K2 Insurance Services (K2), a San Diego-based managing general agency (MGA) has purchased a majority stake in Midwestern Insurance Alliance, which underwrites workers’ compensation coverage, with a focus on the transportation industry.
The acquisition, whose terms of the agreement remained undisclosed is the first investment for K2 in other MGAs.
K2 President Bob Kimmel said the company was established to invest in successful MGAs so that it could leverage their expertise and build on their relationships with insurers.
With the added capital support, Midwestern will expand its territory to 17 states, including Texas and California, currently underserved markets for workers’ compensation insurance for trucking firms, Kimmel added.
In addition to California and Texas, Midwesterns’ expanded territory now also includes Alabama, Nevada, Utah, Louisiana, Mississippi, North Carolina and Virginia.
Louisville -based Midwestern, formed 52 years ago has underwritten business on behalf of the same A-rated carrier for the past 16 years.
The company previously underwrote business in Arkansas, Georgia, Indiana, Kansas, Kentucky, Missouri, South Carolina and Tennessee and has annual gross written premiums of $35m.