New Zealand-based CBL Corporation expects Australia and other foreign markets including southeast Asia to drive earnings after reporting a decline in half-year profit.

Net profit for the six months to June 30 fell 18.7% to $NZ18.49 million ($17.7 million), but operating profit grew 44.6% to $NZ35.1 million ($33.6 million).

Gross written premium (GWP) grew 43.4% to $NZ179.2 million ($171.7 million) and the claims ratio improved to 33.7% from 35.4%.

The combined operating ratio deteriorated to 81.8% from 78.1%.

Claims costs paid blew out to $NZ57.6 million ($55.2 million) from $NZ13.9 million ($13.3 million) in the corresponding period last year.

“We have invested considerable resources over the past 6-9 months into developing several new programs that we expect will generate additional future long-term sustainable revenue and profit,” MD Peter Harris said.

“We will begin introducing these later this year, and aim to roll them out more broadly [next year].”

CBL says Europe holds potential and Britain’s vote to leave the EU has not blighted the huge market’s attraction.

“Some of our British competitors appeared to have been caught out by the success of the Leave campaign,” Mr Harris said.

“CBL’s well-established presence in Europe gives us a considerable advantage should British banks and insurers need to meet stricter licensing criteria in the future.”

The acquisition of Securities and Financial Solutions Europe – France’s largest specialist producer of construction sector insurance and CBL’s biggest client – will be completed early next year. CBL announced the €94 million ($139 million) acquisition in June.

Assetinsure, acquired by CBL in September last year, made an operating profit of $NZ3.3 million ($3.2 million) and after-tax profit of $NZ2.4 million ($2.3 million).

The Sydney-based unit recorded GWP of $NZ29.4 million ($28.2 million), while net incurred claims totalled $NZ6 million ($5.7 million).

CBL says there are no first-half figures from last year for comparison.

The group listed on the New Zealand Exchange and the Australian Securities Exchange last October.