Rural insurer FMG has announced what it is calling a solid profit of $10 million for the last financial year, clearly escaping the woes of urban insurers affected by the recent Canterbury earthquakes.
FMG chief executive Chris Black said the result was outstanding, considering it was the worst concentrated period of natural disasters the company had seen in its 106 year history.
In addition to the earthquakes, there were also three major storms in the last year.
“This year has been probably the toughest year in general insurance history in New Zealand.
“The two big earthquakes and this latter aftershock, 13th of June, plus three big storms so look we’ve just helped our clients through those earthquakes and also the three storms.
The big Spring storm came two weeks after that first earthquake so that was particularly difficult.
“So we’re just helping people get people back on track as a result on those. But yeah it’s been a pretty tough year on all of that.
“In terms of the impact on us and our financial result we’re just pleased to produce a very good result and absorb the impact of the earthquakes and also the three storms.”
Chris Black says FMG’s spread, and mix of its insurance portfolio and pricing on a customer by customer basis, proved its worth.
However, farmers’ premiums are still likely to rise considerably.
Chris Black says while there is plenty of market speculation about insurance premium increases, ranging from anywhere between 20 and 60 percent and above, FMG’s increases are likely to be at the lower end of this range.
