Core Insights - Onex's acquisition of Convex is expected to significantly enhance value creation, with Convex's tangible book value at $3.8 billion and an effective acquisition multiple of 1.8x tangible book value and 10x 2025 net income [1][5] - Convex reported a gross premium written of $5.9 billion in 2025, reflecting a 14% year-over-year increase, and maintained a combined ratio of 89% for the third consecutive year [2] - Onex's ownership of Convex is approximately 63%, with Convex's net income for 2025 reported at $711 million, a 25% increase from the previous year [3][4] Financial Performance - Convex's net income increased by 40% from $506 million in 2024 to $711 million in 2025, resulting in a 20% return on equity [3] - Onex's total distributions from Onex Partners reached $7.7 billion in 2025, with significant realizations contributing to this figure [10] - The asset management segment generated earnings of $49 million in Q4, with fee-generating AUM ending the quarter at nearly $44 billion, a 24% increase during the year [15] Strategic Outlook - Onex plans to focus on direct investments with strong risk-adjusted returns and low leverage, supporting a transition towards consistent net income and free cash flow growth [7] - The company is utilizing a sum-of-the-parts framework to reflect intrinsic value, estimating it at $174 based on the Convex acquisition valuation [8] - Onex expects firm-wide run-rate FRE to exceed $17 million by the end of 2026, with projections indicating growth in the low- to mid-$20 million range for that year [16] Capital Allocation and Liquidity - Onex drew $700 million under a NAV loan facility at closing, retaining approximately $400 million in cash and near-cash, resulting in total liquidity of about $900 million [17] - The company has nearly $5 billion in private equity investments against $735 million in unfunded commitments, indicating a strong position to fund capital needs [18] - Onex's structured credit team successfully priced 28 CLOs in 2025, raising over $6 billion in new fee-generating AUM [12]

Convex generates record annual results including $711 million in net incomeAll amounts in U.S. dollars unless otherwise stated TORONTO, Feb. 20, 2026 (GLOBE NEWSWIRE) -- Onex Corporation (TSX: ONEX) today announced its financial results for the fourth quarter and year ended December 31, 2025. Onex also released supplemental financial information for Convex Group Limited (“Convex”) for fiscal 2025. “The acquisition of Convex and partnership with AIG is a pivotal moment in Onex’ evolution that meaningfully en ...

Core Viewpoint - The private equity industry is facing significant challenges, with many firms struggling to raise new funds and maintain performance, leading to a rise in "zombie funds" that are unable to generate returns or attract new investments [2][4][9]. Group 1: Industry Overview - The private equity sector has evolved dramatically since its inception, with over 15,000 firms managing approximately $9 trillion in assets globally [3]. - Vestar Capital, a notable player, has shifted focus from raising new funds to managing its existing portfolio, with its latest fund showing disappointing returns of 7.7%, significantly below the S&P 500's average return of 14% [2][4]. - The number of private equity funds has surged, with over 18,000 funds targeting a total of $3.3 trillion in capital, but actual fundraising is expected to be only one-third of this target [5][6]. Group 2: Performance Metrics - The average fundraising cycle for funds has increased to 23 months in 2025, compared to 16 months in 2021, indicating a tougher fundraising environment [6]. - The average annualized return for U.S. private equity indices has dropped to 7.4% as of June 2025, lagging behind the MSCI global index by 11 percentage points [17]. - The distribution to paid-in (DPI) ratio, a key performance metric, has declined, with many funds reporting DPIs below historical benchmarks, indicating poor cash returns to investors [28]. Group 3: Challenges Faced by Firms - Many mid-sized private equity firms are becoming "zombie institutions," unable to sell their portfolio companies or raise new funds, leading to a significant reduction in their operational viability [9][10]. - The fundraising environment is particularly challenging for firms with consecutive poor-performing funds, as investor confidence wanes [27]. - The trend of "continuation funds" is emerging as a strategy for firms to manage liquidity issues, allowing them to hold onto core assets while providing liquidity to limited partners [29][30]. Group 4: Notable Firms and Their Strategies - Onex Partners, one of the largest firms on the "zombie fund" list, has seen its management fee income drop from $146 million in 2019 to an estimated $81 million in 2024 due to a challenging fundraising environment [20][22]. - Madison Dearborn Partners, known for its investments in various sectors, is seeking to raise $3 billion for its ninth fund, which would be its smallest fundraising since 1999 [25]. - Crestview Partners has also faced challenges, with its latest fund achieving only an 8.4% internal rate of return, significantly lower than market expectations [26].

