- AIG is investing practically $5 billion in specialty insurer Convex Group and asset supervisor Onex Company and its funding funds, a transfer insiders say displays CEO Peter Zaffino’s drive to remodel the legacy insurer right into a extra agile, capital-aligned powerhouse.
AIG is about to make a multibillion-dollar funding within the specialty insurer Convex Group and asset supervisor Onex Company. The multi-pronged deal stays underneath regulatory evaluate and is anticipated to shut within the first half of 2026. The primary stage of the deal features a $3 billion dedication adopted by an extra $2 billion funding to be deployed over the subsequent three years. Sources near the deal instructed Fortune the transfer displays AIG CEO Peter Zaffino’s willpower to reposition the insurance coverage big as a extra dynamic, capital-aligned establishment. AIG’s Convex deal comes days after the insurance coverage firm introduced a separate $2 billion acquisition cope with reinsurance firm Everest Group.
The phrases of the Convex deal, these aware about the negotiations instructed Fortune, embody an preliminary $2.2 billion dedication to accumulate a 35% in Convex Group, the specialty insurer identified for underwriting complicated dangers. In parallel, AIG will additional make investments about $640 million for a 9.9% stake in Onex, Convex’s majority shareholder. Publish-transactions, Onex will personal 63% of Convex, and AIG will maintain minority pursuits in each entities.
Convex, which was began in 2019, has emerged as a pressure in specialty insurance coverage, rising quickly to greater than $5 billion in premiums. Convex’s mixed ratio— a key profitability metric that reveals how effectively an insurer is operating its core underwriting enterprise—is 87.6%, 9 share factors higher than the general U.S. property and casualty (P&C) trade. Convex can be within the high quartile of world reinsurers and considerably above conventional insurance coverage friends when it comes to return on fairness with an ROE of 17%. Shareholder fairness (Convex’s internet price) on the firm sits at $3.67 billion, up greater than 16% year-over-year from $1.76 billion in 2022.
Apart from its efficiency, the agency has raised upwards of $3 billion from buyers, together with an preliminary $1.8 billion dedication by Onex.
Past passive fairness, AIG is negotiating a “whole-account quota share reinsurance agreement” with Convex, which guarantees extra returns by offering AIG with a share of Convex’s underwriting income. Over the subsequent three years, AIG may even deploy $2 billion into Onex’s funding funds, with most popular entry to Onex’s high-return platforms.
For Zaffino, who has spent the previous half-decade reshaping AIG—from shedding non-core operations to lowering its threat publicity by over $1 trillion, to doubling down on underwriting self-discipline—the Convex deal is the newest in his marketing campaign to revitalize the as soon as ailing firm.
Zaffino’s initiatives have helped convey AIG again from the sting after the corporate’s involvement within the 2008 monetary disaster led to a decade of catastrophic monetary decline. The agency hemorrhaged $30 billion in underwriting losses from 2008 to 2018. In Q2 2025, nevertheless, the agency reported a $1.1 billion revenue, reversing a $4 billion loss a 12 months earlier, which primarily mirrored the divestiture of Corebridge Monetary, a life insurance coverage and retirement options supplier. Adjusted after-tax earnings rose 56% 12 months over 12 months. The corporate’s earnings per share of $1.81 beat the forecast of $1.60, whereas income of $6.88 billion surpassed the anticipated $6.78 billion.
