A.M. Best Assigns Credit Ratings to FM Insurance Europe, S.A.; Affirms Credit Ratings of FM Global Group’s Members

Business & Finance Week

By a News Reporter-Staff News Editor at Business & Finance Week -- A.M. Best has assigned a Financial Strength Rating (FSR) of A+ (Superior) and a Long-Term Issuer Credit Rating (Long-Term ICR) of "aa" to new group member, FM Insurance Europe, S.A. (FMIE SA). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of ''aa" of the members of FM Global Group (FM Global). The outlook of these ratings remains stable. (See below for a detailed listing of the companies.)

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

In 2017, FM Global established FMIE SA as a European affiliate domiciled in Luxembourg in order to ensure business continuity after the United Kingdom's referendum vote to leave the European Union (EU). The EU business previously written by FM Insurance Company Limited (FMI) (United Kingdom) will be renewed into FMIE SA in 2018. The ratings of FMI and FMIE SA reflect explicit and implicit support from the parent, Factory Mutual Insurance Company (Johnston, RI), and the wider FM Global group, in particular the reinsurance and policy level financial guarantee. The companies are an important part of FM Global, serving the group's clients outside of North America.

FM Global's risk adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is considered to be the strongest and has been time-tested. Substantial reinsurance capacity plays an integral role in FM Global's ability to preserve its capital and in providing the limits necessary to service its member policyholders, which include some of the largest industrial and commercial companies in the world.

FM Global has generated above-average underwriting performance - a direct byproduct of its extensive risk management. These strong results are net of significant membership premium credits afforded to its member policyholders based on favorable loss experience and for their adherence to best-in-class loss control and prevention methods.

FM Global is a leading underwriter within the commercial property market with a specialty focus on highly protected risks (HPR), which are industrial facilities that meet the highest protection standards. The group is afforded a distinct competitive advantage over most insurers by virtue of its professional property engineering expertise, inspection and loss prevention services, training and research.

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 A.M. Best's view that FM Global's risk-based capitalization and operating performance will continue its generally excellent trends through the near to medium term. Positive rating action could result if the group continues to produce strong underwriting and operating performance over an extended period of time. Negative rating action could result if operating performance or risk-adjusted capitalization falls markedly short of A.M. Best's expectation.

The FSR of A+ (Superior) and the Long-Term ICRs of ''aa" have been affirmed for the following members of FM Global Group: Factory Mutual Insurance Company Appalachian Insurance Company Affiliated FM Insurance Company FM Insurance Company Limited This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on businesswire.com: http://www.businesswire.com/news/home/20180223005637/en/

Keywords for this news article include: A.M. Best, Financial Companies, Insurance Companies, Insurance Broker Companies, Factory Mutual Insurance Company.