Growing sustainable support
Note from Adam Heath
Kia ora koutou katoa
We certainly appear to be living in an era of volatility as I’m sure many of our Members and clients can attest to. Whether it’s a pandemic, weather events or inflation, the last few years have thrown up their fair share of challenges. Rest assured that as stewards and kaitiaki of the Mutual, everyone across FMG is doing all we can to ensure its long-term future and success. All of FMG’s ‘One Team’ is focused on adopting an ‘owners mindset’ as we continue to serve you, our clients and prepare for whatever the external environment has in store.
The 2023/24 financial result certainly goes some way to helping us do that by bolstering the Mutual’s retained earnings and strengthening our Balance Sheet. It also helps to ensure that FMG remains a resilient and sustainable insurer that is fit for the future and able to honour the promises we have made to our clients –both today and tomorrow.
I’m happy to report that FMG’s aftertax profit of $76.7 million is a welcome improvement in performance after 2022/23 record loss of $17.5 million. Much of that loss was attributable to the uncontrollable forces of nature that manifested in Cyclone Gabrielle and the Auckland Anniversary Weekend
floods. Somewhat ironically, it is the combination of uncontrollable factors once again (i.e. no catastrophe claims events and over-performance in investment markets) that has helped to reverse the position and has contributed to FMG’s strong profit performance. The underlying business of FMG also remains in very good shape.
Achieving a strong profit enables the Mutual to restore Members’ capital that was eroded as a result of last year’s loss. It also stands FMG in good stead to continue meeting claims arising from events like Cyclone Gabrielle, which are expected to increase in frequency and severity in the future. You can read more about our full financial results in our Annual Report available here.
FMG’s Vision is to ‘help build strong and prosperous rural communities’, and consistent profitability over the longterm plays a critically important role in helping to achieve that outcome. As a mutual, FMG must create and sustain our own capital to support continued growth and deliver to our Purpose of ‘a better deal for rural New Zealand Aotearoa’. We do this by providing continued access to appropriate and competitive insurance solutions and quality risk advice. Every dollar of profit FMG makes is reinvested back into the
ensuring we’re able to pay
claims, both now and into the future, and assisting FMG continue support over 700 events and sponsorships across rural New Zealand Aotearoa every year. FMG was once again a proud supporter of the FMG Young Farmer of the Year Contest (our ninth consecutive year as Principal Sponsor) which you can read more about on page 14.
FMG also continues to support rural wellbeing through our association with Farmstrong, which is approaching its tenth year, and via our partnership with Melanoma New Zealand.
I am acutely aware that the announcement of our result comes at a challenging time with tough economic and trading conditions being experienced by many across the rural sector, particularly those in sheep and beef with on farm profitability still a major concern. Winter is also presenting challenges across large parts of the country with drier than normal conditions placing additional pressure on many farms due to feed levels. Our clientfacing teams remain committed to doing all we can to help find tailored insurance solutions and provide meaningful risk advice to assist those who are currently finding it particularly tough.
My hope is you will view our financial performance as an assurance that your
mutual insurer is in a healthy position, capable of continuing to look after you when the unexpected happens. Part of that involves FMG being a sustainable mutual, whether that be economically, environmentally, or socially.
Sustainability is also a key theme featured in this edition of FMG Post as we take a look back at the financial year that’s been and how everyone across our ‘One Team’ at FMG have been focused on making sure that FMG is ‘Here, there and everywhere’.
I’m pleased to share that FMG has now closed 98% of claims attributable to Cyclone Gabrielle and the Auckland Anniversary Weekend floods, investing $295.7 million dollars back into rural and provincial communities to help people and the sector get back on their feet.
We’re hopeful that this support goes some way to ensuring that the food and fibre sector remains a cornerstone of New Zealand Aotearoa’s economy, given the significant value it delivers for the country, forecast to climb to a recordbreaking $58.1 billion in the year ahead.
Your contributions on farm and in the orchard play a pivotal role in the nation’s wellbeing and prosperity and FMG takes great pride in standing alongside you, ready to tackle the opportunities and challenges ahead, together.
in the Mutual. We would not be here without it. I would also like to express our special gratitude to Dr Jolene Germann, who has set an exemplary standard as FMG’s inaugural Associate Director. Jolene has been an invaluable asset to the FMG Board, and we wish her the greatest success in her future governance career.
