Arthur J Gallagher’s new underwriting agency division will spend the next six months working on a consolidation and integration program it expects will make it more effective in the market.

As revealed last week in our Breaking News bulletin, the US-based broker will unite the SRS Underwriting and Australis Group under a new brand as Pen Underwriting from November 1.

CEO Paul Lynam says Pen Underwriting’s market focus will be broader and its services enhanced.

Gallagher acquired SRS, believed to be Australia’s largest Lloyd’s underwriting agency, in November 2012. Australis was acquired eight years ago.

Mr Lynam told insuranceNEWS.com.au a number of the two groups’ underwriting operations will be consolidated and integrated over the next six months.

“No underwriter is going to be worse off as a result of the changes we’re going through,” he said.

“Anyone who has supported us over the past 20 years wouldn’t be surprised to know we’re working hard to keep doing the things that made us successful in the first place, while adding on the things that a company the size of Gallagher’s can add to make us even more effective.

 “We aim to be bigger, stronger and more capable.”

Mr Lynam says any business the new division may get from Gallagher’s new broking division at OAMPS “will be hard-earned”.