Year in Review 2008
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Stability in unstable times
2
About Us
Affiliated FM is a middle-market commercial property insurer that provides innovative products
and services designed to protect assets, improve operating reliability, reduce the overall cost of risk
and maintain the profit and market share of its clients.
Affiliated FM markets our products and services worldwide through a select network of agents
and brokers, providing underwriting expertise and property loss control engineering tailored to
meet specific client needs. We are committed to developing strong relationships with our brokers
and clients through:
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Superior commercial property underwriting knowledge, expertise and products
■
Customized property loss prevention engineering programs
■
Responsive and efficient services in a highly automated environment
■
Prompt, professional, flexible and fair claims service
As a member of the FM Global Group:
Affiliated FM maintains an A+ (“Superior”) rating from A.M. Best
■
Affiliated FM maintains an AA (“very strong”) rating from Fitch
■
A Business Model Built for Volatility
Education Policy Form
Throughout 2008, Affiliated FM’s large, stable
capacity, innovative products and services,
prompt and fair claims-handling and resilient
business model continued to add value for our
broker partners and clients, providing stability
in unstable times.
The unique property and business interruption
coverage offered in the Affiliated FM Education
Policy Form is designed to meet the needs of
universities, colleges, public and private schools
and other educational institutions and keep
revenue streams flowing.
As a mono-line property insurer, Affiliated FM’s
focused business model ensures that our resources
and capital remain dedicated to underwriting
property, meeting client needs, developing or
enhancing our products and services and building
long-term partnerships with brokers and clients.
Our engineering-driven underwriting approach
allows us to continue to provide highly stable
risk transfer, with significant blocks of capacity
to meet policyholder needs.
Green Coverage Endorsement
Product and Service Innovation
Affiliated FM is committed to developing
the innovative products and services that have
made us a market of choice for our broker
partners and clients. Throughout 2008, we
introduced several new and unique products
based on their direct feedback.
With a focus on environmental sustainability,
Affiliated FM released our Green Coverage
Endorsement. This unique endorsement provides
additional coverage to help clients enact or
maintain sustainable, environmentally friendly
building and business practices.
Growing Global
As middle-market companies expand their
worldwide reach, Affiliated FM continues to
expand its international capabilities to provide
the locally admitted coverage and consistent
insurance and loss prevention services required
to meet the property protection needs of multinational clients.
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Utilizing our own licenses and a select network of local fronting insurance companies,
Affiliated FM provides our multinational clients
comprehensive, accurate and timely insurance,
underwriting, claims and loss prevention products
and services around the globe, all backed by
our large, stable capacity.
In 2009, Affiliated FM will continue to expand
and enhance this worldwide coverage as our
brokers and clients expand their businesses
around the globe.
For clients, these courses provide their employees
and select third-party contractors a greater
understanding of specific hazards and outline
the practical steps they can take to implement
programs to reduce their exposures.
Our broker partners act as advisors to their clients
on property loss prevention and risk management
issues. To support this effort, we developed online
training executive course summaries, which help
brokers quickly learn the content of our courses
so they can discuss these loss prevention topics
with their clients.
Broker and Client Training
Working with our broker partners and mutual
clients to understand hazards, reduce loss and
increase knowledge of Affiliated FM’s products
and services is at the heart of our broker and
client training programs.
In 2008, we introduced and presented the
Affiliated FM broker Business Interruption (BI)
Workshop. Like our popular policy workshop,
this new BI workshop uses hands-on training
scenarios and our own claims and underwriting
staff to present BI coverage and its nuances.
We will continue to offer our BI workshop
and policy workshop in 2009.
Throughout the year, Affiliated FM also
developed and delivered several custom on-site
training programs for individual clients to assist
them in implementing specific property loss
prevention programs.
Online Training
In 2008, we launched the Affiliated FM Online
Training Center, which provides free, Internetbased instruction and courses to our broker
partners and clients.
In the coming year, Affiliated FM will introduce
new loss prevention courses, including a course
specifically for our health care clients. We also
will gather additional input and feedback as we
look to enhance our online client and broker
training capabilities.
Award-Winning Claims
When a company has a loss, it becomes a
moment of truth for their insurance company.
We are committed to getting on site quickly,
settling claims rapidly and fairly, helping clients
get back into business as quickly as possible, and
learning from losses to avoid a reoccurrence.
In recognition of our outstanding claims-handling
performance, in 2008, our claims group received
the “2008 Claims Management Quality Award”
from Greenwich Associates, a leading international research firm in the institutional financial
services industry. The award honored their
“outstanding performance in claims management
quality,” and was based on independent research
involving 714 risk managers at both middlemarket and large U.S. companies.