Lastly, as we bid farewell to Director Debbie Hewitt, I would like to acknowledge Debbie’s dedicated service and contribution to the FMG Board. Thank you/ngā mihi nui Debbie and we wish you all the very best for the future.
Kind regards / Ngā mihi,
ADAM HEATH, CHIEF EXECUTIVE FMG
Get to know your hazardsnaturalcover
Our beautiful country is at high risk of natural hazards. It’s good to know our national natural hazards insurance scheme has you covered, and to understand its limits.
EQC has changed to NHC Toka Tū Ake
From 1 July 2024 EQC became the Natural Hazards Commission Toka Tū Ake.
New legislation has come into effect, the Natural Hazards Insurance Act, and any new claims for natural hazards damage that occurred on or after 1 July 2024 will be managed under this new Act. The cover is called Natural Hazards Cover (NHCover). Any damage that occurred before 1 July 2024 would be covered under the Earthquake Commission Act 1993.
The cover is similar under both Acts, and you can read more about the changes on the NHC Toka Tū Ake website.
Your Natural Hazards Insurance levy ensures you have access to NHCover
If your property is damaged by a natural hazard, NHCover provides the first layer of insurance for your insured home and cover for certain areas of land under and around it.
Anyone with a valid insurance policy with FMG that has fire cover has access to this cover and pays a levy through their insurance premium.
NHCover covers you for a range of natural hazards
It covers damage to your home and land from a range of hazards, including earthquakes, landslides, volcanic activity, hydrothermal activity, and tsunami.
It also covers damage to your insured land from storms and floods (home cover for these events is usually provided through your private insurance policy).
Cover is also provided from fire that occurs because of any of the above natural hazards.
If you have any questions talk to FMG
As your insurer, FMG works on behalf of NHC Toka Tū Ake to assess and manage claims to make the process simpler for you.
If you need to make a claim or have questions about your cover (including what’s covered and what’s not, and what additional cover is available through your private insurance policy), get in touch with us and we’ll talk you through it.
Know your cover
Your home – the first $300,000
For your home, the Natural Hazards Commission Toka Tū Ake provide cover for: your home or holiday home
• separate buildings or structures that you use as part of your day-to-day living (for example sheds, garages, pergolas)
• some essential services that serve your home, such as water supply, drainage, sewerage, gas, electricity, heating, or telecommunications.
How much is covered
If your home is damaged by a natural hazard, the Natural Hazards Commission Toka Tū Ake can generally provide up to the first $300,000 + GST towards repairing or replacing your home and related buildings.
Any cover over this amount is provided through your private insurance policy with FMG.
It’s a good idea to regularly check that the amount of home cover you are purchasing is enough to rebuild your home.
Your land – unique cover with limits
New Zealand Aotearoa is one of the only countries in the world with access to residential land insurance, provided by the Natural Hazards Commission. This cover is generally a contribution to repairs, and you can’t buy extra land cover through your insurer.
For your land, a limited area is covered: the land under and up to 8m around your home and related buildings and structures
• the land under your main accessway up to 60m from the house
• some retaining walls, bridges and culverts, to a limit.
Your land cover is capped
The Natural Hazards Commission can only provide cover for repair costs up to the land cap, which is based on the value of your insured, damaged land.
Because it is a contribution, the cover sometimes won’t be enough to fully repair the damage to your property. It’s important to understand these limits and how you can manage the risks to your property.
“It’s an exciting time to be involved with Farmstrong and I know we can reach even more people”
FARMSTRONG AMBASSADOR SAMUEL WHITELOCK
Farmstrong goes strengthfrom to strength
Farmstrong continues to deliver impressive results for rural New Zealand as it enters its tenth year.
The wellbeing programme was set up by the Mental Health Foundation and FMG in 2015 to help farmers, growers and their families cope better with the ups and downs of life. ACC joined as a strategic partner in 2016.
Since its launch Farmstrong has positively impacted the lives of thousands of farmers, growers, their workers and families.
Each year Farmstrong conducts an annual survey to see how the programme is tracking. This research consistently shows that being Farmstrong helps people perform at their best on farm, improves
their ability to manage challenges and helps prevent injuries.
