FM Global sees profit rise 32% in 2013, assets total $17.8 billion
COMMERCIAL PROPERTY INSURER FM Global saw its bottom line rise 32 percent last year to $1.02 billion, while gross premiums earned totaled $5.6 billion. Chairman and CEO Shivan S. Subramaniam said the 2013 results reflected the company's strong partnerships with its clients.
JOHNSTON – FM Global on Tuesday reported full-year 2013 net income of $1.02 billion, a 31.9 percent increase over the $774.4 million reported in 2012.
Although the commercial property insurer saw its net revenue drop 1.1 percent last year to $4.02 billion from $4.06 billion a year earlier, gross premiums earned increased 5 percent to $5.6 billion.
“2013 was a very successful year, which can be attributed to the commitment we share with our policyholder-owners to make their facilities and businesses more resilient,” said Shivan S. Subramaniam, chairman and CEO of FM Global. “These results reinforce the quality of our mutual business model, our balance sheet strength and the trusted partnerships we have formed with our clients.”
FM Global claimed a 95 percent client retention rate last year, and the company announced in May that approximately 1,900 qualifying clients would receive an estimated total of $435 million in premium reductions when they renew their policies between June 30, 2013, and June 29 this year. In 2013, FM Global paid out $201 million in premium reductions.
Comprehensive income – which adds net income to net unrealized appreciation on investments and benefit plan assets and liabilities – rose 76.7 percent in 2013 to $1.8 billion from $1.02 billion the year before.
The company’s assets totaled $17.8 billion at the close of 2013, an increase of 8.5 percent over the $16.4 billion in assets reported the year prior. Total assets included $13.1 billion from investments – including debt securities, equity securities, real estate and other investments – compared with $11.4 billion earned from investments in 2012.
“Looking ahead to 2014, which marks our 179th year in business, FM Global will continue to focus on developing and delivering proven, cost-effective solutions to make our policyholders’ organizations more resilient to business interruption anywhere in the world, while providing stable risk-transfer solutions that are compliant with local regulatory requirements,” said Subramaniam.