DECEMBER 22, 2016 11:54 AM (EST)
A.M. Best Affirms Credit Ratings of Factory Mutual Insurance Company and Its Subsidiaries
Senior Financial Analyst
+1 908 439 2200, ext. 5394
Daniel J. Ryan
+1 908 439 2200, ext. 5325
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 22, 2016 11:54 AM (EST)
A.M. Best has affirmed the Financial Strength Ratings of A+ (Superior) and the Long-Term Issuer Credit Ratings of ‘‘aa” of Factory Mutual Insurance Company and its subsidiaries, Appalachian Insurance Company and Affiliated FM Insurance Company. The outlook of these Credit Ratings (ratings) is stable. All companies are members of FM Global Group (FM Global) and domiciled in Johnston, RI.
The ratings reflect FM Global members’ superior level of risk-adjusted capitalization, historically strong operating performance, leadership position in the commercial property market, and the benefits gained from their advanced approach to loss prevention and property conservation.
These positive rating factors are partially offset by FM Global’s significant exposure and susceptibility to natural and man-made catastrophes. In addition, the group maintains elevated common stock leverage, which while manageable, adds some volatility to its overall balance sheet and earnings.
FM Global is a 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 with FM Global for more than 25 years. The group’s ability to retain consistently more than 90% of its policyholders is a result of its stable capacity, unmatched engineering, global reach, loss prevention technology, shared commitment (with its policyholders) to property preservation and the strategic use of membership (premium) credits.
The outlooks reflect A.M. 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 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.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.