FMG has released its Annual Report showing another strong year, with a profit that will be reinvested back into the Mutual to help keep the rural insurer strong for generations to come.
"Like farming and growing, insurance has its ups and downs. For us, this year has been one of those ups, where we've had a good year, recording a Net Profit after Tax of $119.2 million. These profits will be added to capital reserves to help strengthen the Mutual, prepare for tougher times ahead, and to ensure we're here to support rural communities for another 120 years," says Adam Heath, FMG Chief Executive.
Our profitability this year was driven by several factors, including favourable investment markets, increased insurance revenue and one of the most buoyant insurance markets for over 30 years, underpinned by a very benign year for claims – with no major catastrophes. In addition, Reserves now sit at $524.3 million, up from $405.2 million last year, with client numbers growing by 5,791, as more people choose to insure with FMG.
These results have come at a time when FMG has implemented around $35 million in premium reductions across several products. This has resulted in the potential for individual premium decreases or relatively smaller premium increases for clients holding these products.
For the most part, the proof point of insurance is when it comes to making a claim, and whilst there were no major events to respond to over the course of the year, FMG still returned $344.5 million back to rural communities through claim payments.
The previous benign weather period appears to have come to an end given the recent storm activity across the country, FMG is doing all it can in response with our teams on the ground and on the phones supporting those who have been impacted with the clean-up and ultimately their recovery. Our entire One Team across FMG feel for those impacted and I encourage anyone who is yet to lodge a claim from these storms to contact us so we can also begin helping you.
Our founders started FMG 120 years ago with a simple promise – farmers backing farmers. That promise still drives us today as we strive to deliver on our Purpose of ‘a better deal for Rural New Zealand Aotearoa’ and our Vision of ‘helping to build strong and prosperous rural communities’.
As a mutual, FMG reinvests back into rural communities in so many ways, including by sponsoring or supporting over 700 local events annually – from lamb and calf days to field days – as well as funding research and advice services that help prevent loss.
In addition to marking our 120th year of service to the rural sector, the past year has also marked several significant milestones for FMG, including a decade of being the Principal Sponsor of the FMG Young Farmer of the Year Contest and 10 years as a founding partner of the rural wellbeing programme, now Charitable Trust, Farmstrong.
Looking ahead, FMG continues to invest in better ways to serve rural communities, from faster claims processing to digital tools that save time when it matters most.
"From the conversations I'm having with many FMG Members, there's real optimism across the sector right now, particularly with farmgate returns looking more positive. It’s good to see the sector in such good shape and it’s a privilege to be able to provide Members with confidence that their Mutual is in good heart too,” says Adam.
