Jonny Strickle, Group Managing Director at Pelagos Insurance Capital Limited, said the rebrand from Fidelis Insurance Group is drawn from the word “archipelago”, meaning a group of interconnected islands, and reflects its role as a capital allocator, bringing together a number of long-term, meaningful underwriting partnerships.
In an interview with Reinsurance News during a visit to Pelagos’ headquarters in Bermuda, Strickle said the archipelago concept reflects the business in multiple ways. For instance, it has three offices, Ireland, the UK and Bermuda, each representing an “island.” In addition, its capital allocator role sees underwriting partners positioned as connected islands, linked back to Pelagos’ central platform.
Strickle explained, “We sit as a central island with lots of different access points to the market, linking into us across different lines of business and different ways that we want to access the market. We thought the name really reflects what we’re trying to achieve as a unique capital allocator. It was something we came up with internally that we felt captured our values from a number of different angles.”
He noted that the name change was always part of the company’s journey and that the timing reflects a meaningful shift in its business mix.
He added, “What we are is an expert capital allocator, building resilient, high-performing portfolios by bringing together strategic capital and specialist underwriting expertise – we like to say we make the connections that matter in specialty risk.”
Strickle went on to explain that over the last year, it’s the first time the Group moved away from The Fidelis Partnership being its only source of business in a meaningful way.
He explained, “We’ve added mid-single digits of new underwriting partners, as announced on our last earnings call, and that has become a meaningful source of business for us. Over half our growth actually came from new underwriting partners last year. We always knew we needed to change our name. The new name reflects who we are, and this seemed like the right time in our journey to make that change.
“As I said, we are expert capital allocators, deploying capital through the right partner to the right risk at the right time. We focus on the most compelling opportunities, connecting capital with high-quality underwriting partners to build a resilient, high-performing portfolio.
“Then we focus on building long-term relationships with best-in-class underwriting partners, creating a differentiated, diversified portfolio. By taking lead positions, we shape structure, pricing and terms to drive profitable growth through the cycle.
“We also use outwards reinsurance to enhance our risk profile, improve margins and increase capital efficiency, optimising portfolio performance through disciplined execution and strong relationships. In essence we bring together a connected community of expertise, uniting teams who share our commitment to excellence. “
He also highlighted how Pelagos has maintained continuity of trust with underwriting partners, brokers, and clients while introducing the new brand.
“In terms of underwriting partners, we have very deep relationships with all of them, which is very important to us. We want meaningful collaboration with a small number of partners, rather than going out and getting hundreds. Because of this, it’s easier for us to maintain in-depth relationships with them.
“In our industry, one of the main points of contact to the market is brokers. The business we receive through our partners is concentrated among a handful of brokers, and an even smaller number of senior brokers. That makes it easier to communicate, ensuring the right people understand the message,” he said.
Strickle further emphasised how the company is prioritising meaningful, long-term relationships with a smaller number of partners.
“It’s going to be a few meaningful islands that grow over time. In terms of where we deploy capital, we want to do so on a long-term basis, with partners staying with us over a number of years. We build that into our partnerships, agreeing arrangements on a multi-year basis. With the Fidelis Partnership, it’s a 10-year rolling binder. Some of the others also have rolling arrangements.
“What we can do is shift capital between partners depending on where we see the best opportunities. If one partner is seeing strong growth, we can allocate more capital there for a period of time. If that eases off and another opportunity emerges elsewhere, we can reallocate accordingly,” he explained.
He continued by pointing out that a core strength of Pelagos is that it does not take on many partners, allowing it to dedicate significant time to those it works with.
“It also means that every opportunity is reviewed by the full management team. New partners are checked by the underwriting team, with many opportunities passed over before progressing further. Then we have a team that assesses the risk, determines how it fits into the portfolio, and evaluates the economics and pricing. That is then sent to the entire management team, including myself, the CEO, CFO, and CRO so we can review it and get comfortable with the opportunity.
“What that gives you is conviction that you can then go in with something at scale, which I think partners really value. You can do a large proportion of what they’re trying to do and do it for the long term where appropriate. Typically, in our industry, you get a one-year deal and have to come back and ask again the next year.
“Once we’ve got that conviction, we can offer something on a rolling multi-year basis. We can also do things that are more bespoke to fit what that partner actually needs, rather than needing to fit the mould of the wider market. All of those things – our engagement, flexibility, scale, and multi-year approach – are what our partners have found most valuable.”
Strickle emphasised that Pelagos can see a clear path to organic growth without moving outside its comfort zone. He stressed that the company will not add a new business it is not comfortable with, such as casualty, but instead will build on areas it knows well.
Strickle noted, “I see our risk profile as something that changes quite slowly over time. So, for example, we don’t write any casualty business. I don’t think that will change tomorrow — and will evolve with the market slowly.
“What the new partnerships give us is different points of access to the market. So, you might be in property in California, say, with The Fidelis Partnership, writing on an excess and surplus basis, and then we might add a new partner who’s got better access to the admitted market or a niche within California. So, it looks like you’re writing the same business through two different partners, but you’re not quite. You’re writing complementary portfolios depending on who has the best access to that market. I see it as layering our existing go-to-market strategy, rather than broadening or changing our risk profile.”
He said, “In essence, we are committed in our partnerships, rigorous in our risk selection, and closely involved with the portfolios and people we support. This enables us to adapt in an evolving risk landscape and deliver lasting value for brokers, clients and investors.”
Strickle concluded, “Now we’re getting to the point in the market where, even if you’ve built a great business, explaining how you’re going to grow that business over the next few years in a profitable way is very difficult for many companies. We do think we’re uniquely positioned to do something a little bit different.
“Being able to stay in your comfort zone while growing over the next few years when the market is struggling – that’s really what we’re most excited and proud of.”
