Bank of Queensland Ltd. will acquire Centrepoint Alliance Ltd.'s premium funding business for A$20 million.

The acquisition is aligned with the bank's strategy to target profitable niche business segments, said CEO Jon Sutton.

The premium funding business originates 30,000 new loans per year to small and medium-sized businesses. The business funded A$377 million in gross written premium in the 12 months ended June 30.

The bank said the acquired business will be rebranded and form a new division within BOQ Finance. The transaction is expected to occur on Dec. 30.

The acquisition will be immediately earnings accretive for Bank of Queensland.

As of Dec. 19, US$1 was equivalent to A$1.38.