The launch of Convex Group Limited, an international specialty insurer and reinsurer with $1.8 billion of initial committed capital, has been announced by Stephen Catlin and Paul Brand.
The awaited start-up has now launched, and has also received its all-important A- ratings from A.M. Best for its subsidiaries.
Unveiled by re/insurance industry experts Stephen Catlin and Paul Brand, Convex will underwrite insurance and reinsurance for complex specialty risks across a broad range of businesses in both London and Bermuda.
Launched with $1.8 billion of initial committed, the firm will draw down $1.6 billion to commence business, and expects to have access to more capital as it expands.
Chairman and Chief Executive Officer (CEO) of Convex, Catlin, said: “The launch of Convex distils vast industry experience and client focus to create the insurance company of the future. We begin unencumbered by legacy but rich with expertise and the strength of independence. There is evidence of pricing momentum in many classes and we are well equipped to prosper in a challenging market.
“We are thrilled to have the support of Onex and our co-investors and believe they will be valuable partners to us as we build our business. Paul and I have worked together since the early Catlin days and the team we have assembled all bring exceptional skills to the table. Together we have a once in a lifetime opportunity and I look forward to the journey that lies ahead.”
The new specialty reinsurer brings together a group of experienced industry participants, including Paul Brand as Deputy CEO; Benjamin Meuli as Chief Financial Officer (CFO); Robina Malik, General Counsel; Adrian Spieler, Chief Operating Officer (COO); Doug Howat, Chief Underwriting Officer Insurance; Matt Paskin, Chief Underwriting Officer Reinsurance; and Mark van Zanden, Head of Portfolio Optimisation.
“Convex is designed for the evolving insurance industry, and combines years of experience, knowledge and history in this market. Stephen and I see a great opportunity; there is demand for an insurer to bring a refreshed and enhanced offering to market, one that puts fairness and honesty at the centre of its singularly client focused proposition.
“Convex will challenge the status quo to create value across the chain and provide a differentiated service in a personal way. We are very excited to be launching Convex today and look forward to working with our team to create an innovative partner that drives results for our clients,” said Brand.
The initial capital invested in the firm comes from the Convex management team, Onex Partners V (the large-cap private equity fund of Onex Corporation), PSP Investments, and a consortium of co-investors.
The announcement states that the re/insurer will leverage a conservative investment strategy, with a predominantly high-grade fixed income portfolio, with duration matched to the profile of liabilities.
A Senior Managing Director at Onex, Bobby Le Blanc, said: “We believe Convex is well-positioned to become a leading specialty insurer. It has a well-respected and experienced management team with an exceptional track record in building value. We are delighted to partner with Stephen, Paul and the entire Convex team and look forward to the years ahead.”