FM Global’s rating upgraded to “Very Strong”

Fitch Ratings recently upgraded FM Global’s financial strength from ‘AA-‘ to ‘AA,’ a “Very Strong” rating. Heightened confidence in FM Global’s underwriting performance, surplus growth, and engineering expertise and ability to mitigate and absorb volatility prompted Fitch to assign the commercial and industrial property insurer a “Stable” rating outlook. According to Fitch, FM Global’s favorable underwriting performance is largely a result of the incorporation of the Company’s engineering expertise into its risk selection and underwriting processes. Historically, Fitch says it views FM Global’s engineering capabilities as a key competitive advantage, and as such is increasingly confident that this expertise “will result in sustainable underwriting results that are better than [FM Global’s] peers.”Fitch adds that the rating upgrade also reflects FM Global’s “strong competitive position in the market for highly protected risks, engineering and underwriting expertise, and solid balance sheet.” Fitch reports “heightened confidence in FM Global’s ability to generate underwriting results over extended periods of time” and “increased comfort with FM Global’s ability to mitigate and absorb the earnings and capital volatility inherent in its underwriting and investment strategies.”