Onex closes Convex Group acquisition for $7B (U.S.)

Executive Summary

• Onex Corp. has completed the acquisition of Convex Group Ltd., a specialty property and casualty insurance and reinsurance company, in partnership with American International Group Inc. (AIG).
• The total transaction value is $7 billion, with Onex and AIG owning approximately 63% and 35% of Convex, respectively, while the remaining balance is held by Convex management.
• As part of the deal, AIG subscribed for 7.5 million subordinate voting shares of Onex (approximately 9.9% of the company) and committed $2 billion to Onex's private equity and credit strategies over the next three years.

Key Details

• Transaction Value: $7 billion for the acquisition of Convex Group Ltd.
• Ownership Structure:
  • Onex: ~63%
  • AIG: ~35%
  • Convex Management Team: Remaining balance
• AIG Investment Terms:
  • Subscription of 7.5 million subordinate voting shares of Onex (~9.9% interest).
  • $2 billion capital commitment to Onex's private equity and credit strategies over the next three years.
• Strategic Rationale: Convex becomes a core platform for Onex alongside private equity and credit, aimed at generating meaningful recurring net income and free cash flow. Onex is transitioning to a capital-lighter model, focusing on similar investments in core areas of expertise.
• Regulatory Context: The acquisition constitutes a related-party transaction under Multilateral Instrument 61-101. Onex relied on exemptions from formal valuation and minority approval requirements because the fair market value of interests held by certain directors and senior officers (indirect 0.25% interest) did not exceed 25% of Onex's market capitalization at signing.
• Future Reporting: Onex is scheduled to report fourth-quarter 2025 results on Feb. 20, 2026, which will include an update on Convex's 2025 financial results.

Notable Quotes

• Bobby Le Blanc, CEO of Onex: "This is a pivotal moment in Onex's history, and the addition of Convex positions us well for accelerated value creation and earnings growth... With world-class underwriting talent, low asset leverage, an advanced technology platform and a low-cost operating model, there is significant room for growth and profit expansion as the business continues to scale."
• Bobby Le Blanc, CEO of Onex: "We look forward to working with our co-investor AIG, one of the world's leading insurance organizations, to achieve the full potential of our strategic relationship and maximize value for all Onex shareholders."