Melbourne brokers Paramount and Capital Mutual are merging to become Steadfast Eastern Insurance Brokers, with a view to becoming a new Steadfast hub.

Paramount director Dino Di Giacomo says the companies will join forces next Tuesday, April 1.

Both are based in the city’s eastern suburbs, and Mr Di Giacomo says they are a close match, with similar offering categories and 80-90% of business from SMEs.

Steadfast will have an equity interest in the new company because Paramount sold a shareholding into the cluster group’s float last year.

“In the short term it will be business as usual – all we are really doing is rebranding,” Mr Di Giacomo said.

But he says the partners will work towards becoming a Steadfast hub, which will enable entities under the Steadfast Eastern umbrella to gain back-office efficiencies and a compliance officer to take the load off brokers.

At that point they will encourage other brokers to join the hub.

Mr Di Giacomo and fellow Paramount director Trevor Curry will become directors of Steadfast Eastern, along with Capital Mutual director Fred Nadde.