Calliden Group expects to sell more policies at a higher price in the coming year as it looks to reverse last year’s loss and return to profitability.

At its AGM in North Sydney last week, Calliden CEO Nick Kirk revealed the company has lifted premium rates 8% during the second half of last year, with a 9% uplift in gross written premium (GWP) over the full year to $218 million.

“Further modest price increases are expected to continue in 2010,” he said, adding GWP growth is “on track” for the year to date.

Despite the topline gains, Calliden lost $400,000 last year as a $5.5 million net claims expense took a toll on company earnings.

Calliden expects to incur around $18.4 million in estimated losses from recent storms in Melbourne and Perth, but under the terms of its reinsurance will pay just $4 million.

Claims costs are within the company’s annual allowance but exceed the first-half allowance by between $500,000-$1.5 million, Mr Kirk said.

The company says a conservative investment strategy has avoided any exposure to equities for the year to date, while a new IT system is expected to lead to productivity gains as the company enters the final stage of its transition to the new platform.

Calliden has recommenced processing completion statements for its 2007 acquisition of Australian Unity’s general insurance business, following a successful NSW Supreme Court action around final terms of the deal.