Financial Performance - As of December 31, 2025, AIG reported approximately $41 billion in shareholders' equity and $9.3 billion in liquidity sources[16] - AIG's investment income and insurance premiums are the primary sources of revenue, with a focus on managing losses and expenses[31] - The company generates revenues primarily from insurance premiums and investment income, with profitability dependent on effective risk management and cost control[31] - AIG's insurance subsidiaries exceeded the Risk-Based Capital (RBC) thresholds as of December 31, 2025, indicating strong financial health[57] Workforce and Talent Management - The company has a global workforce of over 22,100 employees, with 27% in North America, 47% in Asia Pacific, and 26% in EMEA and Latin America[36] - In 2025, 38% of open positions were filled with internal talent, highlighting AIG's commitment to talent development and succession planning[44] - AIG's human capital management focuses on attracting and retaining talent, with competitive compensation and benefits programs in place[34][37] - The company offers extensive online learning programs to enhance employees' insurance and business knowledge, critical job skills, and continuing education credits[42] - AIG's Employee Assistance Program (EAP) provides confidential counseling and mental health resources to employees in nearly every country where it operates[38] - The company emphasizes building managerial capability through interactive learning experiences for people managers[43] Regulatory Environment - AIG's insurance subsidiaries are subject to extensive regulation, impacting operations and profitability due to evolving laws and regulations[46][48] - AIG is subject to Group Capital Calculation (GCC) requirements starting in 2024, aimed at evaluating capital position at the group level[66] - The Financial Stability Oversight Council (FSOC) can designate nonbank financial companies as systemically important, impacting regulatory oversight[65] - The National Association of Insurance Commissioners (NAIC) provides standardized accounting and reporting guidance for insurance companies[59] - AIG's insurance subsidiaries in Bermuda must comply with solvency and liquidity standards imposed by the Bermuda Monetary Authority[72] - The Monetary Authority of Singapore (MAS) regulates AIG's insurance subsidiary in Singapore, enforcing minimum capital and solvency requirements[73] - AIG's insurance subsidiaries are required to maintain prescribed capital and solvency requirements, ensuring financial stability and compliance with regulatory standards[54] - The Dodd-Frank Act established the Federal Insurance Office (FIO) to monitor the insurance industry and recommend prudential standards[63] Compliance and Risk Management - AIG is subject to various international laws and regulations regarding data protection and cybersecurity, including GDPR and CCPA[87][84] - AIG's cybersecurity policies require disclosure of material incidents and governance oversight, as mandated by the SEC[86] - The EU General Data Protection Regulation (GDPR) imposes fines of up to 4% of global revenue for serious infringements, affecting AIG's operations in the European Economic Area[87] - The California Consumer Privacy Act (CCPA) imposes significant privacy obligations on businesses handling data related to California residents, effective since January 1, 2020[84] - AIG actively monitors the regulatory landscape surrounding climate change and sustainability, addressing governance and risk management requirements[92] - The International Association of Insurance Supervisors (IAIS) has adopted a risk-based global Insurance Capital Standard (ICS) for internationally active insurance groups[79] - AIG is required to provide comprehensive resolution plans to global regulators starting in December 2024, as part of systemic risk management[78] Corporate Culture and Community Engagement - The company emphasizes a culture of inclusion and integrity, aiming to provide equal opportunities for all employees[45] - AIG has provided over 3,600 grants through the AIG Compassionate Colleagues Fund since its inception in 2021, supporting employees in financial hardship[39] - The AIG Compassionate Colleagues Fund has provided over 3,600 grants to employees in 19 countries since its inception in 2021[39] Business Operations - AIG operates through three segments: North America Commercial, International Commercial, and Global Personal, with General Insurance being a significant contributor to revenue[21] - AIG maintains strong distribution relationships with brokers and agents, enhancing its market presence and service quality[14] - The company operates in a highly competitive insurance industry, differentiating itself through underwriting excellence and tailored insurance solutions[28] - AIG's General Insurance segment includes major operating companies such as National Union Fire Insurance Company and American Home Assurance Company[22] - AIG has adopted a model bulletin on the use of AI in insurance, reflecting regulatory guidance on technology innovations in the marketplace[89]

