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A.M. Best affirmed insurer FM Global’s rating of “A+,” but placed a negative outlook on the rating. Factors affecting the rating action included the group’s solid capitalization, prominent market position within the commercial property market and the long-term benefits to be gained from FM Global’s re-underwriting efforts, as well as its commitment to loss prevention and property conservation. Recent price firming in the commercial property marketplace was also a factor.

The negative outlook stemmed from the inherent volatility associated with the company’s underwriting of property risks and the over-weighting of equity securities in the company’s investment portfolio. A.M. Best stressed, however, that positives included FM Global’s solid capitalization, strong liquidity and long-term earnings prospects, along with the company’s position as a provider of enhanced engineering technology and insurance solutions to a growing number of insureds. Also noted was FM Global’s success in maintaining high customer retention levels.

Topics AM Best