The sale of Professional Insurance Services’ Singapore business has come back to haunt Centrepoint Alliance.

The business, registered in Singapore as Fifth Floor, was sold to Aviva Asia in 2012.

The buyer has now lodged an action in the Singapore High Court claiming $S988,037 ($981,780) plus interest and costs.

The action centres on a warranty in the share purchase agreement stating the earnings of the Singapore business.

Aviva claims the 2011 audited report of Professional Investment Services overstated accrued commissions earned in the accounts for that year and in 2009.

The insurer says that as a result, there is a breach in the warranty that was part of the share agreement, and Professional Investment Services had provided a guarantee and indemnity for any breaches.

Centrepoint Alliance says it will defend the proceedings.