Convex wrote $1.9 billion of gross premiums in the second quarter, up 8.1 per cent year on year, although net income fell 39 per cent to $169 million as its combined ratio rose to 85 per cent.

The Bermudian-based speciality re/insurer said its combined ratio — a key measure of underwriting profitability — deteriorated from 80.7 per cent in the same period last year. A ratio below 100 per cent indicates underwriting profit.

Net written premiums rose 4.7 per cent to $1.25 billion, while net premiums earned increased 6.5 per cent to $953 million.

Over the 12 months to June 30, however, Convex reported net income of $719 million, excluding $41 million in one-off costs tied to the Onex and American International Group acquisition, up from $520 million a year earlier. Its combined ratio improved to 83.7 per cent from 94.2 per cent over the same period.

Onex Corporation bought a 63 per cent stake in Convex in February this year for $4.9 billion along with AIG which acquired about a 35 per cent equity interest in Convex for approximately $2.1 billion, making it 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.