Program specialist K2 Insurance Services (K2) has acquired a New Jersey managing general agency specializing in workers’ compensation alternatives and also launched a nationwide workers’ compensation program with another Kentucky program manager and QBE North America.
K2, which was formed in 2011 to acquire managing general agencies (MGAs) and specialty program administrators, has acquired New Jersey-based managing general agency High Point Underwriters. High Point Underwriters specializes in occupational accident and workers’ compensation products for independent contractors.
Occupational accident insurance policies are an alternative to traditional workers’ compensation policies. They are used by employers who opt out of the workers’ compensation system in states such as Texas to provide benefits to workers injured or killed on the job. They are also used by some transportation companies to fund benefits for owner-operators who are independent contractors. The policies permit an employer to choose benefit amounts, liability limits, deductibles and other terms, often at lower cost than if they provided the benefits set by state workers’ compensation laws.
David King, High Point’s CEO and lead underwriter, will remain with the firm along with Roman Atkielski, senior vice president, who has worked with King in underwriting this business for the last 15 years.
Concurrently with the acquisition, High Point is partnering with Midwestern Insurance Alliance and QBE North America to administer a combined national workers’ compensation and occupational accident insurance program. Louisville, Kentucky-based Midwestern Insurance Alliance, led by Marc Risen, is a national workers’ compensation program administrator focused on the transportation industry.
The coverage will be provided through QBE North America companies on both an admitted and non-admitted basis.
High Point will also continue to write occupational accident insurance on behalf of Lloyd’s of London.
San Diego, Calif.-based K2 was formed in 2011 by Bob Kimmel, chairman, and Pat Kilkenny, CEO, with investment firm Endeavour Capital. Kilkenny formerly ran and owned Arrowhead General Insurance, a general agency with more than $1 billion in written premiums. Kimmel served as executive vice president and MGA practice leader at Guy Carpenter, the insurance intermediary that is a division of Marsh & McLennan.
K2 acquired a majority stake in Midwestern Insurance Alliance in March, 2012. It as K2’s first investment.
Later that same year, K2 invested in a new Texas MGA, Mission Select Insurance Services, which focuses on residential property.
Kimmel said K2 will continue to seek other acquisitions around the country.
In 2013, K2 acquired Harrisburg, Pennsylvania-based Aegis Security Insurance Co. , which specializes in insurance for manufactured homes, other low-value dwellings and motorcycles. The company also underwrites surety bonds and accident and health. K2 utilizes several MGAs to distribute products on behalf of Aegis Security and other carrier partners including Aegis General Insurance Agency, Allied Public Risk, Midwestern Insurance Alliance, Mission Select Insurance Services and Vikco Insurance Services.
Source: K2 Insurance
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