Insurer secures AA rating; adds to board

Insurer secures AA rating; adds to board | Insurance Business

Insurer secures AA rating; adds to board
Global commercial and industrial property insurer FM Global has received an AA financial strength rating and a ‘stable’ outlook by ratings agency, Fitch.

The ratings also apply to FM Insurance Company Limited and Affiliated FM Insurance Company.

Fitch said the ratings reflect the insurer’s strong capital and long-term underwriting profitability, competitive advantages derived from the company's engineering expertise and global presence in specialty commercial property insurance markets, as well as benefits drawn from the company's mutual company status.

Fitch added: “The company’s long-term operating performance continues to be strong and supportive of the current rating level.”

The agency said it “believes that FM Global's favourable long-term underwriting performance is due in large part to the company's ability to incorporate engineering expertise into the risk selection and underwriting processes.”

The rating agency also said it “views the company's engineering capabilities and loss prevention services as key advantages that are difficult for competitors to replicate, and believes this expertise will result in future underwriting results that are consistently better than peers.”

Meanwhile, the insurer has appointed USAA president and CEO Stuart Parker to the board of directors.

Chairman and CEO Shivan S. Subramaniam said Parker is an “ideal fit for the board” given his background insurance and leading a diversified financial services group of companies with a similar governance structure to FM Global makes him an ideal fit for our board.