Convex Group Ltd., the Bermuda-based specialty insurer and reinsurer, announced a new, long-term ownership structure led by private equity firm Onex Corp., with American International Group becoming a minority equity investor.
Onex will acquire a 63% equity stake in Convex for approximately $3.8 billion, while AIG will acquire a 35% equity stake in Convex for approximately $2.1 billion. The balance will be owned by the Convex management team.
The investments value Convex’s common equity at $7 billion.
With the exception of management, Convex’s founding equity investors, including Onex’s Partners V private equity fund, will sell their equity stakes in full. While Onex and AIG both will have representation on the Convex board, Convex will continue to operate an independent strategy and underwriting approach.
The company was launched in 2019 by industry veterans Stephen Catlin and Paul Brand with $1.7 billion in committed capital provided by Onex, PSP Investments and a consortium of co-investors.
Long-Term Strategy
Convex said new ownership structure extends its successful partnership with Onex and begins a new long-term strategic relationship with AIG. In addition to its equity investment in Convex, AIG will write a whole account quota share of Convex’s business from January 1, 2026.
Both Onex and AIG will fund the investment from their respective corporate balance sheets and are committed to holding their equity investments in Convex for the long term, Convex confirmed.
In addition, AIG announced it will acquire a 9.9% ownership stake in Onex for approximately $646 million. Headquartered in Toronto, Onex is publicly traded with approximately $55.9 billion in assets under management, including $8.4 billion of its own investing capital.
AIG plans to invest up to $2 billion in Onex investment funds over three years, aiming to support the evolution of AIG’s investment portfolio to higher yielding assets with preferred access.
Rapid Growth
“In six years, the team at Convex has built an extraordinary business. We have become a major player in global specialty insurance and reinsurance, with annual premium income of up to $6 billion and operations in a range of global jurisdictions,” commented Stephen Catlin, chairman of Convex, in a media statement.
“This transaction secures the long-term independence of Convex and presents a range of exciting strategic opportunities,” he said.
“This transaction positions us better than ever to service our clients and brokers, and take advantage of future market opportunities,” said Paul Brand, CEO of Convex.