Insurance industry veteran Stephen Catlin has launched a new specialty insurer and reinsurer, Convex Group, which will operate from London and Bermuda.

Catlin Group, the insurer he originally founded, was acquired by XL Group in 2015, with the combined company then taken over by Paris-based Axa last year.

Mr Catlin will be Chairman and CEO of Convex, which has $US1.8 billion ($2.5 billion) of initial committed capital and will draw down $US1.6 billion ($2.3 billion) to start business.

“There is evidence of pricing momentum in many classes and we are well equipped to prosper in a challenging market,” Mr Catlin said.

Co-founder Paul Brand, a former colleague at Catlin Group, takes the Deputy CEO role, while Benjamin Meuli has been named CFO.

The invested capital comes from the management team as well as Onex Partners, a large-cap private equity fund, PSP Investments and a consortium of co-investors.

Convex says it will underwrite complex specialty risks across a diversified range of business lines.

It will adopt a conservative investment strategy with a predominantly high-grade, fixed-income portfolio, duration-matched to the profile of liabilities.

A Convex spokesman told insuranceNEWS.com.au the company will look at Australian risks if they are brought to London but will not have an Australian presence for the foreseeable future.