What the science tells us is that mental health is just like physical health – it can be good or bad. So just like you can get physically fit, you can also become mentally fitter and stronger.
Last year more than 14,000 farmers and growers attributed an increase in their wellbeing to the programme. Results like this have caught the attention of other industries and countries. The residential construction industry has just rolled out its own version of the programme – Live Well, Build Well - and there’s now a Farmstrong up and running in Scotland.
Farmstrong ambassador Samuel Whitelock says: “It’s an exciting time to be involved with Farmstrong and I know we can reach even more people. What
Farmstrong has been working closely with the Rural Support Trust as part of the Cyclone Gabrielle recovery response, supporting Bitches’ Box comedy shows (pictured) in floodaffected communities, to get people off farm for a fun night out.
I like about Farmstrong is that it’s all about farmers and growers sharing what works for them to deal with the tough times. There’s a lot of wisdom in our rural communities that people can tap into through Farmstrong.”
“Farmstrong gets farmers and growers talking about things like managing stress, recognising when people are ‘under the pump’ and doing something about it.”
The logic of the programme is simple. People are the most important asset in any business and anything that boosts their wellbeing and ability to perform under pressure is going to be good for the business.
Farmstrong encourages farmers to invest regularly in their ‘wellbeing bank account’ so they have plenty to draw
on during tough times. A suite of new resources for farmers and growers called Getting Through – What it takes to recover from extreme weather events is due to be launched in August.
The book and accompanying video clips feature farmers and growers in floodhit areas sharing what helps and what doesn’t when you’re trying to get back on your feet during a long-haul recovery. The book also contains a toolkit of mental skills and thinking strategies specifically designed to help people navigate challenging and uncertain times.
Farmstrong has many supporters around the country who are passionate about the industry and keen to pass on what they’ve learnt about managing the pressures of farming and growing. Waikato dairy farmer Marc Gascoigne,
who often represents Farmstrong at events, reflects on his involvement.
“I have got a lot out of being involved as a Farmstrong ‘champion’ by giving talks to various groups about my story. I know that words can be powerful and can really change lives for the better. That is immensely rewarding and helps me with my wellbeing, as well as the people I am reaching.”
Another champion is Taranaki farmer Kane Brisco, best-selling author of Tools for the Top Paddock. “I think as a farming community we need to be much more open about the pressure we face. Let’s start having that conversation as an industry, because our wellbeing should be an absolute priority on our farms.”
Farmstrong tools and resources are available for free to farmers and growers and their networks. Head to farmstrong. co.nz to find out what works for you and your team and ‘lock it in’.
As Farmstrong approaches ten years, the key lesson learnt is that even small changes in daily habits and thinking patterns can make a huge difference to people’s wellbeing and resilience.
From 2019 to 2023, there were 22 quad bike-related fatalities in New Zealand Aotearoa, most involving rollovers and steep grades. Between January and June this year FMG has had 142 quad bike claims and 102 side by side claims. The following advice includes insights from claims analysis along with industry research.
Focus on the ground ahead
Seasonal differences, weather, and stock movement will cause changes to your terrain. Wet and muddy conditions can change the way your quad bike will handle, which could lead to a rollover.
That one last task could be your last
Reduced daylight hours can have us doing more in the little daylight time we have. Be willing to let that last task of the day be a tomorrow job - rather than putting the vehicle and yourself in a compromised position. When you are concentrating on a task it can be easy to forget simple things like putting the handbrake on.
FMG has been working with Safer farms to improve quadbike safety and partnered with industry expert training providers CARNZ to facilitate on farm practical workshops. If you’d like a Farm Vehicle Safety workshop in your area, register your interest here.
Quad bike and side-by-side safety
Advice
Slow down. It doesn’t take much to roll. An object 15cm in size (such as small logs, mounds, ruts, etc) hit at the relatively low speed of 25 km/h can cause a quad bike to roll.
Stick to the track. Ensure new staff and visitors are familiar with the terrain and potential hazards. Stick to the tracks where possible.
Check the depth of waterways before crossing. Movement of the bed and water levels may make previously crossable streams impassable.
Use the right vehicle for the right job. If you’re carrying passengers park up and use the ute. Follow vehicle guidelines.
