AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) for four insurance entities under Convex Group Limited. These include Convex Re Limited (Bermuda), Convex Insurance UK Limited (United Kingdom), Convex Europe S.A. (Luxembourg), and Convex Guernsey Limited (Guernsey). The outlook for all ratings remains stable.
The affirmed ratings reflect Convex Group’s consolidated balance sheet strength, which AM Best assessed as very strong. This is supported by the group’s strongest-level risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR). The evaluation also incorporated the group’s adequate operating performance, neutral business profile, and appropriate enterprise risk management framework.
Convex Re Limited, Convex Insurance UK Limited, and Convex Europe S.A. were described as strategically important to the overall group. Convex Guernsey Limited’s ratings consider the substantial reinsurance support it receives from Convex Re Limited.
The group’s balance sheet is further reinforced by financial flexibility. This was demonstrated through an equity capital raise of $1 billion in 2020 and the full drawdown of $500 million in perpetual preference shares in 2023.
AM Best noted that an offsetting rating factor is Convex’s material exposure to catastrophe risk and its dependence on reinsurance to manage this. However, the company maintains a reinsurance panel with what AM Best called “excellent credit quality,” which helps mitigate the associated risks.
Convex has shown continuous improvement in underwriting results since its establishment in 2019. According to AM Best, the group recorded a consolidated combined ratio of 87% in 2024. This marks the third consecutive year with a combined ratio below 100%. AM Best stated that the 2024 earnings “benefited from improved investment income yields and robust underwriting performance,” despite a relatively active catastrophe year.
The ratings agency expects Convex to manage performance throughout the underwriting cycle, citing increased operational scale and diversification of its underwriting portfolio. Still, AM Best acknowledged that volatility remains a possibility due to the group’s elevated catastrophe exposure.
Convex has expanded its global footprint with operations in the United Kingdom, Bermuda, Luxembourg, Guernsey, and a managing general underwriter in the United States. The group’s gross written premium exceeded $5 billion in 2024, with expectations for further growth in the medium term.
AM Best noted that the stable outlook reflects expectations that Convex will continue to maintain its capital strength and sound operating performance.
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