March 31, 2017 by Canadian Underwriter
Property insurance carrier FM Global released Thursday its financial results for 2016, reporting gross premiums earned of $5.44 billion. All figures are in U.S. dollars.
In 2015, Johnston, R.I.-based FM Global had reported gross premiums earned of $5.49 billion.
Net premiums earned dropped slightly from $4.01 billion in 2015 to $4.0079 billion last year.
FM Global’s combined ratio improved 2.1 points, from 85.3% in 2015 to 83.2% last year. The mutual insurer reported net income of $797 million on total revenue of $4.122 billion in 2016, compared to net income of $737.8 million on total revenue of $4.079 billion in 2015.
Investment-related income increased 3.8%, from $435.4 million in 2015 to $452 million in 2016.
The policyholders’ surplus as of Dec. 31, 2016 was $11.92 billion, up from $11.037 billion as of Dec. 31, 2015.
In West Glocester, R.I., FM Global operates a 108,000-square-foot fire technology laboratory, which is designed to replicate warehouse fires. Affiliates include Mutual Boiler Re, which covers boiler and machinery and provides equipment breakdown reinsurance.
In December, 2016, FM Global announced it conducted research “to refine fire protection guidance for lithium-ion batteries stored in warehouses.”