AIG Completes Acquisitions of Convex and Onex Stakes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy AIG?
Source: Newsfilter
- Acquisition Details: American International Group (AIG) has acquired approximately 35% equity in Convex Group Limited for about $2.1 billion and a 9.9% stake in Onex Corporation for approximately $642 million, indicating a strategic expansion in the global insurance market.
- Strategic Implications: This acquisition positions Onex as the majority shareholder in Convex with a 63% stake, and AIG's investment is expected to support future growth while being accretive to AIG's earnings and return on equity in 2026 and beyond.
- Business Participation: AIG will begin participating in a whole account quota share of Convex's business starting January 1, 2026, with plans to increase cessions in 2027 and 2028, thereby enhancing its competitive edge in the insurance sector.
- Advisory Team: Morgan Stanley acted as AIG's financial advisor, while Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP provided legal counsel, ensuring the smooth execution of the transactions.
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Analyst Views on AIG
Wall Street analysts forecast AIG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIG is 85.93 USD with a low forecast of 80.00 USD and a high forecast of 96.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
2 Buy
12 Hold
0 Sell
Hold
Current: 75.960
Low
80.00
Averages
85.93
High
96.00
Current: 75.960
Low
80.00
Averages
85.93
High
96.00
About AIG
American International Group, Inc. is a global insurance company. It provides insurance solutions that help businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through its operations, licenses and authorizations and network partners. Its segment includes General Insurance and Other Operations. General Insurance business includes its three segments, including North America Commercial, International Commercial and Global Personal. The North America Commercial consists of insurance businesses in the United States, Canada and Bermuda. The International Commercial consists of insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa, Asia Pacific, Latin America and Caribbean and China. The North America and International Commercial segment products include property and short tail, casualty, financial lines and global specialty. Global Personal segment products include global accident and health and personal lines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AIG Completes Acquisitions of Convex and Onex Stakes
- Acquisition Details: American International Group (AIG) has acquired approximately 35% equity in Convex Group Limited for about $2.1 billion and a 9.9% stake in Onex Corporation for approximately $642 million, indicating a strategic expansion in the global insurance market.
- Strategic Implications: This acquisition positions Onex as the majority shareholder in Convex with a 63% stake, and AIG's investment is expected to support future growth while being accretive to AIG's earnings and return on equity in 2026 and beyond.
- Business Participation: AIG will begin participating in a whole account quota share of Convex's business starting January 1, 2026, with plans to increase cessions in 2027 and 2028, thereby enhancing its competitive edge in the insurance sector.
- Advisory Team: Morgan Stanley acted as AIG's financial advisor, while Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP provided legal counsel, ensuring the smooth execution of the transactions.
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AIG Completes Acquisitions of Convex and Onex Stakes
- Acquisition Completion: American International Group (AIG) has finalized its acquisition of approximately 35% equity in Convex Group Limited for about $2.1 billion and a 9.9% stake in Onex Corporation for approximately $642 million, significantly enhancing AIG's strategic position in the global insurance market.
- Strategic Shareholder Change: With this transaction, Onex becomes the majority shareholder of Convex with a 63% ownership interest, which not only strengthens Convex's capital base but also lays the groundwork for future collaboration between AIG and Onex, expected to drive business growth for both parties.
- Future Earnings Outlook: AIG's CEO Peter Zaffino stated that these long-term investments will help boost AIG's earnings and return on equity in 2026 and beyond, reflecting the company's confidence and strategic planning for future growth.
- Business Participation Plan: AIG plans to participate in a whole account quota share of Convex's business starting January 1, 2026, with an increase in cessions planned for 2027 and 2028, further solidifying AIG's competitive advantage in the insurance market.
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AIG Completes Acquisitions of Convex and Onex Stakes
- Acquisition Details: American International Group (AIG) has acquired approximately 35% equity in Convex Group Limited for about $2.1 billion and a 9.9% stake in Onex Corporation for approximately $642 million, indicating a strategic expansion in the global insurance market.
- Strategic Implications: This acquisition positions Onex as the majority shareholder in Convex with a 63% stake, and AIG's investment is expected to support future growth while being accretive to AIG's earnings and return on equity in 2026 and beyond.
- Business Participation: AIG will begin participating in a whole account quota share of Convex's business starting January 1, 2026, with plans to increase cessions in 2027 and 2028, thereby enhancing its competitive edge in the insurance sector.
- Advisory Team: Morgan Stanley acted as AIG's financial advisor, while Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP provided legal counsel, ensuring the smooth execution of the transactions.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
AIG Completes Acquisitions of Convex and Onex Stakes
- Acquisition Completion: American International Group (AIG) has finalized its acquisition of approximately 35% equity in Convex Group Limited for about $2.1 billion and a 9.9% stake in Onex Corporation for approximately $642 million, significantly enhancing AIG's strategic position in the global insurance market.
- Strategic Shareholder Change: With this transaction, Onex becomes the majority shareholder of Convex with a 63% ownership interest, which not only strengthens Convex's capital base but also lays the groundwork for future collaboration between AIG and Onex, expected to drive business growth for both parties.
- Future Earnings Outlook: AIG's CEO Peter Zaffino stated that these long-term investments will help boost AIG's earnings and return on equity in 2026 and beyond, reflecting the company's confidence and strategic planning for future growth.
- Business Participation Plan: AIG plans to participate in a whole account quota share of Convex's business starting January 1, 2026, with an increase in cessions planned for 2027 and 2028, further solidifying AIG's competitive advantage in the insurance market.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
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Market Trends: Investors are shifting focus from speculative growth to fundamental values, emphasizing quality and durability in their investments, particularly in the context of a choppy market environment.
Ally Financial Performance: Ally Financial has evolved into a leading digital banking corporation, reporting strong earnings and a significant market capitalization, while maintaining a low overhead structure that enhances competitiveness.
Delta Airlines Strategy: Delta Airlines has redefined its brand by focusing on premium service offerings and diversifying revenue streams, positioning itself as a key player in the airline industry despite some recent lagging performance.
Marvell Technology's Role: Marvell Technology is addressing the challenges of data movement in AI infrastructure, specializing in high-speed networking and custom silicon solutions, while maintaining a strong market position despite recent stock performance fluctuations.
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