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

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/