Onex Corp.’s top executive says the alternative asset manager is open to making further large bets on insurance companies following its move to team up with American International Group Inc. on a major deal.
Toronto-based Onex and AIG agreed last week to buy stakes in specialty insurer Convex Group Ltd., a specialty property and casualty reinsurer, in a $7 billion transaction.
On completion, Onex will own 63% of Convex on its own balance sheet, while AIG will have 35%. The two companies are buying Convex from one of Onex’s private equity funds and co-investors.
Related: AIG Joins Private Equity Firm Onex to Acquire Re/Insurer Convex Group
Asked Friday whether he sees more transactions like that, Chief Executive Officer Bobby Le Blanc said yes. Onex has the ability to redeploy billions of dollars of capital from other assets on its balance sheet into “Convex-like” deals, he said.
“I see it being very concentrated, just so you understand — maybe one or two other ones,” Le Blanc told analysts. “Insurance is obviously a very natural one for you to think about, but there’s other things that we really have done remarkably well over the years that we would be open to as well.”
In the Convex deal announcement, AIG also agreed to buy a 9.9% interest in Onex for about $646 million and to invest $2 billion over three years in Onex funds.
Onex sees the deal as a major transformation, and it’s another step in a restructuring that Le Blanc has been working on for years. He has trimmed expenses and walked away from businesses such as Gluskin Sheff, a wealth manager, while trying to expand in credit.
Photo: Onex President Bobby Le Blanc Photographer: Galit Rodan/Bloomberg
Topics AIG
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