Pioneer Underwriters’ units are expected to help the international expansion of K2
California-based K2 Insurance Services has signed an agreement to acquire London-based insurance underwriting business Pioneer Underwriters for an undisclosed amount.
K2 Insurance Services will acquire Pioneer’s ongoing underwriting portfolio along with its underwriting and support staff. The deal is expected to be closed by the end of this year’s second quarter, subject to the necessary regulatory approvals.
The business that K2 will scoop up include the underwriting units specializing in Property Catastrophe Reinsurance, Financial Institutions, International Property Facultative and Marine Specialty.
The units will continue to work from London and are expected to support K2’s future international platform. The units together are expected to underwrite nearly £150m in gross written premium this year, claimed to be supported by high quality providers.
K2 CEO Bob Kimmel 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.”
K2, Pioneer Underwriters also executed transition services agreement
The two companies have also implemented a transition services agreement, under which they will cooperate during the remaining period of this year so that a smooth and seamless transition can take place.
During this time, Pioneer will also continue to fulfil its obligations to its clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity.
Pioneer CEO Andrew McMellin said: “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.”
Established in 2011 in San Diego, California, K2 Insurance Services aims to create a major underwriting and distribution franchise in the insurance market.