Rural NZ insurance firm FMG has reported a net profit of $NZ17.57 million ($14.59 million) for the year to March, up from $NZ13.82 million ($11.48 million) in 2004/05. CEO Gordon Smith says the increase in profit provides FMG with a secure base and financial reserves.

“Our core business is supporting rural New Zealand, so we are pleased that our financial performance this year enables us to enter the second century of business with a secure outlook for the future,” he said.

He says FMG is now able to offer commercial insurance products to its customer base in the farming industry through building financial reserves in a sensible way.

“As the largest insurer to the rural sector [in NZ] we want to ensure all our customers’ interests are protected. The expanded product range means any commercial business that services the farming industry is now able to access our range of quality insurance services.”

FMG claims a 38% share of the NZ rural insurance market, which is growing annually.

Mr Smith says the company is pleased with the result this year but its focus is firmly on a stable future. “Our improved claims-paying ability and equity ratio ensure we can continue to grow.”