Staff Report
In a landmark transaction set to reshape the global insurance and asset management landscape, American International Group (AIG) has announced a $5 billion strategic partnership with specialty insurer Convex Group and Canadian investment giant Onex Corporation.
The deal, which blends insurance risk-sharing with long-term investment capital, marks one of the most significant collaborations in the sector since the pandemic and underscores AIG’s strategy to rebalance its portfolio, streamline its balance sheet, and expand into high-margin specialty markets.
According to insiders familiar with the transaction, the three-way partnership will integrate underwriting expertise, reinsurance capacity, and asset management, creating a platform designed to enhance AIG’s capital flexibility and future-proof its global operations.
A Strategic Realignment for AIG
For AIG, the move represents another major step in a decade-long effort to reinvent itself following years of restructuring, divestitures, and balance-sheet repair.
The company, once the world’s largest insurer, has spent the past several years shedding non-core assets and focusing on high-value commercial and specialty lines. The new partnership with Convex and Onex is seen as a targeted reinvestment into growth-oriented risk segments, particularly in specialty underwriting, aviation, marine, and complex casualty lines.
“This partnership allows us to combine AIG’s global reach with Convex’s deep specialty capabilities and Onex’s disciplined capital management,” AIG CEO Peter Zaffino said in a statement. “It is a forward-looking collaboration that strengthens our risk profile and positions us for sustainable growth.”
Under the deal, AIG is expected to contribute part of its portfolio assets, Convex will manage reinsurance and underwriting exposure, and Onex will deploy capital into the new structure to optimize yield and liquidity.
Convex’s Expanding Role in Specialty Risk
Founded in 2019 by insurance veteran Stephen Catlin, Convex has rapidly emerged as one of the most dynamic players in the specialty insurance and reinsurance market. Headquartered in Bermuda and London, Convex focuses on complex risks often underserved by traditional insurers — from aerospace and cyber insurance to energy and marine liability.
Convex brings to the table a proven record of technical underwriting and risk diversification, crucial for a partnership of this scale. The company’s involvement is expected to enhance AIG’s exposure management while providing access to Convex’s underwriting infrastructure in Lloyd’s of London and other specialty hubs.
“Partnering with AIG and Onex allows us to scale our specialty capabilities on a global level,” said Convex CEO Stephen Catlin. “Together, we’re building a platform that can address the increasingly complex and capital-intensive nature of modern risk.”
Onex: The Capital Engine
Toronto-based Onex Corporation, a diversified investment manager with more than $50 billion in assets under management, will act as the financial anchor in the transaction. Known for its disciplined private equity and credit investments, Onex will provide the long-term capital foundation for the partnership — an essential factor as insurers face growing regulatory capital requirements and volatile investment markets.
Industry analysts say Onex’s participation signals that institutional capital is becoming more deeply intertwined with the insurance sector. The convergence of private capital and underwriting risk is part of a broader trend reshaping global finance, as asset managers seek stable, yield-generating alternatives to traditional markets.
“Insurance is now viewed as a high-quality asset class,” said a senior investment strategist. “By partnering with established insurers like AIG and Convex, firms like Onex can access long-duration returns that complement their private equity portfolios.”
A Convergence of Capital and Risk
The partnership’s structure mirrors a growing industry model where asset managers and insurers collaborate to balance capital intensity with investment opportunity.
In this case, AIG offloads some of its underwriting exposure to Convex, which specializes in complex risk management, while Onex injects capital to support long-term solvency and enhance investment yield.
The result is a capital-efficient ecosystem — AIG reduces balance sheet strain, Convex gains scale and diversification, and Onex captures stable returns backed by tangible insurance assets.
Such structures are becoming increasingly popular as insurers grapple with inflation, climate risk, and rising catastrophe losses that strain traditional capital reserves.
Market Reactions and Strategic Implications
The market’s response to the announcement has been broadly positive. AIG shares rose modestly following the news, while analysts hailed the transaction as “strategically sound” and “financially innovative.”
“This partnership reflects a clear industry trend — the merging of underwriting capability with private capital efficiency,” said Morgan Stanley insurance analyst Emily Roth. “It allows AIG to stay competitive against more agile reinsurers and insurance-linked securities players.”
The deal also highlights a post-pandemic shift toward risk-sharing partnerships rather than pure acquisitions. Instead of buying entire companies, large insurers are increasingly forming joint ventures and portfolio partnerships that allow for flexibility, diversification, and less regulatory scrutiny.
AIG’s Broader Vision: Stability and Growth
For AIG, this transaction is part of a broader transformation plan that includes expanding its global reinsurance relationships, investing in digital underwriting tools, and focusing on high-margin lines less exposed to cyclical losses.
In recent years, the insurer has exited several non-core business units and strengthened its property-casualty balance sheet. The partnership with Convex and Onex fits neatly into that narrative — providing access to specialist expertise and deep capital pools without taking on additional acquisition risk.
“This is not just a financial transaction,” said AIG CFO Shane Fitzsimons. “It’s a strategic alliance that combines the best of global insurance, specialty underwriting, and institutional capital management.”
Industry Impact: The Future of Insurance Finance
The $5 billion deal could signal a new blueprint for insurance financing, as major insurers seek to manage volatility and capital demands by collaborating with asset managers and specialist reinsurers.
Experts say similar alliances could emerge between private equity firms, sovereign wealth funds, and global insurers — particularly as climate risk, cyber threats, and AI-driven underwriting reshape the economics of risk.
“The traditional boundaries between finance and insurance are blurring,” said insurance economist Daniel Mercer. “This deal shows where the industry is headed — toward integrated ecosystems of underwriting, capital, and technology.”
Looking Ahead
As regulatory approval and implementation unfold over the coming months, the AIG–Convex–Onex alliance will be closely watched by industry peers and investors alike. If successful, it could become a template for the next generation of global insurance partnerships, combining capital efficiency with specialized risk management.
For AIG, it’s another step in a long journey of transformation. For Convex, a gateway to global scale. For Onex, a lucrative new frontier in financial diversification.
Together, they’re not just signing a $5 billion deal — they’re redefining how capital and risk will coexist in the next era of global insurance.
