Centrepoint Alliance has emerged from three years of losses, reporting strong growth in premium funding.

The company made a $3.22 million profit in the year to June 30, compared with a $7.29 million loss the previous year.

Chairman Rick Nelson says premium funding revenue grew 16% to $18.6 million and the division’s pre-tax profit gained 43% to $5.14 million.

“New active broker relationships increased by 31%, with significant growth in the east-coast business,” he said.

Centrepoint says loan volumes grew 21% to $445 million, but lending margins tightened slightly due to competition. “Credit quality remained strong, with improved low levels of losses.”

The company says it holds 9% of the premium funding market.

Centrepoint’s other major division, wealth management, has reported a pre-tax profit of $2.96 million, compared with a $6.09 million loss the previous year, after slashing client claims expenses.

In recent years Centrepoint’s financial performance has been damaged by client claims against advisers at Professional Investment Services, an advisory business it bought in 2010.

Life+Health insuranceNEWS.com.au will cover the company’s adviser business results on Wednesday.