Centrepoint Alliance’s insurance premium funding business continues to grow through existing and new broker relationships, Chairman Rick Nelson says.

The company’s annual report says it has increased market share and achieved strong growth in loan volumes, which reached $368 million last financial year.

“The insurance premium funding market is estimated to be about $5 billion per annum,” Mr Nelson said.

“It is highly competitive, dominated by insurance company Allianz [through Hunter Premium Funding] and Macquarie Bank.

“The merger of major competitors Macquarie and Pacific Premium Funding saw Centrepoint Alliance become the largest independent operator in the Australian industry.”

Mr Nelson says consolidation of the industry has helped the premium funding business raise pre-tax profits 42% to $3.4 million.

It has also benefitted from lower borrowing costs, effective credit management and improved cost-to-income ratios.

He says there is little risk of the business losing its funding.

“Centrepoint has a strong relationship with its banking partner [NAB]. The finance facility has recently been renewed for 18 months on improved terms.

“Regular price audits are conducted by the bank and all reporting and covenant requirements are complied with.”