Introduction to Sevanta MGA

In a significant move to expand its casualty footprint, Pine Walk Capital, a specialist MGA platform and fully owned subsidiary of The Fidelis Partnership (TFP), has announced the launch of Sevanta Specialty Liability, a new international casualty Managing General Agent (MGA). This strategic development marks Pine Walk’s first foray into the casualty space, building on TFP’s extensive experience in specialty liability products across various sectors such as aviation, energy, and marine.

Sevanta is designed to tackle niche international specialty liability risks, providing both primary and excess insurance coverage on a global scale. The launch of Sevanta aligns with The Fidelis Partnership’s strategy to selectively expand its niche Specialty Liability offerings, particularly in response to growing demand for such products within the challenging international casualty market.

Challenges in the International Casualty Market

The international casualty market is currently facing numerous challenges, including a high frequency and severity of claims, as well as well-documented reserve deficiencies. These challenges have created significant capacity shortfalls, prompting a surge in demand for specialty liability products. The Fidelis Partnership has built a reputation for responding effectively to market dislocations and capacity shortfalls, making its entry into this sector particularly timely.

Jon Hiller, the lead at Sevanta, highlighted the opportunities emerging from these challenges: "The Fidelis Partnership has built an impressive reputation for its appetite and capability to respond to capacity shortfalls when market dislocation occurs. Against a challenging backdrop for the international casualty market, we see a huge opportunity to meet rising client and broker demand for specialty liability products."

Leadership and Expertise

Sevanta will be led by Jon Hiller, formerly the Head of International Casualty at Sompo International. He is joined by George Hutton, a Senior Underwriter previously with Sompo’s Wholesale & Specialty Casualty unit. Together, they bring over 30 years of underwriting experience across Lloyd’s, London, and international markets, specializing in complex risk management and brokering relationships.

Rinku Patel, Group COO of The Fidelis Partnership and CEO of Pine Walk, welcomed Hiller and Hutton, noting their extensive experience and strong broker connections as significant assets to Sevanta: "We’re delighted to welcome Jon and George, whose multi-decade international experience, deep market expertise, and strong broker relationships will be enormous assets to the business."

Key Features of Sevanta MGA

• Focus on Niche Specialty Liability: Sevanta will concentrate on niche international specialty liability risks, providing primary and excess coverage across global markets.
• Expert Leadership: Led by seasoned underwriters Jon Hiller and George Hutton, who bring decades of experience in casualty underwriting.
• Global Reach: The MGA is positioned to serve clients worldwide, leveraging Pine Walk’s international infrastructure.
• Market Alignment: The launch of Sevanta aligns with The Fidelis Partnership’s strategy to expand its specialty liability offerings.

Growth and Expansion

Pine Walk Capital has had a significant growth trajectory since its founding in 2017. The platform now supports 12 MGAs, offering custom underwriting, operational, and regulatory frameworks for specialist and innovative insurance businesses. In 2024, Pine Walk reported an 11% increase in gross written premiums to $900 million and expects to surpass $1 billion this year.

The launch of Sevanta highlights Pine Walk’s commitment to expanding its product capabilities and market presence. CEO Rinku Patel noted that the move marked a “clear step change” in Pine Walk’s strategy, further enhancing its MGA portfolio and broadening the range of products offered through The Fidelis Partnership platform.

Relationship with Fidelis Insurance Group

While The Fidelis Partnership has a strategic underwriting relationship with Fidelis Insurance Group, the two entities have distinct risk appetites. Fidelis Insurance Group has chosen not to participate in the Sevanta MGA due to casualty business not being within its current risk appetite. However, this decision is seen as an example of how the binder agreement between Fidelis Insurance Group and the MGU is working effectively.

Dan Burrows, CEO of Fidelis Insurance Group, expressed support for The Fidelis Partnership’s initiatives, stating: "The Fidelis Partnership remains the cornerstone partner of Fidelis Insurance Group. However, on occasion our risk appetites will vary and, as casualty business is not currently within the appetite of Fidelis Insurance Group, we have chosen not to participate in the Sevanta Pine Walk Cell."

Impact on the Industry

The launch of Sevanta not only marks an expansion of The Fidelis Partnership’s casualty footprint but also signifies a broader trend in the insurance industry—increased focus on niche specialty risks. As markets continue to evolve, MGAs like Sevanta are poised to play critical roles in addressing emerging demand for specialized insurance products.

Pine Walk and The Fidelis Partnership’s approach to market challenges with leadership, expertise, and capacity underscores the strategic importance of MGUs in navigating complex risk landscapes. This strategic move is expected to enhance the competitive positioning of The Fidelis Partnership in the global insurance market.

Conclusion

The launch of Sevanta Specialty Liability by Pine Walk Capital highlights The Fidelis Partnership’s strategic commitment to expanding its presence in the casualty space. With its focus on niche specialty liability risks, Sevanta is well-positioned to meet the rising demand for specialty liability products in the international casualty market. This development is a key milestone in The Fidelis Partnership’s strategy to broaden its product offerings and further solidify its position as a leading global underwriter of specialty insurance and reinsurance products.

---