K2 Insurance Services, a portfolio company of American private equity firm Lee Equity Partners, has brokered a deal to purchase Pioneer Underwriters’ portfolio.

The transferred business includes underwriting units specialising in property catastrophe reinsurance, financial institutions, international property facultative, and marine specialty.

These units are said to form the cornerstone for future growth in K2’s international platform.

The units are expected to underwrite around £150m of gross written premium this year.

The financial terms of the transaction have not been disclosed.

Following the transaction, Pioneer’s underwriting and support staff will transition to K2.

K2 CEO Bob Kimmel 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.”

As part the transition services agreement, both businesses will cooperate during the remainder of this year to enable a smooth process.

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

Pioneer CEO Andrew McMellin 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.”

The transaction is expected to close by the end of second quarter of this year. It is subject to the necessary regulatory approvals.