UK-based insurance outsourcing company Xchanging has reported a 15% fall in adjusted operating profit to £20 million ($36.31 million) for the first half of this year, due to acquisitions and lower revenue from technology contracts and human resources business.

The recent acquisitions of software firm Agencyport Europe and reinsurance software provider Total Objects are contributing “significantly” to building the company’s Xuber insurance software business and its position in the insurance binders market, the company says.

In Australia, Xchanging is developing a new Xuber workers’ compensation module to support its bid to renew its NSW workers' compensation contract, which “saw a solid performance” and is due for renewal at the end of this year.

“Ahead of this, we have submitted our bid for an expanded share of the market from the beginning of January 2015,” the company says. “Currently we have a 5% share, and increasing this would significantly improve the attractiveness of the contract.”

Its Victorian workers' compensation contract has also performed up to expectations in the first half.

Revenue from the overall insurance division fell to 7.6% to £92.1 million ($167.23 million) for the six months to June 30 this year, and the division’s adjusted operating profit rose 8.7% to £22.3 million ($40.49 million).

Xchanging CEO Ken Lever says the results remain in line with expectations. He says the latest acquisitions will “further enhance our positioning for a resumption of growth in revenues and profits in 2015 following the divestments and business exits which arose in 2013”.