Global growth investor Warburg Pincus has agreed to acquired K2 Insurance Services, a specialty insurance programme manager from Lee Equity Partners.
K2 Parametric works with both retail and wholesale brokers to provide parametric insurance solutions to middle-market and larger commercial clients.
Through its MGAs, K2 markets, underwrites, and services over $1bn annually in niche commercial and personal insurance premiums. From workers’ compensation for high hazard exposures such as commercial transportation to personal lines coverage for manufactured homes, K2 helps insure clients across a diverse array of risks and industries.
The investment, according to K2, will support its continued growth strategy, including M&A and de-novo incubation and its commitment to offering best-in-class services to clients.
The terms of the arrangement were not disclosed.
Warburg Pincus is an active investor in the insurance sector globally and has made investments in select companies such as Aeolus Re, Arch Capital, Cox Insurance Holdings, Fetch, Fortegra, Foundation Risk Partners and ICICI Lombard Insurance.
Bob Kimmel, CEO and co-founder, K2, said, “I am incredibly proud of our achievements and growth since K2 was founded over ten years ago. Partnering with Warburg Pincus, who has a long-standing track record of cultivating world-class businesses, reflects the hard work and strong culture of our team, loyalty of our customers, and cements our position as a leading underwriting and distribution franchise in the program insurance market. We would also like to thank Lee Equity for their tremendous partnership and support over the past three years.”
Michael Martin, managing director, head of financial services, Warburg Pincus, added, “”K2 is truly a differentiated platform, offering a full suite of services to a diversified portfolio of programs that are supported by deep carrier relationships. K2’s management team has extensive industry experience and a demonstrated track record of growing insurance businesses.”
Earlier this year, K2 Insurance partnered with Homesite Underwriting Managers to offer parametric natural catastrophe policies in the US.
Copyright © 2022 FinTech Global