We are extremely proud of this achievement and
thank all those who participated. We look forward
to continuing to offer prompt, flexible and fair
claims service to our clients.
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Growing in a global market
5
A single focus
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Contract Certainty
An accurate, timely insurance contract is crucial
to servicing our brokers and clients. We are
committed to providing accuracy and contract
certainty worldwide and continue to streamline
our processes and enhance our policy delivery
systems to meet contract certainty expectations.
Broker Advisory Councils
The Broker Advisory Council (BAC) program
is a key part of Affiliated FM’s strategic plan.
It offers the opportunity to share information
about Affiliated FM with key brokers, to provide
transparency to Affiliated FM’s financial information and most importantly, to obtain feedback
from our business partners.
This year, we held BAC meetings in Australia,
Canada, France and the United States. We also
conducted a series of broker focus groups in the
United Kingdom.
As a critical component of our business strategy,
the input gathered from BAC members and focus
groups allows us to identify those issues that
matter most to our broker partners and their
clients. We greatly appreciate the participation
and input offered by all BAC and focus group
members—past, present and future.
Public Presence
Affiliated FM again exhibited at the Risk and
Insurance Management Society’s (RIMS) annual
tradeshow in San Diego, Ca., USA. We also
attended the Public Risk Management Association’s (PRIMA) annual event in the United States.
In addition, we again participated in annual
industry events including Les Journées du
Courtage in France, DKM, in Germany, the
National Insurance Brokers Association (NIBA)
of Australia and the British Insurance Brokers’
Association (BIBA).
Our annual Broker Engineering Forum and FM Global Research
Campus tour continued its popularity in 2008. The event attracted
40 of our broker partners (pictured above), who spent two days
with us exploring the science of property loss prevention and the
relationship among our research, engineering and underwriting
groups. This forum helps attendees increase their understanding
of key property hazards faced by clients, and learn about practical,
scientifically sound solutions available through Affiliated FM to
address those challenges.
Attendees repeatedly tell us this type of experience enhances their
ability to articulate the benefits of property loss prevention to clients
and is a powerful demonstration of the unique value Affiliated FM
brings to the market.
We enjoy the meetings and discussions that take
place at these events with our brokers, clients and
prospective clients.
A Single Focus
As clients continually and critically evaluate
their operations to deliver superior products and
services in their marketplace, they trust in their
brokers to provide expert insurance consultation
and develop programs to ensure their businesses
are protected.
As a property-only company, Affiliated FM
is solely focused on providing the comprehensive property insurance and loss prevention
engineering expertise that today’s brokers and
businesses demand.
By understanding clients’ exposures, we then
work with our broker partners and clients to
reduce the overall cost of risk, as well as ensure
they are receiving the most comprehensive
insurance coverage—in any market cycle and
condition—just as we did following September
11, Hurricane Katrina, the economic uncertainty
of 2008, or other times of turmoil.
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Management and Office Locations
Management
Michael C. Lebovitz
Senior Vice President
Division Manager
Keith L. Domagala
Operations Vice President
Engineering Manager
Office Listing
Headquarters
1301 Atwood Avenue
P. O. Box 7500
Johnston, RI 02919
+1 (1)401 275 3000
United States
Eastern Region
Todd L. Mather
Senior Engineering
Technical Specialist
Thomas C. Schnee
Operations Vice President
Underwriting Manager
John C. Wagner
Operations Vice President
International Underwriting Manager
Philip T. Hussey
Assistant Vice President
Underwriting Technical Specialist
Kathleen Quinlan
Assistant Vice President
Manager, Corporate Processing
and Account Administration
Stephanie Mendes
Assistant Manager
Corporate Processing
and Account Administration
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Jeffrey A. Fields
Vice President
Eastern Regional Manager
500 River Ridge Road
P.O. Box 9102
Norwood, MA 02062
+1 (1)781 440 8000
Atlanta, Ga.
Christopher W. Kemple
Operations Vice President
Area Manager
Preston Ridge Il
3460 Preston Ridge Road
Suite 400
Alpharetta, GA 30005
+1 (1)770 777 3600
Boston, Mass.
Renee A. Love
Operations Vice President
Area Manager
500 River Ridge Road
P.O. Box 9102
Norwood, MA 02062
+1 (1)781 440 8000
Dallas, Texas
Robert E. Clark
Operations Vice President
Area Manager
5700 Granite Parkway, Suite 700
Plano, TX 75024
+1 (1)972 377 4808
New York, N.Y.
