Calliden aims to expand its presence in the SA builders’ warranty insurance (BWI) market after the State Government agreed to reinsure the risk.

From October 1 the SA Government Financing Authority will provide a 100% quota share arrangement.

Calliden and QBE operate in SA’s BWI market, with Calliden underwriting builders with turnover of up to $3 million, under its own reinsurance program.

Group Executive Agency Services Mike Hooton says the government reinsurance deal gives the company more appetite to write larger risks.

“We will certainly be looking to expand our share of the state’s home indemnity insurance,” he told insuranceNEWS.com.au.

CEO Nick Kirk says Calliden will work closely with all parties, including brokers and builders, to ensure a seamless transition.

The SA Government is underwriting QBE to keep it in the state this financial year while alternative BWI models are considered. The insurer threatened to quit the market earlier this year.