FMG posts $8.5m profit, grows client base
Rural insurer FMG has posted a net profit after-tax of $8.5 million for the year to 31 March, down 15% from $10m for the 2010-11 financial year.
The company says its client base has also grown 8.5% to 55,000 clients and it has increased its capital reserves 6% from $140m to $149m.
Chief executive Chris Black says client growth has been consistent across all parts of the rural sector.
He says the strong financial performance was due to FMG's "deliberate risk diversification, strong capitalisation and a dominant position in the rural sector".
In addition to growing its client base and capital reserves, FMG also increased its gross written premiums 14% from $131m to $150m.
Mr Black says the company's financial position has held up well despite the Christchurch earthquakes and March's "weather bomb" which caused $7m worth of damage in the central North Island.
"The financial impact of the disasters has been absorbed, with only a small impact on our financial results," he says.
FMG's A credit rating was also reaffirmed by AM Best today.