Pioneer Underwriters to merge with K2 Insurance Services

London-based Pioneer Underwriters has agreed to be acquired by specialty insurance services holding company K2 Insurance Services.

The transaction will see Pioneer’s current underwriting portfolio, together with underwriting and support staff, transfer to K2.

The transferred business will comprise underwriting units specialising in property catastrophe reinsurance, financial institutions, international property facultative and marine specialty. These units will continue to be based in London, as part of K2’s international platform.

The integrated business will underwrite approximately £150 million of gross written premium in 2020.

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. Meanwhile, Pioneer will continue to fulfil its obligations to clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity.

The deal, which is subject to certain regulatory approvals, is expected to close by the end of the second quarter.

Andrew McMellin, chief executive officer of Pioneer, said: “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, said: “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.”