The mutually-owned model is working for the group and the rural sector, chief executive Chris Black said.
Based on independent surveys, market share across each of the categories, the traditional rural sector and now horticulture, viticulture and vegetable growing, ranged from 40% to 60%.
FMG made an after-tax profit of $19.1 million for the year, up from $12.1m a year earlier.
The year was one of a record number of claims and overall client growth with trading helped by the absence of major storms. There was just one big storm, in Auckland region early in the financial year, down from seven a year earlier, Black said.
Total claim settlements added up to $181m, $19m higher than the year before. The higher number of claims and costs came as part of the increased level of business being written.
FMG’s insurance underwriting profit was $10.8m ($9.2m higher) and the income from investment was $14.2m ($800,000 higher), for a group pre-tax profit of $25m.
The after-tax earnings are added to capital reserves, which rose to $257.4m from $238m.
That is enough only to maintain the capital ratio at a steady year-to-year level of 2.2 times the minimum capital required by the Reserve Bank because of the need for more capital to match business growth and new clients added during the year.
The increase in claims – what are called underlying claims rather than major event claims – were typically for vehicles, house fires and content loss.
In recent years the group has put a lot of focus on advice to clients on management to avoid loss.
An example is keeping starlings out of tractor engines in spring.
“You can stop the tractor for lunch and in 17 minutes the starling can find a dark, warm place to build a nest then you come back and start the engine,” Black said.
Quad bikes, tractor-driving and house fires are also the subject of advice to clients.
Key-person cover is an increasingly important part of farm insurance.
FMG is still settling claims from the Kaikoura earthquake in 2016 with 30 on hand at balance date and 15 from the Canterbury earthquakes in 2010-11.
Many have since been settled though a small number of new claims is still being received on the Canterbury earthquakes.
FMG’s Farmstrong rural wellbeing programme, now in its fourth year, is showing positive results, he said.
