Despite Sandy FM Global posts 2012 profit, reversing 2011 loss
FM GLOBAL saw revenue climb 8.6 percent in 2012 and reversed a 2011 net loss, despite heavy claims made by victims of Superstorm Sandy.
By Rhonda Miller PBN Staff Writer
JOHNSTON - FM Global, one of the world’s largest business property insurers, ended 2012 with posted revenue of $5.5 billion, an 8.6 percent increase over 2011’s total.
The insurer had a net income of $774 million in 2012, despite 2,200 claims resulting from Superstorm Sandy, compared with a 2011 net loss of $41.5 million.
The 2011 losses were due to natural disasters around the world, including floods in Australia and Thailand; tornadoes in Joplin, Mo., and Tuscaloosa, Ala.; and earthquakes in Japan and New Zealand, according to the company’s 2011 annual report.
“FM Global’s financial capacity enabled us to absorb the losses we incurred [in 2012] from one of the costliest natural disasters in our company’s 178-year history with manageable impact to our bottom line, FM Global Chairman and CEO Shivan Subramaniam said.
“Likewise, our engineering expertise and superior claims-handling helped minimize those losses further,” he said. “Such outstanding results reinforce the strength of our mutual business model, our balance sheet and our unique focus and effectiveness to ensure our clients’ business resilience.”
The company’s 2012 highlights include FM Global’s client retention rate of 94 percent; premiums from new business increasing by 6.5 percent; and the creation of an Asia/Pacific division based in Singapore.
FM Global has 1,050 employees in Rhode Island and more than 5,200 employees worldwide. The company has clients in 130 countries.