The Australian operation of FM Global has recorded gross written premium of $146 million in its fourth consecutive year of strong financial and operating performance.

Profits from the Australian operations have contributed to an increase of 14% in the FM Global group’s $US635 million ($856 million) net profit for 2005.

FM Global Australia MD Ian Berg says Australian companies are increasingly recognising effective risk management and business continuity strategy as “business-critical”. 

FM Global Chairman and CEO Shivan Subramaniam says while the unprecedented US hurricanes last year had a substantial impact on most large commercial property insurers and their reinsurers, FM Global still performed well.

“Due to risk improvements many of our clients made to their facilities using our engineering knowledge, the 2005 storms resulted in far less of an aggregate impact on FM Global’s balance sheet compared with our competitors.”

Looking ahead this year, Mr Subramaniam says FM Global will review opportunities to develop business in Central and South America as well as Asia.