Centrepoint Alliance says its insurance premium funding business increased net revenues by 11% to $14.6 million in the year to June 30.

Loan volumes were $368 million, up 16% from $317 million the previous year. The premium funding operation reported a 42% rise in pre-tax profits to $3.4 million.

MD John de Zwart says profits grew on lower borrowing costs, effective credit management and improved cost-to-income ratios.

“The business has started the new financial period with volumes up 20% on the corresponding period. Bank funding lines were increased by 35% on improved terms in July, underpinning medium-term growth plans.”

Overall, Centrepoint Alliance recorded a net after-tax loss of $7.8 million – an improvement on its $17.9 million loss in 2011/12.

Revenue was $52.6 million, down from $62.1 million the previous year.

Mr de Zwart says the result was aided by growth in the premium funding operation, investment market gains and lower legacy claim costs from the adviser business Professional Investment Services.

“The operating result reflects a good performance across the business that is undergoing a  significant change,” he said.

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