FM Global reports record profit growth

FM Global reported a 26% growth in net income (to US$928 million) in 2007, the largest such growth in the company’s history.The company also posted a combined ratio of 73.4%, which was better than forecast, the company reported, “due to the absence of large insured natural disaster losses and much better than composite projections for the U.S. property and casualty insurance industry.” Throughout last year, gross premium grew by 4.2%, to US$4.7 billion, and the company had a client retention rate of 92%.Among its 2007 financial highlights, FM Global says, more than 90% of its policies were delivered to clients within 30 days of inception, thereby ensuring contract certainty, compared with a 67% success rate in 2006.”This past year, FM Global continued to increase its underwriting capacity, improve policy coverage and offer enhanced competitive terms and conditions,” said Shivan S. Subramaniam, FM Global chairman and CEO. “Overall, we conclude that the company can be successful, even in a price-driven market, by emphasizing value-added products and services and working with our policyholders to achieve significant risk improvement.”Moving into 2008, the company will continue to develop products for clients that focus on addressing new business risks presented by globalization as they expand, acquire, outsource or relocate their operations in emerging markets, he added.