Factory Mutuals Finalize Merger

There’s a new insurance company on the block with a 165-year history, following the recent merger of commercial/industrial property insurers Allendale Insurance, Arkwright, Protection Mutual Insurance and their affiliate Factory Mutual. The new company will market itself as FM Global.

FM Global customers now have a single organization to deal with and a stronger global network through the integration of the individual companies’ global distribution channels. In addition, through the consolidation the organization has gained increased capacity to handle larger risks and operating efficiencies that allow the company to pass on savings to its customers. FM Global reports that the company has assets of nearly US$6 billion and policyholder’s surplus of US$2.3 billion.

In view of the abundance of capital in the global insurance industry, this merger is particularly timely as it assures our ability to continue to provide our policyholder-owners with significant property insurance capacity and the best available loss prevention resources in a highly competitive environment.

As one company, we will refocus and streamline the efforts of our engineering arm through advantages gained by single ownership. Additionally, our larger size enables us to negotiate more attractive terms with our suppliers and strategic partners. Overall, the merger will provide us with financial efficiencies that will allow us to price our services at more competitive levels.

Company Offers New Products

FM Global is offering its customers new products and services based on customer feedback. On the insurance products side are more user-friendly insurance policies with broader coverage. FM Global Advantage is the company’s premier offering. The aim of this flexible, “all-risk” policy is to be comprehensive and easy to read. In addition, FM Global is also offering products covering fidelity and crime, ocean cargo, boiler and machinery services, and non-HPR commercial property.

FM Global continues to provide customized, cost-effective ways to protect property. FM Global offers its customers both specialized insurance mechanisms and in participating in shared and layered programs, helping to create and manage captives and state-of-the-art engineering products.

Two of its new engineering products are called Risk Profile and Risk Mark. The products put the company’s knowledge directly into the hands of customers so they can make confident loss prevention decisions. Available exclusively to FM Global customers, these products provide an overview of a customer’s major property risks so they can be analyzed against industry groups and used to determine the best engineering and insurance options to minimize these risks.

Another customer-only offering is a new private customer Web site, called FM Connect. With a special password, customers can enter this exclusive area to obtain important information on a variety of risk management topics and loss prevention strategies. Customers will also gain access to FM Global’s proprietary risk improvement database to obtain the knowledge they need to make critical insurance decisions.

Prospective customers can find additional information on the company by visiting its public Web site at www.fmglobal.com. The site also offers many property loss prevention tips and guidelines, as well as chats and forums with risk management professionals

Aligning Customer Needs

Our mission is to help our customers retain their competitive advantage by keeping them in business. To do this we will offer our customers a wide range of products and services that we believe will help differentiate and distinguish FM Global in the marketplace. We will rely on our proven loss prevention expertise; our global distribution channels; our broad insurance coverage; our renowned engineering services; our innovative use of technology to minimize and control risk; and most importantly, the intellectual property of our people, and their dedication to delivering top-notch customer service.