New Zealand-based agricultural insurer FMG has posted a profit before tax of $NZ20 million for the year to March 31 – a good rise on the previous year’s $NZ12.6 million.

CEO Gordon Smith says the result was especially pleasing because the company was also able to increase reserves by $NZ13.8 million, pushing total reserves to $NZ77.3 million.

“FMG has achieved excellent results this year, following four years of repositioning,” he said. “Our concentration on core business activity has enhanced our general insurance products, policy wording and service delivery.”

Mr Smith said other highlights from the year included a 12% growth in general insurance premium income, a 5% increase in total operating revenue and the maintenance of the company’s A- AM Best rating.

FMG – formerly the Farmers Mutual Group – now has a 36% share of the rural general insurance market in New Zealand.