Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Customer Focus Lifts AMI Result

Leading New Zealand-owned fire and general insurer, AMI Insurance today reported an improved result for the year ending 30 June which the company attributes to a strategy of ensuring its customers remain the centre of its business.

AMI reported a tax paid profit of $15.2 million ($10.2 million) on total premium income of $169.8 million ($163.3 million). Claims costs increased 0.4% to $115.9 million.

Chief executive, John Balmforth, said the result was a tribute to the loyalty of our customers and the focus of the AMI team in delivering outstanding customer care.

“Our reserves have passed the $120 million mark for the first time to reach $120.6 million and we have increased our solvency margin to 71.73%. This provides reassurance for our more than 450,000 policyholders in terms of our financial strength,” says Mr Balmforth.

“A 15% increase in investment income to $13.6 million in a volatile investment environment was also a very satisfactory element.

International rating agency AM Best has reconfirmed AMI’s A (Excellent) rating for claims paying ability.

Mr Balmforth acknowledged that while moderate weather patterns had helped keep claim levels steady, weather related claims were more prominent in the Auckland, central North Island, Wairarapa, Canterbury, Otago and Southland regions during year.

He said AMI’s customer care strategy of making customers the focus of all activities, concentrating on core personal insurance lines and retaining a network of branches backed by call centres and agencies was paying off although this approach “was at odds with our competitors. Our customers tell us they want personal service through local branches”.

AMI had also refined its market leading plain English policies for customers during the year.

Mr Balmforth said AMI staff had played a big part in the good result which was reflected in an independent survey that rated AMI as “the industry benchmark in terms of customer care”.

“Our people provide the enthusiasm and leadership that brings AMI to life – their commitment to our strategic direction delivers outstanding customer care and results.”

AMI intends to continue to reward customer loyalty by limiting premium increases where possible but economic factors beyond AMI’s control, changes in risk profile in some customer segments and geographic areas, may necessitate adjustment over the forthcoming year, he said.

“AMI celebrates its 75th anniversary next year and we remain proud of the fact that since 1926, we have stayed loyal to our mutual philosophy of being owned by our policyholders and retaining profits to keep premiums competitive.”


AMI FIVE-YEAR SUMMARY ($000)

1996 1997 1998 1999 2000
Written premiums $ 137.5 151.5 158.6 163.3 169.8
Tax paid Profit $ 5.9 8.6 11.2 10.6 15.2
Cost of claims $ 107.4 111.6 111.1 115.5 115.9
Total assets $ 149.1 167.9 176.5 187.7 208.6
Solvency margin % 56.6 60.4 62.5 65.2 71.73

…./ends

For further information: John Balmforth
Chief Executive Officer
AMI Insurance
Tel: (03) 371-8311
Mobile: c/- (025) 428-217

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>