Steadfast has called a halt to its first “broker hub”, announcing new plans to now have two hubs operating in Sydney instead.

The hub was intended to bring together Indemnity Corporation and Finn Foster in a new company called IRS Steadfast, with the decision originally announced in July.

However, the two companies are now to operate separately, with IRS Steadfast and Finn Foster to become the core of two separate broking hubs in Sydney.

Hubbing involves putting two or more smaller brokerages together to create back-office synergies and lift revenue.

Sources have told insuranceNEWS.com.au there were some “difficulties” involved in getting Indemnity Corporation and Finn Foster to work together effectively. However, Steadfast MD Robert Kelly says the move was brought about by the size of the business the group has in the city.

He told insuranceNEWS.com.au today that brokerages Wagland Salter and DMA, both of which are 100% owned by Steadfast, will be “hubbed” into IRS Steadfast shortly.  The arrangement is subject to agreement on price and structure.

“Further insurance broking businesses owned or partly owned in NSW will also be hubbed into one of the two hubs over time, allowing Steadfast to realise the expected economic benefits,” Mr Kelly said.

“This is a slight change from our previous strategy of having one hubbing vehicle in

NSW. [But] we now consider that the size of our business in NSW requires more

flexibility in our hubbing strategy.

“We are fortunate to have two strong businesses in IRS Steadfast and Finn Foster to enable us to deliver our strategy for hubbing in NSW.”