Pioneer Underwriters and K2 Insurance Services LLC complete transaction
Pioneer Underwriters, (“Pioneer”), the underwriting services organisation, and K2 Insurance Services LLC (“K2”), the specialty insurance services holding company, today announce the completion of the transaction to transfer Pioneer’s ongoing underwriting portfolio and the underwriting and support staff to K2. The terms of the transaction have not been 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 £150m 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 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 process. 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.
Andrew McMellin, chief executive officer of Pioneer, commented: “We are very pleased to have completed this transaction with K2, particularly in light of the operational challenges that COVID-19 has created. 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 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. This is an exciting time for K2.”
Pioneer was advised by Canaccord Genuity.