Cluster group Steadfast has withdrawn from negotiations to buy insurance technology firm InsuranceConnect.

The company’s BrokerCentral system, which handles quotes, policies, claims and supporting documentation, was viewed as an ideal add-on to Steadfast’s virtual underwriter facility, which is in development.

In May insuranceNEWS.com.au reported Steadfast had entered into negotiations to buy InsuranceConnect. The sale was regarded in the industry as a done deal, with the two organisations understood to be undertaking due diligence procedures.

The reasons behind Steadfast’s decision to terminate the discussions are not known, and Mr Kelly declined to discuss the issue when he was contacted by insuranceNEWS.com.au last week.

“All I will say is that we are not today engaged in any discussions to purchase a technology company,” he said.