US EditionOnex and AIG Buying Insurance Company Convex Group in US$7B Deal
AIG's $5 billion investment includes a 35% stake in Convex and a 9.9% stake in Onex, targeting growth in specialty insurance and asset management over three years.
- On Thursday, AIG announced a multibillion package starting with a $2,200,000,000 commitment and an additional $2 billion over three years to acquire minority stakes in Convex and Onex.
- Convex's rapid growth shows more than $5 billion in premiums, a combined ratio of 87.6%, a 17% ROE, and shareholder equity at $3 billion, up more than 16%.
- Terms specify ownership splits with an initial $2.2 billion commitment to acquire a 35% stake in Convex, leaving Onex with a 63% stake and AIG holding 35%.
- The arrangement positions AIG to negotiate a whole‑account quota share reinsurance agreement with Convex, reflecting CEO Peter Zaffino's push to reposition AIG as a capital‑aligned insurer.
- Onex will fund the deal with $1.5-billion cash, $1-billion debt, and $600-million from AIG, expecting Convex to account for 42.
16 Articles
16 Articles
Onex and AIG buying insurance company Convex Group in US$7B deal
TORONTO — Onex Corp. and American International Group Inc. have signed an agreement to buy Convex Group Ltd., a specialty property and casualty insurance and reinsurance business, for US$7 billion. The deal will also see AIG acquire a 9.9 per cent stake in Onex for about US$600 million and commit US$2 billion to strategies managed […]
Cambridge Times
Onex Partners Announces Sale of Convex to Onex Corporation and AIG
All amounts in U.S. dollars unless otherwise stated
AIG And Onex Forge Long-Term Partnership
American International Group, Inc. (AIG) and Onex Corporation have unveiled a new long-term ownership structure for Convex Group Limited, the global specialty insurer and reinsurer, marking a major milestone in the company’s evolution. Under the agreement, Onex will acquire a 63% equity stake in Convex, while AIG will take a 35% minority interest, valuing Convex’s common equity at $7 billion. The deal signals a significant transition in Convex’s…
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