Calliden has reported a net profit of $10.1 million for the year to December 31 and CEO Nick Kirk says the company aims to be a top 10 insurer within the next three years.

The 13^th-ranked company made a $396,000 loss in the previous year, and Mr Kirk attributes the turnaround to premium rate increases and underwriting enhancements which have driven improved underlying claims ratios.

He says these will continue to flow into the 2011 result and the group will also see the benefit of technology improvements and a trend to more transactions being conducted online.

Gross written premium fell by 3% to $211.64 million while net premium revenue increased by 16% to $116.8 million.

The company says the total net cost of recent weather events such as the Queensland floods is estimated to be $7.6 million, including reinstatement premiums.

Calliden has purchased $750,000 of back-up cover for the remainder of 2011 and plans to give a further update this quarter. Mr Kirk says the company has no direct exposure in NZ.

He told insuranceNEWS.com.au the company’s target market of SMEs and personal customers who use intermediaries is changing, with a significant increase in online transactions. About 44% of its distribution is now online, with 36% through specialist agencies and 20% through individual placements.

Calliden has also announced it will offer products to intermediaries affected by Ansvar’s decision to focus on its core market of community sector organisations.

Ansvar has written more than $25 million of home insurance through brokers and Mr Kirk says Calliden is looking to renew about one-third of that portfolio over the next 12 months.

The parties will agree an administration fee and he says the Ansvar business can be incorporated with minimal incremental cost.