We see what others don’t
The world of risk management continued to accelerate in complexity in 2024.
From the increasing frequency of natural hazards to expanding geopolitical conflict, the global landscape remains rife with threats to business and operational continuity. In 2024 we saw devastating floods in Europe, powerful hurricanes and wildfires in North America, extreme weather systems in the Asia-Pacific region and conflict across the globe.
Against one of the most testing backdrops in modern times, you continued to rise to the challenge.
Together we worked across the globe to mitigate risk, minimize losses and protect your purpose. Now more than ever, FM’s message of resilience and preventing losses before they happen is resonating and making a real impact. We’ve been committed to this mission since 1835, and never has the work we do felt more relevant.
We thank you for your continued support, dedication to resilience and for being there for your customers and communities.
Another strong year
We had an extraordinary year at FM. Not only did our outstanding financial performance continue in 2024—we also launched numerous transformative initiatives to better meet our clients’ needs and set the stage for FM’s next phase of growth.
By the numbers
We ended 2024 with a record US$26 billion in surplus. Our combined ratio was 82%, which includes our policyholder membership credit and resilience credit. Pretax income from insurance operations was US$1.3 billion, and gross in-force premium increased 6.6% to US$11 billion.
As a result of our strong performance, we again shared our success with our clients.
We announced our largest-ever membership credit of approximately US$1.4 billion in 2024, bringing the total membership credit allocation to US$6.6 billion since 2001. Our mutual company structure and financial strength allow us to provide a membership credit to eligible clients, which reflects our strong client partnerships and our work together to mitigate risk and minimize losses. In 2024 our clients reduced loss expectancies associated with property risk by an estimated US$1.052 trillion.
Similarly, we announced our third resilience credit to provide eligible FM clients with additional financial means to invest in resilience solutions to help protect their operations from the increasing frequency of extreme weather. Our announced US$400 million credit in 2024 brings the total allocation to more than US$1 billion since the program’s inception in 2022.
As a result of the previous resilience credits, FM clients increased implementation of recommendations to protect against natural hazards such as wind, flood and wildfire, driving a potential reduction in economic impact of more than US$50 billion.
Brand new day
After 25 years as FM Global, we unveiled a new, refreshed brand in 2024 to better reflect the success and momentum of our business and reinforce our company’s impact after nearly two centuries of partnering with and protecting global businesses.
Today, we are FM.
As one “FM,” we united our businesses under one brand, simplifying and strengthening our market position,
enhancing our shared purpose and allowing us to partner more closely
with our clients.
This compelling, innovative and forward-looking new brand more clearly articulates the important role that FM plays in providing strength and stability to our clients, helping them to protect their purpose. This will be instrumental in driving visibility in key markets as we pursue profitable growth in our current and future businesses.
FM sponsorships swing away
Along with a new brand in 2024, we also launched a series of strategic sponsorship partnerships—another historic milestone for FM.
These partnerships provide a powerful platform for FM to give back to the community and showcase our unique science- and research-based approach to commercial property insurance to help engage the next generation of students and engineers and inspire them to pursue their dreams in science, technology, engineering and math (STEM). As the program continues to mature, these partnerships will accelerate FM’s visibility and support the expansion of our brand around the globe.
The FM Championship, a newly created LPGA Tour event, teed off in late August in Norton, Massachusetts, at TPC Boston. The inaugural tournament proved to be a huge success for our clients, our people and our community. We are excited to return to TPC Boston later this year for the 2025 competition.
We also announced the sponsorship of LPGA star Megan Khang—who has quickly become an incredible ambassador for FM.
And in September 2024, FM launched a partnership with Boston Common Golf, one of six teams in TGL presented by SoFi. Led by PGA TOUR stars Rory McIlroy, Keegan Bradley, Hideki Matsuyama and Adam Scott, Boston Common Golf is part of an innovative, technology-driven league that will help to not only build our brand awareness, but also drive new participants of all demographics into the sport and provide a unique experience for clients, partners and colleagues. And with players from Northern Ireland, the United States, Japan and Australia, Boston Common Golf represents the best of this global game.
FM Renewable Energy
In 2024 we launched FM Renewable Energy to help clients transition to renewable energy and build resilience into the renewable energy industry as it grows. The offering focuses on research, standards development and loss-prevention engineering around utility-scale ground-mounted solar, onshore wind power and battery energy storage systems.
FM Renewable Energy initially offered a new policy for renewable energy operation in the United States and Canada and plans to introduce a construction policy and expand globally in 2025.
Strong industry ratings
FM continued to receive financial ratings reinforcing our strong financial position in 2024.
Fitch Ratings affirmed FM’s Insurer Financial Strength ratings at AA (Very Strong) with a stable outlook. In its announcement, Fitch said the affirmation “reflects FM’s long-term underwriting profitability, very strong capitalization and competitive advantages derived from the company's engineering expertise and global presence in specialty commercial property insurance markets.” Fitch also cited FM’s “strong franchise in the commercial property market for highly protected risks” and very strong capital position.
AM Best affirmed FM’s Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Ratings of aa (Superior) with a stable outlook. “The stable outlooks reflect AM Best’s expectation that FM Group’s risk-adjusted capitalization and operating performance will continue to exhibit excellent trends,” AM Best wrote in its announcement.
S&P Global Ratings upgraded its financial strength rating for FM to AA- from A+, reflecting FM’s “strong competitive profile” and “innovative risk engineering expertise.” In its report, S&P Global Ratings wrote that the upgrade “reflects our view that the group will maintain strong operating margins that compare favorably with aa-rated peers. We also think the company's innovative risk engineering expertise would sustain strong operating margins outperforming the industry. We view favorably the company's robust capital buffer in excess of risk-based capital requirements at our extreme stress scenario.
As we close out a successful year for FM, I would like to thank our clients and partners around the globe for their continued trust in us, and our employees who continue to go above and beyond to deliver the best possible service. As we look ahead, we know 2025 will continue to bring new challenges and opportunities. As always, you can continue to rely on FM to stay one step ahead in partnering with you to prepare for and protect against the next wave of risk. Wherever you are on your journey, we stand with you, as we build a resilient future—together.