I really enjoy talking to people who are full of energy because some of that energy rubs off.
Bob Kimmel CEO of K2 Insurance Services’ return to the podcast with K2 CAT’s Head Underwriter David Carson is a case in point.
Here we find Bob buzzing with the possibilities that significant new investment from Warburg Pincus can afford the firm as it looks to accelerate growth and double in size to a $3bn GWP platform over the next 4 to 5 years.
David’s also full of energy after the decisive rupture in the reinsurance market at 1.1 has produced what he describes as the best market in property cat since 1993.
This is an incredibly candid and fluid discussion.
Bob is very open about the potential squeeze that may be coming for MGA and other intermediaries’ margins as reinsurers and carriers push back hard on commissions and trim underperforming agencies from their portfolios.
But he’s also really happy about having fresh dry powder to make the most of cooling valuations and special situations as interest rates rise and debt-heavy buyers are priced out of out of a hitherto frothy M&A market.
Bob also explains why being a hybrid carrier with a balance sheet was great when K2 was smaller and needed to incubate underwriting talent, but became a distraction to the core business as the group scaled to the $1.5bn of gross premiums it now underwrites on behalf of the market.
This is fascinating under-the-hood stuff and no aspect of the market and K2’s plans is left uncovered.
It’s also delivered at an almost breathless pace and with great rapport between the Bob, David and this interviewer.
If you want to get well ahead of emerging trends in the fast-developing MGA world, this is absolutely essential listening.
NOTES:
Bob speaks first.
The abbreviation LOC snuck in. It means a Letter of Credit.
LINKS
We thank our naming sponsor AdvantageGo:
https://www.advantagego.com/
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Ep 61 A healing market: James Vickers, Chair Willis Re International
Ep 60 Fear breeds discipline, alignment and innovation: Talbir Bains CEO Volante Global
Ep 59 Jean-Jacques Henchoz CEO Hannover Re: Lean and keen
Ep 58 Talent and a willingness to take on risk: Julian James CEO International Insurance, Sompo International
Ep 57 Color outside the lines: Jim Stanard, Chairman Ariel Re
Ep 56 Like 2001, but completely different: Andrew Brooks CEO Ascot Group
Ep 55 Controlled aggression: Alex Maloney CEO of Lancashire Group
Ep 54 Taking a longer view: Eduardo Pérez de Lema CEO of Mapfre Re
Ep 53 No end game. The journey to Ithaka: David Howden CEO Howden Group Holdings
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Ep 51 David Walsh and Graeme Newman of CFC Underwriting: 20% organic growth forever
Ep 50 John Neal: Putting the Lloyd's halo back in place
Ep 49 Tim Turner: This is not a re-run of 85-86
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Ep 48 D&O: The hardest market of all time with David Ritchie of Gallagher UK
Ep 47 Pat Ryan: Build a business people are proud to work for
Ep 46 The Best Market for a Decade: David Croom-Johnson MD Aegis London
Ep 45 Selling certainty, with Stefan Golling Chief Underwriter Munich Re
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