Calliden will pursue growth strategies this year as it looks to prove the value of its new model, according to CEO Nick Kirk.

The company is moving from pure underwriter to hybrid managing general agent (MGA), with commission-based revenue from commercial packages.

The board has agreed to invest in IT infrastructure to link to broker platforms, Mr Kirk says.

“We aim to take part in the Steadfast platform as an agent for Great Lakes Australia for business pack policies,” he said.

“We think this is a great opportunity for us to grow our business pack portfolio.”

Calliden aims to introduce new products and initiatives in the agency business, including a middle-market offering in the second quarter of the year.

“We will also be looking for add-on or bolt-on products that would improve the range of products our agency business can sell to our intermediary brokers,” Mr Kirk said.

“I think we now offer a very good platform for insurers that do not have the infrastructure to reach the number of brokers throughout the country that we do.”

Calliden has set a $10 million profit target for this year, but Mr Kirk says most of that will be delivered late in the year.

“It is important for the market to view 2013 as the final phase of the transition process, with the full impact of the move to the MGA model really only starting to come through in the second half.

Competition will unfold differently across portfolios, Mr Kirk says.

“I am of the view that for property risk – particularly home and classes such as strata – we will continue to see upwards pressure on rates.

“That trend will be driven by the step change in catastrophe reinsurance costs, which will then be reflected in original rates.

“In other areas of the market it has remained quite competitive.”