Assetinsure’s pre-tax profit fell by $2.4 million to $5.4 million last year because of additional expenses linked to its financially troubled former parent CBL Corporation.

However, gross written premium increased to $109 million from $77 million in 2017.

“The additional expenses incurred due to CBL Group-related issues are the reason the company’s pre-tax profit… did not reach the level of the prior year,” CEO Gregor Pfitzer told insuranceNEWS.com.au.

“These expenses included provisions made for the portion of projected reinsurance recoveries from the CBL Group where full recovery is doubtful, and the cost of some reinsurance protection that needed to be repurchased from the open market.”

The voluntary administrators of CBL Corporation sold Assetinsure to an alliance of surety providers.

Mr Pfitzer has previously said the ownership change has provided certainty for the company.

“The year so far is proving to be satisfactory and tracking along budget expectations,” he told insuranceNEWS.com.au.

“Given the focus on speciality and mostly credit-related businesses, our exposure to catastrophe events in the first months of this year is negligible.”

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