Under the transaction, Pioneer’s ongoing underwriting portfolio, together with underwriting and support staff, will transfer to K2.

The transaction is expected to close by the end of Q2, subject to the necessary regulatory approvals. Terms of the acquisition, which was first announced in February 2020, will not be disclosed.

The transferred business will comprise underwriting units specializing in property catastrophe reinsurance, financial institutions, international property facultative and marine specialty. These units will continue to be based in London and will form the cornerstone for future growth in K2’s international platform.

Together the units will underwrite approximately £150 million (US$185.2 million) of gross written premium in 2020, all of which is supported by high quality capacity providers, said a statement from London-based Pioneer.

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 fulfill its obligations to clients and capital providers of Syndicate 1980 and discontinued MGA underwriting activity. (Pioneer underwrites on behalf of more than 20 Lloyd’s and non-Lloyd’s capital providers).

“This is a milestone for our business – our first acquisition outside of the U.S. and the start of our international expansion strategy,” said Bob Kimmel, CEO of K2, a California-based specialty insurance holding company.

Pioneer was advised by Canaccord Genuity.