AIG has taken a strategic minority stake in international specialty insurer and reinsurer Convex Group Ltd, the privately held carrier operating out of Bermuda and London.

AIG has acquired about a 35 per cent equity interest in Convex for approximately $2.1 billion, making them the second largest shareholder of the company founded in 2019 by industry veterans Stephen Catlin and Paul Brand with $1.7 billion in initial capital.

AIG also announced a 9.9 per cent ownership stake in the Onex Corporation for approximately $642 million, as Onex has become the majority shareholder in Convex with a 63 per cent ownership interest.

Convex said the transaction has closed establishing its new, long-term ownership structure led by Onex with AIG, following receipt of all regulatory approvals.

Stephen Catlin, the Convex chairman, said: “We are delighted to announce the completion of this transaction, which secures the long-term independence of Convex and presents a range of exciting strategic opportunities. We would like to thank the regulators for their constructive engagement throughout the process and our financial and legal advisers for their efforts.”

Paul Brand, chief executive, added: “This is a milestone for Convex. The transaction heralds the next phase of our development, strengthens our partnership with Onex, establishes a new relationship with AIG and enhances our ability to serve clients and brokers while pursuing future opportunities.”

Peter Zaffino, chairman and chief executive of AIG, said: “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.”

Convex said in October that with the exception of management, Convex’s founding equity investors, including Onex’s Partners V private equity fund, would sell their equity stakes in full. The investment values Convex’s common equity at $7 billion.

Convex said the new relationship was a strong endorsement of the quality of Convex’s leadership and underwriting capabilities.

Mr Catlin said three months ago that in only six years the Convex team had built an extraordinary business.

He said: “We have become a major player in global specialty insurance and reinsurance with annual premium income of up to $6 billion and operations in a range of global jurisdictions.

“We’ve known Peter Zaffino for over 20 years in numerous leadership roles. We greatly admire the contribution he has made to the industry as a whole and, together with the outstanding team he has built at AIG, the successful execution of his strategic vision, positioning AIG for growth and delivering attractive risk-adjusted returns for AIG shareholders.

“This transaction secures the long-term independence of Convex and presents a range of exciting strategic opportunities. We would like to thank our founding shareholders, including Onex, for their unwavering support in establishing and growing the business and our other supporters within the insurance market. Without them we would not be where we are today.”

Bobby Le Blanc, chief executive of Onex, spoke in October about the long-term strategic investment for his company and AIG.

He said: “In a small number of years the Convex team, led by Stephen and Paul, has created a leading specialty insurance and reinsurance business writing the most complex risks across the globe. We are excited to work with the Convex team to deliver sustainable long-term growth, leading underwriting returns and to compound capital for Onex shareholders.”