Onex Reports First Quarter 2026 Results

• Q1 2026 net earnings of $129 million ($1.76 per diluted share) versus $168 million in Q1 2025, driven by lower investment gains in private equity.
• Distributable earnings surged to $217 million from $38 million a year ago, powered by Convex’s strong underwriting profit and realized carry.
• Convex Group (majority‑acquired in February 2026) reported adjusted net income of $106 million, gross premiums written of $2.17 billion, a combined ratio of 86.8%, and a loss ratio of 48.8% — a marked improvement from the prior‑year period.
• Asset Management & Credit: closed a $1.6 billion multi‑asset continuation vehicle, priced/extended CLOs totalling $3.0 billion through April, and announced the sale of Emerald Holding Inc. with proceeds of ~$230 million expected in H2 2026.
• Balance sheet: cash and near‑cash fell to $398 million from $2.1 billion at year‑end 2025 (post‑Convex closing). A $200 million partial debt repayment was made in April. Available liquidity totals ~$850 million, including revolver capacity.
• Dividend: C$0.10 per SVS declared, payable July 31, 2026.
• Corporate governance: SVS holders now elect 80% of the board; MVS voting rights have been materially restricted. A sunset will repurchase MVS by 2029 if the Schwartz family’s SVS stake falls below 5%.

• The Q1 results are Routine‑Positive. The transformative Convex acquisition and AIG partnership were fully known; this report is the first full‑quarter snapshot of the consolidated entity and confirms that Convex is performing in line with the optimistic underwriting outlook.
• The dip in net earnings (from $168M to $129M) stems from lower private‑equity realizations and marks, not a deterioration in underlying business quality.
• The jump in distributable earnings to $217M is notable—it demonstrates that Convex is already generating substantial cash flows—but it was implicitly expected after the $7 billion acquisition and the company’s guidance that Convex would be a free‑cash‑flow engine.
• No new strategic moves were announced; the rest (CLO activity, Emerald sale, NCIB renewal) are incremental executions of existing plans. Thus the news does not alter the investment thesis in a material way; it merely solidifies confidence in the post‑merger trajectory.

Onex Corporation is a global alternative asset manager and investor. Its platforms include: - Private Equity – Onex Partners (large‑cap) and ONCAP (mid‑market) funds. - Credit – Onex Credit, a leading CLO manager. - Insurance – Convex Group Limited, a specialty property & casualty (re)insurer, acquired in February 2026 for $7 billion (Onex 63%, AIG 35%, management the remainder).

The flagship project is the Convex acquisition. Convex, founded in 2019, writes ~$6 billion in gross premiums (2025) and has delivered a three‑year CAGR of 25% and an 18% average ROE. It now represents roughly 42% of Onex’s investing capital and is expected to provide recurring net income and free cash flow, shifting Onex toward a more capital‑light, yield‑oriented model.