Convex, a new (re)insurance start-up founded by veteran industry experts Stephen Catlin and Paul Brand, debuted yesterday with an A.M. Best rating of A- (Excellent) as well as regulatory approval to operate in London and Bermuda. The company will underwrite insurance and reinsurance for complex specialty risks across a diversified range of business lines.

Mr Catlin and Mr Brand, who were former senior executives of Lloyd's of London insurer Catlin, have been installed as CEO and Deputy CEO of Convex respectively. Other members of management include notable names from the insurance industry including CFO Benjamin Meuli, COO Adrian Spieler and general counsel Robina Malik.

“The launch of Convex distils vast industry experience and client focus to create the insurance company of the future. There is evidence of pricing momentum in many classes and we are well equipped to prosper in a challenging market,” said Mr Caitlin.

Convex currently holds $1.8bn of initial committed capital and will draw down $1.6bn to commence business. The invested capital comes from the Convex management team, Onex Partners V, Onex Corporation’s large-cap private equity fund, PSP Investments and a consortium of co-investors.

The start-up will adopt a conservative investment strategy with a predominantly high-grade fixed income portfolio and duration matched to the profile of the liabilities. As its business expands, Convex is expected to have access to further capital.

Mr Brand feels the launch of Convex will “bring a refreshed and enhanced offering to market, one that puts fairness and honesty at the centre of its singularly client focused proposition”.

He also said that Convex “will challenge the status quo to create value across the chain and provide a differentiated service in a personal way.”