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Calliden transfers its insurance business into one

Calliden will consolidate all its insurance business under one licence from November 19. Operating under the Calliden Insurance brand, the move has been made to ease confusion, costs and administration issues.

CEO Nick Kirk told insuranceNEWS.com.au that 18 months ago the group had three licensed insurers but found it was creating confusion and duplication of costs.

Last year the company decided to transfer the liabilities of one of its portfolios to Calliden.

“The next logical move was to have just the one insurer in the group and so we are now centralising all the business into Calliden Insurance,” he said.

Calliden Insurance was originally set up to take on the Australian Unity General Insurance business acquired last year for $62.5 million.

Subject to approval by the Australian Prudential Regulation Authority (APRA) and other regulators, Calliden Group will then apply for court approval of the transfer of liabilities to the one insurance company. Mr Kirk says if the application is successful Calliden Group will then increase capital in Calliden Insurance.

“This will make it easier for customers as they will have one insurer to deal with rather than two, and it will be easier for brokers because they will be dealing with just one licensed insurer,” Mr Kirk said. “And for us it cuts down costs and administration.”