Big claims and lower investment returns hit insurer Calliden in the year to December 31, with the company booking a $400,000 net loss compared with a $9.1 million net profit in 2008.

CEO Nick Kirk told investors last week that 200 claims following Victoria’s Black Saturday bushfires in February last year accounted for $28.5 million of the $32.2 million natural catastrophe total.

A $20.5 million business interruption gross loss in WA in November also contributed to the $5.5 million net impact above the reinsured catastrophe allowance.

Investment income for the year was down 51.5% at $6.1 million, although the second half showed signs of gradual improvement.

Mr Kirk says Calliden is looking at a return to equity investments, but if it does the shift will not be a major one, at $10-15 million. At December 31, cash and investments totalled $128 million.

Bonds make up the lion’s share of the insurer’s investment portfolio, 69% of which is rated AAA.

Calliden improved gross written premium by 9% to $218 million last year on the back of higher premiums which averaged 8% in the second half.

The insurer says the outlook for this year is positive, with improved pricing, continued revenue growth, growing investment income and benefits from improved efficiency.