Thomas G. DeMange Jr.
Operations Vice President
Area Manager
400 Interpace Parkway
Bldg. C – Plaza Level
Parsippany, NJ 07054
+1 (1)973 402 2200
Washington, D.C.
Matthew Grady
Assistant Vice President
Assistant Manager
210 Reston Parkway, Suite 600
Reston, VA 20191
+1 (1)703 860 4101
Western Region
David L. Mackin
Vice President
Western Regional Manager
300 S. Northwest Highway
Park Ridge, IL 60068
+1 (1)847 430 7000
Chicago, Ill.
Kevin J. Blindauer
Operations Vice President
Area Manager
300 S. Northwest Highway
Park Ridge, IL 60068
+1 (1)847 430 7000
Management and Office Locations
Cleveland, Ohio
Patricia Martinez
Operations Vice President
Area Manager
25050 Country Club Boulevard
Suite 300
North Olmsted, OH 44070
+1 (1)216 362 4820
Los Angeles, Calif.
Sean A. Bishoff
Operations Vice President
Area Manager
21860 Burbank Boulevard
Suite 300, South Lobby
Woodland Hills, CA 91367
+1 (1)818 227 2200
Portland, Ore.
Bradley M. Deardorff
Assistant Vice President
Assistant Manager
1000 S. W. Broadway
Suite 1150
Portland, OR 97205
+1 (1)503 228 3650
San Francisco, Calif.
Andrew J. Foort
Operations Vice President
Area Manager
One Walnut Creek Center
100 Pringle Avenue
Suite 400
Walnut Creek, CA 94596
+1 (1)925 934 2200
Seattle, Wash.
Michael M. Mueller
Operations Vice President
Area Manager (Seattle and Portland)
Key Center
601 108th Avenue N.E.
Suite 1400
Bellevue, WA 98004
+1 (1)425 455 5333
Canada and Europe
Gervais Landry
Vice President
Regional Manager (Canada and Europe)
52 Leadenhall Street
London EC3A 2BJ
United Kingdom
+44 (0)20 7480 4000
Canada
Montreal
Jean Servant
Operations Vice President
Area Manager
600 rue de la Gauchetiere West
14th Floor
Montreal, QC H3B 4L8
+1 (1)514 876 7400
Toronto
Brad Smegal
Operations Vice President
Area Manager
Suite 500
165 Commerce Valley Drive West
Thornhill, ON L3T 7V8
+1 (1)905 763 5555
Europe*
Frankfurt, Germany
Leander Metzger
Operations Vice President
Director
Eschersheimer Landstrasse 55
60322 Frankfurt
+49 (0)69 15406 0
London, U.K.
52 Leadenhall Street
London EC3A 2BJ
+44 (0)20 7480 4000
Manchester, U.K.
Anchorage 2
Salford Quays
Manchester M50 3YW
+44 (0)161 455 2800
Paris, France
Christian Bousquié
Operations Vice President
Director
Tour Europlaza
Défense 4
92927 La Défense Cédex
+33 (0)1 46 93 97 00
Australia
Sydney
Timothy Higgins
Operations Vice President
Director
Level 15
255 George Street
Sydney NSW 2000
+61 (0)2 8273 1400
* Outside North America, Affiliated FM’s products and services are offered by Affiliated FM, a division of FM Insurance Company Limited.
In the United Kingdom, FM Insurance Company Limited is regulated by the Financial Services Authority.
9
Broker Advisory Council
Affiliated FM’s Broker Advisory Council (BAC) membership is drawn from senior management of our broker partners representing global, regional
and wholesale brokerage firms. The BAC is an effective forum for Affiliated FM to inform brokers of significant developments regarding the
operation of the company and provides an avenue for communication with Affiliated FM’s senior management. Feedback generated at these
meetings is crucial to ensure we continue providing products and services that keep stride—and often set the pace—within the industry.
