Calliden Group has announced a loss of $231,000 for the six months to June 30, following its catastrophe-induced $4.3 million loss in the corresponding period last year.

“2012 is a transition year for Calliden as we move to our managing general agency (MGA) model,” CEO Nick Kirk said.

He says “solid progress” is being made implementing the model, which aims to have about 50% of premium underwritten on behalf of third-party insurers.

Currently, more than 30% of Calliden’s premium is with other providers.

“Our aim for 2013 and onwards is to have a strong agency business producing non-volatile earnings, balanced by an insurer that is smaller than today in gross terms but with an improved underwriting portfolio and one that is less dependent on expensive external reinsurance,” Mr Kirk said.

Gross written premium for the half-year was down 14.4% to $104.1 million, which has been attributed to implementing the MGA model and measures to reduce exposure to natural catastrophe risk.

The group’s insurance portfolio increased across the board, with rises of 10-20% in the construction portfolio and a 30% jump in residential premium, again due to reduced catastrophe exposure.

A small insurance profit of $800,000 was reported for the half-year, compared with an insurance loss of $3.3 million in the previous corresponding period.

This is in line with the group’s aims to meet profit targets and identify opportunities for new business growth.

A better claims experience for the half-year improved the group’s combined operating ratio to 103%, compared with 111% in the previous corresponding period.