FM Global net income rises 32% to $1.02 billion last year

Commercial property insurer FM Global reported a 32% increase in net income for 2013 over the previous year, totaling US$1.02 billion.

The mutual insurance company also posted a combined ratio of 77.7%. Consolidated gross premium reached US$5.6 billion last year, a 2.6% increase over 2012.

“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,” Shivan S. Subramaniam, chairman and chief executive officer of FM Global said in a press release Tuesday.

“These results reinforce the quality of our mutual business model, our balance sheet strength, and the trusted partnerships we have formed with our clients.”

The company also reported a client retention rate of 95% for last year, about 1% higher than 2012.

During last year, 76% of property insurance policies were delivered on or before the effective date of the contract, and 97% were delivered within 40 days, FM Global also noted.

“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,” Subramaniam added.