FM Global is a company that doesn’t mind giving back to its customers after experiencing good times. The commercial and industrial property insurer’s policyholders will collectively save $458 million on their premiums from the start of next year.

The mutual company says the move is a result of operating performance that was better than expected in recent years, due mainly to lower property losses.

The one-time distribution will be available to FM Global clients that have policies in effect as of September 30 and renew in 2007. This will include more than 500 companies with operations in Australia.

“FM Global clients, who are our owners, have really embraced the powerful concept that the majority of all loss is preventable and, as a result, have proactively and effectively been managing their property exposures and reducing such risks over time,” FM Global Chairman and CEO Shivan Subramaniam said.

The credit will be based on a scale that favours longer-term clients. The credit rates are 5% of annual premium for those holding policies for less than five years, 10% for those holding polices from five to 19 years, and 15% for those holding policies for 20 years or more.