FMG Advice and Insurance is recognising 120 years of service in New Zealand’s rural insurance market.
Originally founded in 1905 as the Otago Farmers’ Union Mutual Fire Insurance Association, the organisation has evolved over the decades, expanding its reach and services.
Chief executive Adam Heath highlighted the company’s origins, explaining that the concept of a mutual insurance model gained momentum early on, leading to the establishment of similar organisations in Wellington, Taranaki, and Hawke’s Bay.
“This marked the beginning of a new era in rural insurance,” he said. “It was also the very beginning of the business we are now, 120 years later.”
During the 1970s, several smaller mutual insurance groups merged to form stronger entities, which ultimately led to the creation of Farmers’ Mutual Group in 1978, based in Palmerston North.
Heath reflected on the changes FMG has navigated, noting its resilience through global and industry-specific challenges.
“We’ve seen two world wars, the rise of computer technology and artificial intelligence, major earthquakes and floods, and more recently, the confronting nature of increasing climatic events on the planet,” he said.
Today, FMG operates 32 offices across the country and continues to provide services in Otago, where it was originally established. The insurer has expanded its offerings beyond rural insurance to include commercial, residential, lifestyle, life, and health cover.
FMG reported an improved financial performance for the 2023-24 fiscal year, following a challenging prior period.
The insurer posted an after-tax profit of $76.7 million, a shift from the losses recorded in the previous year. This recovery has strengthened FMG’s financial position, improving its ability to respond to future claims and maintain long-term sustainability.
Heath attributed the turnaround to more stable investment markets and the absence of large-scale insurance events.
“Almost half of this profit is due to the favourable performance of investment markets, coupled with the fact [that FMG] has not had to tackle any major catastrophic events over the course of the 2023/ 24 financial year,” he said.
Heath attributed FMG’s longevity to its close ties with New Zealand’s agricultural sector, stating that farmers and growers have historically worked together to manage risks and develop solutions.
“Our country’s history reveals a primary sector that has always challenged the status quo, teamed up to pool resources, shared knowledge and capability, and created something special. We are a product of this sector and mindset, borne from farmers and growers for farmers and growers,” he said.
He also acknowledged FMG’s role in helping clients manage both everyday risks and large-scale disasters, citing events such as the Napier, Edgcumbe, Canterbury, and Kaikōura earthquakes, as well as cyclones Bola and Gabrielle.
Despite the changes over the years, Heath said FMG’s core mission remains the same.
“One thing has not changed, and that’s putting our clients right when it has all gone wrong. We’ve been here for 120 years, and we intend to be here for another 120 more,” he said.