Take a break. Fatigue will slow down your reaction time. Being tired or stressed may mean you are less likely to notice a change in your surroundings. Take regular breaks and remember to fuel up with healthy food and stay hydrated.
Check your tyre pressure and tread depth. Varying or incorrect tyre pressure can impact traction and stability, contributing to a potential rollover. Know your manufacturer recommendations and check your tyres regularly as part of a pre-ride check. You may need to adjust your tyre pressure seasonally or with changes to your terrain.
GET SOME FMG SAFETY MERCH
Varying tyre pressures can impact the stability of your bike. If you’d like your own handy tyre gauge be one of the first 25 to fill in this form and answer a simple question.
Order your free quad bike safety sticker here.
We're waging war on lint
It's soft, and it's fluffy... but there's a sinister side to this laundry by-product.
And it’s hot. Smoking hot.
In fact, last year, an unemptied lint filter in a tumble dryer was the cause of a total loss house fire for a client in Oamaru. Thankfully the sleeping tenants made it out ok but those tiny microfibres of hot fuzz had gutted the house from the laundry to the front door.
To tackle the problem of unemptied lint filters, and after a few prototypes, the excellint bag was born.
These fire-retardant lint bags attach to your tumble dryer by magnet as an easy place (and reminder) to empty your lint filter before each use. It’s a win-win –helping to prevent the risk of a fire and to dry your washing faster.
FMG’s Advice Business Analyst Avril Carlsson said it is about removing the excuse from tumble dryer users.
FMG featured on Seven Sharp discussing the dangers of lint. Watch the story here.
“It is easy to say I will do it next time, or not want to walk back to the kitchen bin to get rid of it. This gives people a special spot in the laundry for stashing it.”
FMG’s answer to the fiery lint problem debuted at this year’s Mystery Creek Fieldays. Around 140 lint bags were given away with an information sheet igniting positive dryer safety behaviours.
Complete the form and go in the draw to win a Lint Bag pack (including FMG Lint Bag, Lindt Chocolate, and dryer balls).
Don’t let a spot become a full stop
Working rurally often means more time outdoors and high UV radiation exposure – leading to a higher melanoma risk. During winter, it’s important to remember to still protect yourself from harmful UV radiation. In fact, UV intensity increases due to reflection from snow, water, and even concrete.
Dubbed the FMG Spot Check Roadie, we’ve travelled with Melanoma New Zealand to events around the country since 2021, offering free melanoma spot checks.
Last year, 17% of our rural spot checks across the country detected suspicious lesions (852 spot checks found 144 suspicious lesions, including 42 suspected melanomas).
Around 300 New Zealanders die of
FMG Chief Client Officer, Glenn Croasdale, says “Our farmers and growers are exposed to New Zealand’s harsh sun each day and are among the most at risk of developing melanoma in the country. So, it’s critical to us that we support them and others in rural communities in having the information to protect themselves.”
Do a self skin check – watch instructional video here.
Get educated
Melanoma New Zealand has created an education programme which we’re offering to FMG clients for free. This means you can have all the knowledge you need for prevention and early detection of melanoma. Register here.
We’re back on the road again this year –visit fmg.co.nz/roadie to see when we’ll be near you.
Prevention is key
The good news is melanoma is both preventable and curable. If the UV index is 3 or higher, you need to be taking steps to protect your skin. You can check the UV index for the day on your weather app.
• Slip into a long-sleeved shirt or pants to cover up skin.
• Slap on a broad-brimmed hat to protect your neck, ears and side of the face.
• Slop on some water-resistant sunscreen (at least SPF 30). You need to apply 20 minutes before going into sun and every 2 hours after that. Always check the expiry date on your sunscreen before use – if it’s expired, it will be less effective in protecting you from the sun’s rays.
• Seek out some shade where you can or bring some portable shade with you while you’re out and about, like an umbrella.
• Slide on some sunnies with UV protection
“The lovely lady identified a spot she considered to be cancerous & advised me to get it checked out sooner rather than later. I booked in to a skin clinic in Napier and had a cancer removed and another spot removed for checks too. It was a true blessing that you provided this free service as I had been putting off getting it checked out for nearly eight years! Thank you so much for your proactive role in helping those of us who tend to just get on with life and not take skin spots as seriously as we should. You may well have saved me from having to break very sad news to my children.”
