Steadfast has named Centrepoint Alliance
Premium Funding as a preferred provider of insurance premium funding products and services for its broker network.
A three-year distribution agreement, the relationship will not be exclusive, with Steadfast's 306 brokers still able to choose their own preferred provider of premium funding products from panel providers.
The deal is said to be on the back of Centrepoint's success in building relationships with individual Steadfast brokers over a number of years, and its record of providing local, high quality service along with a nationwide presence.
Steadfast CEO
Robert Kelly said he hoped the agreement would lead to closer long-term ties between the two businesses, after it commences on 1 September.
Centrepoint Alliance Premium Funding CEO Bob Dodd said the business would aim at adding value to Steadfast's broking businesses, and told Insurance Business that its independence put it in a good position in the current market.
"It is important we always recognise the broker as our primary customer taking a holistic, portfolio approach to their business in respect of flexibility and risk management," Dodd said.
ASX-listed Centrepoint last week announced a group net profit after tax of $3.3m for the year to 30 June 2014, up 142% from a $7.8m loss in the previous financial year. Underlying profit before tax increased 43% to $8.3m.
Centrepoint's funding business itself delivered an underlying pre-tax profit of $5.3m, up 43% on the prior year.
"The leading broker proposition combined with industry consolidation has provided the opportunity to grow market share with the number of insurance brokers actively providing business increasing by 31%," Centrepoint's market announcement read.
"The strategy of rebalancing the business by improving market share on the east coast is succeeding with a 35% increase in active brokers and a 43% increase in loans originated from the eastern states."
Centrepoint said that investment in IT systems was benefitting broker productivity and customer experience, while also improving the premium funding business' cost to income ratio.
