Centrepoint Alliance has completed the sale of its premium funding business to Bank of Queensland (BOQ) for $20 million.

As reported in a Breaking News bulletin last month, Centrepoint Alliance Premium Funding was on the market for at least six months before the bank’s acquisition was announced.

The deal was finalised on December 30, and the business will be rebranded to form a new division within BOQ Finance.

Centrepoint says BOQ is “a better long-term owner” for the funding business.

“We are delighted with the sale to BOQ Finance because it is a strong fit and supports the premium funding team’s growth plans,” Centrepoint MD John de Zwart said.

“The premium funding team joins a group with a great reputation for customer focus, a broader product offering and lower cost of funds, which will support the future success of the premium funding business.”

Centrepoint Alliance Premium Funding handles about 30,000 new loans annually and funded $377 million in gross written premium for 420 insurance brokers last financial year.