LUGANO, Switzerland—FM Insurance Co. Ltd., which does business as FM Global, said Tuesday that it has opened a branch office in Lugano, Switzerland, where it will operate as an admitted insurer.

The unit of Johnston, R.I.-based commercial property insurer Factory Mutual Insurance Co. said the expansion responds to growth in its Swiss business and gives it more flexibility to respond to client needs.

The move does not change FM Global’s relationship as a coinsurer with partners in its WorldReach program, which provides insurance coverage, loss prevention, risk management and claims services, the insurer said in a statement.

“Having a license to operate in Switzerland allows FM Global to issue our own policies locally and have a more direct link with our clients’ local operations which, in turn, will further enhance the quality of our service,” Paolo Marchi, FM Global’s branch general representative, said in the statement.