FM Global says 2015 was ‘one of best years on record’ despite fall in profit

FM Global has said 2015 was one of its best years on record, despite registering a year-on-year drop in profit, with net income at $737m compared to $956m in 2014.

Consolidated gross premium was $5.4bn, a 2.5% decline from 2014, due to the continued strengthening of the US dollar, the insurer said.

The mutual insurance company’s combined ratio stood at 85.3% and its surplus increased by 3.8% to $11bn due to the combination of strong underwriting performance and investment results. FM Global’s client retention rate was 95%, significantly higher than the industry average.

“These outstanding financial results as well as the superior client retention rate substantiate the enduring strength of our mutual business model, specialty focus and balance sheet,” said Thomas A. Lawson, president and chief executive officer at FM Global (pictured).

“As we look to 2016, we’ll continue to explore new ways to invest our capital into products and services that most benefit our clients. In particular, we will continue to capitalise on our engineering, research and analytics capabilities which will allow us to open new doors to helping our clients drive down their cost of risk and remain resilient.”