JOHNSTON, R.I.—Factory Mutual Insurance Co., which does business as FM Global, reported $839.5 million in net income for 2009 vs. a $318 million loss in 2008.

The Johnston, R.I.-based mutual insurer reported $3.26 billion in net premiums written last year, a 1.2% decline from 2008. It posted a 69.6% combined ratio vs. 99.3% for 2008. The 2009 combined ratio was better than forecast due in large part to the absence of large insured natural disaster losses and policyholders’ risk improvement efforts, the company said in a statement.

FM Global reported $6.26 billion in policyholder surplus, a 35.2% increase.