Dutch insurer Achmea expects to sharply increase premiums written in Australia, according to its profit report for last year.

It began selling rural insurance here at the end of 2013, distributing through its bancassurance partner and major shareholder Rabobank.

The report says sales picked up from June last year, and the claims-handling process has been proceeding smoothly.

The company operates in rural NSW, Queensland, Victoria, SA and Tasmania. Australian CEO Timo van Voorden plans to have a WA operation running in May.

He told insuranceNEWS.com.au Achmea has written cover for $1 billion in rural insurance policies, excluding liability.

Although Achmea is a major general, health and life insurer in the Netherlands, Mr van Voorden says it is focused on growing its geographic footprint in Australia, then increasing in scale to farm pack clients.

“There is a lot of value in staying very focused. This was always meant to be a niche player.”

He attributes Achmea’s success in gaining a foothold to a focus on personal service and risk management.

The company was established more than 200 years ago by farmers, and shares its knowledge on loss prevention with clients.

Mr van Voorden says farmers appreciate working with risk specialists to keep premiums low.

The partnership with Rabobank brought trust and credibility in the beginning when Achmea was unknown, he says.

The parent company is undergoing a transformation that saw profit slump to €16 million ($22.36 million) from €349 million ($487.68 million) due to reorganisation expenses and goodwill impairments.