Shares of Cover-More Group Ltd (ASX: CVO) have recovered some of their recent losses today after the travel insurance business revealed its interim earnings results for financial year 2016.

The company’s share price was hammered earlier in the week, falling 13.8% in a single day when it announced its earnings before interest, tax, depreciation and amortisation (EBITDA) would be 16.4% lower than in the prior corresponding period at $20.4 million (or 9.4% lower when one-off costs and business expansion costs were excluded).

It confirmed that figure in its official results today, with net profit after tax (NPAT) also down 31.1% to $8.2 million. Meanwhile, although group sales rose 6.6% with gross travel insurance sales in Australia and Asia growing by 7.1% and 27.6% versus the prior corresponding period respectively. Actual revenue declined by 7.9% to $103.1 million.

The group’s EBITDA result was impacted by a number of factors, including higher claims costs (which were exacerbated by the weaker Australian dollar), together with one-off costs to help fund its growth. The ash clouds in Bali also hampered the result, as did a 2.1% increase in overheads during the period.

On a more positive note, the company did extend its partnership with Flight Centre Travel Group Ltd (ASX: FLT) during the period, with that partnership expected to run through to 2024.

As was noted by the company in its update to the market earlier in the week, Cover-More Group said: “We continue to work with our Australian underwriting partner in an effort to limit the volatility experienced through the current underwriting premium model with an aim to transition to a Generalised Linear Model. We anticipate that the issue will be resolved in H2 FY2016.”

Cover-More Group’s shares rose 4.8% to $1.75, although they did trade as high as $1.77 earlier in the session. That compares to a 0.6% decline for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) so far.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.