Centrepoint Alliance has reported a half-year net loss of about $800,000, compared with a $3.5 million profit in the corresponding period of 2016.

The wealth manager attributes the loss in the six months to December 31 to significant investments in new advice technology, additional outsourced services for advice groups, and marketing and salaried advisers.

Other factors include legacy claims provisions relating to financial product advice given before July 1 2010, the announcement of Angus Benbow as CEO and the decision to unwind the executive loan share schemes.

Mr Benbow joins Centrepoint from Shadforth Financial Group.

Centrepoint has provided $5 million in seed funding – $1.25 million via convertible notes in February last year and $3.75 million in July – for Neos Life, a standalone life insurance business aimed at the financial adviser market, which is expected to open this year.

An agreement has been finalised with an insurer and reinsurer for issue of the products, subject to Australian Prudential Regulation Authority approval.

The convertible notes represent a minimum 30% economic interest for Centrepoint.

In August last year $1.75 million was provided for 5% equity interest, with options to increase ownership an additional 15% before January 2020.

Centrepoint says Neos Life’s key differentiator will be “next-generation adviser and client efficiency and processes”.

The group grew its earnings before interest, tax, depreciation and amortisation from core continuing operations, excluding one-off expenditure, by 9% to $2.4 million in the half.

It says 90 advice businesses have been recruited over the past two years, accounting for more than 200 advisers.