Loss adjuster Cerno and recently listed claims service provider Stream Group are in discussions about a possible merger.

The proposal is at an early stage and subject to shareholder approval.

Stream already owns 39% of Cerno, and the companies share IT and support systems.

They have been working together on a transformation program towards an “enhanced operating model”.

Stream MD Don McKenzie told insuranceNEWS.com.au a merged entity would be simpler to operate.

“There are a number of synergies that can be achieved when you have financial consolidation,” he said. “Stream is Australian Securities Exchange-listed and that offers more strength and more opportunities.”

Mr McKenzie says if the merger goes ahead it will be “appropriate to look at branding”, but he does not expect major staffing changes.

“It would be different to most mergers because we have already completed a lot of integration. We have already done a lot of things that companies do in mergers.

“It has been a challenging time, but we are starting to see the benefits of the transformation program. We are moving at a rapid rate and faster than other service providers.”

Cerno MD Tony Button says “it makes sense to consider a merger because we will be working more and more closely with Stream”.