NZ’s AMI Insurance has bucked the financial trend by posting good results for last financial year – although it doesn’t expect to do so well this year.

The country’s largest wholly NZ-owned general insurer has posted a $NZ26.9 million ($23 million) net profit after tax for the financial year to June 30 – just under last year’s result of $NZ28.4 million ($24.4 million).

This is despite claims costs increasing by 13% to $NZ189.9 million ($163.4 million) due to a number of localised storms, flooding and landslides in Auckland, Wellington and Canterbury, and escalating building repair costs.

CEO John Balmforth says the good results are largely due to growth in written premium, a falling ratio of management expenses to premium, and a very satisfactory return from investments.

“Given the market and economic conditions and a record year of growth in both customer and policy numbers, this was an outstanding result,” he said. “We had growth of 34.2% in our investment returns which is very satisfying.

“While we do not expect the same level of return in the current financial year, our conservative investment policies have paid off.  We have minimal exposure to the risky elements in the market.”

The insurer’s sustained high level of performance also recently earned the company a financial rating upgrade by AM Best from A to A+.