Ansvar made a $2.85 million profit in the year to December 31, recovering from a loss of $2.95 million in 2011 following the Christchurch earthquakes.

The specialist insurer’s exit from personal lines and its New Zealand business is reflected in the result, with direct premium revenue falling 19% to $111.84 million and gross written premium down 16% to $99.86 million.

Gross claims incurred fell to $54.68 million from $136.26 million and net claims dropped to $12.01 million from $43.65 million.

Ansvar made an underwriting profit of $1.99 million, compared with a $12.65 million loss in 2011.

While the Ansvar result shows an underwriting profit, its parent company Ecclesiastical’s results show an underwriting loss for the Australian operation. This is attributed to allocation of reinsurance. See other story

This year’s figures will not show such sharp moves, CEO Andrew Moon told insuranceNEWS.com.au. Last year’s result reflects the shift to faith, community, education and heritage insurance, he says.

After reducing the policy count from 80,000 to fewer than 10,000, he says Ansvar’s average policy size has grown and this will be shown in this year’s premium income.

Last year’s result was driven by a benign claims experience, strong investment returns and a “significant one-off profit” from a transaction with the company’s UK parent, Ansvar says.

These were offset by high reinsurance costs.

Ansvar incurred $6.9 million of claims from floods in Queensland after the December 31 balance date, which will cost $2.5 million after reinsurance recoveries.

The company disposed of New Zealand-based ACS last May, transferring ownership to a trust.

In 2011 the New Zealand business incurred claims and liabilities of $500.68 million – offset by reinsurance recoveries of $490.53 million – with many churches and heritage buildings destroyed in the Canterbury earthquakes.

Last year the business incurred claims of $62.75 million – covered by reinsurance of $62.02 million – and reported a $2 million net loss to Ansvar Australia.