Nine storms and three earthquakes cut New Zealand insurer FMG’s net profit to $NZ17.52 million ($16.23 million) last financial year.

This compares with a $NZ31.26 million ($28.96 million) net profit in the previous year.

FMG CEO Chris Black says the number of events was the highest this century, and cost the mutual $NZ16 million ($14.8 million), net of reinsurance recoveries, and reinforced the need for conservative and sustainable capital management.

The company’s general insurance gross written premium rose to $NZ204.5 million ($189.4 million) in the 12 months to March 31 from $NZ167.57 million ($155.22 million).

Operating profit comprised $NZ3.5 million ($3.2 million) from underwriting as well as investment earnings of $NZ16.3 million ($15.1 million).

“Despite the impact of severe weather and more earthquakes, it is pleasing to note that client satisfaction is currently running at the highest levels on record,” Mr Black said.

FMG has settled 91% of claims from the 2010 and 2011 Canterbury earthquakes, and has fewer than 300 remaining.