JOHNSTON, R.I.–Factory Mutual Insurance Co.–which does business as FM Global–reported a 26% increase in net income, which rose to $928 million, in 2007.

The Johnston, R.I.-based insurer also reported a 4.2% increase in gross premiums, which rose to $4.7 billion.

In addition, FM Global distributed a $341 million membership credit to eligible policyholders who renewed their policies in 2007 “as a way of sharing its profitability with clients due to better-than-expected operating performance in recent years,” the company said. FM Global has earmarked a membership credit of $380 million to eligible policyholders renewing in 2008.