Claims services company Stream is to list on the Australian Securities Exchange next month as it progresses its integration with major loss adjuster Cerno.

At the same time Stream MD Don McKenzie has been appointed Cerno’s Executive Director – Transformation.

Mr McKenzie told insuranceNEWS.com.au he has been working on the integration of Cerno and Stream into a joint operating model since his appointment as a director of the loss adjuster in April last year.

His company is to merge with listed shell company LongReach Group, which has changed its name to Stream Group Ltd. The shares are expected to start trading under the code SGO on March 3.

Mr McKenzie says the listing will increase cash reserves significantly and also provide additional financial capacity to raise capital for further growth.

“Our primary reason for listing is to provide a framework of equity ownership to retain our people, and attract new skill sets,” he said. “[This] will allow us to expand our internal capabilities across Australia, New Zealand, the UK and other target areas.”

In November insuranceNEWS.com.au reported Cerno’s auditor had expressed “significant uncertainty” for the company’s future after it reported a loss of $4.23 million last financial year on top of a $7.17 million loss the previous year.

MD Tony Button said at the time that Cerno’s new partnership with Stream “will bring huge benefits”.

Cerno spent $700,000 in December 2012 quitting a joint venture with Claims360 to set up the partnership with Stream.

Mr McKenzie says his main focus at present is on transforming Cerno, “with particular focus on product development, client relationships and operational performance”.

He will be assisted by Transformation Program Management Office GM Paul Lynch, who is a former EGM who managed the Suncorp-Promina integration. Change management expert Linda Romano has also been brought on board.

Mr McKenzie says the two companies intend to “take the best parts of the traditional loss adjusting process and couple it with independent building and procurement capabilities and leading collaborative technology” to reduce costs and timeframes.

He told insuranceNEWS.com.au the intention is to move Cerno’s operation from a total focus on loss adjusting objectives to “starting with the claim and what the client wants”.

“Our systems and processes will be client and customer first, with revenue and profit coming later. It’s a basic business principle.”

Cerno MD Tony Button says the management of the transformation program by Stream “will allow [us] to focus on business as usual and operational delivery without slowing progress”.

Mr McKenzie says Stream is also undertaking an executive recruitment drive to bolster senior leadership positions within the group.