Onex Takes 63% Controlling Stake in Convex, AIG Acquires 35% Minority Stake

Why It Matters

The results underscore Convex’s ability to grow profitably in a volatile specialty market, while the new capital backing positions it for further expansion and resilience against future catastrophes.

Key Takeaways

• GWP reached $5.9B, 14% YoY growth
• Net income rose 40.5% to $711M
• Combined ratio improved to 89%, strong underwriting
• Onex holds 63% stake; AIG 35% minority
• Launched Lloyd’s Syndicate 1984, expanding market reach

Pulse Analysis

Convex’s 2025 performance illustrates how specialty insurers can sustain growth amid heightened catastrophe exposure. By expanding gross written premiums to nearly $6 billion and boosting net income over 40%, the firm demonstrated disciplined underwriting and effective risk selection. The modest rise in the combined ratio to 89%—still well below the industry breakeven point—signals robust pricing power and operational efficiency, even as California wildfires and other events tested the portfolio.

A pivotal element of Convex’s trajectory is its revamped ownership structure. Onex’s 63% controlling interest, paired with AIG’s 35% minority stake, injects substantial capital and strategic expertise, enhancing the reinsurer’s capacity to underwrite larger, more complex risks. This partnership also aligns Convex with global distribution networks and risk‑management capabilities, reinforcing its competitive edge in the specialty market. The launch of Syndicate 1984 at Lloyd’s further diversifies its platform, granting access to a broader broker base and new lines of business.

Looking ahead to 2026, Convex anticipates a challenging environment marked by modest rate declines, yet it remains confident in maintaining margins. The firm’s improved expense ratio and strong loss ratio provide a buffer against pricing pressure, while its expanded capital base positions it to capture emerging opportunities, such as cyber and climate‑related coverages. For the broader reinsurance sector, Convex’s model highlights the value of strategic capital partnerships and diversified distribution channels in navigating a market where underwriting discipline and financial resilience are increasingly paramount.

Deal Summary

Onex Corporation acquired a 63% controlling stake in specialty reinsurer Convex, while AIG purchased a roughly 35% minority stake, completing the transaction earlier this month. The deal, valued at an undisclosed amount, reshapes Convex’s ownership structure and positions the firm for continued growth.