Pioneer Underwriters and K2 Insurance Services have announced the completion of a transaction that transferred Pioneer’s ongoing underwriting portfolio and its underwriting and support staff to K2. Terms of the transaction were not disclosed.
The transferred business includes underwriting units specializing in property catastrophe reinsurance, financial institutions, international property facultative and marine specialty. The combined units will underwrite approximately £150 million (about $184.6 million) in 2020, all of which is supported by high-quality capacity providers and will form the basis of K2 International, the companies said.
K2 and Pioneer will cooperate during the remainder of the year to ensure a smooth transition. The transition services agreement between the companies provides for access to expertise, services, data and software tools between the two companies. Pioneer will continue to fulfill its obligations to clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity, the companies said.
“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, CEO 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.”
“I want to thank all parties for working to get this transaction over the line in what is an unprecedented and challenging climate,” said Bob Kimmel, CEO of K2. “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-caliber individuals. This is an exciting time for K2.”
