Centrepoint Alliance has sold its premium funding business to Bank of Queensland (BOQ) for $20 million, it has been announced today.
The business will be rebranded and form a new division within BOQ Finance it was confirmed in a statement to the ASX.
In the 12 months ending June 30, Centrepoint Alliance Premium Funding funded $377 million in gross written premium, distributed through more than 420 commercial insurance broker relationships.
Jon Sutton, managing director and chief executive officer of BOQ, said that the deal will help the bank expand into specialist niches.
“Under BOQ’s ownership, the business will benefit from funding cost synergies, whilst also providing opportunities for product expansion, Sutton said.
“Premium funding complements BOQ Finance’s existing product offering, providing customers with a valuable cash flow management tool for addressing their critical insurance needs.”
The transaction is expected to be completed on 30 December.