FMG’s sustainability year in review
At FMG, our commitment to sustainability is guided by the principle of mutuality. We strive for shared success and lasting partnerships, understanding that our actions today pave the way for future prosperity.
Sustainability is vital for FMG’s future, and our client research panel has provided insights into our Members’ expectations. Our Members prioritise FMG’s continued support for rural communities and affordable insurance, especially as climate change can influence an increase in weather-related events. FMG is committed to financial and operational resilience, ensuring we can support clients affected by climate change. Our decisions aim to keep FMG profitable, focusing on data improvement to manage climate risks and maintain insurance affordability.
Using business as a force for good
Members and clients also told us, when it comes to promoting our sustainable agriculture sector, they expect a business like FMG to lead by example. To help ensure FMG is walking the talk, when it comes to sustainability, we are beyond proud to have become the first B Corp certified, General Insurer in New Zealand.
The ‘B’ stands for ‘Benefit’ and is built on the premise of using business as a force for good. B Corps are businesses that meet some of the highest standards of verified, social and environmental sustainability, transparency, and accountability in the world.
B Corp Certification is considered the global gold standard for purpose-driven companies, committed to delivering benefits for people and the planet while remaining profitable. Read more about it here.
Everything is about people
The success of any business is built on the success of its employees. That’s why FMG strives to be a great place to work –attracting and retaining the best people to deliver on our Purpose of a better deal for rural New Zealand Aotearoa.
For the third year running, FMG was awarded a Gallup Exceptional Workplace Award at the 2024 Gallup Global Workplace Awards – the only Australasian business to have achieved this. One of 40 organisations worldwide, the award is based on exceptionally high employee engagement, professional development and workplace culture.
FMG’s Claims Capability Manager Kelly Stuart was also recognised as Manager of the Year out of 10 worldwide finalists. This award reflects FMG’s commitment to developing and supporting our employees to reach their full potential.
Environmental performance
FMG has been measuring and reporting on its Green House Gas emissions (GHG’s) since 2019. With a targeted 30% reduction in carbon emissions per employee by 2030, FMG has achieved a significant 13.66% decrease since 2019. Aligning with FMG’s commitment to sustainable practices that support the prosperity of rural communities, without resorting to harmful offsetting methods.
Transitioning to a hybrid fleet
FMG’s vehicles play a crucial role in our client-centric approach. Primarily used by our client-facing teams, FMG’s mobile fleet helps us deliver personalised service, trust-building, and relationship management throughout rural and provincial New Zealand. The transition of 214 internal combustion engine (ICE) vehicles, to a hybrid fleet (Toyota Rav4 Hybrid) started in February 2024 and is expected to take around 3 years to complete. With the Rav 4 Hybrids’ fuel economy of 5.0L/100km, compared to the existing fleet’s 8.3 L/100km, FMG expects to save approximately 64.65 tCO2e* annually. This represents the single biggest impact to meeting our 30% reduction target by 2030.
*Tonnes of Carbon Dioxide Equivalent. The GHG protocol standard categorises emissions depending on where they are generated.
Climate-related disclosures
We have also completed our first Climate Related Disclosure which you can read here. This work encourages insurers to think about how their business can and should operate in the future under different climate scenarios. It aligns strongly with our Purpose, Vision and desire to continue to be ‘here for the good of the country’ for at least the next 120 years.
Looking ahead, FMG will continue to build on our achievements and show leadership in sustainability, guided by our B Corp principles and our VisionHelping to build strong and prosperous rural communities.
Doing Darfield proud
George Dodson wins 2024 FMG Young Farmer of the Year.
In what may have been one of the greatest comebacks in the contest’s 56 seasons, speechless George Dodson was awarded the coveted title in front of a sellout crowd in Hamilton on Saturday 13 July. With an outstanding performance in Saturday night’s quiz, the Darfield Young Farmers Club member, pipped his fellow competitors by mere points to claim the 2024 title.
Dodson, the 23-year-old Tasman representative was well and truly lost for words as he became the 56th Young Farmer to don the Cloak of Knowledge and lift the trophy.
