The deal is expected to close by the end of Q2
Speciality US insurance firm K2 has finalised terms to buy the underwriting portfolio of MGA Pioneer for an undisclosed sum.
The deal - expected to close by the end of the second quarter of 2020 and announced earlier this year - will also see Pioneer’s underwriting support staff transferred across.
The units comprise Pioneer’s property catastrophe reinsurance, financial institutions, international property facultative and marine specialty divisions.
They will write £150m of GWP this year out of the firm’s London offices and ”will form the cornerstone for future growth in K2’s international platform”, the company said.
Pioneer will continue to fulfil obligations to clients and capital providers of Syndicate 1980, as well as discontinued MGA underwriting activity, it said. Pioneer put the syndicate into run-off last year while reporting a £17m loss for the previous year.
Pioneer chief executive Andrew McMellin the deal ”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.”
While his K2 counterpart Bob Kimmel added the deal was “a milestone” for his business, being its first acquisition outside of the US and part of its 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,” he said.