In this guest blog, Adam Heath, Chief Executive Officer at FMG (Farmers Mutual Group, New Zealand Aotearoa) and member of ICMIF’s Board of Directors, reflects on his organisation’s heritage and the critical role that mutuality has played in FMG’s 120 year history.
February and March 2025 marked two significant milestones for FMG — the second anniversary of Cyclone Gabrielle and the tragic weather events of 2023, as well as the celebration of FMG’s 120th year of operation.
First and foremost, I wish to acknowledge the loss of 11 lives and the widespread devastation caused by Cyclone Gabrielle, which now stands as New Zealand Aotearoa’s largest natural disaster this century. It also represents the most significant claims event in FMG’s 120-year history. FMG supported 5000 clients, with a total of 12,000 exposures and NZD 307 million paid to date.
As FMG celebrates 120 years of existence, it’s important to reflect on our heritage, and the critical role mutuality has played in our journey to date. It all started in 1905, when a visionary and pioneering group of farmers, led by Sir James Wilson, became disenchanted with the offerings from proprietary insurers of the day and decided to take things into their own hands. Those early pioneers started the Mutual with a promise in the form of GBP 100 Promissory Notes, agreeing to honour the claims of other members up to this amount. A great example of the essence of mutuality – that is: “what is returned is what a member contributes”.
FMG was started by farmers for farmers, with an innovative idea to address a lack of fairness in the insurance market of the day. Innovation has been at the core of the Mutual ever since as we continue to deliver to our Purpose of a “better deal for rural New Zealand Aotearoa” and our Vision of “helping to build strong and prosperous rural communities” – both of which have remained relatively unchanged. We’re proud to have the majority of the rural market share 120 years on.
As a Purpose-led, Values-based mutual insurer, FMG is determined to be here for future generations of farmers and growers for at least the next 120 years. To do so, we need to ensure we are resilient, sustainable and well capitalised. FMG’s focus on being profit making and not profit maximising means we focus on running a sustainable business with any surplus reinvested back into the Mutual and the local communities we support. This year we’ll also be joining with other fellow Purpose-led, Values-based mutual and cooperative businesses to celebrate the United Nations’ International Year of Cooperatives (IYC2025).
As we mark 120 years of service, it’s encouraging to see a lift in optimism across rural New Zealand Aotearoa. According to the latest Federated Farmers survey, farmer confidence is at its highest level in over a decade, with 54 percent of farmers now reporting a profit — double the figure from the previous survey just six months ago.
One of the advantages of being a mutual insurer is that when claims and running the business is not costing us as much, we can pass those savings back to our clients and Members. FMG is doing its part by passing on pricing decreases across several of our product lines. The first round took effect in November, a second was implemented in April and a third round is planned for July. While recently announced increases in Government levies — such as the Fire Service and Natural Hazard Commission levies — may affect overall premiums, FMG remains committed to doing all we can to provide a better deal for rural New Zealand Aotearoa.
2025 is shaping up to be a year of celebrations for FMG as we also recognise 10 years of being a founding partner of Farmstrong, a programme which supports the health and wellbeing of rural New Zealand Aotearoa, and 10 years as Principal Sponsor of the FMG Young Farmer of the Year Contest. These key sponsorships reflect the Mutual’s continuing commitment to rural communities through our support of the positive mental health of farmers and growers and our investment in the rural leaders of tomorrow. Here’s to the next 120 years of keeping the promise strong.
