AIG Takes Minority Stakes in Convex and Onex for $2.7 Billion
Event summary
- AIG acquired a 35% stake in Convex for $2.1 billion and a 9.9% stake in Onex for $642 million.
- Onex became the majority shareholder in Convex with a 63% ownership interest.
- AIG began participating in a whole account quota share of Convex’s business starting January 1, 2026.
- AIG expects these investments to be accretive to earnings and return on equity in 2026 and beyond.
The big picture
AIG’s investments in Convex and Onex signal a strategic pivot toward expanding its footprint in the specialty insurance and asset management sectors. The deals, totaling $2.7 billion, reflect AIG’s push to diversify its revenue streams and bolster long-term growth prospects. This move comes amid broader industry trends of consolidation and cross-sector partnerships aimed at enhancing underwriting capabilities and risk management.
What we're watching
- Integration Dynamics
- How AIG will manage its increased cessions in Convex’s business in 2027 and 2028.
- Earnings Impact
- Whether the investments will sustain the expected earnings accretion and return on equity improvements.
- Strategic Alignment
- The pace at which AIG can leverage these stakes to enhance its global specialty insurance and asset management capabilities.
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