Source: Arabian Business
International Holding Company (IHC), one of Abu Dhabi’s leading investment companies, has joined forces with U.S. asset management giant BlackRock to establish a $1 billion reinsurance platform from the Abu Dhabi Global Market (ADGM), Abu Dhabi’s international financial centre.
$1 Billion Platform with Global Aspirations
The new reinsurance company, with a name that is yet to be revealed, has received initial equity commitments of over $1 billion. The company is also seeking additional hybrid and debt financing. The platform intends to provide underwriting capacity and pursue a buy-and-build strategy with initial liabilities of over $10 billion.
Strategic Partnerships and Leadership
BlackRock will provide its insurance asset management and advisory expertise and its proprietary Aladdin technology, which will enhance the operational capabilities of the venture. The U.S. investment firm, supported by Larry Fink, will also pledge a minority investment in the venture after the agreement is finalized.
Lunate, a UAE-based alternative investment manager, is also a partner in the venture and this marks its first venture into the reinsurance space.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and CEO of ADNOC will be the Chair of the platform. Mark Wilson, former CEO of Aviva and AIA Group Limited will manage the day-to-day operations.
An AI-native Reinsurance
In a joint statement, the new venture will take an AI-native approach to developing data and market analytics and optimising capital efficiency, with a focus at first on Property and Casualty (P&C), Life, and niche insurance products.
Reinforcing Abu Dhabi’s Financial Hub
The launch reinforces ADGM’s stature as an expanding international financial centre, while setting out Abu Dhabi’s wider aspirations to become a world leader in financial services and innovation. It also demonstrates a growing regional interest and commitment to advancing a competitive and diversified insurance and reinsurance industry.
Conclusion
IHC of Abu Dhabi and BlackRock have announced a new $1 billion reinsurance company that uses AI and taps multiple parties. The company is located in ADGM and publicly demonstrates the growing influence of Abu Dhabi as an international finance centre, and a desire to lead in providing innovative financial services and insurance.
