Global wholesale and reinsurance broker Cooper Gay Swett & Crawford (GCSC) has bought Sydney-based Epsilon Insurance Broking Services from founders Peter and Lynn O’Shea, as part of a wider expansion in Australia.

David Kleinhans, an underwriting manager at CGU, will take over as Epsilon CEO from Mr O’Shea, who will continue working in the business.

“Epsilon is a highly regarded operation that complements CGSC’s existing platform in the region,” CGSC CEO Toby Esser said. “The Australian market presents significant opportunities.”

Mr O’Shea, who started Epsilon in 2001, says CGSC’s resources will allow further development of products to enhance the client offering.

Reinsurance broker Cooper Gay Australia has also launched a wholesale division to act as an intermediary between independent insurance intermediaries and insurance carriers.

“It is very much early days, but we are a wholesale broker globally and we are trying to develop it here,” Cooper Gay Australia MD Jon Calverley told insuranceNEWS.com.au.

He says CGSC, which has private equity group Lightyear Capital as its major investor, remains on the lookout for acquisitions. “As a group we are looking to grow.”

The wholesale division will be run by Jonathan Hyde, who joined the company in July last year as head of production. He has also worked at Lumley Insurance and Allianz.