Sydney brokers Indemnity Corporation and Finn Foster have merged, with the new business beginning operations today.

It comes after both companies agreed to sell 49% stakes to Steadfast, according to Indemnity Corp MD Jonathan Upton.

“It was silly not to bring the two organisations together because both Mark [Finn of Finn Foster] and I saw a number of synergies,” he told insuranceNEWS.com.au.

Mr Upton is MD and Mr Finn CEO of the merged business, to be called IRS Steadfast. The group will have 42 brokers and a total staff of about 60.

“We will continue to run two offices, each with particular areas of expertise,” Mr Upton said.

“Our areas of expertise complement each operation, but after the Steadfast [public] offering we can look further at the synergies of the two businesses.”

Finn Foster’s fees and commissions grew 7% last year to $6.5 million, according to the Steadfast float prospectus.

Mr Upton says the merged companies will initially continue trading under their own names.

“These names will fade away over time and we will then be known as IRS Steadfast. There is a lot of heritage in the names so they won’t disappear overnight.”