October 6, 2009

Commercial Property Insurer FM Global Maintains A+ (Superior) Financial Strength Rating and Stable Outlook from A.M. Best

Insurer’s Very Strong Capitalization, Solid Operating Performance, Stable Capacity, Unmatched Engineering Services and High Client Retention Rate Highlighted

JOHNSTON, R.I.—Commercial property insurer FM Global, one of the world’s largest business property insurers, sustains its “A+” (Superior) financial strength rating and “stable” rating outlook from A.M. Best. The recently released A+ rating affirmation is assigned to those insurers with “a very strong ability to meet their ongoing obligations to policyholders,” according to the ratings company.

“The rating reflects FM Global’s very strong capitalization, solid operating performance, benefits from the company’s loss prevention technology and property conservation, and market leadership position in the commercial property market,” acknowledged A.M. Best. Additionally, the outlook reflects A.M Best’s view that FM Global’s “capitalization will remain more than supportive of the current rating, growing through strong earnings and its leadership position in providing property coverages worldwide.”

A.M. Best regarded FM Global as a “market leader” that serves “a significant number of FORTUNE 1000 companies worldwide, many of which have been with FM Global for more than 25 years,” and highlighted the company’s “ability to consistently retain more than 90 percent of its policyholders.” A.M. Best attributed this high client retention rate to FM Global’s “stable capacity, unmatched (loss prevention) engineering, global reach, loss prevention technology, shared commitment with its policyholders to property preservation, and the strategic use of membership credits” for its policyholders.

Moreover, FM Global’s conservative underwriting leverage, solid earnings and strong cash flows helped the company’s surplus rebound during 2009, especially as both investment markets and operating earnings improved, the ratings company added.

FM Global’s financial strength rating from A.M. Best is an independent opinion based on a comprehensive quantitative and qualitative evaluation of the company’s balance sheet strength, operating performance and business profile.

About FM Global:
For nearly two centuries, many of the world’s largest organizations have worked with FM Global (www.fmglobal.com) to develop cost-effective property insurance and engineering solutions to protect their business operations from fire, natural disasters and other types of property risk. With clients in more than 130 countries and US$4.6 billion in policyholder surplus, FM Global ranks #766 among FORTUNE magazine’s largest companies in America and is rated A+ (Superior) by A.M. Best and AA (Very Strong) by Fitch Ratings. The company has been named “Best Property Insurer in the World” by Euromoney magazine and “Best Global Property Insurer” by Global Finance magazine.

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