FMG’s financial year has ended with another record in paying claims, up $15m on last year to $152m.
“Paying claims is one of the main reasons we exist—and being here for clients when the unexpected happens is something we take a lot of pride in as a team,” said FMG’s Chief Executive Chris Black.
The higher than expected claims costs, along with $18m in costs associated with the Kaikoura Earthquake, have been the main factors in FMG recording a modest loss this year of $3.3m.
“As a mutual we take a long-term view to relationships and business. Given the volatile nature of our industry we anticipate a loss from time-to-time and are therefore, well placed to manage this year’s result.
“Overall the business is financially sound and one of the most well capitalised and fastest growing insurers in New Zealand. We have $226m in reserves, an A (Excellent) credit rating and 2.25 times the minimum capital required by our regulator, the Reserve Bank of New Zealand,” said Mr Black.
More and more farmers and growers, commercial businesses and lifestyle owners are choosing to insure with FMG and in the last year client numbers grew by 6%. In addition, the Mutual experienced 9.5% headline income growth in comparison with expense growth of just 4.6%. The personal insurance side of the business also grew strongly with double-digit growth on the previous year.
