Pioneer Underwriters, (“Pioneer”), the underwriting services organisation, and K2 Insurance Services LLC (“K2”), the specialty insurance services holding company, today announce they have signed terms for a transaction which will see Pioneer’s ongoing underwriting portfolio, together with underwriting and support staff, transfer to K2. The transaction is expected to close by the end of Q2, subject to the necessary regulatory approvals. Terms of the transaction will not be disclosed.
The transferred business will comprise underwriting units specializing in Property Catastrophe Reinsurance, Financial Institutions, International Property Facultative and Marine Specialty. These units will continue to be based in London and will form the cornerstone for future growth in K2’s international platform. Together the units will underwrite approximately £150m of gross written premium in 2020, all of which is supported by high quality capacity providers.
K2 and Pioneer have implemented a transition services agreement which will see cooperation between the two businesses during the remainder of 2020 to enable a smooth and seamless process. Meanwhile Pioneer will continue to fulfil its obligations to clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity.
Andrew McMellin, chief executive officer of Pioneer, commented: “We are very pleased to have signed terms with K2. The deal agreed ensures a seamless transition for our clients and broker partners who have been incredibly supportive. K2 combines strong financial backing with a diversity and ambition that is exciting for the teams joining them. They are an excellent operation and one we look forward to working with over the coming months.”
Bob Kimmel, CEO of K2, said: “This is a milestone for our business – our first acquisition outside of the US and the start of our international expansion strategy. The teams transferring from Pioneer have the skills, distribution and relationships that complement our offering and align with our values; they provide an excellent foundation upon which we can build a leading international distribution platform.”
Pioneer was advised by Canaccord Genuity.