Rural insurance company
FMG has recorded a loss of $3.3 million this financial year, driven by the Kaikoura earthquake.
“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,” FMG Chief Executive
Chris Black said.
The insurer’s paying claims hit record high of $152 million, up by $15 million from last year.
“With the Kaikoura Earthquake, we’re making good progress and have now settled 40% of our 3,300 claims. We remain on track to be three-quarters complete one year on in mid-November. We will have achieved this while at the same time responding to the much higher level of non-earthquake claims, including those related to ex-cyclones Debbie and Cook,” Black said.
Overall, the business is financially sound, Black said. “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.”
FMG’s client numbers were up by 6%. Its income growth for the Mutual was at 9.5% with expense growth of just 4.6%. The personal insurance side of the business registered a double-digit growth from the previous year.
Related stories:
FMG estimates $40m in quake damages
Private insurers paid out $0.5 billion in Kaikoura quake claims
