Calliden Group has declared a $4.3 million loss for the six months ending June 30 due to the natural catastrophes occurring earlier this year.

These losses cost Calliden $10.4 million and the problem was compounded by large individual claims in the second quarter that were $3.6 million above expectations.

The gross claims estimate for the Queensland and Victorian floods, Cyclone Yasi and the Melbourne storms was $38.6 million.

This year’s half-year loss compared to a profit of $6 million in the 2010 corresponding period.

Gross written premium for the 2011 half-year was up 11% to $122 million, which Calliden CEO Nick Kirk attributes to organic growth and price increases in personal lines.

This included 15% price rises in standard, farm and strata home policies while specialist motor saw rises of 10%.

Net earned premium was up 9% to $61 million, compared to $56 million in the 2010 first-half.

While income was up, Calliden’s gross claims ratio has grown to 107% compared to 84% in the first half of 2010.

Mr Kirk says the company is negotiating its reinsurance program for the December 31 renewal, and both retention and reinsurance costs “have increased significantly”.

Calliden paid $47.6 million in reinsurance premiums in the June half-year, but recovered $65.6 million during that period.

Mr Kirk says the focus for the second half of the financial year will be a return to profit through improving its portfolio, cost savings and efficiencies.

It will also look at acquiring more businesses to generate premium growth.