Pioneer's Coward to acquire company in final deal; CEO McMellin to exit
London-based MGA Pioneer Underwriters has agreed to be acquired by its company secretary and head of risk & compliance Russell Coward, in a move that will lead to its current chief executive Andrew McMellin's exit.
This transaction follows Pioneer's deal with K2 Insurance Services to transfer the four ongoing underwriting units and a separate transaction to divest the group’s Guernsey insurance cell that historically provided underwriting support to syndicate 1980.
Pioneer said this final transaction is a significant step in providing future finality to its existing shareholders.
The company will be rebranded at completion, which is expected in the fourth quarter of 2020. The new organisation will also assume all of the existing company obligations, including the run off of the Pioneer underwriting units that did not transfer over to K2 International.
Coward will lead the business as chief executive officer, while McMellin, current CEO of Pioneer, will step down to pursue new opportunities within the industry.
McMellin said: “We are very pleased to have signed terms with Russell. The deal ensures continuity for Pioneer’s clients and broker partners through the continuation of the run-off obligations, as well as providing future opportunities for employees. Russell and the team have much experience that will serve the business well and we wish them every success in the future.”
Coward added: “We have great client relationships and an experienced team that can continue to build the business into a leading provider of expert advisory and insurance services. The opportunities are significant, and I am excited by the future.”
Dane Douetil, chairman of Pioneer, commented: “I would like to take this opportunity to thank Andrew McMellin for so ably steering Pioneer over the last couple of years through its change of ownership, and ultimately with the three recent transactions - the successful sale of the Group’s businesses. On completion of the final sale Andrew will be leaving and we wish him the very best for the future.”
