Premium funder Centrepoint Alliance has secured the financial backing of the National Australia Bank (NAB).

The move comes after Centrepoint decided in July to undertake a major restructure following Wesfarmers Insurance’s move to end its preferred funding agreement with the company.

Centrepoint Alliance had until September 30 to convince the NAB that it could broaden its funding base to reduce strategic funding risk or it would be forced to enter into a full run-off of its receivables book.

In an announcement to the Australian Securities Exchange last week, the company says the NAB will continue to provide funding facilities until at least September next year.

This means Centrepoint will be able to “confidently continue to provide funding” to new and existing clients.

“As part of its ongoing risk minimisation strategy, and with the NAB’s support and assistance, Centrepoint will continue to implement a funding diversification program to introduce additional funding sources and reduce reliance on its principal banker,” the premium funder said.

The company’s new CEO, Tony Robinson, told insuranceNEWS.com.au Centrepoint has worked through a lot of issues over the past few months and is now in a good position to build the business going forward.

“We’ve got our annual results out of the way and we’ve tidied up some of the issues in the balance sheet, particularly the large amount of goodwill which we’ve written off,” he said.

“The business is now on a really solid footing.”