Travel insurer Cover-More has delivered a 10.3% increase in net profit to $31.1 million despite subdued local trading conditions.

While outbound travel from Australia grew only 1.8% in the 2014/15 financial year, the listed insurer’s local travel insurance business grew over three times the underlying market growth rate, the company says.

It recorded an 8.9% increase on total gross sales over the previous financial year to $466.8 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7.2% to reach $52 million.

Chairman Louis Carroll says he is pleased with the results, particularly when the impact of the Australian dollar’s 19% depreciation against the US dollar is taken into account.

“A lower Australian dollar increases the costs of claims overseas, which creates margin pressure,” he said.

Cover-More’s Asian operations grew gross sales by 22% and EBITDA by 50%.

CEO Peter Edwards says Cover-More’s expansion into China “has been slower and more difficult than anticipated”, with a strategic focus on high-margin assistance leading to a reduction in volume.

Despite this Cover-More improved gross profit from its China operation by 47% year-on-year, and with recent investments in new management in China the company believes the China and India businesses are well-placed to deliver strong growth.

Asia now contributes 15% of the Cover-More group’s profit on a like-for-like basis, compared to approximately 10% in 2013/14.

Growth in New Zealand and the UK was 34.5% and 28.3% respectively.

Mr Carroll attributes the company’s growing success at home and overseas to a strong business model and a customer-centric approach.

Next year the insurer will roll out its MyCover-More platform, which is a “key step in driving a broader and deeper relationship with customers”.