Calliden Group says its claim costs from ex-Tropical Cyclone Oswald and recent bushfires in Tasmania and NSW have reached $2.7 million.

The figure – including allowances for incurred but not reported claims – falls within a previous estimate of $2 million to $3 million, the company’s annual general meeting heard.

It exceeds the first-half allowance but is below the full-year allocation of $4.5 million.

“While, of course, we would have preferred not to have the event, we have already made changes to our flood modelling and acceptance as a result of the actual losses versus the modelled pre-event position,” Calliden CEO Nick Kirk said.

Calliden plans to reduce earnings volatility by increasing its focus on agency business, with 50% of future business to be underwritten by third-party insurers.

A new middle-market offering backed by Munich Re subsidiary Great Lakes Australia is on course to accept new business from June 30, Mr Kirk says.

“We will also aim to launch one more new product set this year in a new market sector for Calliden, backed by a new carrier for Calliden,” he told the meeting.

The company has reiterated its guidance for a profit of $10 million this calendar year, with earnings skewed 80% toward the second half.