Core Insights - American International Group, Inc. (AIG) reported fourth-quarter 2025 adjusted earnings per share of $1.96, exceeding the Zacks Consensus Estimate by 3.5% and reflecting a 51% year-over-year increase [1][9] - Adjusted operating revenues rose 1.5% year over year to $6.9 billion, although this figure fell short of consensus estimates by 2.2% [1][4] Financial Performance - The quarterly results were bolstered by improved underwriting results in the North America Commercial and Global Personal segments, but were partially offset by weaker premiums in the Global Personal segment and lower investment income [2][4] - Net premiums written totaled $6 billion, representing a 1% decline year over year, with growth in Global Commercial countered by a decline in Global Personal [3][11] - Total net investment income decreased by 34% year over year to $872 million, missing consensus estimates by 12.9%, primarily due to lower fair value gains and reduced income from Corebridge [4][12] Underwriting and Segment Performance - General Insurance underwriting income increased to $670 million, a 48% rise year over year, surpassing the Zacks Consensus Estimate by 11.1% [5][9] - The combined ratio for General Insurance improved by 370 basis points to 88.8, indicating stronger underwriting performance compared to the prior-year quarter [5][10] - In the North America Commercial segment, net premiums written rose 3% year over year to $2.3 billion, driven by growth in Programs and Excess Casualty [6][7] - The International Commercial segment reported net premiums written of $2.2 billion, up 5% year over year, supported by growth in Global Specialty and Casualty lines [8] Financial Position and Capital Deployment - AIG ended Q4 2025 with a cash balance of $1.27 billion and total assets of $161.25 billion, slightly down from the previous year [13] - Long-term debt increased to $9 billion, while total shareholders' equity declined to $41.1 billion [13] - The company returned approximately $567 million to shareholders through share repurchases and $242 million in dividends during the fourth quarter [15] Full-Year 2025 Overview - For the full year 2025, AIG reported total revenues of $26.8 billion, a 1.8% decline from 2024, but adjusted earnings increased by 43.2% year over year to $7.09 per share [16] - The combined ratio improved by 170 basis points to 90.1, driven by higher underwriting income and stronger net investment income within the general insurance segment [16]

Company Overview - American International Group (AIG) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price decline of 12.33% since the beginning of the year [3] Dividend Information - AIG currently pays a dividend of $0.45 per share, resulting in a dividend yield of 2.4%, which is higher than the Insurance - Multi line industry's yield of 1.52% and the S&P 500's yield of 1.36% [3] - The annualized dividend of $1.80 represents a 2.9% increase from the previous year [4] - Over the past 5 years, AIG has increased its dividend 3 times, averaging an annual increase of 6.78% [4] - The current payout ratio is 28%, indicating that AIG pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for AIG's earnings in 2026 is $7.81 per share, reflecting a year-over-year growth rate of 10.16% [5] Investment Considerations - AIG is considered a strong dividend investment opportunity, especially for income investors, as it offers a compelling yield and has a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Shares of American International Group (AIG) have shown mixed performance over the past year, remaining essentially flat despite solid results from the company, primarily due to pressures in the insurance sector related to concerns about thinning margins [1] Company Performance - AIG has delivered solid results, indicating operational stability [1] - The stock has not experienced significant growth, reflecting a flat trading performance over the past year [1] Industry Context - The insurance sector is facing challenges, particularly concerns regarding thinning margins, which have impacted stock performance [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Adjusted after-tax income per diluted share was $1.96, a 51% increase year-over-year [6] - Underwriting income reached $670 million, an increase of 48% year-over-year [6] - For the full year 2025, adjusted after-tax income per diluted share was $7.09, a 43% increase year-over-year [7] - Total adjusted after-tax income for the year was $4 billion, a 24% increase year-over-year [7] - The full year 2025 combined ratio was 90.1%, an improvement of 170 basis points from 2024 [46] Business Line Data and Key Metrics Changes - Global commercial net premiums written grew 3% year-over-year, totaling $17.4 billion [7] - North America Commercial grew net premiums written by 4%, with Retail Property contracting by 8% [8] - International Commercial net premiums written increased by 3%, primarily driven by Property and Global Specialty [8] - Global Personal net premiums written contracted by 3% due to higher ceded premiums under a reinsurance treaty [8] - New business in Global Commercial grew 9% year-over-year, with International new business up 10% [9] Market Data and Key Metrics Changes - North America casualty lines pricing remained favorable, with increases in the mid-teens for wholesale and excess casualty [10] - Retail property pricing was down 10%, and excess and surplus lines pricing was down 13% for the year [10] - International property pricing was up 3%, while energy pricing was down 10% due to abundant capacity [11] - Overall pricing in North America commercial renewal increased by 6%, excluding property [43] Company Strategy and Development Direction - AIG is focused on maintaining disciplined underwriting and capital management while pursuing growth through strategic transactions [12][18] - The company aims to achieve a sub-30% expense ratio by 2027, with a current expense ratio of 31.1% [9][46] - AIG is leveraging GenAI capabilities to enhance underwriting and claims processes, with plans for broader deployment in 2026 [26][30] - The company is positioned for growth through organic initiatives, strategic partnerships, and innovative capital structures [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AIG's financial strength and liquidity to execute strategic objectives [13] - The company anticipates low- to mid-teens net premiums written growth in General Insurance for 2026 [31] - Management highlighted the importance of maintaining underwriting discipline amid competitive market conditions [10][43] - The leadership transition is expected to support AIG's strategic goals and financial guidance [32][33] Other Important Information - AIG returned $6.8 billion in capital to shareholders, including $5.8 billion in share repurchases and $1 billion in dividends [12] - The company achieved a 12.5% increase in quarterly dividends, marking the third consecutive year of significant dividend growth [12] - AIG's investment strategy has shifted towards higher-yielding assets, resulting in a net investment income increase of 8% year-over-year [11][47] Q&A Session Summary Question: Discussion on expense ratio expectations - Management indicated that the expense ratio is expected to be lower in 2026 compared to 2025, with a focus on managing corporate expenses [54][56] Question: Clarification on net premium written growth sources - Management noted that growth comes from various initiatives, including reinsurance benefits and organic growth, but did not provide specific breakdowns [58][60] Question: Additional details on casualty line margins - Management explained that additional margins in casualty lines are a result of conservative loss cost trend assumptions and macro uncertainties [66][68] Question: Breakdown of interest and dividends in investment portfolio - Management highlighted a significant transformation in the investment portfolio, with a focus on reinvesting in higher yields [70]

Financial Data and Key Metrics Changes - Adjusted after-tax income per diluted share was $1.96, a 51% increase year-over-year [6] - Underwriting income reached $670 million, an increase of 48% year-over-year [6] - Full-year adjusted after-tax income per diluted share was $7.09, a 43% increase year-over-year [7] - Global commercial net premiums written were $17.4 billion, an increase of 3% year-over-year [7] - The accident year combined ratio was 88.3%, and the calendar year combined ratio was 90.1%, both showing improvements [10][45] Business Line Data and Key Metrics Changes - North America Commercial grew net premiums written by 4% or 5% when adjusted for a large closeout transaction, with balanced growth across the portfolio [8] - International Commercial net premiums written increased by 3%, primarily driven by property and global specialty [8] - Global Personal saw a contraction of 3% in net premiums written due to higher ceded premiums [8] - New business in global commercial grew 9% year-over-year, with international new business up 10% [9] Market Data and Key Metrics Changes - North America property pricing was down 10%, and excess and surplus lines pricing was down 13% for the year [10] - International property pricing was up 3%, while energy pricing was down 10% due to abundant capacity [11] - Overall pricing in North America commercial renewal increased by 6%, with casualty pricing remaining favorable [41][42] Company Strategy and Development Direction - AIG is focused on maintaining disciplined underwriting and capital management while pursuing growth through strategic transactions and technology initiatives [12][17] - The company aims to achieve a sub-30% expense ratio by 2027, with significant progress made in reducing the expense ratio [9][35] - AIG is leveraging GenAI capabilities to enhance underwriting processes and improve operational efficiency [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AIG's financial strength and liquidity to execute strategic objectives and growth ambitions [13] - The company anticipates low- to mid-teens net premiums written growth in General Insurance for 2026, indicating a strong start to the year [30] - Management highlighted the importance of maintaining strong relationships with reinsurance partners and achieving favorable renewal terms [14][15] Other Important Information - AIG returned $6.8 billion in capital to shareholders, including $5.8 billion in share repurchases and $1 billion in dividends [12] - The company achieved a significant milestone by delivering greater than $2 billion in underwriting income for the first time since 2008, excluding divested businesses [7] - AIG's investment strategy has shifted towards higher-yielding assets, resulting in a net investment income increase of 8% year-over-year [11] Q&A Session Summary Question: Insights on the expense ratio outlook - Management indicated that the expense ratio is expected to be lower on a run rate basis in 2026 compared to 2025, with a focus on managing corporate expenses [53][55] Question: Clarification on general insurance net premium growth - Management noted that growth comes from various initiatives, including reinsurance benefits and organic growth, but did not provide specific breakdowns [57][59] Question: Additional details on casualty line margins - Management explained that additional margin in casualty lines is a conservative approach to cover macro uncertainties, not indicative of portfolio deterioration [65][66] Question: Breakdown of interest and dividends in the investment portfolio - Management highlighted a significant transformation in the investment portfolio, with a focus on reinvesting in higher yields [67][68] Question: AI implementation and orchestration layer - Management discussed the progress in AI implementation and the focus on orchestrating multiple agents within the organization for improved efficiency [72][75]