Catlin Founder and Some of His Old Colleagues Launch a New Specialty Insurer/Reinsurer

April 30, 2019

Insurance industry veterans Stephen Catlin and Paul Brand announced they have launched an international specialty insurer and reinsurer, Convex Group Ltd.

Convex launches with $1.8 billion of initial committed capital and will draw down $1.6 billion to commence business; it will have access to further capital as the business expands. The company has received an A.M. Best rating of A- (Excellent) and regulatory approval to operate in London and Bermuda.

Stephen Catlin (L) and Paul Brand (R)

The management team includes well-respected insurance industry experts – all of whom once worked for Catlin Group and XL Catlin, the product of the 2015 purchase of Catlin Group by XL.

Convex’s senior leaders are:

Convex will underwrite insurance and reinsurance for complex specialty risks across a diversified range of business lines in London and Bermuda, the company said in a statement. “The business brings together an exceptional group of talented underwriters who will focus on areas where they have a competitive advantage and aim to deliver top quartile, risk adjusted returns,” the statement continued.

Convex said it will adopt a conservative investment strategy with a predominantly high-grade fixed income portfolio, and duration matched to the profile of the liabilities.

The invested capital comes from the Convex management team, Onex Partners V, Onex Corp.’s (TSX: ONEX) large-cap private equity fund, PSP Investments and a consortium of co-investors.

“The launch of Convex distills 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,” said Stephen Catlin, Convex’s chairman and CEO. “There is evidence of pricing momentum in many classes and we are well equipped to prosper in a challenging market.”

Catlin noted that he and Brand have worked together since the early days of Catlin Group. “[T]he 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.”

“Convex is designed for the evolving insurance industry, and combines years of experience, knowledge and history in this market,” said Paul Brand, deputy CEO.

“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 center of its singularly client focused proposition,” Brand continued.

“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,” Brand said.

Bobby Le Blanc, a senior managing director of Onex, 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.”

“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,” added Catlin.

Convex was advised by Evercore, JP Morgan and Slaughter and May.

Source: Convex Group Ltd.

*This story ran previously in our sister publication Insurance Journal.