FM Global's A+ —Superior— Rating Affirmed by A.M. Best in Acknowledgement of Market Leading Performance

Business Wire, Feb 9, 2005

JOHNSTON, R.I. -- Citing "another outstanding year" for FM Global, A.M. Best Company has affirmed the commercial and industrial property insurer's A (Superior) financial performance rating and retained a "stable" outlook on the rating. An A rating is assigned by A.M. Best to those insurance companies with "a very strong ability to meet their ongoing obligations to policyholders."

According to A.M. Best, the rating reflects FM Global's "leading market position within the commercial property market," its "solid capitalization, excellent operating performance," and "demonstrated benefits exhibited in recent years from FM Global's re-underwriting efforts, loss prevention technology and property conservation."

A.M. Best indicated it expects "FM Global's leading market position," "future earnings prospects," and "risk-adjusted capitalization" will remain at a level consistent with its current rating, that the company is "expected to continue to post strong returns" and its "solid earnings and cash flow over the near term will continue to grow."

"FM Global has emerged as a market leader among providers of commercial property insurance," said A.M. Best citing that FM Global serves "a significant number of Fortune 1000 companies worldwide, many of which have been customers of FM Global for more than 25 years."

In addition, the insurance ratings company pointed out "FM Global's ability to consistently retain in excess of 90 percent of its customer base, stems from its stable capacity, unsurpassed engineering, global reach, loss prevention technology and shared commitment to property preservation among its policyholders." A.M. Best also acknowledged that the disbursement of more than US$560 million in membership credit in 2001 and 2004 to eligible policyholders has aided FM Global's client retention.

A.M. Best noted that FM Global "has remained a consistent provider of enhanced property engineering technology and insurance solutions to a growing number of insureds" while "many of FM Global's competitors have exited the market in recent years."