Ansvar returned to profit in the first half and continues to improve, according to CEO Warren Hutcheon.

The faith-based insurer’s parent, UK-based Ecclesiastical Insurance Office, last week reported a turnaround in the Australian operation as part of a group-wide return to underwriting profit.

Ansvar made an underwriting loss of £592,000 ($1.06 million) in the half, compared with a £7.8 million ($13.9 million) loss in the corresponding period last year.

Investments took it to a £3.23 million ($5.77 million) profit, compared with a £6 million ($10.72 million) loss.

Its combined operating ratio was 106.6%, compared with 148.7%, and gross written premium was £21.12 million ($37.74 million), down 15%.

Ansvar has changed its business model in recent years, quitting personal lines. The historic and church buildings it specialises in proved a big loss-maker because of the Canterbury earthquakes.

Mr Hutcheon told insuranceNEWS.com.au the improved result is “significant both from a profitability and a growth perspective. We have achieved strong retention rates across the business, which is contributing to our sustained turnaround.

“Underpinning those efforts, we continue to focus on improving our operating model and look forward to announcing more on this in the coming months.”  

Ecclesiastical reported a first-half after-tax profit of £15.19 million ($27.14 million), down from £21.77 million ($38.89 million), after divesting unprofitable businesses.

Its underwriting profit was £2.9 million ($5.18 million), compared with an £8.9 million ($15.9 million) loss in the corresponding period last year.

It added £1 million ($1.79 million) to reserves for earthquake losses in New Zealand run-off company ACS (NZ). The combined operating ratio was 97.5%, compared with 106%.

CEO Mark Hews says it is a good result given storms and floods in the UK. He says competition is intensifying in the British market.