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FM Global reports higher net income in 2016

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FM Global posted $796.8 million in net income in 2016, up 8% from the previous year, despite “extremely competitive market conditions,” the mutual insurer reported.

Total gross premium in force increased to $5.43 billion in 2016 from $5.39 billion the year prior, while the combined ratio improved to 83.2% from 85.3% in 2015, FM Global said Thursday in a statement.

FM Global reported a client retention rate of 96%, with an average client tenure of 18.4 years, which the insurer called “significantly higher than the industry average.”

“This outstanding performance validates the strength of our business model,” Thomas A. Lawson, president and CEO, said in the statement. “Our mutuality and strong specialty focus remain unique to FM Global, differentiate us in the market, and provide a distinct advantage for our company and keeping our clients resilient.”

Among last year’s highlights, FM Global said construction began on a new major loss prevention training and operations center in Singapore, which is scheduled to open in early 2019.