FM Global’s profits shrink in 2010, but surplus expands

FM Global reported a net income of $687 million in 2010, marking a decrease from 2009’s net income of $840 million.
The mutual insurer also reported a 16% increase in policyholder surplus to $7.3 billion in 2010 despite an uptick in small- and medium-sized insured natural disasters and volatility in the financial markets.
The mutual insurer’s combined ratio for 2010 was 82.8%, marking an increase from 2009’s combined ratio of 69.6%.
Gross premium in force grew by approximately 2% to $4.8 billion during 2010, an FM Global statement says.
The company also noted in a release that it “delivered 94% of its clients’ master policies within 30 days of inception and nearly 70% on or before the policy’s inception date – well above industry standards.”
It also implemented its largest-ever membership credit of $420 million to policyholders in 2010, “due, in large part, to policyholders’ diligent loss prevention efforts.”