FM Global is to restructure its Australian operations as part of an international shake-up following a period of growth.

From October 1 an Australian branch of the US parent, Factory Mutual Insurance Company (FMIC), rather than FM Insurance Company, will issue FM Global and Affiliated FM policies.

CEO Australia Lyndon Broad told insuranceNEWS.com.au the transition will have no negative impact.

“When we originally structured our international business [outside North America] in the 1960s and ’70s, it was primarily to service the international locations of US-domiciled businesses,” he said. “We set up FM Insurance Company in the UK and opened local offices under licences of that business.

“Since that time our international business has grown significantly. We are therefore systematically transitioning our business to provide our clients with direct access through our treaties to our US mutual parent.

“Brokers and clients will see no change. If anything it gives them greater access to the corporate balance sheet.”

The Australian Prudential Regulation Authority has approved FMIC’s Australian licence.