Ep165 Bob KImmel & David Carson of K2: Now hunting all kinds of game

27 minutes ago

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
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