AMI annual result a pass mark in a difficult year

AMI annual result a pass mark in a difficult year
By John Grant AMI has today announced its annual financial results which show that in a year of challenges they have managed to withstand everything that nature and the financial markets could throw at them. The total cost of claims increased 9.8% from $190 mil. to $208 mil. mostly the result of several adverse weather events. An example was Ashburton's 15 minutes of hail in November 2008.  It cost AMI just under $4 million, a significant share of what was estimated as an $11.2m event for the industry. Big storm events in both Islands contributed to the rise in claims paid. Their total assets have increased by 4.3% in the last financial year to be $496 mil. The solvency margin declined from 120.5% to 114.3%. The rating for the company was upgraded last year by international rating agency A. M. Best Co.  from "˜A' (Excellent) to "˜A+' (Superior).  This year, the "˜A+' (Superior) rating has been confirmed, "The rating reflects AMI's well established market position, solid risk-adjusted capitalisation, consistent operating performance and corresponding surplus accumulation," A. M. Best Co. said a statement. While the global economic recession and lower interest rates in New Zealand meant AMI's investment portfolio did not achieve the record results of previous years, it still recorded solid income of $27.2 million. "Our conservative investment policies continue to pay off" according to company Chairman John Balmforth. AMI is a mutual insurance company, owned by the policyholders. It has a strong market position in personal cover, and deals direct with customers through a network of 73 branches throughout the country. AMI Five Year Financial Summary ($ millions)
2005 2006 2007 2008 2009
Written Premiums 243.4 251.3 262.0 278.7 302.2
Net Surplus After Tax from Operations 30.1 30.6 28.4 26.9 18.5
Cost of Claims 151.7 160.0 168.2 189.9 208.4
Total Assets 370.7 410.2 438.6 475.7 496.3
Solvency Margin (percentage) 96.0% 108.7% 117.8% 120.5% 114.3%
"”"”"”"” * John Grant edits the insurance coverage on interest.co.nz

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