Finance company Centrepoint Alliance intends to concentrate on premium funding after blaming an interim loss of $565,000 on unprofitable commercial finance units dragging the overall result into the red.

The Brisbane-based company’s revenue climbed 7% to $16.3 million in the six months to December 31. The insurance premium funding business contributed net profit of $2 million, but a $2.6 million loss from discontinued finance units led to the loss.

The business has been repositioned as an insurance premium funding specialist after Centrepoint completed the sale of its finance broking operations and a commercial asset finance book effective from December 31.

Centrepoint Alliance reported a $12.4 million loss from commercial finance activities last year. In the same period the insurance premium funding division reported a flat $2.9 million profit.

CEO Insurance Markets Bob Dodd told insuranceNEWS.com.au the restructure clearly positions the business as a financial solutions provider to the insurance industry.

He says increasing insurance premiums and greater demand for new sources of working capital should spur further growth.

“In this economic climate brokers and their customers are seeing the potential for premium funding to improve cashflow,” he said.