PSC Insurance Group announced today it will acquire the general insurance broking business of Australian Unity for $1.56 million.

The new portfolio, which generates about $625,000 in revenues annually, will be managed out of PSC’s office in Sydney, the Melbourne-based group said in a statement.

“The [Australian Unity] general insurance broking team will be a great addition to our existing Sydney business,” CFO Joshua Reid told insuranceNEWS.com.au. “They are experienced and client-focused and will be a welcome addition to the group.”

PSC will pay 85% of the agreed price in cash upon completion of the deal tomorrow, with the balance to be settled 90 days after the first anniversary of the acquisition.

The remaining 15% to be paid is “adjustable” and will be determined according to the revenue performance of the new business, PSC says.  It will fund the purchase from existing cash resources.

Australian Unity does not expect the sale of the broking business to have a material impact on its earnings.

In a statement to insuranceNEWS.com.au, Australian Unity says it has made the decision to focus on its banking arm’s direct retail opportunities, hence the move to part with its general insurance broking business.

The latest addition to the PSC business follows a number of acquisitions made last year locally and in the UK.

Last November PSC acquired UK-based Lloyd’s broker Carroll Insurance Group for £3.4 million ($6.6 million) after having completed its £42 million ($81.1 million) purchase of Paragon International.

And in July it paid $48 million for Shepparton-based broker Griffiths Goodall.