Archived news
Issued August, 2011
FMG Annual Report and Year in Review 2010/11 Released
FMG has released it's Annual Report and Year in Review 2011. Covering the financial year 2010/11 the two documents provide an insight into how the company has faced up to catastrophe and natural disasters and continued to deliver a positive result for all stakeholders – employees, customers, members and the community alike.
Download a copy of the reports from here, or email marketing@fmg.co.nz to request a printed copy.
FMG announces acquisition of Quadrant Insurance Group
New Zealand’s leading rural insurer, FMG today announced the acquisition of Quadrant Insurance Group, the country’s leading provider of comprehensive equine and livestock related insurance.
Issued Wednesday 15 June 2011
FMG reports solid result and confirmation of “A” credit rating
New Zealand’s leading rural insurer, FMG today reported a solid profit for the year ending 31 March 2011 of $10 million and confirmation of its “A” rating from ratings agency A M Best.
FMG chief executive Chris Black said the result was outstanding in the circumstances with the worst concentrated period of natural disasters the company has seen in its 106 year history, together with the high level of market and customer scrutiny of the sector in general.
“We have always had in the back of our minds that someday we would face compounding events and were prepared for the worst. The Canterbury earthquakes followed by three major storms over the last 12 months, probably gave us a 10-year hit all rolled into one and our team responded admirably,” Mr Black said.
He said the FMG reinsurance programme was structured for such occurrences and even with the intense combination of natural disasters during the year, less than 15% of the available reinsurance was called on. “The nationwide spread and mix of our portfolio, plus having a strategy of personalising our cover and pricing on a customer by customer basis, proved its worth.”
In summary, the result was:
|
Element |
2011 |
2010 |
|
Net Profit (after Tax) |
$10m |
$19.3m |
|
Total Revenue |
$131.4m |
$128.9m |
|
Investments |
$190m |
$180m |
|
Investment Return |
$14.5m |
$18.0m |
|
Total Earthquake Claims |
$50m |
- |
|
FMG Net Earthquake Cost |
$7.2m |
- |
FMG stopped distributing through brokers during the year resulting in a $2 million loss in revenue.
Mr Black said the majority of FMG’s reinsurance agreements had a further two years to run.
Rating agency A M Best’s Asia Pacific unit based in Hong Kong recently reaffirmed its credit rating of FMG as “A” (Excellent) with a stable outlook due to the organisation’s ‘strong risk-adjusted capitalisation, solid operating profitability, effective catastrophe risk management and strong business profile in the rural general insurance market’.
In terms of policy pricing going forward, he noted that there is considerable speculation on future premium levels in the market.
“Market speculation includes rumours of premium increases from 20% to 60% and above.
We will certainly be reviewing the situation. However any premium increases from FMG are certainly more likely to be at the lower end of the range being predicted.
“We have also had a revitalisation of our brand during the year and a new advertising programme is in place. Results so far indicate that we will meet our target of a 5% growth in customer numbers. Another highlight in terms of innovation was the introduction of a Livestock Catastrophe Policy in response to the spring storms where farmers lost tens of thousands of head of livestock including breeding ewes which they will take some years to replace.”
Mr Black said the investment the company has made in employee training and development over recent years showed through in this very challenging year and the commitment to supporting customers in their hour of need was testament to the calibre of the team at FMG. “We had people on the ground with customers two hours after the first Canterbury earthquake on September 4 and some were on the go non-stop for almost three days.”
Chair Greg Gent said FMG has shown it is in great shape to face the industry’s challenges. He is delighted that the company stood beside its customers during what has been a particularly difficult year, especially in the remote rural areas of the country.
“The outlook for the rural sector over the next year is positive especially with the increase in the dairy payout. Rural property seems to have turned a corner which is a bellwether indicator and the returns for meat farmers are breaking new ground.”
Mr Gent said these indicators all bode well for FMG as its business is underpinned by the rural economy.
“FMG is keen to be at the forefront of any major changes in the sector but our focus will continue to be on serving existing customers well and quality growth. FMG is the natural partner for rural people and businesses”.
Issued Wednesday 18 May 2011
FMG launch new branch Competition
As winner of the 2010 Spirit of Manawatu award, and a presence in the region for over a century, we’re sure you’ll know the FMG name. With a new office at 58 The Square Palmerston North, now it’s easier to find us too. We’ve always seen insurance a bit differently from the big city firms. We were set up to put people before profit. And that’s an ethos which still holds true today. So whether you live in the city, on a lifestyle block, a farm, or you’re a business owner, pop down to our new place for a coffee and an insurance review. When you do, you’ll go into a draw to win an exclusive dining experience for you and three friends at Palmerston North’s tallest building, FMG House. It’s a chance to get a fresh perspective on your cover – not to mention a great view of the city.*
Ask around about us, or call for some advice on 0800 366 466.
* The following terms and condition apply.
