K2 Insurance Services LLC, the specialty insurance services holding company, has completed the purchase of Pioneer Underwriters, the London-based managing general agency.
The deal was facilitated with a portfolio transfer, whereby Pioneer’s ongoing underwriting portfolio, together with underwriting and support staff, transferred to K2.
Terms of the acquisition, which was first announced in February 2020, will not be disclosed.
The transferred business comprises underwriting units specializing in property catastrophe reinsurance, financial institutions, international property facultative and marine specialty. Together the units will underwrite approximately £150 million (US$184.3 million) of gross written premium in 2020, all of which is supported by high quality capacity providers, and will form the basis of K2 International.
K2 and Pioneer also 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 transition.
The agreement provides for the exchange and access to expertise, services, data and software tools between the two organisations for a transitionary period as they consider their own future needs and developments. Meanwhile Pioneer will continue to fulfil its obligations to clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity.
“We are very pleased to have completed this transaction with K2, particularly in light of the operational challenges that COVID-19 has created,” said Andrew McMellin, chief executive officer of Pioneer. “We have an excellent relationship with K2 and remain committed to ensuring a seamless service to our customers, brokers and other stakeholders through our transition services agreement. We look forward to working with K2 and wish them every success in their future development.”
Bob Kimmel, CEO of California-based K2, said: “I want to thank all parties for working to get this transaction over the line in what is an unprecedented and challenging climate. This transaction marks the start of K2 International and we begin with teams who have excellent relationships and distribution channels, and are comprised of high calibre individuals.”
Pioneer was advised by Canaccord Genuity.
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