Exclusive: AIG to partner with specialty insurer Convex and asset manager Onex in $5 billion deal

Investment Overview - AIG is investing nearly $5 billion in specialty insurer Convex Group and asset manager Onex Corporation, aiming to transform into a more agile, capital-aligned institution under CEO Peter Zaffino's leadership [1][2] - The deal includes an initial $3 billion commitment followed by an additional $2 billion investment over the next three years, with regulatory review expected to conclude in the first half of 2026 [1][2] Deal Structure - The terms of the Convex deal involve a $2.2 billion commitment for a 35% stake in Convex Group, alongside a $640 million investment for a 9.9% stake in Onex, Convex's majority shareholder [2] - Post-transactions, Onex will own 63% of Convex, while AIG will hold minority interests in both Convex and Onex [2] Company Performance - Convex, established in 2019, has rapidly grown to over $5 billion in premiums, with a combined ratio of 87.6%, outperforming the U.S. property and casualty industry by nine percentage points [3] - Convex's return on equity (ROE) stands at 17%, placing it in the top quartile of global reinsurers, with shareholder equity increasing to $3.67 billion, a 16% year-over-year rise from $1.76 billion in 2022 [3] Additional Agreements - AIG is negotiating a "whole-account quota share reinsurance agreement" with Convex, which will provide AIG with a share of Convex's underwriting profits [4] - Over the next three years, AIG plans to invest $2 billion into Onex's investment funds, gaining preferred access to high-return platforms [4]