Canadian private equity firm Onex has launched a new specialty property and casualty insurance (P&C) company called Convex Group with an investment commitment of $1.8bn.
Convex will be headquartered in Bermuda and will have an office in London.
Onex said that the investment in the new insurance company will be made by Onex Partners V and a consortium of co-investors, with nearly $1.6bn of the commitment already funded.
Convex will be engaged in writing insurance and reinsurance. The company will focus on underwriting complex specialty risks for a diversified range of business lines.
The insurance company’s operations will be headed by Stephen Catlin, Paul Brand and a team of insurance industry experts, said Onex.
Onex managing director Todd Clegg said: “Consolidation within the insurance sector has created opportunity for an independent carrier with a focused, specialist proposition, capable of serving clients with complex risk exposures. The Convex platform is designed to satisfy this demand.”
Onex Partners V will make an investment of $750m in the new insurance firm, while co‑investors like PSP Investments will invest $780m and $50m of funding will be made by Convex’s management team.
Onex’ share of the equity investment in the role of a limited partner in the fund is $124m.
Convex chairman and CEO Stephen Catlin said: “Onex has a track record of successful investing in the insurance industry and a consistent view of the market opportunity making it the ideal partner for us.
“With Onex’ support, Convex is uniquely positioned to provide a high touch, client-service focused approach and leverage innovative and proprietary technology to enhance the value we bring to our clients.”
Last June, Onex made an investment of $175m in Ryan Specialty Group (RSG), an international specialty insurance company that provides solutions for brokers, agents and insurance carriers.
The private equity firm also has investment in York Risk Services Group, a provider of insurance solutions to property, casualty and workers’ compensation specialty markets, with operations mainly in the US.