FMG News
FMG's financial strength rating reaffirmed
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit ratings of Farmers' Mutual Insurance Association (FMIA) and its core subsidiary, FMG Insurance Limited (FMGIL).
The ratings reflect the group's strong and improving capitalisation, well-established presence in provincial New Zealand and its broad distribution capabilities. The ratings also consider the impact of FMG's business re-organisation.
These positive factors are partially offset by FMG's exposure to catastrophic risks and intense market competition. Like other general insurers in New Zealand, FMG is exposed to catastrophic perils such as flooding, and being a specialist rural insurer magnifies this risk. Increasing competition in rural insurance markets also continues to exert pressure on FMG's profits.
Nonetheless, the group's continued premium growth amid strong competition demonstrates its resilience within its market and reflects the success of its strategy of concentrating on its core strength.
Click this link  AM Best Press Release 26 June 2007.pdf(23.00 KB) to read the entire A.M. Best press release issued 26 June 2007.
Click here to read a Guide to Best's Financial Strength Ratings.
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