The Johnson, Rhode Island-based property insurer said Thursday that FM Global will issue $1.4 billion in membership credits to eligible policyholders who renew.
The insurer also said it has increased the credit percentage by at least 25% for many eligible policyholders.
The membership credit will be based on the policyholder’s premium and the duration of their tenure with FM Global, the insurer said in a statement. This will be applicable for policy renewals starting from June 30, 2024 to June 29, 2025.
Policyholders who have been with FM Global for less than five years will be eligible for a 7.5% credit on renewal, those who have been with the insurer for five to 20 years will be eligible for a 12.5% credit, and those with more than 20 years higher will be eligible for a 7.5% credit on renewal. Eligible for 20% credit.
Policyholders with FM Global for 25 years will be eligible for a 25% credit, while all other eligible policyholders will see their credit percentage increase by 25%. FM Global said the one-time increase marks its 25th year as a merged company.
The premium credit program began in 2001 and since then insurers have paid out more than $6.5 billion in credits, including one credit. $800 million The membership credit was announced for renewal between June 30, 2023 last year and June 29 this year.
The credit is applied as an offset against the premium on the policyholder’s renewal or anniversary date.
