AIG and Canadian asset manager Onex have joined forces to acquire specialty re/insurer Convex in a US$7bn deal.
The new ownership structure will see Onex and AIG acquire 63% and 35% equity stakes, respectively, in the Bermuda-based company.
With the exception of management, who will retain the rest of the shares, Convex’s founding equity investors – including Onex’s Partners V private equity fund – will sell their equity stakes in full.
The transactions are subject to customary regulatory approvals, with closing expected in the first half of 2026.
While Onex and US-headquartered AIG will both have representation on the Convex board, the speciality firm said it would continue to operate an independent strategy and underwriting approach.
Convex was formed in 2019 by industry veterans Paul Brand and Stephen Catlin (pictured) with US$1.7bn of initial committed capital to underwrite insurance and reinsurance for complex specialty risks.
As one of its key speciality products, Convex offers political and credit risk coverage for a range of risks – including expropriation, political violence and exchange transfer – to international banks, commodity traders, and other corporates with foreign investment.
AIG’s chairman and CEO, Peter Zaffino, said the company’s investment in Convex “reflects our confidence in its ability to consistently deliver outstanding results, strong returns and sustained revenue growth”.
“As we look to the future, we will utilise our significant financial flexibility to support Convex through a meaningful equity investment and a whole account quota share structure that allows AIG to take part in the success of Convex’s profitable portfolio, which we believe has significant potential for further growth,” he said.
In addition to its equity investment, AIG will take on an agreed percentage of every insurance policy that Convex underwrites 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”, according to a joint statement.
Paul Brand, CEO of Convex, said: “This is a hugely exciting development for Convex. We are delighted to continue our productive partnership with Onex, and that they have decided to make this considerable investment from their own balance sheet.
“We are also excited to begin a new relationship with AIG. This transaction positions us better than ever to service our clients and brokers and take advantage of future market opportunities.”
Evercore and JP Morgan acted as financial advisers in the deal. Weil, Gotshal & Manges acted as legal advisers to Convex.
