Citing “very strong earnings and cash flow generated during 2002” and “the ongoing expectation that such results will continue,” A.M. Best Company has affirmed the A+ (superior) rating of commercial and industrial property insurer FM Global and placed a “stable outlook” on the rating.
The ratings company attributed FM Global’s success to its “strong capitalization, ongoing prominent market position within the commercial property (insurance) market and the demonstrated benefits gained in recent years from FM Global’s re-underwriting efforts, loss prevention technology and property conservation, as well as the continued benefits to be gained from price firming in the commercial property marketplace.”
A.M. Best stated that “FM Global is a clear market leader among providers of commercial property insurance in the United States, serving a significant number of Fortune 1000 companies worldwide, many of which have been clients of FM Global for more than 25 years. FM Global’s ability to consistently retain in excess of 90 percent of its customer base, even in the face of rising rates and tightening terms and conditions, stems from its stable capacity, unsurpassed engineering, global reach, loss prevention technology and shared commitment to property preservation among its policyholders.”
While many of FM Global’s competitors have exited the market in recent years, A.M. Best noted that FM Global “has remained a consistent provider of enhanced engineering technology and insurance solutions to a growing number of insureds. FM Global also maintains solid capitalization, strong liquidity and excellent long-term earnings prospects.”
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