an unprecedented year of natural disasters, as well as a planned $415.2 million membership credit provided to policyholders. Despite the combined ratio, net income was $254 million compared with $797 million in 2016 because of a combination of favorable investment results and U.S. tax law changes.
Additionally, FM Global outperformed catastrophe model predictions because of its loss-prevention engineering differential, and the company's financial strength rating recently was affirmed at "AA" by Fitch Ratings and "A+" by A.M. Best and S&P Global with a stable outlook from all three rating agencies.
"Our capital base is stronger than ever, which is a testament to the strength and stability of a business model built for volatility," says Thomas A. Lawson, chairman and CEO of FM Global. "As a mutual company owned by our policyholders, we know our resilience reflects our clients' resilience. This past year, our engineering advice and strong balance sheet helped many of our clients deal with potentially devastating disasters and weather such events with minimal disruption."