FM Global has received a financial strength rating of “AA” (Very Strong) and a “stable” outlook from Fitch Ratings, after the credit rating agency conducted an analysis to determine how resilient insurers’ balance sheets are amid the COVID-19 crisis.
This so-called insurer “stress test” was based on set criteria and assumptions related to how the coronavirus could affect insurers, and how prepared the insurers are to meet financial commitments despite the outbreak’s economic impact.
Fitch Ratings said that the ratings reflect FM Global’s “long-term underwriting profitability, very strong capitalisation and competitive advantages derived from the company’s engineering expertise and global presence in specialty commercial property insurance markets.” The ratings also represent the benefits FM Global draws from its mutual company status.
“Fitch continues to view FM Global’s underwriting performance as very strong . . . under rating and stress case pro-forma results,” the ratings agency concluded.
FM Global revealed in a company statement that the rating also applies to its affiliates, which include FM Insurance Europe S.A., FM Insurance Company Limited, FM Global de Mexico, S.A. de C.V., Appalachian Insurance Company and Affiliated FM Insurance Company.