Calliden Group has forecast a “disappointing” full-year result which at best is expected to see the insurer break even.

The company expects its pre-tax result will range from a $1 million loss to “around breakeven point”. Detailed results are due on February 25.

A 50% reduction in investment income and a weaker than expected underwriting performance are identified by Calliden as factors behind the result, with expenses inflated by exposure to significant claims in WA and Victoria.

Last year the insurer earned a pre-tax profit of $7 million.

“While the result for 2009 is disappointing, we are confident about the outlook for 2010 given an expected improvement in investment income and the anticipated benefits of premium prices over the past 12 months,” CEO Nick Kirk said.