American International Group (AIG) has completed the acquisition of strategic minority stakes in Convex Group and Onex Corporation, strengthening its long-term growth strategy through a combination of balance sheet investments and a new reinsurance partnership.
Under the transactions, AIG acquired approximately 35% of Convex Group for about $2.1 billion and a 9.9% ownership stake in Onex Corporation for roughly $642 million. Following the deal, Onex has become the majority shareholder in Convex, holding a 63% equity interest.
AIG said the investments are designed to enhance long-term earnings growth, return on equity, and capital efficiency, while expanding its exposure to specialty re/insurance and alternative assets.
AIG links equity investments to reinsurance partnership
In addition to the equity stakes, AIG began participating in a whole-account quota share of Convex’s specialty re/insurance portfolio from January 1. The company also plans to increase its reinsurance cessions in 2027 and 2028, deepening the underwriting relationship over time.
This structure allows AIG to deploy capital through both equity ownership and reinsurance participation, giving it access to diversified specialty risks and recurring fee income. At the same time, Convex and its new majority owner, Onex, gain a long-term anchor reinsurance partner.
The investment in Onex also strengthens AIG’s alignment with the Onex asset management platform, reinforcing its strategy of working more closely with third-party capital and private market managers.
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CEO comments on long-term value creation
Peter Zaffino, chairman and CEO of AIG, said the transactions are expected to support earnings and returns in the years ahead.
“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.”
How the Convex and Onex stakes fit AIG’s strategy
For AIG, the Convex and Onex investments expand its role in global specialty re/insurance and alternative assets without pursuing a full acquisition. The quota share arrangement with Convex enables AIG to take on additional specialty underwriting in a capital-efficient manner, while keeping catastrophe and long-tail exposures within its stated risk appetite.
Management expects the combination of equity income and specialty reinsurance flows to support return on equity from 2026 onward, adding a new stream of specialty-linked profits alongside AIG’s established commercial and personal insurance businesses.
The minority stake in Onex further deepens AIG’s access to private markets and third-party capital, as the insurer continues to reshape its investment portfolio and emphasize asset-management partnerships.
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Broader market implications
For the wider insurance and reinsurance market, the transaction highlights a growing trend among large carriers toward minority investments, quota share arrangements, and capital-light structures. These approaches allow insurers to participate in specialty growth while limiting balance sheet strain and risk concentration, underscoring the increasing convergence of insurers, reinsurers, and alternative capital providers.
Advisers: Morgan Stanley & Co. LLC acted as financial adviser to AIG. Legal counsel was provided by Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP.
