Sydney-based underwriting agency Epsilon says its acquisition by the UK’s Ardonagh Group will “only add value” to its operations.

As reported in a Breaking News alert last week, Ardonagh has agreed, subject to regulatory approvals, to acquire the insurance operations of BGC Partners for $US500 million ($645 million).

The acquisition of 100% of Ed Broking Group and Besso Insurance, recently grouped together under the brand of Corant Global, includes (re)insurance broker Ed, Lloyd’s broker Besso, aviation specialist Piiq Risk Partners, German marine broker Junge, UK-based agency Globe Underwriting, European agency Cooper Gay, and Epsilon Underwriting.

Ardonagh says 900 people work across the brands, which contributed about $US191 million ($246 million) in revenue during the year ending March 31.

CEO David Ross says the deal marks a “compelling shakeup” of the global wholesale landscape.

“A backdrop of unprecedented levels of consolidation has created a vacuum in the market, a space from which the BGC and Ardonagh businesses will emerge together as a pre-eminent force, restoring balance and cultivating a preferred destination for top-performing talent,” he said.

Earlier this year Ardonagh acquired Australian authorised representative network Resilium, and local industry veteran Paul Lynam was appointed Chairman.

Mr Lynam is a former chairman of Epsilon, which was formed in 2001 primarily as a liability specialist, but has since expanded into accident & health and other areas. Its CEO is Morgan Long and Chief Underwriting Officer is Paul O’Leary, a former longtime colleague of Mr Lynam’s from Gallagher-owned Pen, where Mr Lynam was CEO, and SRS, the agency founded by Mr Lynam which was bought by Gallagher in 2012.

“The Epsilon team, Paul O’Leary and I, having worked previously with Paul Lynam, feel very comfortable that Ardonagh understands our business and will only add value to what we do,” Mr Long told insuranceNEWS.com.au.

“With over 20 years of operation and now with the support and backing of Ardonagh, myself and the team are excited and more committed than ever to continue to provide our brokers with unique and innovative product offerings, excellent service and a consistent approach to underwriting backed by profitable underwriting results cementing long-standing relationships with our capacity.”