The terms of the Convex deal, those privy to the negotiations told Fortune, include an initial $2.2 billion commitment to acquire a 35% in Convex Group, the specialty insurer known for underwriting complex risks. In parallel, AIG will further invest about $640 million for a 9.9% stake in Onex, Convex’s majority shareholder. Post-transactions, Onex will own 63% of Convex, and AIG will hold minority interests in both entities.
For Zaffino, who has spent the past half-decade reshaping AIG—from shedding non-core operations to reducing its risk exposure by over $1 trillion, to doubling down on underwriting discipline—the Convex deal is the latest in his campaign to revitalize the once ailing company.
