Onex (ONEX) Q1 2026 earnings summary

Executive summary

• Delivered a solid first quarter with Convex and asset management platforms showing positive momentum, including strong organic growth in gross premiums written, reaching $5.99B in Q1'26 LTM, a 5.1% year-over-year increase, or 8.3% excluding prior-year reinstatement premiums.

• Convex is now a core driver of shareholder value, with strong underwriting, profitability improvements, and return on equity, as adjusted net income rose to $827M in Q1'26 LTM, up 16% versus full year 2025.

• AIG's strategic partnership, including a $2B capital commitment and 9.9% ownership, is expected to be accretive to fee-related earnings and shareholder value.

• Operating expense ratio reduced by 410bps since 2022, demonstrating scalable operations and cost discipline.

• Asset Management closed a $1.6B continuation vehicle, generating incremental capital returns and extending fee-generating assets.

Financial highlights

• Investing capital ended the quarter at $9.4B, or $122.45 per share, down 2% from year-end 2025 due to share issuance to AIG; excluding this, per-share capital rose 1% in the quarter and 8% year-over-year.

• Convex generated adjusted net income of $106M in Q1 2026, or $156M excluding a $50M unrealized mark-to-market loss on fixed income; last twelve months adjusted net income was $827M, up from $401M prior year.

• Private equity generated an 8% return on investing capital over the last 12 months; credit generated 2.1% but declined 3% in the quarter due to mark-to-market losses.

• Fee-generating AUM was $42.8B at quarter end; credit AUM up 1% to $30.2B, private equity AUM down 10% to $12.6B due to Convex realization.

• Net premium earned was $3.67B in Q1'26 LTM, essentially flat year-over-year.

Outlook and guidance

• Convex earnings expected to benefit from market share gains, prudent asset leverage growth, improved investment yields, and operating leverage.

• Asset management FRE expected to be backloaded in 2026, with significant fundraising and new product launches anticipated in the second half.

• Combined ratio improvement expected to continue, driven by scale and not just pricing.

• OP VI first close expected later in 2026, with strong DPI momentum supporting fundraising.

• Management anticipates continued momentum in strategic objectives and growth in 2026.