FM Global Target Market
FM Global is a global insurance conglomerate offering a range of services including property, cargo, corporate, and emergency response insurance services. FM Global also provides an approval rating system for machinery, electrical systems and other industrial equipment to mitigate investment risk. FM Global's business insurance subsidiary AFM has a client retention rate of 75%. Working in over 149 countries, FM Global has a presence in most countries around the world.
Dell: Software and Technology
- Dell has been a client of FM global for 30 years.
- Dell's estimated revenue is $90.6 billion in 2018.
- At $90.6 billion in revenue, Dell's TCOR expenditure is approximately 900 million annually ($9.95 TCOR expenditure to $1000 of revenue = .009 of revenue spent on TCOR. For $90.6 billion in revenue, that's approximately $900 million in TCOR expenditure).
- An insurer of Dell, among other technology companies since the beginning of tech in the 1980s, FM Global is well poised to offer services to the growing software and technology industry.
Husqvarna Group: Manufacturing Industrial Equipment
- The Husqvarna Group is a Swedish manufacturing company established over 300 years ago.
- A long time manufacturer of industrial equipment (sewing machines in the 1900s), Husqvarna now focuses on chainsaws, watering products, diamond cutting products and chainsaws among other products.
- Husvarna's estimated revenue was $41.1 billion SEK ($4.23 billion USD) in 2018.
- At $4.23 billion in revenue, Husqvarna's TCOR expenditure is approximately $38 million annually ($9.95 TCOR expenditure to $1000 of revenue = .009 of revenue spent on TCOR. For $4.23 billion in revenue, that's approximately $38 million in TCOR expenditure).
- FM Global's focus on equipment certification and their long experience working with manufacturing clients, makes equipment manufacturing a good area of expansion for FM Global.
Xylem: Environmental Engineering
- Xylem is a Fortune 1000 company with a focus on providing technology-based solutions to water scarcity.
- Xylem has been a client of FM Global for 7 years.
- Xylem's estimated revenue for 2018 is $5.2 billion.
- At $5.2 billion in revenue, Xylem's TCOR expenditure is approximately $46 million annually ($9.95 TCOR expenditure to $1000 of revenue = .009 of revenue spent on TCOR. For a $5.2 billion in revenue, that's approximately $46 million in TCOR expenditure).
For this research, we defined the "top" types of target businesses for FM Global as the categories of businesses that currently spend the most on FM Global's business insurance products. Since the specific industry breakdown of FM Global's top clients is not available, we looked at the industry affiliations of some of FM Global's top client relationships, many that have lasted for decades.
To estimate the expenditure of key FM Global's top clients on their insurance services, we calculated the estimated TCOR (total cost of risk) expenditure for each of these companies. To calculate the TCOR expenditure, we took the 2018 average business ratio of $9.95 TCOR expenditure to $1,000 of revenue. Despite the fact that insurance premiums are only one component of the TCOR calculation for each company, the number gives a good ballpark estimate of the amount that FM Global's top clients are spending on their services.