Only one entry per person that requests an insurance review when visiting FMG at 58 The Square, Palmerston North. Only available in store and quotes requested over the phone or online will not be eligible for the prize. Prize is not redeemable for cash and is not transferable. Prize will be supplied on a date and time mutually agreed to between FMG and the prize winner. Prize includes three course meal and drinks for four people at FMG house, with views down on the city. The judges’ decision is final and no correspondence will be entered into. Offer closes Thursday 30 June 2011. (Note offer extended from original closing date of 25 May). Employees of FMG, and its associated agencies and their immediate families are ineligible to enter the draw. Winners will be notified by telephone and will announced on Friday 1 July and winners must agree to have their photograph used for possible promotional purposes. By entering, you acknowledge that you have read the terms and conditions and agree to comply with them. You also agree that FMG and its subsidiaries may provide you with information, either by post, telephone or electronic message, regarding their products and services.
Issued 1 April 2011
Blizzard prompts FMG to offer livestock catastrophe cover to sheep farmers
FMG in partnership with the farming industry has developed an innovative Livestock Catastrophe policy for sheep farmers.
This introductory offer is the first of its kind in the New Zealand insurance market and has been developed in response to the week-long blizzard that hit sheep farmers hard last September in both islands.
“Typically farms are well set up to manage Mother Nature year in year out. This policy is set up to respond to a "once in a generation event" that challenges even the very best farming system.” FMG General Manager Advice & Insurance,Conrad Wilkshire said.
“It’s a simple, up-front forward cover with no strings attached that typically may not cost any more than the cost of insuring the farm 4WD, particularly if it has not been bent lately!”
The three immediate financial impacts from a major natural disaster like last September are: loss of capital stock, loss of income (lost lambs) and the direct costs of conserving excess supplement once the weather clears - given properties will be carrying substantially less stock than what is optimal.
“The level of cover will be agreed up front. If you have a claim the money is paid out at an agreed value, starting at $25,000 up to $100,000 depending on the previous balance date and sheep valuation,” Mr Wilkshire said.
“The policy seeks to limit the financial impact associated with a catastrophe like the unusually prolonged blizzard where you lose 15%-plus of total sheep livestock. Importantly this includes immature stock, including lambs. It is not intended to cover the capital cost of replacement; it is purely an agreed cash payment benefit.
Mr Wilkshire said FMG believes this initiative has the potential to close a gap in the market for sheep farmers.
“Other producers in the primary sector take out weather event cover for example, hail for crops. This policy goes one step further. It's the first of its kind on the New Zealand market and seeks to address a historic market failure to limit the financial impact of natural disasters on farmers’ bottom line from livestock losses.
“Farmers are not daft and they will assess this policy in terms of what is right for them personally. Obviously we can help with this on-farm.”
Mr Wilkshire said FMG would also run field days in Kimbolton and Wyndham in May to assist farmers decide what might work for them.
“This is a limited introductory offer targeting 1,000 farmers and predicated on farmer support from both islands. As it finds support we build from there,” Mr Wilkshire said.
“FMG has 106 years of history partnering farmers and we remain open as always to all sectors in partnering their risk management requirements.”
NB A televised panel interview with Conrad Wilkshire, FMG General Manager Advice & Insurance will screen on Country99TV on Friday 1 April, in the Straight Talk programme starting at 8.30pm and will also be available on the Country99 website and You Tube.
For further information please contact:
|
Conrad Wilkshire |
Gerry Morris |
Issued 15 March 2011
FMG confirmed as Qualifying Financial Entity
The Securities Commission has confirmed New Zealand Rural Insurer FMG’s status as a Qualifying Financial Entity (QFE) under the Financial Advisers Act 2008. The approval will allow FMG to take on a frontline compliance function for its employee advisers and Life Risk Advisers under the supervision of the Commission.
“Over the last 105 years FMG has built its reputation on being committed to the highest standards of conduct and service,” said FMG Chief Executive Chris Black. “That’s why undertaking this process was important to us.”
“We have worked hard as an organisation to achieve this status. We want our customers to have confidence in our advice and to feel they are given all the information they need to make the right decision.”
FMG is registered on the Financial Service Providers Register. Further information on QFE’s can be found on Securities Commission website at http://www.sec-com.govt.nz/far/qfe/
For further information please contact:
Lisa Murray
Legal Counsel
FMG
Ph. 04 460 3003/ 021 684 824
lisa.murray@fmg.co.nz
Issued 14 March 2011
FMG fronts up for Christchurch
Rural New Zealand insurer, FMG, has donated $200,000 to the New Zealand Red Cross 2011 Earthquake Appeal.
“Our hearts go out to all those affected by this devastating event,” said FMG Chief Executive Chris Black.
“As an insurance company FMG is committed to helping people get back on their feet, and supporting this appeal is one immediate way to do this.”
“FMG are also working tirelessly to assist our customers who have been directly impacted in this earthquake and also the one in September. We hope that through our contribution to the Red Cross 2011 Earthquake Appeal and our on the ground advice and support we can help people in Christchurch come through this tragedy.”
New Zealand Red Cross Chief Executive John Ware added: “New Zealand Red Cross wants to thank the generous companies, individuals and groups that have gone to extraordinary lengths to support people and communities affected by the Christchurch earthquake.”
For further information please contact:
MEDIA CONTACT Colin Wright, Communications Manager
Mobile: 027 412 9200
Email: colin.wright@fmg.co.nz
Archived versions of Year in Review and FMG Post
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July 2010: |
May 2010: |
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June 2009: |
March 2009: |
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July 2010: |
May 2010: |
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June 2009: |
March 2009: |