Commercial property insurer FM has announced a third resilience credit of $US400 million ($608.76 million), to be applied as a 5% premium offset against eligible policies.

It has now allocated more than $US1 billion ($1.52 billion) in this way since 2022. 

The credits help clients fund protection from natural hazards such as bushfires, hailstorms, floods and cyclones. The potential reduction in economic impact is more than $US30 billion ($45.66 billion), FM says.

“The resilience credit represents a unique program in the industry, and we are proud to enable client investment in the resiliency and future of their operations,” chairman and CEO Malcolm Roberts said.

FM launched a renewable energy unit earlier this year that is encouraging eligible clients to carry out recommendations related to solar panels, wind farms and other renewable energy installations.

The mutual insurer writes more than $500 million of premium in Australia.