London-headquartered MGA Pioneer Underwriters has announced today that it is entering into a deal with US-based K2 Insurance Services (K2). Notably, this transaction will be the specialty insurance services holding company’s first acquisition outside of the United States.
According to a press release, the UK underwriting organisation will be the linchpin for a new international platform from K2. Initially, this will include products in Pioneer’s property cat reinsurance, financial institutions, international property facultative, and marine specialty units, which together will write around £150 million in gross written premium in 2020.
The news follows Pioneer’s decision to explore capital options, which was announced back in November 2019. The board of Pioneer believes that the proposed transaction with K2 “offers an exciting opportunity to build on the business’s strengths in improving market conditions,” states the release.
“K2 is a highly successful business in the US and its vision of building a broad, high quality and service driven group of expert underwriting businesses, now with an expanding international focus, has clear appeal for our underwriting teams and support staff, as well as significant benefit for our customers and capacity providers,” commented Andrew McMellin, chief executive officer of Pioneer.
Added Bob Kimmel, CEO of K2: “Pioneer’s underwriting leadership have the skills, customer commitment and capital relationships that are an excellent fit for K2. We look forward to working closely with them as we build an international distribution platform to complement our successful existing US business.”
The terms of the transaction were not disclosed, but it is expected to wrap up in the coming weeks and remains subject to confirmatory due diligence and various approvals.
