Catastrophes lead to net loss for insurer FM Global

Record losses resulting from natural disasters pushed Factory Mutual Insurance Co., which does business as FM Global, into a yearly loss, the Johnston, R.I.-based insurer said Monday. FM Global posted a net loss of $41.5 million in 2011 vs. net income of $686.6 million in 2010. Driven by the 20 large natural disasters worldwide in 2011, the company’s combined ratio deteriorated to 121%, as opposed to 85% the year prior. While net earned premium grew by 5.8% to $3.4 billion, net losses incurred from disasters in 2011 exceeded losses incurred in 2010 by more than $1 billion, the insurer said.