Ensurance UK – a subsidiary of Australian broker and insurance technology group Ensurance – has signed a deal with Swiss Re Corporate Solutions to underwrite individual risks of up to £100 million ($171.03 million) in the construction and engineering market.

It has also partnered with XL Catlin to provide bespoke construction insurance to high-net-worth domestic clients, and has received Lloyd’s coverholder status.

The Sydney-based “virtual insurer” began operating in the UK market last August. Its expansion is expected to cost about £700,000 ($1.16 million).

Higher running costs and expansion led to a tripling of first-half net losses for the parent, up to $2.11 million despite a 12.58% rise in revenue to $1.6 million.

Despite the result, MD Stefan Hicks says he is “extremely happy” with the group’s progress and position, and says investors understand the timing and cost of its strategy.

Ensurance has an underwriting arm, an IT solutions division and a broking business.