Commercial property insurer FM announced today its agreement to acquire Velocity Specialty Insurance Company (VSIC), expanding its presence significantly in the excess and surplus (E&S) insurance market.
The transaction is expected to close in the first half of 2025, pending regulatory approvals, slated to strengthen FM’s position in specialized risk coverage.
The acquisition comes amid increasing frequency and severity of secondary perils and other emerging risks, where businesses are increasingly seeking E&S coverage for risks that traditional insurance is less likely to cover.
With the acquisition, FM is aiming to expand its solutions to also cover E&S property insurance while consolidating the existing capabilities of VSIC and its established presence in the global commercial property insurance market.
As stated by Malcolm Roberts, chairman and chief executive officer of FM: "VSIC's focus on property insurance and expertise in understanding the new risk landscape that many businesses face align perfectly with FM's mission.”
“Moreover, this transaction may eventually allow us to provide our clients with an even broader suite of products and solutions to meet risks today and in the future. We are excited to welcome VSIC to the FM family,” he added.
While FM acquires VSIC, Velocity Risk Underwriters, another component of the group, has been separately acquired by Ryan Specialty.
The terms of the deal were not disclosed.
FM brings nearly two centuries of experience as a mutual insurance company, with capital, scientific research capability, and engineering expertise dedicated to property risk management and the resilience of its policyholder-owners.
These owners, representing many of the world's largest organizations, including one of every four Fortune 500 companies, work with FM Global to understand hazards impacting business continuity and through cost-effective risk management.
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