Specialty insurer and reinsurer Convex’s gross written premiums (GWP) will grow 14% year-on-year to $5.9 billion by 2025, a three-year compound growth rate of 25%, with most business lines expanding despite the impact of the California wildfires and other major events and disasters.
The company’s chief executive (CEO) Paul Brand described 2025 as a “milestone year” for Convex, driven by a third consecutive annual net profit, the launch of Syndicate 1984 at Lloyd’s, an extended partnership with Onex and a new strategic relationship with global insurer AIG.
In 2025, net profit will increase by 40.5% from the previous year to US$711 million, tangible book value will increase by 23% to US$3.9 billion, and the adjusted return on tangible common equity will be 20%.
In addition to the aforementioned GWP growth, Convex’s net written premiums increased 15% to $4.1 billion from $3.5 billion in 2024.
The specialty reinsurer’s combined ratio rose 1.7 percentage points to 89% from 87.3% in 2024, with a net loss ratio of 54%, reflecting strong underwriting performance this year despite the impact of major events and catastrophes. In addition, the net operating expense ratio improved 140 basis points year-over-year to 13.1% in 2025.
“We have successfully launched Syndicate 1984 at Lloyd’s and are securing our long-term future by extending our partnership with Onex and entering into a new strategic relationship with AIG. Both strategic moves position us to take advantage of continued growth and emerging opportunities and I look forward to a very exciting future,” Brand said. “We expect the market to be an attractive but challenging one through 2026, with headline rates declining slightly, but we still see business margins and growth opportunities.”
Stephen Catlin, Chairman of Convex, said, “I am extremely proud of the success we have achieved as a company. We would not have been able to reach nearly $6 billion in GWP in just six years without the hard work, dedication and exceptional talent of our team. The recent investments by Onex and AIG are a clear testament to the strength and credibility of Convex. I would also like to sincerely thank our brokers and clients for their continued trust and support in us during this extraordinary journey.”
Earlier this month, AIG, Onex and Convex completed the deal, with Onex taking a 63% controlling interest in the specialty reinsurer, AIG taking a minority stake of approximately 35%, and Onex holding a 9.9% stake.