New Zealand general insurer AMI Insurance has achieved a profit of $NZ12.1 million for the year – down on 2001 but generally regarded as a solid result in light of the difficult NZ insurance market.

The cost of property damage caused by recent weather disasters and the flow-on effects of September 11 have impacted harshly on NZ’s insurance industry – more harshly than the kiwis had expected..

CEO John Balmforth said the result is “excellent when the challenges that the insurance industry faced in 2001-2002 are considered”.

Revenue from premiums rose to $NZ185 million, but claims costs also rose by 10% to $129.8 million. Investment income fell from $NZ15.6 million to $NZ11.0 million, but still made up most of the profit.

AMI’s reserves also rose to $NZ150 million. Its solvency margin also rose 2%, causing AM Best to confirm its A (Excellent) rating.