Centrepoint Alliance will put $5 million into a new life insurance business aimed at the independent financial adviser market.

MD John de Zwart gave little away when announcing the company’s half-year results on Friday.

“We have seeded a new life insurance initiative and look forward to developing this during the next 12 months,” he said. “The environment for new entrants is ideal.”

The investment is through a convertible loan, giving Centrepoint a minority stake in the unnamed company.

Mr de Zwart says there is an option to increase the stake over the next three years.

“Centrepoint has a management team with strong life insurance experience and an existing adviser community with more than $400 million of premium inforce,” he said.

“We are initiating the life insurance initiative to take advantage of significant value opportunities with a proven thematic and an experienced team.”  

Centrepoint’s licensee and advice services business reported a 13% increase in revenue to $58 million for the six months to December 31.

The business also reported a 62% increase in before-tax earnings to $2.1 million for the half.

Mr de Zwart attributes the growth in revenue to recruiting more advice businesses.

At December 31 Centrepoint had 1830 advisers on its books nationwide.

Centrepoint is still handling legacy claims from clients, paying out $3.2 million in the six months to December 31. It has a provision of $3.7 million to settle outstanding claims.