Insured Group’s $3 million bank loan has been extended until the end of this month.

The total loan is for $5 million, but St George Bank has forgiven the premium financing liability of $2.7 million; this will be reinstated if conditions in the deed of settlement are not realised.

The settlement covers proceeds from the sale of shares in Priority One Network Group, which is undertaking a listing on the Australian Securities Exchange.

The company is raising $15 million and has a provisional listing date of April 17.

Meanwhile, Insured Group has reported an unaudited profit of $1 million for the half-year to December 31, compared with a $1.1 million loss in the previous corresponding period.

The turnaround has been driven by stronger broking revenue, up $2.1 million from $1.7 million. Expenses were $1.3 million, down from $3.1 million.

Insured Group has cut staff costs by making more electronic transactions, according to MD Wayne Miller.

It is employing more female staff, with “flexible, family-friendly” arrangements allowing teams to work around the clock.

“The transition into a younger category of staff and promoting from within has seen our business less vulnerable to competitor threat, better suited to the modern insurance environment and more enthusiastic to the challenges after intense ‘battle-hardening’ in the past 12 months,” he said.

However, Insured Group’s new auditor, Somes Cooke, has raised questions about the company’s ongoing operations.

The group has current liabilities of $5.2 million and net assets of $2.7 million, the auditor says.