Coverforce has announced the acquisition of a 66% shareholding in Melbourne-based Reliance Insurance Brokers, despite PSC Insurance Group having previously revealed an agreement to complete the same deal.

PSC announced to the Australian Securities Exchange in January that it had entered into conditional agreements to acquire the Australian Reliance corporate broking business and Reliance Partners insurance adviser network.

This included 66% of Reliance Insurance Brokers in Melbourne. But insuranceNEWS.com.au understands this part of the deal has run into difficulty over differing interpretations of shareholder agreements, giving Coverforce an opportunity to step in.

PSC MD Paul Dwyer says the deals for Reliance Franchise Partners, the Perth business and the Sydney business have all gone through.

“We are really happy with the parts we have acquired and it represents the vast majority of the business,” he told insuranceNEWS.com.au.

“We are not too concerned either way if we miss out on Melbourne. There is still a bit to play out on this one and that is why we have not updated the market.”

Coverforce says the Reliance Insurance Brokers management team in Melbourne led by Jim Malady will continue to operate the business.

Reliance Insurance Brokers will be rebranded Coverforce Insurance Broking, it says.

“This partnership provides us with significant opportunities and growth prospects,” Coverforce CEO Jim Angelis said.