Calliden's new strategic alliance

Following a review of the Group’s strategy and the current external market environment Calliden has entered into a three year strategic alliance with Great Lakes Australia (GLA).

The basis of the strategic alliance

From 15 May 2012 Calliden will underwrite its commercial package business through its Retail Underwriting Centre as agent on behalf of GLA.

Calliden will continue to provide the Callibrate systems, customer service, marketing, relationship management, credit control and claims management.

This agreement will mean a number of changes for Calliden Group:

• future revenue for Calliden with regards to commercial packages will be commission based, including profit commission instead of the more volatile underwriting result
• no regulatory capital requirement for future package business
• Great Lakes will become the insurer of Calliden’s non agency commercial package portfolio.

This arrangement provides Calliden and GLA with increased opportunities for growth in the commercial packages sector of the market, combining Calliden’s well-developed modern infrastructure with Great Lakes’s capital strength, which is rated by S&P as AA- (very strong). For Calliden it will also mean a reduction in its regulatory capital requirements.

Calliden will continue as the insurer for all other products including motor, home and business written through the Group’s specialist agencies. This includes all commercial package business currently distributed through a Calliden supported agency.

If you have any further questions please email us at bestofbothworlds@calliden.com.au.