Warburg Pincus will be acquiring the US-based insurance firm from Lee Equity Partners for an undisclosed sum.
The funding will allow K2 to pursue its long-term growth goals, which include mergers & acquisitions, de-novo incubation, and providing clients with top-notch services.
K2 has a diverse portfolio of 24 speciality programmes that are spread across four major categories—speciality commercial, speciality transportation, international, and personal lines.
For managing general agents (MGAs), it offers centralised services in the areas of distribution and capacity relationships, technology, actuarial, claims, and further back-office assistance.
Warburg Pincus managing director, head of financial services Michael Martin said: “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.”
K2 CEO and co-founder Bob Kimmel said: “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.”
Some of Warburg Pincus’s other insurance sector investments include Aeolus Re, Arch Capital, Cox Insurance, ICICI Lombard Insurance, Max Life, McGill & Partners, RenaissanceRe, SBI General Insurance, and Somers Re.