FMG achieves excellent results

Media Statement
June 21, 2005
For Immediate Release

FMG achieves excellent results

Leading financial services company FMG has posted a profit before tax of $20.0 million in the 2004/2005 year, up from $12.6 million the previous year.

FMG Chief Executive Gordon Smith said the result was extremely pleasing as the company was also able to increase equity in reserves by $13.8 million (22%), pushing total reserves to a healthy $77.3million.

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

“The strong profit result is based on a better underwriting result, stable investment return and an increase in market share and premium income.

“The results represent excellent progress for the group and further strengthen our ability to provide the product and security that will continue to meet the needs of customers in rural New Zealand and Australia,” he added.

Mr Smith said other highlights from the year included a 12.0% growth in general insurance premium income, a 5.0% increase in total operating revenue and the maintenance of the company’s A- (Excellent) rating from the international rating agency, AM Best Company.

He said the company also experienced exceptional growth in its Australian operation.

“We are unique in our unwavering support of the rural market as a manufacturer and distributor of financial services.”

FMG now has 36% market share of rural general insurance in New Zealand and is the undisputed market leader.

“The total concentration on selected core business functions is enabling us to better support customer needs and exceed service expectations.”

Based in Palmerston North and formerly Farmers’ Mutual Group, FMG offers a select range of financial services covering:
Rural, commercial and domestic general insurance in support of rural communities
A total package of life insurance products
A full service finance company
A quality financial advisory service.

“Our future aim is to achieve a greater focus on enhancing client relationships, further business growth and profitability to ensure the future of the business for all customers, existing and potential,” Mr Smith says.

FMG holds its 100thth annual general meeting in Dunedin on August 24.

ENDS

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