FMG and Farmlands have agreed to continue their strategic partnership for another three years, reaffirming their joint focus on supporting rural communities throughout New Zealand.
This collaboration, which began more than 50 years ago, enables both organisations to deliver insurance and advisory services tailored to the needs of farmers and growers.
Under the renewed agreement, Farmlands cardholders will retain the option to pay FMG insurance premiums through their Farmlands accounts.
This arrangement is intended to streamline administrative processes for rural clients by consolidating invoicing and simplifying account management.
The partnership renewal coincides with FMG’s 120th anniversary. Founded in 1905 as the Otago Farmers’ Union Mutual Fire Insurance Association, FMG has evolved into a national insurer, expanding its product range and geographic reach over the decades.
FMG chief executive Adam Heath highlighted the origins of the mutual insurance model in New Zealand’s rural sector, noting that similar organisations were soon established in other regions.
“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.”
The 1970s saw a series of mergers among smaller mutual insurers, eventually leading to the formation of Farmers’ Mutual Group in 1978, headquartered in Palmerston North.
FMG now operates 32 offices nationwide and provides a broad suite of insurance products, including commercial, residential, lifestyle, life, and health cover.
FMG reported a net profit after tax of $76.7 million for the 2023-24 financial year, a turnaround from the previous year’s losses.
The insurer attributed this improvement to more stable investment markets and the absence of large-scale claims 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,” Heath said.
This financial performance has enhanced FMG’s ability to manage future claims and maintain its long-term commitments to policyholders.
FMG’s leadership credits the company’s endurance to its close relationship with New Zealand’s agricultural sector.
Heath said that the company’s origins and continued operations are closely tied to the needs and challenges of farmers and growers.
“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.
FMG has supported clients through a range of risks, including major natural disasters such as earthquakes and cyclones.
Heath said the company’s core purpose remains unchanged.
“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.
