What's Happening?
American International Group (AIG) has finalized the acquisition of minority stakes in Convex Group Ltd., a global specialty re/insurer, and Onex Corp., a global asset manager. AIG acquired a 35% equity interest in Convex for approximately $2.1 billion and a 9.9% stake in Onex for $642 million. This strategic move positions AIG to enhance its growth prospects and earnings potential. The acquisition was initially announced in October 2025 and has now received all necessary regulatory approvals.
Why It's Important?
The completion of these acquisitions marks a significant step for AIG in expanding its influence in the global insurance and asset management sectors. By investing in Convex and Onex, AIG aims to diversify its portfolio and strengthen its market position.
This move is expected to be accretive to AIG's earnings and return on equity, potentially benefiting shareholders. Additionally, the partnership with Onex as the majority shareholder in Convex could lead to new strategic opportunities and collaborations in the insurance industry.
What's Next?
AIG plans to increase its participation in Convex's business through a whole account quota share arrangement, starting in 2026 and expanding in subsequent years. This strategic alignment is expected to enhance AIG's underwriting capabilities and market reach. As the integration progresses, stakeholders will be observing how these investments impact AIG's financial performance and competitive positioning. The insurance industry will also be watching for potential innovations and service enhancements resulting from this collaboration.
