High Returns for Local Market

High Returns for Local Market

After 101 years in the field, New Zealand’s leading rural insurance firm is looking forward to a bright future.

FMG, who are holding their AGM in New Plymouth next Tuesday, August 29, have enjoyed a strong 2005/2006 profit and growth result.

Posting a net profit of $17.57 million (up from $13.82 million in 2004/05) and equity growth of 22.7%, FMG has developed a sound base with excellent financial reserves. This will enable them to continue to strongly support all customers and the rural sector.

“Our core business is supporting rural New Zealand so we are pleased that our financial performance this year ensures we are able to enter our second century of business with a secure outlook for the future,” says Gordon Smith, Chief Executive of FMG.

“We are also pleased to be holding our AGM in New Plymouth, part of the rural heartland of New Zealand. Given that this is a region where our insurance and finance operation has had considerable success, it was a natural choice for us to come together to celebrate our growth with our customers in Taranaki.”

“Taranaki is also home to one of our inaugural FMG Centennial Scholarship winners Sarah Payne from Waitara who is undertaking her first year studies at Massey University.”

Strong financial reserves have also allowed FMG to offer commercial insurance products to their customer base in the farming industry, something not previously done before. Mr Smith says the decision to expand into commercial insurance is part of FMG’s commitment to supporting the full range of its customers’ portfolios.

“As the largest insurer to the rural sector we want to ensure all our customers’ interests are protected. Our expanded product range means that commercial businesses that service the farming industry are now able to access our range of quality insurance services,” he says.

FMG Finance and FMG Investment Advisory services have also enjoyed good results during the past year and both continue to grow positively.

FMG currently has an A- (Excellent) rating from A M Best Company and has continued to grow its market share of the rural New Zealand insurance market to 39%.

“We are very pleased with the result this year but our focus is firmly on ensuring the company has a stable future outlook. Our improved claims paying ability and equity ratio assures customers of our ability to continue to grow and support the New Zealand farming industry for another 100 years,” Mr Smith says.

ENDS

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