Protected Risk

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Protected Risk

A risk against which an investor has hedged. For example, if one buys a stock, one carries the risk that the stock will fall in price. If one then short sells the same stock (while maintaining the long position), that risk becomes a protected risk.
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FM Global's business profile is characterized as 'Very Strong' by Fitch as FM Global has built a significant franchise in the commercial property market for highly protected risks. Fitch views the company's engineering capabilities and loss prevention services as key advantages that are difficult for competitors to replicate, and believes this expertise will result in future underwriting results that are consistently better than peers.
As a mutual company, FM Global and its policyholders/owners take pride in having highly protected risks. August, p.
The past year was not a good year for the traditional highly protected risks market.
Digital's buildings qualify as highly protected risks so redundant fire protection, water and public utility supplies, damage and loss limited construction features are all incorporated into the protection plan.
FM Global's market position and size/scale is characterized as 'Large' by Fitch as FM Global has built a strong franchise in the commercial property market for highly protected risks. In 2015, based on statutory results, FM Global held the No.