Listed insurer Insured Group has reported a $3.5 million net loss for the 15 months ending June 30, up 216% on the 12 months ending June 30, 2010. During that 12-month period, the loss was $1.1 million

The 2011 year’s accounts have been extended to start from when Insured Group undertook its reverse takeover of the Lombard Group in April last year.

Revenue for the extended 2011 financial year was $5.5 million compared to $5.7 million last year.

The company has attributed the increased loss to the different reporting periods and the cost of the reverse takeover deal.

The one-off legal and compliance costs of the deal were $680,000 and the company also reported losses on asset sales during the 2011 financial year of $867,000.

It sold two New Zealand subsidiaries for $NZ6.1 million ($4.8 million) and two Australian businesses for $6.66 million.

The proceeds were used to reduce the company’s debt to $7.7 million at June 30 compared to $11.8 million at June 30 last year.

Total cash held by the company at June 30 was $2 million, down from $8.1 million on the same date in 2010.

In the directors’ report accompanying the accounts, Insured Group says it is now focusing its activities on the Western Australian broking market and will continue to reduce debt to make the company attractive for further capital raisings.