Centrepoint Alliance Premium Funding is to be acquired by the Bank of Queensland (BOQ) for $20 million.

insuranceNEWS.com.au has previously reported that the premium funder – which is part of a major financial services group – has been on the market for at least six months.

It handles about 30,000 new loans annually and funded $377 million in gross written premiums for 420 insurance brokers in the last financial year.

The bank says the premium funding business will be a bolt-on acquisition that is “a natural extension” to its finance business.

MD and CEO Jon Sutton says in a statement that the bank is targeting niche business segments.

“Premium funding complements BOQ Finance’s existing product offering, providing customers with a valuable cashflow management tool for addressing their critical insurance needs.”

The Centrepoint Alliance Premium Funding name will disappear from the market following finalisation of the deal on December 30.

The bank says the business will be rebranded and form a new division within BOQ Finance.