Austbrokers AEI has bought Chegwyn Insurance Brokers, a non-aligned broker serving the industrial centre of Wetherill Park in western Sydney.

The deal adds $6 million in gross written premium to the broker group and another member of the Chegwyn family to the Austbrokers AEI board – with Principal Russell Chegwyn joining brother Alex as a director.

Alex sold Chegwyn Corporate Services to Austbrokers AEI in 2010. The brothers’ father Ray started his broking career in 1949.

Alex says both companies serve a broad cross-section of SME clients, and the acquisition will enable Austbrokers AEI to expand in the industrial sector.

Partnering with his brother “gives Austbrokers AEI a great platform for future growth, as well as bringing… a great client base and professional staff”, he told insuranceNEWS.com.au.

Russell will take an equity shareholding in Austbrokers AEI and will continue working in the company. He says he was considering his succession planning “and security of my investment as a small broker”.

It was important to find a model that would provide support while remaining an “owner-driver”.

The acquisition comes a week after Austbrokers announced it would buy a majority shareholding in InterRISK, which serves the corporate and large industrial segments. 

It has also struck a deal to form a new bloodstock specialist through the merger of Austbrokers ABS Bloodstock, E-Quine Insurance Services and Howard Insurance.