FMG News
FMG Insurance Limited begins trading
In June 2006 FMG gained approval from the Wellington High Court for the transfer of Farmers’ Mutual Insurance Limited’s New Zealand policyholders to FMG Insurance Limited.
This approval was based on FMG meeting several requirements, including notifying all Farmers’ Mutual Insurance Limited’s New Zealand policyholders of the change, ensuring that policyholders were not to be disadvantaged by the transfer, and obtaining a sufficient A.M. Best credit rating for FMG Insurance Limited.
Having fulfilled the requirements set down by the High Court, FMG Insurance Limited began trading on the 1st of July 2006 with an AM Best credit rating of A- (excellent).
This changeover was completed in preparation for the proposed joint venture with Australian Unity to underwrite the farm, commercial, domestic and other products currently underwritten by FMG in Australia.
This effectively separates Farmers’ Mutual Insurance Limited’s Australian operation from its New Zealand business, ultimately allowing the Australian operation to move from being an insurer to being an underwriting agency in which FMG and Australian Unity are proposing to be equal shareholders.
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