Convex Q2 combined ratio worsens as CEO flags property pressure
Convex has reported a second-quarter combined ratio of 85%, up from 80.7% a year earlier, although its trailing 12-month ratio improved to 83.7% as CEO Paul Brand (pictured) warned of pressure on property pricing across insurance and reinsurance.
Net income for the last 12 months jumped by 38% to $719 million compared with $520 million in the prior 12-month period. But second quarter net income dropped from $276 million in Q2 2025 to $169 million this past quarter.
Gross written premium growth has been strong over the trailing 12 months, rising by 8% to $6.1 billion compared with $5.7 billion in the prior year-long period. Second quarter GPW also grew 8% from $1.8 billion to $1.9 billion. This growth was achieved despite a 5% year-to-date decrease in pricing.
Speaking to analysts during a Q2 earnings call with parent company, Canadian asset manager Onex, Convex CEO Paul Brand (pictured) said there was “a lot of pressure on property in both insurance and reinsurance" and the specialty re/insurer was “a little bit under‑weight” in property.
On the other hand, Convex was seeing “quite good pricing in some other casualty areas”, said Brand, while political violence and terrorism have seen very positive pricing, impacted by the Middle East conflict.
Brand stressed Convex was not “opening a whole new skill,” not aggressively entering new lines simply to grow -- but emphasising profitable growth with existing markets and relationships, and not top-line expansion for its own sake.
Back in October, insurance giant AIG teamed up with Canadian asset manager Onex to acquire Convex in a $6 billion deal, taking underwriting results for itself via an all-account quota share, but leaving majority with Onex. AIG took a 35% stake in Convex for $2.1 billion and Onex took 63% for $3.8 billion, leaving a fractional rump share in the hands of management.
Did you get value from this story? Sign up to our free newsletters and get stories like this sent straight to your inbox.
