In a strategic move signaling its growing dominance in specialty insurance, American International Group Inc. (AIG) announced Thursday that it will acquire a 35% stake in Convex Group Ltd. — a Bermuda-based specialty underwriter — for a staggering $2.1 billion. The transaction, guided by top legal powerhouses, places Convex’s total valuation at $7 billion and solidifies AIG’s presence in niche insurance markets.
The acquisition will allow AIG to directly participate in Convex’s underwriting portfolio through a “whole account quota share structure,” enabling the insurer to share premiums, losses, and expenses with Convex. As part of the deal, AIG will also appoint two directors to Convex’s board.
“This is a unique opportunity to invest in a top-performing global specialty company that we believe will drive incremental earnings growth for AIG,” said Peter Zaffino, AIG’s chair and CEO.
Elite Legal Teams Drive the Multi-Billion-Dollar Agreement
The high-profile transaction united some of the world’s most prestigious law firms.
Debevoise & Plimpton LLP represented AIG, led by insurance M&A partners Marilyn Lion and Paulina Stanfel.
Wachtell, Lipton, Rosen & Katz guided AIG with partners Edward D. Herlihy, David K. Lam, and Mark A. Stagliano at the helm.
Meanwhile, Weil, Gotshal & Manges LLP advised Convex Group with a team spearheaded by corporate partner Murray Cox, alongside finance partners Chris McLaughlin and Alex Eagle, and antitrust expert Jenine Hulsmann.
Kirkland & Ellis LLP represented Convex’s founding partners on the sale to AIG and Onex, with a team including Alvaro Membrillera, Adrian Duncan, and Doug Bacon.
On the financial side, Morgan Stanley served as adviser to AIG, while Evercore and Goldman Sachs advised Convex and Onex, respectively.
