CBL basks in 'satisfying' full-year result

Peter Harris says the company will consider opportunities to acquire businesses. Photo / Dean Purcell

CBL Corporation shares gained yesterday after the financial risk insurer beat initial public offering forecasts in its full-year result, while flagging the potential for acquisitions.

The Auckland-based company, which listed on both sides of the Tasman in October, reported net profit of $35.5 million for the 2015 calender year - 83 per cent above the previous year and 36 per cent ahead of the IPO forecast.

CBL shares, issued in the IPO at $1.55, closed up 5c at $2.25. Gross written premium rose 21.7 per cent on the previous year to $294.2 million, just ahead of the forecast.

Managing director Peter Harris described the result as a "satisfying performance".

"I believe the numbers speak for themselves," he said. "But it does highlight the potential of the company which we believe will be augmented by being listed on both the NZX and ASX."

CBL raised $125 million through its IPO, $90 million of which was new capital earmarked for growth, including funding the firm's $46 million acquisition of Australian specialty insurer Assetinsure Holdings.

CBL, whose products include residential builder warranties and construction bonds, derives almost 98 per cent of its gross revenue outside New Zealand. It was founded more than 40 years ago, began its international expansion in 2000 and today employs more than 100 staff across eight international offices.

Harris said the firm was continuing to deploy the cash raised in the IPO.

"While we will continue to drive organic growth, we will also consider opportunities to acquire businesses that will further enhance or support existing businesses or provide the group with access to markets."