Calliden has posted a first-half profit, reversing a loss in the corresponding period last year, as the company continues its agency business expansion.

Net profit was $2.01 million for the period to June 30, up from a $231,000 deficit, with the result “pretty evenly” split between the agency and insurance businesses.

The underwriting combined operating ratio improved to 98% from 105% and the company has reported an insurance margin of 5%.

“The result shows our decision to change Calliden’s strategy to reduce the overall risk profile of the business, to deliver a more predictable earnings stream, is starting to bear fruit,” CEO Nick Kirk said.

The company wrote policies during the six months underwritten by Munich Re subsidiary Great Lakes Australia, Lloyd’s of London and the NSW Self-Insurance Corporation.

Its joint-venture strata agency QUS began writing on behalf of WR Berkley from January 1.

Calliden has added to the range of products it offers brokers, with the introduction in July of accident and health, Mr Kirk told an earnings briefing. The products are backed by Ace.

Gross written premium (GWP) underwritten by third-party insurers increased 195% to $52.5 million in the half. By the end of the year more than half of Calliden’s GWP is forecast to be underwritten externally.

Agency earnings grew to $1.97 million from $1.16 million in the corresponding period last year, while insurance profit increased to $1.78 million from $350,000.

The company’s restructuring will continue into next year, with the formation of the Calliden Agency Services subsidiary.

Calliden continues to target a full-year profit of $10 million.