Canada's Onex Q2 net earnings fall after Convex deal

Onex

13/08/2026 12:18

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Overview
    * Canada asset manager's Q2 net earnings and EPS declined yr/yr after Convex acquisition
    * Convex segment contributed positively, with gross premiums written up 8% yr/yr and improved underwriting
    * Company to resume share repurchases under Normal Course Issuer Bid

Outlook
    * Onex expects Convex to benefit from higher operating leverage as business scales
    * Company anticipates improved yield on Convex's investment portfolio and prudent asset leverage growth
    * Onex says shift to available-for-sale classification will reduce future earnings volatility

Result Drivers
    * CONVEX PERFORMANCE - Convex segment contributed to results with 8% yr/yr growth in gross premiums written and improved underwriting, per co
    * UNDERWRITING IMPROVEMENT - Convex's adjusted net income rose 38% yr/yr, driven by improved underwriting as loss ratio reduced from 59.4% to 48.0%, per co
    * PRIVATE EQUITY REALIZATIONS - Onex realized $65 mln of carried interest from sale of Ryan, LLC and $256 mln net proceeds from Emerald sale, per co

Company press release:  ID:nGNX45mdzc 
Key Details
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q2 EPS              $1.71      
 Q2 Net              $131 mln   
 Income                        
 Analyst Coverage
    * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
    * The average consensus recommendation for the investment management & fund operators peer group is "buy"
    * Wall Street's median 12-month price target for Onex Corporation is C$149.50, about 30% above its August 12 closing price of C$115.02

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    * Aug 11 - Canada's Helios Fairfax Q2 net profit rises, book value grows
    * Aug 13 - Thoma Bravo to take Accelerant private in more than $4 billion deal

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)