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PRESS RELEASE from provider: Business Wire
This content is a press release from our partner Business Wire. The AP newsroom and editorial departments were not involved in its creation.

AM Best Affirms Credit Ratings of Factory Mutual Insurance Company and Its Subsidiaries

February 28, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Feb 28, 2019--AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa” of Factory Mutual Insurance Company (Johnston, RI) and its subsidiaries, which are collectively referred to as FM Global Group (FM Global). The outlook of these Credit Ratings (ratings) remains stable. (See below for a detailed listing of the companies.)

The ratings reflect FM Global’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

FM Global’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is considered to be strongest and has been time-tested. The group is a leading global property insurer with a balance sheet that has demonstrated an ability to withstand catastrophes year-over-year as further evidenced in 2018. Substantial reinsurance capacity plays an integral role in its ability to preserve capital.

Although historical underwriting results have been volatile of late, strong investment gains garnered from FM Global’s sizeable investment portfolio have lessened the impact from those heavy catastrophe loss years. Five and 10-year average combined ratios are better than those of the commercial property composite averages, despite regressing toward them with significant catastrophe losses in each of the past two years. These strong results are net of significant membership premium credits afforded to policyholders based on loss experience and implementation of FM Global’s loss control and minimization recommendations.

As a mono-line commercial property insurer, the group has a singular focus on its specialty expertise. This specialty focus combined with its status as a mutual legal entity enable management to take a longer-term view of running its business and to manage the inherent volatility in its short-tail large commercial property risks. FM Global reinvests heavily in its engineering-based approach, and is an innovator in contributing to the industry’s loss control and minimization through flood mapping and modeling internationally, as well as in cyber risk assessment. FM Global is a well-run organization that has been a consistent property/casualty insurer with a strong and experienced management team that has plenty of depth.

The outlooks reflect AM Best’s view that the group’s risk-adjusted capitalization will remain more than supportive of the current ratings, driven by strong earnings and its leadership position in providing property coverages worldwide. Positive rating action could result if, over time, the group improves upon its underwriting and operating performance over an extended period of time. Negative rating action could result if operating performance or risk-adjusted capitalization fall markedly short of AM Best’s expectation.

The FSR of A+ (Superior) and the Long-Term ICRs of ‘’aa” have been affirmed with stable outlooks for Factory Mutual Insurance Company and its subsidiaries:

  • Appalachian Insurance Company
  • Affiliated FM Insurance Company
  • FM Insurance Company Limited
  • FM Insurance Europe S.A.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190228006037/en/

CONTACT: Dan Teclaw

Senior Financial Analyst

+1 908 439 2200, ext. 5394

dan.teclaw@ambest.com

Daniel J. Ryan

Senior Director

+1 908 439 2200, ext. 5325

daniel.ryan@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: AM Best

Copyright Business Wire 2019.

PUB: 02/28/2019 04:55 PM/DISC: 02/28/2019 04:55 PM

http://www.businesswire.com/news/home/20190228006037/en