Australia
Doug Allen
Director
AIS Insurance Brokers
Peter Apolakiatis
Placement Services Manager
General Security
Australia Insurance Brokers
James Baum
State Manager –
Corporate Insurance Services
Aon
Michael Ellis
Managing Principal
Interrisk Insurance Brokers
Harry Georgoulas
Broker Manager –
Marketing & Reinsurance
Jardine Lloyd Thompson
Tim Groenestein
Broking Director
Fraser McAndrew Ryan
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Craig Horsell
Director – National Client Production
& Product Design
Horsell Insurance Brokers
Ben Rolfe
Divisional Manager –
Program Design & Placement
Aon
Nathan Hughes
Principal – Placement Services
Marsh
John Saunders
Director
Saunders Insurance Brokers
Brian Mahony
Director
Fraser McAndrew Ryan
Richard Shillington
Principal
Australian Reliance
Mark Mitchell
Senior Broking Executive –
Placement Services
Marsh
Spyros Stathakis
Director
Saunders Insurance Brokers
John Mutton
General Manager – Real Estate
Interrisk Insurance Brokers
Craig Ritter
Account Manager –
Program Design & Placement
Aon
Terry Stone
Director
Watkins Taylor Stone
Mark Thompson
Divisional Manager –
Corporate Marketing
Jardine Lloyd Thompson
Jonathon Upton
Director
Indemnity Corp.
Broker Advisory Council
Canada
Rene Baribault
Associé and Vice-Président
Pratte-Morrissette, Inc.
Daniel Beaudry
Executive Vice President,
Regional Marketing Officer
Willis Canada, Inc.
David G. Buckingham
Senior Vice President
Regional Broking Manager
Aon Reed Stenhouse, Inc.
Sam Ciccolini
Masters Insurance Limited
Greg Claggett
Senior Vice President
Marsh Canada Limited
Michael Dunn
Partner
Jones Deslauriers Insurance
Management, Inc.
Mark Farrow
Vice President
Stevenson & Hunt Insurance Brokers
Gabriel Foglietta
Quebec Regional Broking Director –
Sr. Vice President
Aon Parizeau, Inc.
Antonino G. Furci
Vice President,
Special Risk Commercial Manager
Seymour Alper Insurance Brokers
Julie Joyal
Vice-President, Account Executive –
Commercial Lines Insurance
HUB International Quebec Limitee
Brian Kelly
Managing Director
Marsh Canada Limited
Brian Kent
Senior Vice President
Aon Reed Stenhouse
Luc Langelier
President
Langelier Assurances, Inc.
Mark McKay
Managing Partner
Jones Brown, Inc.
Marc Meunier
Regional Manager, Commercial Lines
Lussier Assurances
Maria S. Pecchia
Senior Vice President
Marsh Canada Limited
Raynald Rochette
Associate
Couture Rochette & Associates, Inc.
Richard Taylor
Partner
HKMB Hub International
Patrice Vézina
President and CEO, Operations
Vézina, Dufault, Inc.
Joseph A. Weiser
President
Sheff, Weiser & Associates, Inc.
Jack Lee
Managing Vice President
BFL Ontario, Inc.
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Broker Advisory Council
France
Jean-Pierre Alexandre
Directeur
Marsh - Lyon
Grégory Allard
Directeur Général
Filhet-Allard & Cie – Issy les Moulineaux
Bruno Ancele
Responsable Service Dommages Entreprises
Filhet-Allard & Cie – Bordeaux
Patrice Arrighi
Directeur
Gras Savoye – Neuilly-Sur-Seine
Paolo Crestani
Directeur
Gras Savoye – Neuilly-Sur-Seine
Eric Demange
Directeur
Marsh – La Défense
Pascal Dupont-Rougier
Directeur du Département Dommages
Siaci – Paris
Gérard Guendafa
Directeur des Etudes,
Département Risques Industriels
Gras Savoye – Neuilly-Sur-Seine
Jean-Philippe Hubsch
Directeur Général
Assurances Conseil – Thionville
Alain Khan
Directeur
Marsh – Paris
Gaëtan Lamblin
Chargé de Clientèle Senior
Verspieren – Roubaix
Jean Christophe Chevalier
Directeur Adjoint Technique
DIOT – Paris
Philippe Masclet
Responsable Département IARD
Verlingue – Paris
Olivier Guenot
Responsible Technique
Aon – Colombes
Géry Prouvost
Directeur
Gras Savoye – Neuilly-Sur-Seine
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United States
Central
Nancy J. Ayers - CPCU, CIC
Managing Director
Mesirow Financial
Randall K. Bonaventure
President and CEO
Knox Insurance
Robert Bostick, Jr.
Vice President
R. J. Bostick & Associates, Inc.
Timothy L. Brown
Senior Vice President
Hays Companies
Jeremy Bryant
Commercial Lines Marketing Manager
Wachovia Insurance Services – Cleveland
Robert N. DeRosa
Senior Vice President
Marsh USA, Inc.
Ann Forkner
Vice President, Marketing
McQueary Henry Bowles Troy, LLP
Broker Advisory Council
Tom Hesselbein
Vice President
Ramsey, Krug, Farrell & Lensing
Rod Medlin
Partner
Scarbrough, Medlin & Associates, Inc.
