Onex Corporation

Convex generated net income of $169 million in the quarter and an 85% combined ratio, while gross premiums written were $1.9 billion, up 8% year over year. Onex said Convex’s return on average tangible equity over the last 12 months exceeded 20%, with adjusted net income up 38% to $719 million and the combined ratio improving to 84% from 94% over that period. Onex ended Q2 with total investing capital per share of $123.99, and Convex’s value was $4.2 billion at quarter end, up 4% in the quarter and 9% since acquisition close. Fee-generating AUM was $43.2 billion, run rate management fees were $211 million, and fee-related earnings were $4 million in the quarter; structured credit earned $19 million of FRE. Management reiterated it remains on track for $35 million of exit run-rate FRE by the end of 2026, assuming a successful first close for Onex Partners VI in Q4. Liquidity included $287 million of cash and near cash at quarter end, $220 million of NAV loan principal after quarter end, and $600 million of undrawn revolver capacity.

Bobby Le Blanc framed the quarter as proof that Onex is executing a broader repositioning: less capital tied up in private equity, better use of the balance sheet, higher asset management earnings, and a restart of share repurchases. He emphasized that Convex is maturing well, private equity realizations are funding deleveraging, and the company is still looking for one or two additional direct investments that fit strategically with Convex and asset management. His tone was confident and constructive, especially around intrinsic value and the belief that the market will recognize it over time.

Meg McClellan focused on the financial mechanics behind the strategy. She highlighted investing capital per share of $123.99, Convex’s $4.2 billion valuation, and that Convex now makes up 44% of total investing capital. She also pointed to $287 million of cash and near cash, $600 million of undrawn revolver capacity, and only $275 million of unfunded commitments in active commitment periods, saying liquidity is ample to fund commitments and support share repurchases.

Analysts pressed Convex on premium growth in a softer pricing market, and Paul Brand said growth was coming from a diverse portfolio, with pressure in property offset by better pricing in casualty and political violence/terrorism, while the company is not chasing a broad set of new lines. Questions also focused on elevated favorable prior-year development and cat loss risk; Brand said Q2 reflected fewer-than-expected losses in short-tail lines, and that July and August had not yet produced any major event category losses, though hurricane season remains a watch item. On buybacks and PE, management said repurchases would start immediately through the normal course issuer bid, while PE marks were lowered on a couple of names based on public comps and management does not expect that to be a trend.