FM Global unveils record membership credit for policyholders

FM Global unveils record membership credit for policyholders | Insurance Business New Zealand

Insurance News

FM Global unveils record membership credit for policyholders

Chief executive says it reflects company’s strong financial performance in 2023

Insurance News

By
Mika Pangilinan

Commercial property insurer FM Global has announced its largest-ever membership credit, with approximately US$1.4 billion set aside for its policyholders.

Chairman and CEO Malcolm Roberts said the record amount is a reflection of the company’s strong financial performance in 2023.

He noted that FM Global’s clients reduced loss expectancies associated with property risk by an estimated US$855 billion in the past year and referred to this as “a vital component to our mutual financial success.”

“Our mutual company structure and financial strength allow us to give back to our client owners, and with today’s announcement, we will have returned more than US$2.2 billion through our membership credit program over the last two years and US$6.5 billion since 2001,” said Roberts.

To celebrate this milestone, long-standing clients with 25 or more years of partnership will receive a 25% credit. Additionally, the credit percentage for other eligible clients has been increased by at least 25%.

The distribution structure includes varied percentages based on the tenure of the client relationship:

Clients with under five years of consecutive membership will receive a 7.5% credit
Those with five to under 20 years will receive a 12.5% credit
Clients with a minimum of 20 consecutive years will receive a 20% credit
Clients who have been with FM Global for at least 25 years are eligible for a 25% credit

Eligible policyholders will see these credits applied as a reduction in their renewal or anniversary premium payments. The amount each policyholder receives depends on their specific premium and tenure with the company.

In 2023, FM Global also awarded a second resilience credit to foster investments in climate resilience solutions. This credit amounted to US$357 million, up from US$294 million in 2022.

What are your thoughts on this story? Feel free to comment below.