Calliden is shedding “a small number” of positions as it moves to a new operating model and cuts costs by up to 15% this year.

Industry sources last week said as many as 50 employees have been declared redundant, but Group Executive Customers Mike Hooton says only five positions at the company have been cut.

A number of contractors will also leave as their projects are completed.

“We have also announced a number of new positions, which means the net loss of positions is very small,” he told insuranceNEWS.com.au. 

He says the changes are part of an ongoing simplification process as the company moves to a business model that will see more than 50% of the business operating as a managing general agency by the end of the year.

Last month Calliden announced it would return to profit this year after incurring net catastrophe losses of $11.3 million in 2011 that caused its reinsurance costs and retentions rise.

The company already writes commercial business for Munich Re subsidiary Great Lakes, for Lloyd’s underwriters through its subsidiary Mansions of Australia, and NSW home builders’ warranty.