Daniel Johnston
Vice President
Gregory & Appel Insurance
Michael Richards
Senior Vice President
A. J. Gallagher
Daniel P. Judd
Senior Vice President,
Commercial Insurance Department
Lockton Companies, Inc.
Mark Romero
Executive Vice President
Brown & Brown Insurance
Robert J. Kish II
Executive Vice President
Crump Insurance Services of Texas, Inc.
Michael Madey
Vice President –
Horton Risk Management Services
The Horton Group
Richard K. Martindale
Chairman
Leonard Insurance Services
Donald A. Roos
Senior Account Manager
Oswald Companies
Sal Ruvolo
Senior Vice President
The Daniel and Henry Co.
Olga Saenz
Marketing Account Executive
McGriff, Seibels & Williams
of Texas, Inc.
Eastern
John Barrett
Director
Frank Crystal & Co., Inc.
Michael Chapman
Chief Sales Officer
HUB International New England, LLC
Louis M. Cohen
Chief Underwriting Officer
Sullivan Insurance Group
Robert Cottone
Senior Vice President
NIA Group
Brett Cutchin
Senior Vice President
Lipscomb & Pitts Insurance, LLC
Edward DiGioia
Senior Vice President
Genatt Associates, Inc.
Richard A. Yarborough
Vice President, International
Hylant Group
13
Broker Advisory Council
Paul Green
Vice President
Maury, Donnelly & Parr, Inc.
Thomas P. Maroney
Vice President
Willis of New Jersey, Inc.
Ronald B. Giadrosich
Executive Vice President
McGirff, Seibels & Williams, Inc.
James McCarthy
Marketing Manager
Wells Fargo Insurance Services
of New York, Inc.
Jeffrey Grosser
Vice President
Rodman Insurance Agency, Inc.
Peggy Hemphill – CIC, CPSR
Vice President
Fox Everett Insurance, Inc.
Robert McDonald
Vice President of Marketing
J. Smith Lanier & Company
James R. Miraval
Director
Aon Risk Services, Inc. of New York
Cheryl Horvath
Vice President, Property Specialist,
SE Regional Property Practice
Willis Insurance Services
Jonathan Penn
President
USI New England
James Hutchinson
Senior Vice President, Marketing
HUB International
Anthony J. Salvatore
Managing Director
Wells Fargo
Michael Lucas
Account Executive & Risk Consultant
Fred C. Church, Inc.
Gregory S. Mann
Vice President
Marsh USA, Inc.
14
Jonathan J. Zack
President
Alliance Brokerage Corporation
Western
Jon Axel
Senior Vice President
HUB International
of California Insurance Services, Inc.
William A. Bragg
Senior Vice President
Marsh, Inc.
Terry G. Brown
President
Crump Insurance Services
Northwest, Inc.
John F. Coleman, Jr.
President
Sullivan & Associates of Oregon
Linda Dorn
Senior vice President
Aon Risk Services, Inc.
of Southern California
Bryan M. Fitzpatrick
President
Hilb Rogal & Hobbs
Edward D. Fugo, Jr.
Executive Vice President
Kibble & Prentice
Broker Advisory Council
Ron Graybeal
Managing Director
Beecher Carlson Insurance Agency, LLC.
Charlotte Stone
Area Co-President
Arthur J. Gallagher
Jonathan M. Jepsen
Senior Vice President
Fred A. Moreton & Company
David Tinley
Vice President
Daniels Insurance, Inc.
Kenneth L. Kessler
President
Sander A. Kessler & Associates,
Inc. Insurance
Vic Tushner
Vice President
Woodruff-Sawyer Oregon, Inc.
Duncan Kirk
The Unity Group
John Vipiana
Vice President, Property Practice
Heffernan Insurance Brokers
Jeff Martins
CEO
Brown & Brown of Washington
Robert J. Weller
Senior Vice President
Wells Fargo
Mark Nimmo
Senior Vice President/
Real Estate Practice Leader
Sullivan Curtis Monroe Insurance
Services, LLC
Mark Zwickel – CPCU
Executive Vice President
Lockton Insurance Brokers, Inc.
Susan E. Stead
Vice President
Parker, Smith & Feek
15
P09002 Printed in USA (3/09)
© 2009 Affiliated FM
All rights reserved.
www.affiliatedfm.com
In the United Kingdom:
Affiliated FM
FM Insurance Company Limited
1 Windsor Dials, Windsor, Berkshire, SL4 1RS
Regulated by the Financial Services Authority.