A.M. Best has affirmed the financial strength rating of A+ (Superior) and issuer credit ratings of ‘‘aa” of Factory Mutual Insurance Company and its subsidiaries, Appalachian Insurance Company and Affiliated FM Insurance Company.
All companies are members of FM Global Group and domiciled in Johnston, Rhode Island.
The ratings reflect FM Global Group members’ superior level of risk-adjusted capitalisation, historically strong operating performance, its leadership position in the commercial property market and the benefits gained from its advanced approach to loss prevention and property conservation.
These positive rating factors are partially offset by FM Global Group’s significant exposure and susceptibility to natural and man-made catastrophes. In addition, the group maintains elevated common stock leverage that, while manageable, adds some volatility to its overall balance sheet and earnings.
FM Global Group is a market leader among providers of commercial property insurance in the US, serving a significant number of Fortune 1000 companies worldwide, many of which have been with the FM Global Group for more than 25 years.
The group’s ability to consistently retain more than 90 percent of its policyholders is a result of its stable capacity, unique level of engineering resources, international reach, loss prevention technology and shared commitment to property preservation.
