Convex Solidifies 'Excellent' Status, Proving its Model in a Volatile Market

LONDON – June 17, 2026

In a powerful endorsement of its strategic direction and financial resilience, specialty re/insurer Convex Group Limited has had its key credit ratings affirmed by AM Best. The global credit rating agency reaffirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) for the group’s main operating subsidiaries in Bermuda, the United Kingdom, Luxembourg, and Guernsey. The stable outlook accompanying these ratings signals a strong vote of confidence in the firm’s ability to sustain its impressive performance.

For any re/insurer, an 'A (Excellent)' rating is a critical seal of approval, signifying a very strong capacity to meet ongoing insurance obligations. For Convex, a company that only launched in 2019, achieving and maintaining this status is a remarkable feat. It validates a business model built for the modern era of risk, one that has allowed the firm to navigate market volatility and establish a formidable presence in a sector dominated by centuries-old incumbents. The affirmation rests on what AM Best assesses as a “very strong” consolidated balance sheet, “adequate” operating performance, a “neutral” business profile, and “appropriate” enterprise risk management—a combination that provides a compelling case study in building a resilient, 21st-century insurance enterprise.

A Blueprint for Rapid, Resilient Growth

Convex's journey from a well-capitalized startup to a major market player has been nothing short of meteoric. The group’s gross written premium reached an impressive USD 5.9 billion in 2025, a significant leap from just over USD 3 billion in 2022. This rapid scaling is not accidental but the result of a deliberate and multi-faceted strategy. Central to this has been the group’s ability to achieve what AM Best describes as “excellent market acceptance since its inception.”

This acceptance is driven by the deep expertise of its leadership and underwriting teams, whose extensive experience has enabled the firm to successfully target complex and specialized classes of business. By establishing operations across key global insurance hubs—including the Lloyd’s of London market, Bermuda, and continental Europe—Convex has built a diversified platform to access a wide array of risks and client bases. This geographic and product diversification has been a key factor in its growth, allowing it to build a balanced and robust portfolio.

However, this expansion has occurred within one of the world's most competitive industries. Convex faces “strong competition from well-established peers,” yet it has consistently demonstrated an ability to differentiate itself and win business. “It’s one thing to grow quickly; it’s another to do so while building a fortress-like balance sheet,” noted one independent industry analyst. “Convex seems to have found a formula that eludes many, combining entrepreneurial speed with the financial discipline of a market veteran.” This blend of agility and strength is what sets its growth story apart, proving that new entrants can indeed disrupt the established order with the right strategy.

The Art of Balancing Aggression and Prudence

A core challenge for any re/insurer, particularly one with a significant book of property business, is managing catastrophe risk. AM Best highlights Convex’s “material exposure to catastrophe risk” as an offsetting rating factor. Yet, the firm’s ability to consistently generate underwriting profits demonstrates a masterful handle on this inherent volatility. In 2025, the group reported a combined ratio of 89%, its fourth consecutive year of underwriting profitability. This metric, which measures losses and expenses as a percentage of earned premiums, indicates a healthy profit margin from its core business operations.

Convex’s strategy for taming catastrophe risk is a textbook example of modern risk management. The company’s dependence on reinsurance is mitigated by a meticulously curated “reinsurance panel of excellent credit quality.” In essence, Convex partners with other financially strong reinsurers to share the burden of potential large-scale losses, effectively protecting its own balance sheet from the full impact of a major hurricane, earthquake, or other disaster. The effectiveness of this approach was proven during 2024, a “relatively active year for catastrophe events,” through which Convex still delivered robust underwriting results and overall profitability.

This prudent risk mitigation is complemented by the firm’s formidable capital position. AM Best assesses Convex’s risk-adjusted capitalization at the “strongest level,” as measured by its Best’s Capital Adequacy Ratio (BCAR). This powerful capital base acts as the ultimate backstop, providing the financial cushion needed to absorb unexpected shocks and giving clients and brokers confidence in its claims-paying ability. It is this delicate balance—pursuing growth in complex risk classes while rigorously managing the potential downsides—that defines the firm’s sophisticated approach to risk and solidifies the “appropriate” enterprise risk management that AM Best cited.

Fortifying the Financial Foundation

Underpinning Convex’s operational success is a proactive and strategic approach to capital management. In the first quarter of 2026, the company further bolstered its finances by issuing USD 600 million of subordinated debt. This move was designed to enhance its financial flexibility, providing additional resources to support continued growth and underwrite new business. While the issuance will increase the group’s financial leverage, AM Best noted that the adjusted ratio is expected to remain below a very prudent 10%.

This recent capital action is part of a consistent, long-term strategy to build and maintain a powerful balance sheet. It follows a USD 1 billion equity capital raise in 2020 and the full drawdown of USD 500 million in perpetual preference shares in 2023. Together, these measures have created a deep reservoir of capital that supports the company’s growth ambitions and reinforces its market standing. “The successful issuance of this subordinated debt signals strong market confidence,” commented a debt market analyst. “Investors are clearly buying into Convex's long-term story and its ability to generate sustainable returns.”

This financial fortification is crucial in the re/insurance industry, where capital is the raw material for taking on risk. By continuously strengthening its capital base, Convex not only prepares itself for future opportunities and challenges but also sends a clear message to the market about its commitment to long-term stability and solvency. It is this unwavering focus on financial strength that allows the firm to operate from a position of security, even as it expands aggressively into new areas.

What an 'Excellent' Rating Signals for the Industry

Beyond what it says about a single company, AM Best’s affirmation for Convex carries broader implications for the global re/insurance market. It serves as a powerful case study for how a modern, focused, and well-capitalized entrant can achieve top-tier status in a relatively short period. The 'A (Excellent)' rating is more than a grade; it is a critical enabler in the world of large commercial risks, where brokers and clients demand absolute certainty in their partners’ ability to pay claims, which can often run into the hundreds of millions of dollars.

Convex's success story may influence future capital deployment in the sector, demonstrating that significant returns are possible for new ventures that combine deep underwriting talent with a disciplined operational framework and a robust governance structure. The stable outlook provided by AM Best suggests that this is not a temporary success fueled by favorable market conditions but a sustainable model built to last. The rating agency’s expectation that the group will “successfully manage its performance through the underwriting cycle” is a significant endorsement, indicating confidence in its ability to remain profitable in both hard and soft markets.

As the industry continues to grapple with climate change, cyber threats, and economic uncertainty, the need for innovative and resilient re/insurers has never been greater. Convex’s journey demonstrates that a clear vision, backed by strong execution and an unwavering commitment to financial prudence, provides a viable path to leadership. Its sustained performance, supported by growing scale and diversification, sets a new benchmark for market entrants and reinforces the principle that in the world of risk, stability and strength are the ultimate currencies.