FMG has experienced another year of strong growth against the backdrop of an uncertain external environment.
Net client growth for the year was 7% bringing overall client numbers to 94,300 and rural market share to 51%.
FMG Chief Executive Chris Black says this reflects the value people see in a mutual insurance model where the interests of owners and clients are aligned.
“It’s a model which, while set up to make a profit, does not seek to maximise profit. It’s based on an enduring core purpose of ‘giving Rural New Zealand a better deal’ and within the business, we use the Mutual’s solid set of values every day to attract and retain talent, and guide decision making. We strive to keep premium increases to a minimum for the cover offered so our insurance remains affordable for rural and regional New Zealand. These unique mutual features distinguish FMG from most other insurance companies in New Zealand,” says Mr Black.
FMG’s profit after tax for the 2019/2020 financial year was $6.1 million. This will be added to reserves to take the reserves total to $263.5 million.
“Making a profit allows us to invest in new products and services, such as the recent launch of the online service channel FMG Connect. It also means we’re able to support important initiatives such as rural sponsorship, community events and the rural wellbeing programme Farmstrong,” says Mr Black.
Crucially, it means we can continue to be here for rural New Zealand.
FMG Board Chairman Tony Cleland says FMG has been part of the fabric of rural New Zealand for 115 years and we want to make sure we keep that going today and for another 100 years.
“Part of that is taking a conservative approach to capital management, including reinsurance arrangements and our investment portfolio. This is particularly important now given the challenges everybody is facing as a result of the impact of Covid-19 and the key role farmers and growers played during lockdown, and continue to play in New Zealand’s economic recovery,” says Mr Cleland.
The 2019/2020 financial year also holds the record for the number claims FMG received and dealt with.
“Settling claims effectively is something we at the Mutual are proud of as it is through the claims experience that our members test the quality of the Mutual,” says Mr Cleland.
FMG is a specialist rural insurer with 5% of the overall general insurance market. It’s a 115-year-old Mutual and is 100% New Zealand owned. FMG has been assigned a Financial Strength Rating of A (Excellent) as accorded by the international rating agency A.M. Best Company.
Claire Broun, FMG External Communications
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