The acquisition of Australia’s largest independent Lloyd’s coverholder SRS Underwriting by global intermediary Arthur J Gallagher & Co will enable Brisbane-based SRS to expand its product range, SRS founder and former owner Paul Lynam says.

Mr Lynam, who will remain with the business as CEO of Arthur J Gallagher’s Australian underwriting operations, told insuranceNEWS.com.au the deal gives SRS a strong platform to continue its growth “and offer a greater breadth of products through its network”.

As CEO of Australian underwriting, Mr Lynam will also take responsibility for Arthur J Gallagher’s existing Australian underwriting business, Australis Underwriting, which has offices in Sydney and Melbourne.

SRS specialises in property, liability, construction, prestige home, professional risks, motor, contingency and accident and health cover, complementing Australis’ operations in the property, liability, construction, care and corporate sectors.

Mr Lynam says SRS and Australis will be run as two separate businesses, but he will look to “take advantage of any marketing opportunities which may present”.

He founded Brisbane-based SRS – which also has offices in Sydney and Melbourne –19 years ago. In his new role he will report to John Hastings-Bass, the Chairman of AJG International’s OIM underwriting group.

J Patrick Gallagher, Chairman, President and CEO of Arthur J Gallagher, said SRS “has been successful in developing an underwriting team which is extremely well-known in the industry for its market-leading expertise, innovative products and first-class claims service”.

Arthur J. Gallagher Australasia CEO Andrew Godden will remain in his current position, heading up the Gallagher Australia and SBA Gallagher broking operations.

Mr Godden says the combination of SRS and Australis will give Arthur J Gallagher a “significant edge” in the local underwriting sector, while the deal will also “strengthen our platform for expanding Gallagher’s presence in the Asia-Pacific region”.

Mr Lynam says SRS employs around 48 staff and has premium income of about $75 million.

Terms of the transaction were not disclosed.