ReAC has recorded a half-year profit of $6.75 million, compared with $1.17 million last year, and its run-off of assets and liabilities is nearly finalised. The reinsurer is still working towards its goal of entering the general insurance market as an insurer.

In its half-year report, ReAC says there are several areas in which demand for insurance at a fair price is not being met, and new competition would be welcome.

The company will lodge an application with the Australian Prudential Regulation Authority for a new insurance licence before the end of the year, and its general insurance business is expected to start early next year.