Progress Through Partnership
FM's success is based on the strength of the partnerships we build with our clients, our constant innovation to protect the value you create and the stability we provide to enable progress, even through uncertain times. This has very much been in evidence during the past year.
Partnership
In 2025, more than any year in recent memory, we saw the value of FM’s relentless focus on partnering with our clients. From natural hazards to geopolitical instability to the stunning rise of artificial intelligence (AI), we were with you, helping you understand and mitigate the many emerging risks—and harness the opportunities.
Throughout these pages, you’ll see examples of the power of our client partnerships, our unique engineering- and research-based approach to commercial property insurance, and our shared belief that the majority of property loss is preventable.
Protection
Working together, we again reduced an extraordinary amount of risk in 2025 to protect your operations and the customers and communities you serve. In 2025, FM clients reduced loss expectancies associated with property risk by an estimated US$988 billion. These numbers represent a huge commitment—and investment—in risk mitigation and loss prevention.
Progress
At FM, we constantly look for new ways to deliver on our mission and provide innovative solutions to support our clients.
From our policyholder credits and growing global research capabilities to our FM Intellium data center offering and award-winning partnership with the LPGA, we constantly push the envelope to find new, innovative solutions and improvements in everything we do.
By the numbers
FM’s business continued its strong momentum in 2025, with our surplus growing to a record US$31 billion.
Our combined ratio came in at 72.4%, which includes our policyholder membership credit and resilience credit. Pretax income from insurance operations was US$2 billion, and gross in-force premium increased 4% to US$11.5 billion.
FM Intellium
By the end of 2025, the data center conversation was everywhere. Driven by AI and cloud computing, and the power generation needs these innovations require, we’ve seen unprecedented growth in the data and power generation ecosystem over the last 12 months.
At FM, we saw this coming.
We launched FM Intellium in early 2025 to help businesses navigate the emerging risks—and seize the opportunities—of the data and power generation ecosystem. We’ve been insuring data centers for more than 25 years; today, FM protects more than 1,000 data centers, representing hundreds of billions of dollars of insurable value.
With the largest capacity in the industry, engineering expertise to help clients from design and construction through operation, and decades of experience serving these key industries, FM brings unmatched support for our current and future clients.
Policyholder credits
Our strong performance allows us to share our success with our clients. In 2025 we announced US$1.825 billion to eligible clients in the form of FM's membership and resilience credits. Moreover, last year, we introduced enhanced policyholder credits to help our clients make crucial investments to protect their businesses.
We expanded our innovative resilience credit to include a new operational resilience component and doubled the size from 5% to 10% of eligible in-force premium.
Building on the foundation of the FM resilience credit, we increased the allocation in 2025 to approximately US$825 million and extended its focus beyond climate to support additional operational areas, offering a more holistic approach to strengthening resilience.
Similarly, we announced a US$1 billion membership credit last year that included new features, allowing eligible clients to receive more credit sooner. In 2025 we added a 10-year tier to our membership credit structure and changed eligibility for the highest membership credit percent from a 20-year tenure to 15 years. Since 2001, FM has returned approximately US$7.6 billion through our membership credit program.
FM Solutions
To give clients easy access to our unique, nontraditional capabilities, we formed FM Solutions. FM Solutions combines FM’s property valuation expertise with our consulting services in business risk, cyber risk and sustainability. By uniting key resilience teams, FM Solutions delivers streamlined and enhanced client service. This new unit enables FM to provide comprehensive solutions that extend beyond traditional offerings, highlighting the broader value FM brings to clients.
Expanding our reach and capabilities
We continued to grow our research capabilities around the world in 2025. We broke ground on the FM Science and Technology Centre, Europe, a state-of-the-art facility in Luxembourg dedicated to advancing scientific research and sharing risk mitigation practices with clients and stakeholders across Europe, the Middle East and Africa. We are also nearing completion of the FM Science and Technology Center, Americas, in Norwood, Massachusetts, which we plan to open in 2026.
In addition, early in 2025 we launched FM Renewable Energy in EMEA and acquired Velocity Specialty Insurance Company (VSIC), a leading excess & surplus (E&S) insurance provider. The VSIC transaction allows FM to expand our expertise and solutions to include E&S property insurance. Moreover, we made significant progress in growing our global footprint to support our clients in more markets.
FM’s wholly owned subsidiary headquartered in São Paulo, FM Seguros S.A., obtained a license in 2025 to operate as an insurer in Brazil, allowing us to establish even closer partnerships with Brazil's largest companies and brokers to offer direct access to FM’s differentiated business model.
We also announced an expansion in India, including a new center of excellence in Bengaluru and an office in Mumbai to augment FM’s science and artificial intelligence capabilities, enhance client risk engineering services and serve as a springboard for regional growth.
FM brand partnerships—Taking it to the next level
Our brand partnership platform continued to grow and evolve in 2025 with several new initiatives, including the addition of PGA TOUR star Rory McIlroy and LPGA Tour rising star Lottie Woad as FM brand ambassadors. McIlroy and Woad join LPGA star Megan Khang, who has been with us since the beginning of our program.
In just our first year collaborating with McIlroy he won the Masters, completing the career grand slam of winning all four major golf championships. It could not have been a better start to our partnership. We also enhanced our LPGA partnership in a uniquely FM way—by leveraging innovation and technology to create an even better fan experience.
In late 2025, we announced a multi-year agreement with the LPGA to take its weekly tournament telecasts to a new level of excellence with state-of-the-art technology, equipment and content. FM’s brand partnerships provide a powerful platform to drive awareness of our ability to leverage our engineering expertise with artificial intelligence to benefit both FM and our clients.
Our support for the LPGA and its amazing athletes is already being recognized.
In November, the LPGA named the FM Championship the Tournament of the Year in its 2025 Gold Driver Awards—an amazing accomplishment in just our second year hosting the event. The award, voted on by the LPGA athletes, highlights the value and support that FM brings to our partners, and our clients, when we make a commitment to work together.
Our strategic emphasis on high-profile partnerships has resulted in increased brand awareness and revenue directly attributable to these initiatives. This heightened visibility enables FM to showcase our engineering expertise and pioneering solutions, such as our new FM Intellium business unit, while strengthening the overall FM brand.
Industry ratings remain strong
FM continued to receive strong ratings, highlighting our operating results, engineering expertise and leadership in the large commercial property market.
Fitch Ratings affirmed FM’s Insurer Financial Strength (IFS) ratings at ‘AA’ (Very Strong) with its rating outlook as “stable,” reflecting “FM's long-term underwriting profitability, very strong capitalization and competitive advantages from its engineering expertise and global presence in specialty commercial property insurance.”
AM Best affirmed FM’s Financial Strength Rating (FSR) of A+ (Superior) and Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa” (Superior) with a stable outlook, citing our balance sheet strength, strong operating performance, favorable business profile and appropriate enterprise risk management. S&P Global Ratings, one of the world’s leading ratings agencies, affirmed our financial strength rating of ‘AA-’ with a stable outlook, reflecting FM’s “strong competitive position” and “leadership in the large commercial property market.”
In its report, S&P Global Ratings wrote that “FM’s engineering-driven underwriting approach, led by technically trained underwriters and claims adjusters, provides a competitive edge, reflected in high client retention and strong underwriting results.”
As we turn the page on another successful year, I want to thank our clients for their partnership and unwavering commitment to risk mitigation and loss prevention. I also want to thank our incredible FM employees around the world, who come to work every day dedicated to protecting our clients and their most important assets. We could not have achieved our 2025 results without you.
Thank you.