FM Global reports 2014 earnings highlights, net income fell 6.2%

JOHNSTON – FM Global on Friday reported net income in 2014 fell 6.2 percent to $956.4 million and gross premiums earned decreased 1.9 percent, which the company attributes – in part – to the strength of the U.S. dollar.
The global insurance company released some preliminary numbers from its 2014 balance sheet, saying the full report would be released on March 20.
Net income fell to $956.4 million from $1.02 billion in 2013.
Gross premiums earned also fell to $5.5 billion from the same period a year earlier, which the company says is partially because of the “foreign exchange rate impact of the strengthening U.S. dollar.”
The company reported a 2 percent increase for net premium earned, which rose to $3.6 billion in the year ending Dec. 31. Policyholder surplus also increased 9.5 percent to $10.6 billion, according to the company.
Overall, FM Global touts “another successful year.”
“The financial numbers speak to the strength of our business model as a mutual insurer and to our balance sheet, long-term trusted client partnerships and our employees; single-minded commitment to our policyholder-owners,” said Thomas A. Lawson, president and CEO, in a statement.
The company maintained its A.M. Best and Fitch rating of A+ and AA, respectively, which has been consistent since 2007. Standard & Poor’s has given the company the rating A+.
FM Global says its retention rate was 95 percent and 86 percent of property insurance policies were delivered on or before the effective date of the contract. Ninety-six percent were delivered within 30 days, according to the company.
“As we enter our 180th year in 2015, our emphasis will be on flawless execution and delivering value to our clients by providing them scientifically based, cost-effective risk management and insurance solutions that assist them in making their businesses more resilient,” Lawson said in a statement.

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