FM Global’s Rating from Fitch Upgraded to ‘AA’

JOHNSTON, R.I., USA—As a result of heightened confidence in FM Global’s strong underwriting performance, surplus growth, engineering expertise and ability to mitigate and absorb volatility, Fitch Ratings has upgraded the commercial and industrial property insurer’s financial strength “Very Strong” rating to ‘AA’
from ‘AA-’ and assigned a “Stable” rating outlook.

According to Fitch, “FM Global's favorable underwriting performance is due in large part to the company's ability to incorporate its engineering expertise into its risk selection and underwriting processes.” While historically Fitch has viewed the company's engineering capabilities as a key competitive advantage, it is increasingly confident that this expertise “will result in sustainable underwriting results that are better than [FM Global’s] peers.”

Fitch added that the rating upgrade also reflects FM Global’s “strong competitive position in the market for highly protected risks, engineering and underwriting expertise, and solid balance sheet.” Fitch also said it has “heightened confidence in FM Global's ability to generate underwriting results over extended periods of time” and “increased comfort with FM Global's ability to mitigate and absorb the earnings and capital volatility inherent in its underwriting and investment strategies.”