1. 5th International Istanbul Insurance Conference
3rd & 4th October 2013 Istanbul – Turkey
Ishfaq Khan – Account Manager EMEA WorldReach Network

2. Content FM Global Overview FM Global Business Model
External Validation
Conclusion
Slide purpose: To introduce FM Global’s four differences..
Suggested talking points: These four characteristics are unique to FM Global and unique in the property insurance market. This presentation will explain each one and how it delivers value to our clients.
Note to sales: (Depending on the prospect and the audience, you may wish to include “Dual delivery” as the fourth or even fifth key difference.)

4. FM Global Overview

5. History Loss Control Operations Financials 178 Years of Experience
Founded: 1835
Owned by Policyholders
Type of Company: Mutual
Specialists
Type of Insurance: Property Only
History
5,200 Employees
Engineers: 1,800
Field Inspections: 110,000 annually in 142 countries
$125M Research Campus
63% Loss Ratio - 7 year avg.
Industry 7 yr. Average: 78%
Loss Control
Worldwide Territory
Offices: 51
Local Admitted policies placed: 110 countries
26% Global Market Share
U.S. Market Share: 35%
94% Customer Retention
Industry Average: < 80%
Operations
Highly Rated
A.M. Best - A+, Superior Fitch - AA, Very Strong Financial Strength
Total Assets: $16.4 Billion
Claims Paying Ability
Surplus: $8.7 Billion
Membership Credits
Credited Premium: $2.1 Billion
Financials

6. FM Global Business Model

7. Delivering Value to Clients Through Four Key Differences
Mutual Governance
Specialty Focus
Loss Prevention
Global Consistency
Slide purpose: To introduce FM Global’s four differences..
Suggested talking points: These four characteristics are unique to FM Global and unique in the property insurance market. This presentation will explain each one and how it delivers value to our clients.
Note to sales: (Depending on the prospect and the audience, you may wish to include “Dual delivery” as the fourth or even fifth key difference.)

8. Value Created for Client
FM Global Differences
So what?
Value Created for Client
Voice
Large, stable capacity
Opportunity for client to share in positive experience
Mutual Structure
Client/owner commitment
High tolerance for volatility
Reduced dependence on reinsurance
Slide purpose: To convey what is meant by our mutual structure and the value delivered by it.
Suggested talking points: The mutual structure delivers value to our clients in several ways. As our owners, our clients have a voice in the company through formal structures such as the board of directors, advisory boards and risk management executive councils and also through less formal meetings at the regional level. Secondly, our relatively high tolerance for volatility (we can spread good and bad experience over a longer period of time) enables us to assemble and provide a large amount of capacity that remains stable over time. And lastly, when results are very positive, our clients can share in the positive experience through a membership credit which FM Global has been able to provide twice in the last five years.
In a mutual structure our clients and owners are one in the same, so we can focus on and commit our resources to that group.

9. Value Created for Client
So what?
Value Created for Client
Informed Risk Management decisions
Program stability and continuity
Rapid, fair claims settlement
Complete commitment to large property segment
Depth, knowledge, expertise
Capital dedicated solely toward short tail business
Dedicated claims service
Specialty Focus
Slide purpose: To discuss the benefits of our specialty focus
Suggested talking points: Large account/commercial property business is all that we do, so our success is dependent upon doing it well. We commit all our resources and capital to serve the needs of the large property segment. As a result of this commitment, we have developed and continue to develop in depth knowledge and expertise in this area. Furthermore, we have a dedicated claims service that specializes in this segment to manage our client’s claims.
The value to our clients is the ability to make informed risk decisions by having pertinent information about the hazards in their facilities and by receiving cost effective solutions to their risk problems. Secondly, with capital dedicated to short tail business, we can provide stable long term programs. Finally, our dedicated claims service delivers knowledgeable, experienced claims personnel and fair, rapid claim settlement.