“Words can’t even describe how I’m feeling, the excitement is nothing I’ve ever felt before.”
Northern representative Caleb Eady came in a very close second, with Aorangi Young Farmer Gareth McKerchar coming in third.
George hopes winning FMG Young Farmer of the Year Contest will be a boost for his community and support him in the future as he looks to make the next step in his career.
Taranaki/Manawatū crowned 2024 FMG Region-Off champs
AgriKidsNZ, FMG Juniors and FMG Young Farmer of the Year Grand Finalists once again teamed up for a regional rural showdown to try and win $5000 for a local charity of their choice.
Points were earned through public voting and completing small, community focused challenges in the ‘Be Farmstrong Challenge’.
The $5000 won by Taranaki/Manawatū will go to the Grassroots Trust Rescue Helicopter. The region earned over 7,600 points, nearly triple the winning total from last year’s competition.
Their community spirit shone through in their ‘Be Farmstrong’ challenge entries. From making and delivering hundreds of meals to their local community, stacking firewood, sharing helpful advice, to helping their school groundskeeper with tasks.
Taranaki/Manawatū representatives
Taranaki/Manawatū FMG Young Farmer of the Year - Zayn Jones
FMG Juniors - Nicolas Verry & Jack Aitken-Cade (Palmerston North Boys’ High School), Haylee Baker & Mikayla Marshall (Feilding High School)
FMG Junior Young Farmer of the Year
Otago Boys’ High School duo Shamus Young (18) and Hayden Drummond (17) took out the 2024 FMG Junior Young Farmers of the Year title.
They were put to the test over two days through an exam, a speech, Practical Day challenges and a quiz.
AgriKidsNZ
AgriKidsNZ - Halcombe Black (Maggie Lintott, Max Ireland and Taylor Lane), Halcombe Red (Maisie Johnstone, Max Staples, and Jonty Howland), The Waituna West Farmers (Hamish Gallen, Ben Gallen and Braxton Jacobs).
Congratulations to 2024 AgriKidsNZ champions the Te Waotu Bushwhackers from Te Waotu School.
Champions Ben Barbour, Joshua Barbour and Jackie Sneddon not only picked up the top prize, but they also came in as the top team for all 2024 AgriKidsNZ challenges (Modules, AgriQuiz and the Race-Off).
TARANAKI/ MANAWATU
Left: Grand Finalists at the end of a gruelling practical day.
Top: 2024 FMG Young Farmer of the Year, George Dodson. Centre: 2024 FMG Junior Young Farmer of the Year Winners Hayden Drummond and Shamus Young.
Base: 2024 Agrikids Winners Jackie Sneddon, Ben Barbour, Joshua Barbour.
“I now have the skills and connections to be able to effectively contribute to the governance of large scale, commercial organisations.”
A life changing experience
Our inaugural Associate Director, Jolene Germann reflects on her time on FMG’s Board.
Southland farm consultant and dairy farmer, Jolene Germann says getting to join FMG’s Board gave her a real insight into what the governance of a largescale cooperative is like.
Having done a lot of governance training, and having some smaller governance roles, Jolene struggled to find the confidence to apply for more significant roles.
“It is a chicken and egg situation, you don’t apply for larger boards because you don’t have the required experience, but then you don’t get that experience because you don’t apply,” says Jolene.
The FMG Associate Director role provided an opportunity to experience what it is like being a director in every way, apart from having voting rights. “I completed director induction, was a part of the subcommittees, received the Board papers and took part in all Board meetings. I now have the skills and connections to be able to effectively
contribute to the governance of large scale, commercial organisations.”
During Jolene’s term with FMG, New Zealand experienced the Cyclone Gabrielle and the Auckland Anniversary Weekend Floods the biggest claims event in the Mutual’s history.
“Not only did I gain governance experience in this role, but I received a new appreciation for the insurance industry, and the diversity of roles involved. As a farmer, we deal with a lot of regulation, but the insurance industry is even more regulated. It was awesome also learning more about FMG and what makes it such a unique organisation.”
Jolene, who has a PhD in chemistry and has previously completed the Kellogg’s Rural Leadership program, is keen to continue her governance career as a direct result of her time as FMG’s Associate Director and is planning to stand for the Ravensdown board.
