FM Global SWOT and PESTLE Analysis
COMPANY PROFILE -FM Global
Business Sector :Insurance
Operating Geography :United States, North America, Global
About FM Global :
FM Global is an American mutual insurance company headquartered in Johnston, Rhode Island, United States. It has offices throughout the world which specializes in loss prevention services provided to large corporations worldwide in the HPR that is Highly Protected Risk property insurance market sector. The legal name of the company is “Factory Mutual Insurance Company” whereas “FM Global” is the communicative name. It was founded in 1835 by Zachariah Allen. The company follows a non-traditional business model whereby premiums and risk are determined by engineering analysis and is based on the belief that property losses can be prevented to a great extent. FM Global Engineering personnel visit designated locations to evaluate losses incurred and recommend improvements to reduce physical and financial risks. The company provides property insurance solutions in nearly 150 countries, where the solutions cater to protect against fire, natural disasters and other types of property risk. Two new index measures have been introduced for 2022, climate risk exposure and climate risk quality, which help to focus on the emerging environmental hazards. As of 2022, FM Global employs are 5,615 people. The awards received by FM Global are: Award for Systematic Risk Solution of the Year, Insurer Innovation of the year award, Risk Management Innovation Award and Mansfield Award.
The Mission Statement of FM Global is “We have a unique risk management focus. Our clients look to us to develop cost effective insurance and risk- financing solutions, to minimize business interruption and financial impact if a loss does occur.” The Unique Selling Point or USP of FM Global lies in being one of the World’s largest commercial property insurance companies which employs more than 5,100 employees worldwide along with more than 1800 loss prevention engineers. It ranks in Fortune 500 list of America’s largest companies and has been named the “Best Property Insurer” in the world by Euro-money Magazine.
FM Global Revenue :
$ 8.2 Billion - FY ending 31st December 2021
$ 5.26 Billion - FY ending 31st December 2020
Competitive Analysis of FM Global
Strengths | Weaknesses |
1. One of the world’s largest commercial property insurance companies 2. Strong client relationships and acquisition of new businesses 3. Portfolio of strategic insurance, broking and consulting businesses 4. FM Global tradition of addressing risk head-on with science, engineering and research 5. Very Strong Capitalization and remains well positioned to manage the inherent volatility 6. Insurance industry’s first comprehensive cyber readiness assessment for clients’ businesses | 1. Volatility in performance due to the exposure to both natural and man-made catastrophe-related losses. 2. Increase in commercial property premiums |
Opportunities | Threats |
1. Investment of $300m in resilience – a growing market segment 2. ESG related issues gaining prevalence in underwriting | 1. Natural catastrophe loses becoming more frequent and severe 2. Cybersecurity a major concern in the Directors and Officers Liability (D&O) space |
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Detailed SWOT Analysis of FM Global
Strength
1. One of the world’s largest commercial property insurance companies: With almost two centuries of experience in the insurance sector, FM Global carrier is very reputable. It offers commercial property coverage, cyber liability coverage, and more. It also offers online claims reporting and 24/7 claims reporting. It has a global presence and receives excellent ratings from the BBB and A.M. Best. One of the biggest commercial property insurers in the world, FM Global provides coverage in close to 150 countries. The insurance provider is listed among the biggest US businesses overall in Fortune magazine. FM Global has 67 offices worldwide and more than 5,400 employees. The insurance provider offers that it covers more than one-third of Fortune 1000 companies globally. FM Global has established a reputation as a financially stable insurance provider that will continue to exist for a very long time due to its extremely long history, global presence, and significant amount of insurance in force.
2. Strong client relationships and acquisition of new businesses: FM Global, a mutual company owned by its policyholders, is committed to developing solid, long-lasting client relationships. In contrast to other property insurers, it gives customers the freedom to decide how they want to work with the business. They have the option of forming a direct partnership with the FM Global client service team or going through a broker partner. The average FM Global client tenure is 21 years. 44% of the clients of FM Global are insured for 20+ years. Through the expansion of its boiler and machinery engineering services in 2021, FM Global assisted clients in better understanding and minimising modern operational exposure. These services now consist of assessing industrial control systems for cyber risks and related physical damage.
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Weakness
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Opportunity
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Threat
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Major Competitors :
- Economical Insurance Co.
- Federated Mutual Insurance Co.
- CNA Insurance
- Kemper Corp.
- Cincinnati Financial Corp.
- Starr International Company
- MAPFRE Life Insurance Co.
- RSA Insurance Group PLC
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in FM Global SWOT & PESTLE Analysis Report
1. Annual Report - https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=823820293
2. FM Global Insurance Company Review - https://www.trustedchoice.com/insurance-articles/c/ffm-global-insurance-company-review/
3. CYBER RESILIENCE - https://www.fmglobal.com/products-and-services/products/cyber-resilience-solutions
4. Factory Mutual Insurance Company - https://fmglobalpublic.hartehanks.com/oe/PublicDocumentDownload?warehouseItemCode=P09074&acc=11FM&webAction=actionDownloadAsset&breadCrumbId=0&csrfPreventionSalt=jVn7Z6v7vxi8EF4vzy2h
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SWOT & PESTLE.com (2025). FM Global SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/fm-global/ [Accessed 13 Jan, 2025].
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FM Global SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.
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