AM Best Affirms Convex Group Ratings
AM Best affirmed the ratings of Convex Group’s insurance and reinsurance subsidiaries, citing the group’s very strong balance sheet, improving underwriting performance and stable outlook.
The ratings agency said, “AM Best has affirmed the Financial Strength Rating of A [Excellent] and the Long-Term Issuer Credit Ratings of “a” [Excellent] of Convex Re Limited [CRL] [Bermuda], Convex Insurance UK Limited [CIL] [United Kingdom], Convex Europe S.A. [CES] [Luxembourg] and Convex Guernsey Limited [CGU] [Guernsey]. All four entities are wholly owned subsidiaries of Convex Group Limited [Convex] [Bermuda], the non-operating holding company of the group. The outlook of these Credit Ratings [ratings] is stable.
“The ratings reflect Convex’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings factor in the strategic importance of CRL, CIL and CES to Convex, while CGU’s ratings consider the significant reinsurance support it receives from CRL.
“Convex’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio [BCAR]. Convex receives equity credit in BCAR for subordinated debt and perpetual preference shares. The group’s balance sheet strength is supported further by good liquidity and strong financial flexibility, evidenced by multiple capital raises in recent years, the most recent being USD 600 million of subordinated debt issued in the first quarter of 2026. Convex had a low adjusted financial leverage ratio of 3% at year-end 2025, which included equity credit for hybrid securities, as well as strong interest coverage. Following the recent debt issuance in 2026, adjusted leverage ratios are expected to increase but remain below 10%. An offsetting rating factor is Convex’s material exposure to catastrophe risk and its dependence on reinsurance to manage this; however, this risk is mitigated partially by a reinsurance panel of excellent credit quality.
“Convex has demonstrated improving underwriting results since its inception in 2019. In 2025, the group generated an 89% combined ratio [as calculated by AM Best], which represented the fourth consecutive year of underwriting profitability. In recent years, overall earnings have benefited from solid investment income yields and robust underwriting performance, despite exposure to catastrophe losses. AM Best expects the group to successfully manage its performance through the underwriting cycle, supported by the increasing scale and growing diversification of its underwriting portfolio, albeit subject to potential volatility given the elevated exposure to catastrophe risk.
“Convex has established itself quickly as an internationally recognised [re]insurance group, with operations spanning across the United Kingdom, the Lloyd’s of London market, Bermuda, Luxembourg and Guernsey, as well as managing general underwriters in the United States and the United Kingdom. The group’s gross written premium reached USD 5.9 billion in 2025 and is expected to continue growing over the medium term.”
