FM Global announces $465M in premium reductions for 2014-15
FM GLOBAL CHAIRMAN and CEO Shivan S. Subramaniam announced Tuesday that the company would be able to credit its clients a total of $465 million in premium reductions for the 2014-15 year, due to 'the diligence our clients have shown towards property risk improvement.'
JOHNSTON – Approximately 1,900 FM Global clients who renew their policies between June 30, 2014, and June 29 next year will be eligible to receive a share of an estimated total of $465 million in premium reductions, the commercial property insurer announced Tuesday.
Under FM Global’s premium reduction plan, clients who have held policies with FM Global for more than 20 consecutive years will be eligible for a 15 percent credit, while those with policies for between five and 19 years will be eligible for a 10 percent credit and those with policies shorter than five years will be eligible for a 5 percent credit.
The “membership credit” is the largest FM Global has ever offered its clients, and brings the total premium reductions issued by the firm to approximately $2.5 billion since the program was introduced in 2001.
“Our favorable loss experience, due to the diligence our clients have shown towards property risk improvement, has made it possible for us to provide another premium credit to eligible policyholders,” said Shivan S. Subramaniam, chairman and CEO of FM Global. “As a mutual company, our policyholders are our owners, so, naturally they share in the benefits of taking prudent steps to protect their property and business continuity.”
This year, FM Global clients who renewed their policies before June 29, 2014, shared in approximately $435 million in premium reductions. The insurer reported total 2013 net income of $1.02 billion, a 31.9 percent increase over the $774.4 million reported in 2012, while gross premiums earned increased 5 percent to $5.6 billion.
FM Global claimed a 95 percent client retention rate last year.