The coordinates defining the insertion point for a block reference (DXF group 10) (and indeed, those defining the geometry for many other planar entities) should be expressed relative to the Object Coordinate System (OCS), not the UCS/WCS; I've recently provided
this brief explanation of the OCS, which you may find useful in this regard.
Essentially, assuming that your variable
pt is expression relative to the UCS, you can transform it to the OCS using:
Note that the
SEQEND entity is not required unless you are also
entmake'ing attribute references following the insert entity.