AIG acquires Convex

American International Group (AIG) has acquired a minority stake in the global specialty insurer Convex Group, continuing its investment strategy in the insurance sector. The acquisition, which involves a 35% equity interest in Convex, is valued at approximately $2.1 billion (£1.6 billion). This move aligns with AIG's goal to enhance its strategic position and aims to bolster its earnings and return on equity over the coming years.

The deal sees AIG partnering with Onex Corporation, a publicly traded asset management firm, which now holds a 63% stake in Convex, making it the majority shareholder. AIG has also acquired a 9.9% stake in Onex for $642 million (£490 million). This transaction cements AIG's involvement in the specialty insurance market through an increased shareholding and a quota share reinsurance arrangement with Convex, which began in January 2026 and is set to expand in subsequent years.

The acquisition serves a strategic purpose for AIG by establishing a significant relationship with both Convex and Onex, allowing it to tap into specialized insurance sectors. AIG's Chairman and CEO, Peter Zaffino, emphasized the long-term benefits of the investment, noting that these stakes will position AIG for future growth and contribute to financial performance improvements from 2026 onward. Paul Brand, Convex's CEO, echoed this sentiment by highlighting the enhanced partnership, which will enable Convex to better serve its clients and capitalize on new opportunities.

In a broader market context, AIG's investment underscores the competitive dynamics in the insurance sector, where firms are increasingly looking to bolster their specialty insurance capabilities through strategic partnerships and acquisitions. This move by AIG reflects a growing trend where large insurers seek to increase their footprint in niche markets, often through investments in specialized platforms.

Looking forward, AIG's strategic investments in Convex and Onex indicate a clear focus on aligning with key partners to drive growth in specialty insurance. The integration process and subsequent expansion of business relationships will likely unfold over the coming years, with attention also focused on regulatory approvals and the smooth transition in leadership, as current CEO Peter Zaffino plans to retire by mid-2026.