Calliden will continue to provide builders’ warranty insurance (BWI) in WA after agreeing a reinsurance deal with the State Government.

It had previously been acting as a private insurer, but only for builders with turnover up to $3 million.

The WA Government will now back Calliden with a 100% quota share reinsurance arrangement, enabling the company to take on bigger risks.

Calliden Agency Services Group Executive Mike Hooton says the company anticipated the agreement, which took effect last Friday.

“There is no restriction any more,” he told insuranceNEWS.com.au. “That’s a positive for us. We can now deal with bigger builders and different types of builders and the brokers who service them.”

QBE also provides BWI, also known as home indemnity insurance, in WA.

Calliden Group CEO Nick Kirk says he will aim for a “seamless transition” for homeowners, builders and insurance intermediaries.

The same team will service clients and Calliden will continue to operate within its current underwriting guidelines.

“This arrangement reinforces our ability to deliver risk management and administration services in relation to home indemnity insurance, and enables us to expand both our risk appetite and distribution partner network,” he said.

Calliden has a similar reinsurance arrangement with the SA Government and operates as an agent in NSW.

Last month it announced it would stop writing BWI for licensed builders in Victoria from the end of the year.