Abu Dhabi’s IHC and BlackRock set up $1bn reinsurance company

Platform will be based in ADGM and serve global markets, while maintaining a strategic focus on Middle East and Asia

ADGM building in Al Maryah Island, Abu Dhabi. The financial centre has been strengthening its position as the fastest-growing international financial centre in the Middle East. Ruel Pableo for The NationalShow less

International Holding Company, one of the UAE's most valuable listed companies, has partnered with the world's biggest asset manager BlackRock to launch a $1 billion reinsurance company.

The company, which is yet to be named, will be backed by more than $1 billion in initial equity commitments, and will target $10 billion in liabilities, IHC said in a filing on Friday to the Abu Dhabi Securities Exchange.

The new venture will be chaired by Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and will be led by Mark Wilson, former chief executive of Aviva and AIA Group.

Abu Dhabi-based global alternative investment management company Lunate will also be a partner in the venture, marking its entry into the reinsurance space.

“Supported by exceptional global partners in IHC, BlackRock and Lunate, the new company will bring deep expertise, a strong capital base, and AI-driven underwriting to enhance efficiency and precision,” Dr Sultan Al Jaber said.

He added that establishing the company in ADGM will allow access to a “robust regulatory framework, a rapidly growing insurance market, and dynamic financial hub”.

The new company will bring deep expertise, a strong capital base, and AI-driven underwriting to enhance efficiency and precision

Dr Sultan Al Jaber,
UAE Minister of Industry and Advanced Technology

Calling it a transformative endeavour, Larry Fink, chairman and chief executive of BlackRock, said the move will help accelerate the development of insurance and capital markets, as well as the financial ecosystem in Abu Dhabi.

“We look forward to applying our asset management, advisory and technology capabilities to support its growth,” Mr Fink said.

The platform will offer tailored solutions covering property and casualty (P&C), life, and specialised insurance products, IHC said.

With insurance as a critical ingredient to driving economic growth and investment, the reinsurance market worldwide has become more competitive over the years, with increasing rates and harsher policy terms and conditions, owing to losses due to wars, a global pandemic and natural disasters.

The global market size for the reinsurance sector, having grown rapidly in recent years, is estimated to reach $696 billion this year, from $630.63 billion in 2024, registering a compound annual growth rate (CAGR) of 10.4 per cent, Research and Markets data finds. With the sector expected to experience a rapid growth in the next few years, the market size is projected to grow to $1.02 trillion in 2029 at a CAGR of 10.3 per cent.

The growth in the historic period can be attributed to catastrophic events, risk modelling advancements, pandemics and health crises, climate change concerns, the research agency said in its latest report.

Larry Fink, chairman and chief executive of BlackRock, says the new venture will help accelerate the development of insurance and capital markets. AFP

Established in 2015, ADGM on Al Maryah Island has been strengthening its position as the fastest-growing international financial centre in the Middle East. It has been recording rapid growth as Abu Dhabi enhances its non-oil economy and focuses on attracting more international companies and investors.

The financial free zone has seen a rise in asset and fund managers, with assets under its management rising by 215 per cent annually in the third quarter of 2024. The total number of operational entities within ADGM’s jurisdiction increased to 2,251 during those three months – up 31 per cent annually. This reflects strong demand from sectors such as asset management, financial technology and professional services.

The new global reinsurance platform at ADGM will serve global markets with focus on accelerating growth of insurance and capital markets ecosystem in Middle East and Asia.

While BlackRock will provide to the platform leading insurance asset management, advisory, and its Aladdin technology capabilities to the initiative, Lunate will leverage its expertise in private and public markets and its global, multi-asset investment experience in supporting the platform, according to the statement.

The platform will implement a buy-and-build strategy and the initial equity commitments, that are expected to surpass $1 billion, will be boosted by additional hybrid and debt financing, IHC said. It added that after the signing of definitive documentation, BlackRock will provide a minority investment commitment to the venture.

IHC said at the core of the company’s operations will be an AI-native approach, unencumbered by legacy technology, which will bolster underwriting capabilities by improving the quality and speed of risk assessments, thereby optimising capital efficiency.

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“Abu Dhabi stands at the nexus of a rapidly evolving landscape in capital markets and AI technology. With its AI-native foundation, robust capital backing, and exceptional strategic partners, the company is uniquely positioned to redefine the future of insurance,” said Mark Wilson, chief executive of the new company.

IHC, founded in 1999 as part of a move to diversify and develop the non-oil business sectors in the UAE, is among the most valuable listed holding companies in the Middle East with a market capitalisation of Dh880 billion ($239.6 billion). It comprises more than 1,000 subsidiaries and plans to expand and diversify its holdings across asset management, health care, property and construction, marine and dredging, IT and communications, financial services, food production, utilities and services.

Earlier this week, IHC reported its financial results for the first quarter ended March 31. The company’s profit after tax reached Dh4.1 billion, while revenue jumped more than 41 per cent to Dh27.2 billion over the same period last year.

The latest venture embodies IHC’s commitment to innovation and strategic growth, said IHC chief executive Syed Shueb. “By leveraging our diversified portfolio and deep regional insights, we aim to redefine the insurance landscape, delivering sustainable value to our stakeholders and contributing to the economic prosperity of the region.”