Mid-market insurer Calliden has posted a first-half net profit of $6.5 million on the back of a strong underwriting performance.

The profit compares to a figure of $2.4 million for the same time last year. Gross written premium grew to $109.4 million, up 4.8% on last year.

Investment income also grew from $2.2 million last year to $4.8 million, but the share of net profits from joint ventures was down from last year’s $1 million to $700,000.

Group Executive Marketing and Distribution Mike Hooton told insuranceNEWS.com.au the result was influenced by “both positive and negative factors”.

“The positive factors include the sale in June of our 50% equity position in Sports Underwriting Australia realising $1.1 million of profit,” he said.

On the down side Calliden incurred costs relating to the Melbourne and Perth storms of approximately $5.6 million.  

The group has moved to centralise its commercial package underwriting team in Melbourne, with regional and rural business administration also moving there in the second half.

Mr Hooton told insuranceNEWS.com.au the decision to centralise is aimed at serving brokers.

“We have taken the next step to incorporate the farm business within the same location and infrastructure, albeit as a discreet farm underwriting centre,” he said

A physical presence across Australia will be maintained by business development managers.

In July the group sold its stake in Sports Underwriting Australia and closed four regional offices of ARGIS, but Mr Hooton told insuranceNEWS.com.au these events were not part of any long-term strategy.

“The sale of our shareholding in Sports Underwriting was an opportunity to realise our investment in this business and to focus our resources and attention on supporting Sports Underwriting as underwriter to their sports and leisure portfolios,” he said.

“The integration of the ARGIS business (commercial and farm) is not connected to the Sports Underwriting sale.”