10. Value Created for Client
So what?
Value Created for Client
Understand Risk
Control Destiny
Belief that
loss is preventable
Assets versus Expense
Understand the Hazard
Exposure Driven Engineering
Practical Solutions
Slide purpose: To describe our loss prevention philosophy and explain it’s value to clients.
Suggested talking points: While most insurers consider loss to be inevitable and brace themselves to pay, FM Global believes that the majority of loss is preventable and when it does occur, it can be mitigated. To support this belief, we have an $80 million dollar research campus and a full compliment of scientists and engineers that study the nature and causes of loss and develop cost effective solutions to eliminate or reduce risk. In addition we maintain approximately 1400 engineers and inspectors around the globe to identify and assess hazards and recommend solutions at client facilities. While other companies would consider this investment an expense, we view it as an asset because it helps our clients reduce the frequency and severity of loss. We benefit by the reduction in loss dollars; you benefit by the reduction in loss dollars, avoiding deductibles and other loss associated expenses and by the benefits that come from maintaining your business continuity – meeting your customer needs, sales, market share etc.
Our approach is what we call Exposure Driven Engineering or EDE – where we focus on the key exposures in your industry and evident in your facilities. We provide information that helpls you understand the hazard and we work with you to develop practical solutions. The value to clients is that you understand the risks associated with your facilities and you can control your own destiny by managing those risks appropriately. We provide the knowledge and information that enables you to do this.

11. Research Campus

12. Value Created for Client
So what?
Value Created for Client
Control based on client needs
Easy access to local issues/information
Timely policy issuance, premium collection and efficient cash flow
Global Consistency
Consistent worldwide approach to loss prevention, underwriting and claims
Transactional excellence
Slide purpose: To describe and communicate the value of providing services consistently and globally.
Suggested talking points: FM Global has invested in web based client services, a Customer Servicing System and a Customer Servicing Process that provide a platform for global service delivery. Our systems and processes provide a common foundation for account management, underwriting, loss prevention and claims insuring uniform and consistent service around the world and allowing clients fast and convenient access to both corporate and local account information. Plus, the systems are built to provide fast and accurate processing of policy documentation and premium transactions. Finally, our process provides client convenience. You can manage your business needs on a global basis through a single point of contact at FM Global.

13. Client Value Summary Mutual Structure Specialty Focus Belief that
Voice
Large Capacity
Share + experience
Specialty Focus
Informed decisions
Program stability
Rapid, fair claims
Belief that
loss is preventable
Understand Risk
Control Destiny
Slide purpose: A quick summary
Suggested talking points:
Our Mutual Structure give clients a voice in the organization, large bocks of stable capacity and enables them to share in our positive experience
Our Specialty Focus enables clients to make informed risk management decisions, provides program stability and continuity over time, and delivers fair and rapid claims settlement.
Our Belief that Loss is Preventable enables clients to understand their risk and control their destiny by implementing cost effective means to reduce their risk.
Our ability to provide Global Consistency enables clients to control insurance and services based on their needs, provides easy access to risk management information and processes policy documents and premiums quickly and efficiently.
Global Consistency
Control
Easy access
Timely issuance

14. External Validation

15. Third Parties tell us…. FM Global #766
Ranked #1 by U.S. Companies in the five
most critical areas of insurance carrier performance
Performance
Named Best Global Property Insurer and
Best Property Insurer – North America
ty Insurer – North America

16. Public Acknowledgement
Global Finance Magazine Names FM Global ‘World’s Best Supply Chain Risk-Consulting Services Provider’
July 17, 2013
JOHNSTON, R.I., USA—Commercial and industrial property insurer FM Global has been named the “World’s Best Supply Chain Risk-Consulting Services Provider” by Global Finance magazine in its July/August 2013 issue.
FM Global “provides clients with tools and services to help them better understand and mitigate risk in their supply chains,” reports Global Finance in its rankings of the “World’s Best Supply Chain Finance Providers 2013.” The insurer “also includes awareness materials that enable companies to better understand their supply chain and associated risks. And its online toolkit helps companies better protect their supply chains against natural disasters.

17. Conclusion

18. Remember who we are? We are a specialized Mutual insurance company
Mono-line Insurer – Commercial & Industrial Risk only
World leader in Insurance Risk Management & Research
Engineering driven underwriting
Financial Rating - A.M. Best - A+, Superior & Fitch - AA, Very Strong
Total Assets: USD $16.4 Billion
Insure 1 in every 3 Fortune 1000 Company

19. Thank You