In a groundbreaking move for the UAE’s growing financial sector, International Holding Company (IHC), one of the country’s most valuable listed entities, has joined forces with global asset management giant BlackRock to establish a new reinsurance company. The venture, which has received initial equity commitments exceeding $1 billion, is set to serve global markets with a particular focus on the Middle East and Asia.
The announcement, made through a filing to the Abu Dhabi Securities Exchange, marks a significant milestone for the UAE as it continues to diversify its economy beyond oil. The newly formed company, which has yet to be named, will target liabilities of up to $10 billion.
Dr. Sultan Al Jaber, UAE’s Minister of Industry and Advanced Technology, will chair the company, with Mark Wilson, former CEO of Aviva and AIA Group, at the helm as the company’s Chief Executive Officer.
Alongside IHC and BlackRock, Abu Dhabi-based global investment management firm Lunate is also a partner in the venture. This marks Lunate’s entry into the reinsurance industry, further expanding its footprint in alternative investment management.
Also Read: Bill Gates Commits to Doubling Charitable Giving to $200 Billion
In a statement, Dr. Sultan Al Jaber highlighted the strength of the partnership, stating that the new venture will bring a wealth of expertise, capital, and AI-driven underwriting to the market. “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,” he said.
Dr. Al Jaber also pointed to the strategic advantages of establishing the company within the Abu Dhabi Global Market (ADGM), noting the “robust regulatory framework” and “rapidly growing insurance market.”
BlackRock’s involvement underscores its commitment to developing the insurance and capital markets in the region. Chairman and CEO Larry Fink described the collaboration as a transformative endeavor, emphasizing that it would accelerate the development of insurance and capital markets in Abu Dhabi. “We look forward to applying our asset management, advisory, and technology capabilities to support its growth,” he added.
Read More: Abu Dhabi and Japan to Forge Stronger Ties in Clean Energy, AI, Life Sciences
The new company will offer a range of tailored solutions, including property and casualty (P&C), life, and specialized insurance products. These solutions are expected to cater to a market increasingly in need of insurance solutions that can handle the growing complexity of global risks. With insurance becoming a crucial element in driving economic growth and investment, the reinsurance market has become increasingly competitive. Rising rates, tighter policy terms, and a growing need for capital are contributing to the industry’s evolution.
Recent market data from Research and Markets suggests the global reinsurance market, estimated at $630.63 billion in 2024, will continue to expand at a compound annual growth rate (CAGR) of 10.4%. By 2029, it is projected to reach a market size of $1.02 trillion, driven by factors such as natural disasters, wars, and health crises, as well as advancements in risk modeling and climate change concerns.
ADGM, established in 2015 on Al Maryah Island, has rapidly emerged as the Middle East’s fastest-growing international financial center. The region’s push to expand its non-oil economy has resulted in significant growth in the number of asset managers and other financial firms in ADGM. In the third quarter of 2024 alone, assets under management surged by 215%, and the number of operational entities within ADGM’s jurisdiction increased by 31% year-over-year.
Read: Maldives Partners with Dubai’s MBS Global to Build $8.8 Billion Financial Centre
This new reinsurance platform at ADGM is expected to further accelerate the development of the Middle East and Asia’s insurance and capital markets. BlackRock’s involvement will provide world-class asset management and advisory services, along with its proprietary Aladdin technology. Meanwhile, Lunate will contribute its experience in multi-asset investments, both public and private.
The venture plans to implement a buy-and-build strategy, with additional financing through hybrid and debt instruments to complement the initial $1 billion equity commitment. IHC also confirmed that after signing definitive agreements, BlackRock will make a minority investment in the platform.
Mark Wilson, the new company’s CEO, emphasized the role of artificial intelligence (AI) in the company’s operations, stating that it would enhance underwriting capabilities by improving risk assessments and capital efficiency. “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,” he said.
About IHC
IHC, founded in 1999, has a market capitalization of Dh880 billion ($239.6 billion), with interests spanning multiple sectors, including asset management, healthcare, property, and financial services. The company continues to push for innovation and expansion, with its latest venture reflecting its commitment to reshaping the insurance landscape and contributing to the UAE’s economic prosperity.
As IHC strengthens its position in the global market, this reinsurance venture is poised to play a pivotal role in the development of the UAE’s financial ecosystem, creating a sustainable and dynamic market for the future.
Follow 10X Times for more business news.
