AIG's $2.7B Bet on Convex and Onex Signals New Strategic Growth Era

NEW YORK, NY – February 06, 2026 – American International Group, Inc. (AIG) has finalized a complex, multi-billion-dollar series of transactions, acquiring significant minority stakes in specialty insurer Convex Group Limited and global asset manager Onex Corporation. The move, totaling over $2.7 billion, marks a decisive strategic pivot for the insurance giant, anchoring its future growth strategy in specialized markets and high-value partnerships.

In a statement, AIG confirmed it has completed the acquisition of an approximately 35% equity interest in Convex for roughly $2.1 billion and a 9.9% ownership stake in Onex for approximately $642 million. The deal simultaneously positions Onex, a long-time backer of Convex, as the majority shareholder in the specialty insurer with a 63% stake. This intricate arrangement creates a powerful three-way alignment between one of the world's largest insurers, a top-tier asset manager, and a fast-growing specialty risk underwriter.

Peter Zaffino, Chairman & Chief Executive Officer of AIG, underscored the long-term vision behind the investments. “We could not be more pleased to announce the completion of our minority ownership stakes in Convex and Onex and are confident that these long-term investments will continue to strategically position AIG for growth in the future and will be accretive to AIG’s earnings and return on equity in 2026 and in future years,” he stated.

A Strategic Pivot to Specialty Markets

At the heart of AIG's maneuver is a calculated investment into the lucrative and complex world of specialty insurance through Convex. Founded in 2019 by revered industry veterans Stephen Catlin and Paul Brand, Convex has rapidly carved out a formidable reputation. It operates with a key advantage that older carriers lack: a “legacy-free” balance sheet, unburdened by old, unpredictable liabilities. This allows it to be more agile and aggressive in its underwriting.

The company’s performance validates AIG's confidence. For the year ending December 31, 2024, Convex reported a Gross Written Premium (GWP) of $5.166 billion, a 22% increase from the previous year. More impressively, it achieved a combined ratio of 87.6%, its third consecutive year under the critical 100% threshold, indicating strong underwriting profitability. This performance has not gone unnoticed, with S&P Global Ratings upgrading Convex's financial strength rating to 'A' in mid-2025, citing its strong competitive position and sustained technical profitability.

By taking a significant stake, AIG gains direct exposure to Convex's expertise across a wide array of complex risks, including aviation, cyber, political risk, and marine & energy. It is a strategic shortcut to accessing a high-growth, high-margin market without the time and expense of building out equivalent capabilities from the ground up.

The Interlocking Partnership of AIG, Onex, and Convex

This transaction is far more than a simple acquisition; it is the formation of a deeply intertwined partnership. The structure, which sees AIG investing in both Convex and Onex while Onex cements its majority control of Convex, is a masterclass in modern corporate strategy.

Onex, a global asset manager with approximately $55.9 billion in assets, is not a new player in this story. As a founding investor in Convex in 2019, Onex was instrumental in providing the initial capital and strategic support that launched the specialty insurer. This new deal deepens that commitment, transforming Onex from a key investor into the majority owner. For Onex, Convex is now a core platform alongside its Private Equity and Credit segments, expected to drive significant value creation.

For AIG, the 9.9% stake in Onex is a crucial piece of the puzzle. It aligns the insurance giant with the strategic decisions and financial success of the asset manager that now controls its new specialty insurance partner. This alignment is further reinforced by AIG's commitment to invest up to an additional $2 billion in Onex's private equity and credit strategies over the next three years. This creates a powerful feedback loop, where the success of each partner directly benefits the others, fostering a collaborative ecosystem built for shared growth.

More Than an Investment: The Quota Share Arrangement

Beyond the equity stakes, the most significant operational component of the deal is AIG's participation in a “whole account quota share” of Convex's business. This reinsurance treaty, which commenced on January 1, 2026, means AIG is not just a passive investor but an active risk-sharing partner. AIG will receive a proportional share of the premiums from every policy Convex writes, and in return, will pay a proportional share of the claims.

The arrangement demonstrates AIG's profound confidence in Convex's underwriting discipline and risk selection. It effectively allows AIG to tap into Convex's diversified and profitable book of business, gaining underwriting income from specialty lines without having to underwrite the risks directly. The structure is designed for the long term, with the agreement stipulating that AIG will increase its cessions—the amount of business it takes on—in 2027 and 2028.

This phased deepening of the relationship allows both companies to integrate their partnership smoothly while ensuring AIG’s financial success becomes directly tethered to Convex's day-to-day operational excellence. For Convex, the arrangement provides substantial, stable reinsurance capacity, de-risking its own balance sheet and providing the capital support needed to fuel its ambitious growth plans.

A Blueprint for Insurer Growth in a Shifting Landscape

Ultimately, the AIG-Convex-Onex deal can be viewed as a blueprint for how established insurance giants can adapt and thrive in a rapidly evolving market. The industry has seen a clear trend of large, incumbent carriers seeking to partner with or invest in nimble, tech-forward specialty players. These smaller firms often possess the data analytics capabilities, specialized talent, and operational agility that larger organizations struggle to cultivate internally.

Convex embodies this new model. Its success is built on experienced leadership, a clean slate, and a modern, data-driven approach to underwriting complex risks. AIG’s multi-billion-dollar investment is a powerful acknowledgment that strategic partnership can be a more effective path to innovation and growth than solitary, internal development.

By weaving together equity investments with operational risk-sharing, AIG has created a sophisticated, multi-layered strategy. It is not merely acquiring assets; it is buying into an ecosystem of expertise, growth, and profitability. This transaction sets a new benchmark for strategic capital allocation in the global insurance sector, showcasing how collaboration can unlock value that no single company could achieve alone.