Calliden Group has reported a net profit of $1.1m for the year ended 31 December 2012, a major improvement on the $10.2m loss it recorded in 2011.
The result is said to be attributable to increased catastrophe reinsurance premiums of $2.3m; additional reinsurance protection covering the unexpired risk at 31 December 2011 of $2.7m; additional proportional reinsurance of $2.5m; adverse discount rate impact on reserves of $0.7m and non-recurring restricting costs of $1m.
General insurance profit for the year was $5.5m, compared with a prior loss of $15.5m. This is due to an improved claims experience which was partly offset by the increased reinsurance costs.
The group reported an underwriting profit $0.2m compared with a loss of $21.8m in the same period last year.
The combined operating ratio improved 20 percentage points, standing at 99% (2011: 119%) but gross written premium was down by $43.9m, to $224.5m.
The group conceded that Calliden Insurance Limited underwrote $172m in 2012, 30% less GWP than it did in 2011.The reduction in underwritten GWP was the result of the transfer of its business pack portfolio to an agency basis.