UK-based MGA Pioneer Underwriting has reportedly agreed to the sale of the company and its subsidiary to its current secretary and risk & compliance head Russell Coward.

The transaction, which is subject to regulatory approval, is expected to be completed during last quarter of the year. The terms of the agreement were not disclosed.

In May this year, Pioneer Underwriting signed an agreement with K2 Insurance Services to transfer its four ongoing underwriting units and the separate transaction to offload its Guernsey insurance cell that previously offered underwriting support to syndicate 1980.

According to the company, the final transaction is a vital step in offering future finality to its existing shareholders.

After the closing of the deal, the company will be rebranded with Russell Coward taking over as the new CEO.  Its current CEO Andrew McMellin will depart the firm to pursue new opportunities within the industry.

The business will also assume its current company obligations, including the run-off of the Pioneer underwriting units not obtained by K2 International.

McMellin said: “We are very pleased to have signed terms with Russell. The deal ensures continuity for Pioneer’s clients and broker partners through the continuation of the run-off obligations, as well as providing future opportunities for employees.

“Russell and the team have much experience that will serve the business well and we wish them every success in the future.”

Coward added: “We have great client relationships and an experienced team that can continue to build the business into a leading provider of expert advisory and insurance services. The opportunities are significant, and I am excited by the future.”

K2 brokered a deal to purchase Pioneer Underwriters’ portfolio in April this year.