Calliden lifts its rates
Calliden is reacting to “difficult market conditions” by lifting rates, CEO Nick Kirk said last week.
In an open market briefing, he told investors Calliden is increasing premiums in both personal and commercial lines.
“On the personal lines portfolio, we’ve put through single-digit rate increases on renewals from May 1, and a further single-digit increase will follow in a month or two,” Mr Kirk said.
“On commercial lines we’ve been increasing rates on particular portfolios for some months now.”
In a bid to stem investment losses which saw the insurer lose $1.6 million in the first quarter, Calliden is quitting listed equities and moving its entire investment portfolio into cash and fixed interest. The move will reduce the insurer’s annual investment income budget by $2 million.
Mr Kirk says Calliden’s first-half earnings are also likely to be adversely impacted by the cost of integrating the company’s businesses into one insurance licence, which is on track to be completed by the first quarter of next year.
And he denies the insurer’s legal stoush with major shareholder Australian Unity, which Calliden claims owes it up to $4 million following last year’s $62.5 million purchase of Australian Unity’s general insurance business, results from operational underperformance.
“This does not relate to the current performance of the ex-Australian Unity general insurance portfolio,” Mr Kirk said. “It’s an issue that relates to the adjustment price that we believe was due to us at the date of the transaction.”
In an open market briefing, he told investors Calliden is increasing premiums in both personal and commercial lines.
“On the personal lines portfolio, we’ve put through single-digit rate increases on renewals from May 1, and a further single-digit increase will follow in a month or two,” Mr Kirk said.
“On commercial lines we’ve been increasing rates on particular portfolios for some months now.”
In a bid to stem investment losses which saw the insurer lose $1.6 million in the first quarter, Calliden is quitting listed equities and moving its entire investment portfolio into cash and fixed interest. The move will reduce the insurer’s annual investment income budget by $2 million.
Mr Kirk says Calliden’s first-half earnings are also likely to be adversely impacted by the cost of integrating the company’s businesses into one insurance licence, which is on track to be completed by the first quarter of next year.
And he denies the insurer’s legal stoush with major shareholder Australian Unity, which Calliden claims owes it up to $4 million following last year’s $62.5 million purchase of Australian Unity’s general insurance business, results from operational underperformance.
“This does not relate to the current performance of the ex-Australian Unity general insurance portfolio,” Mr Kirk said. “It’s an issue that relates to the adjustment price that we believe was due to us at the date of the transaction.”