Low interest rates and natural disasters have affected the results of Elders Insurance.

Parent company Futuris has released its financial results for the second half of last year, posting a reported loss of $329 million while Elders Financial Services has recorded earnings before tax of $16 million.

The agribusiness says insurance earnings were “unfavourably affected by the impact of lower interest rates on the discount rate for incurred claims and higher distribution costs”.

Futuris says the outlook for the next six months is likely to be grim, with insurance results to be affected by the Victorian bushfires. Flooding in north Queensland will also have an effect.

Futuris CEO Malcolm Jackman says a combination of falling interest rates, automotive and agricultural losses and the ongoing general economic deterioration have resulted in a sudden and substantial shortfall against a conservative forecast.

“The good news is that our operations have acted early and responded well to what is an historically extraordinary business climate,” he said.