Pioneer Underwriters and K2 Insurance Services LLC have now signed terms for their previously announced transaction, under which Pioneer’s ongoing underwriting portfolio, as well as underwriting and support staff, transfer to K2.
With the terms of the transaction now signed, it’s expected that the deal will complete by the end of the second-quarter of 2020, subject to regulatory approvals.
The transferred business will comprise underwriting units that have a focus on Property Catastrophe Reinsurance, Financial Institutions, International Property Facultative, and Marine Specialty.
Following the completion of the deal, these underwriting units will remain in London and will form the cornerstone for future growth of K2’s international platform. In 2020, it’s anticipated that the units will write a combined approximately £150 million of gross written premium.
To ensure a smooth and seamless process, Pioneer and K2 have also implemented a transition services agreement which will see the two companies cooperate throughout the remainder of the year. In addition, Pioneer notes that it will continue to fulfil its obligations to both clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity.
Andrew McMellin, Chief Executive Officer (CEO) of Pioneer, commented: “We are very pleased to have signed terms with K2. The deal agreed ensures a seamless transition for our clients and broker partners who have been incredibly supportive. K2 combines strong financial backing with a diversity and ambition that is exciting for the teams joining them. They are an excellent operation and one we look forward to working with over the coming months.”
Bob Kimmel, CEO of K2, added: “This is a milestone for our business – our first acquisition outside of the US and the start of our international expansion strategy. The teams transferring from Pioneer have the skills, distribution and relationships that complement our offering and align with our values; they provide an excellent foundation upon which we can build a leading international distribution platform.”
