GSA Insurance Brokers has sold a controlling shareholding to Steadfast, fulfilling a promise made more than a decade ago.

GSA CEO Paul Hines told insuranceNEWS.com.au that about 15 years ago he pledged that if he ever sold equity in the business it would be to his "good friend", Steadfast MD and CEO Robert Kelly.

Mr Hines says that “numerous other parties” have made advances over the years but that he’d “always remained true”.

“I’m very proud that it did go to Robert and Steadfast in the end,” he said.

Mr Kelly says Steadfast had wanted “some action” in GSA for a long time.

“As Paul was building it and turning it into a small powerhouse of corporate competitiveness with the internationals, we were always in the wings saying 'we’re really happy to take some equity when you want to step back a little bit',” he said.

“There was nothing that predicated the timing, other than Paul wanted to make sure his staff were looked after. We have a model that can accommodate that.”

Sydney-based GSA, which also has an office in Brisbane, was formed 30 years ago and has about 60 staff.

Mr Kelly says its corporate sector focus was particularly attractive to Steadfast.

“It’s a great move for us, because we’ve been weak in the [corporate] sector and this gives us the opportunity to build some of our other assets that we've got that fit very well with GSA.

“[It] has great growth potential, but we can bring some opportunity for acquisition growth to enhance and accelerate that growth.”

Mr Hines will become Executive Chairman, with James Telford, who has been with the business for 15 years, promoted to CEO. Current Chairman John Hewson will remain as an adviser to the board.

“It’s a very good union because we might form that missing link, as they don’t really have a strong representation in that corporate space,” Mr Hines said.

“We are that missing piece in the jigsaw puzzle, in terms of Steadfast’s broking armoury. That appealed to me and it obviously appealed to Robert. The two companies are culturally very much aligned. There is a comfort and trust factor there that you can’t put a price on."

He says the deal will enable operational efficiencies and better access to market.

“Importantly, it will increase our clout,” he said. “All of a sudden we’ve got this big machine behind us and I know that will help with negotiations. It has been extremely well received by our clients.”

The business, which was already a Steadfast member, will continue to operate under the GSA brand.

It will also continue to be the Australia and New Zealand representative for Assurex Global – a US-based global network of independent brokers and agents.