FM Global reports net income of $774 million for 2012

Commercial property insurer FM Global reported Tuesday a 2012 year-end result of $5.5 billion in consolidated gross premium, an 8.6% increase from the previous year.

Net income for the year was $774 million, and the company reported a combined ratio of 85.7%. It also reported a policyholder surplus of $7.9 billion for the year. All figures are in U.S. dollars.

That was despite the impact of superstorm Sandy, which resulted in about 2,200 claims for FM Global, its largest net aggregate disaster loss to date.

“FM Global’s financial capacity enabled us to absorb the losses we incurred from one of the costliest natural disasters in our company’s 178-year history with manageable impact to our bottom line,” Shivan Subramaniam, the insurer’s chairman and CEO noted in a statement.  

“Likewise, our engineering expertise and superior claims-handling helped minimize those losses further.”

The company also reported a client retention rate of 94%, and noted that premium from new business grew by 6.5% in 2012.