– American International Group, Inc. (AIG) made strategic investments in Convex Group Limited, a global specialty insurer, and Onex Corporation, a global asset manager.
– Upon closing, AIG will hold minority stakes in both firms, enabling participation in Convex’s growth and investment in Onex’s funds.
– Convex Group, founded in 2019, is a privately held global specialty insurer. AIG will acquire a 35% equity interest for approximately $2.1 billion.
– The transaction includes a whole account quota share structure allowing AIG to participate directly in Convex’s underwriting portfolio.
– AIG will appoint two mutually agreed directors to Convex’s Board.
– AIG Chairman & CEO Peter Zaffino described the investment as a unique opportunity to invest in a top-performing specialty insurer, drive incremental earnings growth, support Convex’s independent management by founders
– Stephen Catlin and Paul Brand, and leverage AIG’s financial flexibility for long-term growth.
– AIG will also acquire a 9.9% ownership stake in Onex Corporation for approximately $646 million.
– Onex is a Toronto-based, publicly traded global alternative asset manager with approximately $55.9 billion in assets under management, including $8.4 billion of its own capital.
– AIG will appoint one mutually agreed director to Onex’s Board and invest $2 billion over three years in diversified Onex investment funds with preferred access.
– The investments strengthen AIG’s position in specialty insurance and alternative investments, build long-term partnerships with Convex’s founders and Onex CEO Bobby Le Blanc, and support Convex’s continued independence.
– Bobby Le Blanc, CEO of Onex, said: “This announcement is a logical and foundational step forward for Onex. With these transactions, we are bolstering our already significant position in the insurance sector, securing the support of one of the world’s largest insurers, accelerating profitability of our asset management business and facilitating future growth in our investing capital. With AIG and Convex, we are ready to enter a new phase of growth and innovation that will bring value to all stakeholders.”
– Paul Brand, CEO of Convex Group, said: “This is a hugely exciting development for Convex. The Convex team have worked incredibly hard over the last six years to build a world-renowned insurance company, and we see this transaction as the start of the next chapter in our journey. 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.”
