Broking network Austbrokers has entered into a distribution agreement with Pacific Premium Funding to provide its entire premium funding solution.

Based on an estimated premium funding turnover of $100 million for the first year, Austbrokers estimates its net tax profit contribution in the new arrangement will be about $1.3 million.

Under the arrangement, which starts next month, Pacific will be responsible for all obligations and risks (including default risk) under the premium funding loan contracts. Austbrokers will receive various fees including a percentage of gross funding income, loan inflows and certain fixed-fee arrangements.