14 Jul 2014

Rural insurer takes a hammering

7:45 am on 14 July 2014

Leading rural insurer, FMG has taken a hammering from a run of severe weather events and earthquakes in the past year.

But it has still emerged with the fourth strongest financial result in its 109-year history.

The New Zealand owned insurer recorded an after tax profit of $17.5 million.

That almost halved the previous year's record profit of $31.3 million.

FMG chief executive Chris Black said the biggest impact came from the Canterbury wind storms in September and October last year.

"And that cost about 16-17 million, which is really the difference between those two. And for the first time, quite a lot of irrigator claims. We had about 260 of those, so that cost about 7 or 8 million of that 17.

"But there were another eight storms on top of that last year and three series of earthquakes as well, so, it was a tough year in terms of weather and also the geological side."