FM has announced a significant boost to its financial support for policyholders, confirming that it will return an estimated $855 million to eligible clients through its resilience credit program in 2027. For the second consecutive year, the commercial property mutual will apply this credit as a 10% offset against eligible premiums.
The allocation marks a steady increase from the $825 million distributed in 2026, signaling the mutual’s continued commitment to rewarding risk mitigation. The credit will be applicable to all eligible policies that reach an anniversary or are up for renewal between January 1 and December 31, 2027.
Malcolm Roberts, chairman and chief executive of FM, attributed the substantial credit to the company’s strong financial performance and historically low loss ratios. “For two years in a row, we’ve been able to provide an enhanced 10% resilience credit, a testament to the work our clients do every day to drive lasting protection,” Roberts stated.
The resilience credit, which was first introduced in 2022, was originally designed to assist clients in mitigating climate-related hazards such as wildfires, windstorms, and flooding. However, in an expansion last year, the company widened the scope of the program to include operational risks. By leveraging FM’s specialized engineering and analytics data, clients are encouraged to reinvest these credits into critical risk-improvement projects, such as upgrading fire protection systems, installing flood defenses, or bolstering business continuity measures.
This latest announcement follows a banner year for the mutual. In April, the company declared a record $1.5 billion membership credit, further demonstrating its unique business model. Unlike traditional commercial insurers, FM’s mutual structure allows it to share surplus capital directly with its policyholders rather than exclusively lowering base rates to compete in a softening property market.
For insurance brokers, the 10% offset represents a powerful tool for managing 2027 renewals. In a market where large commercial accounts are already seeing double-digit rate reductions, the added value of the resilience credit strengthens FM’s competitive positioning. Industry experts note that the credit serves as more than just a pricing adjustment; it acts as an incentive for clients to engage in proactive risk management.
By linking the credit to tangible risk improvements, FM reinforces its foundational philosophy that the majority of property loss is preventable. As the insurance sector continues to navigate volatile economic and climate conditions, FM’s model of rewarding clients who invest in long-term resilience—rather than simply reflecting low risk in premium costs—continues to distinguish the mutual in the global commercial marketplace.
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