International Holding Co. (IHC), the largest listed company in Abu Dhabi, is launching a new reinsurance venture with BlackRock Inc. This partnership will kick off with over $1 billion in initial equity commitments and aims to manage $10 billion in liabilities.
The new firm, which has yet to be named, will be based in Abu Dhabi’s financial free zone, the Abu Dhabi Global Market (ADGM). Sultan Al Jaber, the UAE’s minister for industry and advanced technology, will chair the firm. Mark Wilson, who previously served as CEO of Aviva Plc and AIA Group Ltd., will lead the venture.
BlackRock is set to make a minority investment in the new company and will provide support through insurance asset management, advisory services, and technology. Lunate, an Abu Dhabi-based asset manager, will also partner in the venture, bringing its expertise in public and private markets.
A key feature of this new firm will be its use of artificial intelligence to enhance underwriting capabilities. This technology aims to improve the speed and quality of risk assessments, which is crucial in the reinsurance industry.
BlackRock has been expanding its presence in Abu Dhabi, having received a commercial license to operate there last year. This new venture strengthens its relationship with the emirate. Additionally, BlackRock is collaborating with MGX to develop $30 billion worth of data centers and AI infrastructure in the region. Lunate has also made headlines by acquiring a stake in ADNOC Oil Pipelines from BlackRock and KKR & Co. last year.
This initiative is part of the UAE’s broader strategy to diversify its economy beyond oil, focusing on sectors like technology, finance, and healthcare. Abu Dhabi is home to three sovereign wealth funds that manage nearly $1.7 trillion in assets, making it an attractive destination for global investors. The UAE government is encouraging international financial firms to form local partnerships to boost the domestic economy.
Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and brother to the president, oversees IHC, MGX, and Lunate, which are part of a larger business network in the region.