A management liability division that K2 Insurance Services launched less than two years ago is closing. K2 announced that Aegis General Insurance Agency will wind down its executive risks division, with new and renewal business stopping November 1. The company said the decision follows a strategic review of the division’s fit within K2’s broader portfolio, offering no further detail on the reasons.
Aegis Executive Risks (AER) launched in November 2024, positioned as a management liability specialist writing directors and officers (D&O) liability, employment practices liability (EPL), and fiduciary liability for US-based private entities. Its capacity came from Lloyd’s syndicates and other domestic and international reinsurers, with MS Amlin named as a capacity partner at launch. Jeff Hirsch led the division, whose founding team brought a collective 60-plus years of experience in professional and related lines.
Policies in force remain in effect through their terms. K2 said claims handling will continue without interruption. Aegis General is working with its carrier partners and producers to manage an orderly transition.
The practical consequence of the wind-down is that any accounts approaching renewal will need alternative placement. AER focused on the US private entity market, where capacity is currently plentiful, so replacement options are not scarce. The issue is the transition itself: identifying a market, resubmitting, and managing timing around expiring terms without gaps.
AER’s short run tracks with a dynamic that has made the D&O space difficult for newer market entrants. The division entered during a period of soft conditions and abundant capacity, the same conditions that attracted multiple new MGA participants to management liability between 2023 and 2025.
AM Best’s June 2026 market segment report, US D&O Liability - Still Profitable But Warning Signs Are Evident, found that direct premium from US D&O liability coverage declined for a fourth consecutive year in 2025, falling to slightly more than $10 billion from nearly $15 billion at its 2021 peak, a drop attributed largely to excess capacity and sustained pricing competition. The report also noted that the segment’s 2025 direct loss ratio rose by five percentage points year on year, and reserve levels for the 2023 and 2024 accident years were found to be inadequate, with underwriting margins expected to shrink further in 2026.
K2 has not attributed AER’s closure to market conditions. The press release frames it as a portfolio strategy decision. But David Haas, president of global specialty at CNA, captured the broader problem in remarks published earlier this month: “There’s a lot of capacity in the D&O space, but it’s not all quality capacity.” He cautioned brokers against markets that have been in the space for only one or two years and are top-line focused rather than underwriting-disciplined. AER, founded in November 2024 and now closing in November 2026, fits that timeline precisely, though K2 has not characterized its departure in those terms.
The wind-down leaves K2’s existing specialty lines intact, including K2 International, Aegis Financial Lines, and K2 Cyber. Bob Kimmel, CEO of K2 Insurance Services, said in a statement that the decision “reflects our strategic priorities” and thanked the team for their work.
