Calliden says last year’s restructure has resulted in a more profitable insurance book.

The company has limited its aggregate exposures, particularly in north Queensland residential strata, improved its geographic risk rating capability, cut commission expenses and quit unprofitable lines, according to its annual report.

Premiums have grown to bring loss ratios to acceptable levels, and it has been able to reduce its reinsurance.

The transition to a managing general agency model will provide a more reliable profit base and require less capital, the report says.

Great Lakes Australia began underwriting the farm portfolio in January; this, plus a new middle-market offering, is expected to mean 50% of Calliden’s business is from policies underwritten by third-party insurers this year.

The company will pursue new agency opportunities and its Mansions subsidiary will expand as an agent to other insurers, as well as Lloyd’s, directors say.

Calliden says its exposure to ex-Tropical Cyclone Oswald, which hit Queensland and NSW in January, will be within its budgeted catastrophe allowance.