Junior insurer Calliden will sell its 50% stake in Sports Underwriting Agency, which it helped establish in 2006.

Calliden CEO Nick Kirk and Sports Underwriting Australia CEO Steve Gilbert said in a joint announcement last week that Calliden will continue as underwriter for Sports Underwriting despite selling its stake.

The sale comes at an interesting time for Calliden, which has pledged to sell more policies at a higher price to reverse last year’s net loss of $400,000.

Last month the insurer withdrew from the Victorian builders’ warranty insurance market, but remains in the NSW and WA markets alongside QBE.

Mr Kirk says Calliden wants to focus its capital on underwriting.

“Sports Underwriting Australia has established itself as a credible player in the Australia sports and leisure insurance markets,” he says. “Now is the right time to focus our efforts on underwriting products for distribution by them and to assist the agency to reach its full potential,” he said.

Mr Gilbert says Sports Underwriting is searching for opportunities in new markets as it seeks to grow its premium book.