FM announces record USD $1.5 billion membership credit
Thu, 14th May 2026 (Today)
FM has announced a membership credit of about USD $1.5 billion for eligible mutual policyholders, the largest allocation in the programme's history.
The latest credit includes a one-time 5% enhancement for all eligible clients. Combined with its enhanced resilience credit, total declared policyholder credits for 2026 amount to USD $2.3 billion.
FM attributed the record allocation to low losses and policyholder risk mitigation efforts. In 2025, it worked with clients to complete more than 48,000 loss prevention recommendations, which it estimates reduced property risk loss exposure by USD $1 trillion.
The membership credit will be offered as a premium offset for eligible mutual policyholders at renewal. It applies to policies with renewal or anniversary dates from 30 June 2026 through 29 June 2027.
The latest award brings total returns to eligible clients through the programme since 2001 to more than USD $8.9 billion. FM described the scheme as a feature of its mutual company structure and financial performance.
Credit levels vary based on the length of a policyholder's continuous relationship with the insurer. Those with fewer than five consecutive years will receive 10%, while clients with at least five but fewer than 10 years will receive 15%.
Clients with at least 10 but fewer than 15 consecutive years will receive 17.5%, and those with at least 15 years will receive 20%. This year's distribution includes the standard allocation across all four tiers, along with the one-time 5% enhancement.
The scale of the declared credits stands out against the group's underwriting result. FM said the USD $2.3 billion in declared policyholder credits represents more than 100% of its 2025 underwriting profit.
Client incentives
Mutual insurers are owned by their policyholders rather than external shareholders, allowing profits to be returned through credits, dividends or lower premiums. FM's model ties those returns to client tenure and, in this case, to a year in which loss prevention work contributed to historically low losses.
FM focuses on commercial property insurance and says its client base includes many of the world's largest organisations. According to the company, its policyholder-owners include one in four Fortune 500 companies.
Malcolm Roberts, Chairman and Chief Executive Officer, commented on the allocation.
“This year's FM membership credit is a testament to the strong partnerships that we forge with our clients and their steadfast commitment to building resilience and preventing losses before they happen,” said Malcolm Roberts, Chairman and Chief Executive Officer, FM. “In today's rapidly changing and unpredictable environment, resilience has never been more relevant. Thanks to the power of our mutual business model and our shared commitment to risk mitigation, we can share our success with our clients. By working together, we are creating a more resilient future.”
FM traces its history back nearly two centuries and specialises in property risk management as well as insurance. The group says its engineering and research work is designed to help clients identify hazards that could affect business continuity and insurance losses.
The latest credit comes as insurers and large corporate customers continue to focus on physical asset risks, including fire, natural catastrophe and other operational threats that can disrupt production and supply chains. In that context, financial rewards for loss prevention give policyholders a direct incentive to maintain long-term risk management measures.
For FM, the record distribution also highlights the role mutual insurers can play in sharing underwriting gains with customers when claims stay low. The company said the latest enhancement recognises what it described as an unprecedented level of loss mitigation and prevention among eligible clients.