LABUAN, Malaysia—Factory Mutual Insurance Co., which does business as FM Global, said Tuesday it has received approval from the regional insurance regulator to become an admitted reinsurer in Labuan, a federal territory in Malaysia.

The approval by the Labuan Offshore Financial Services Authority grants FM Insurance Co. Ltd., an insurer that conducts business under the FM Global name, to serve as a reinsurer for the Johnston, R.I.-based commercial insurer in the Asian market.