Donnellys Insurance Brokers founder Mike Donnelly says the Adelaide company has a brighter future under new owner Gallagher.

Gallagher announced the acquisition last week, as it continues to expand its SME capability.

Mr Donnelly is a former National Insurance Brokers Association director and was a founding member of the Insurance Brokers Network Australia founding member, also serving as chairman and director. He is a past recipient of the Lex McKeown Trophy for services to broking.

The brokerage was founded 43 years ago, and Mr Donnelly says the sale to Gallagher will open new growth opportunities for the company.

The threat of increasing government regulation and competition from direct players makes it hard for small independent brokers to grow, he says.

“This guarantees a better proposition for clients and more security for staff,” he told insuranceNEWS.com.au.

“I had been looking for a suitable buyer for two years, and [Gallagher’s] values are the same as ours. Gallagher is a family business, and it was the right time to make the move.”

The business has seven staff working from its Adelaide office, including Mr Donnelly as Executive Director and his son CHris as Account Executive.

It offers domestic and commercial insurance, specialising in personal lines products distributed through affinity groups.

The Donnellys name will be phased out, with the business now known as Gallagher’s Adelaide CBD branch.

Gallagher CEO Sarah Lyons says Donnellys is “a great fit”.

“As a family-originated business, Mike, Chris and the team have built a solid reputation over the years for professional and friendly client service and will continue in this vein as they transition into the Gallagher team,” she said.

“Small businesses have a unique set of needs and this is a space ripe for innovation, and connection with associations and other affinity groups aligns well with our core business model.”