The International Holding Company (IHC) is launching a new Abu Dhabi based reinsurer with $1 billion plus of equity capital and partnerships with asset managers BlackRock and Lunate, while Mark Wilson the former CEO of Aviva and AIA Group has been lined up to lead the reinsurance start-up as CEO.
IHC said the as yet unnamed global reinsurance platform will be headquartered in the Abu Dhabi Global Market (ADGM) and serve global clients with a focus on accelerating the growth of the insurance and capital markets ecosystem in the Middle East and Asia.
The new reinsurance company has been backed by an initial $1 billion of equity capital and will seek to underwrite $10 billion of liabilities.
With a technology-first approach, IHC said the new reinsurance start-up will be an artificial intelligence native company (AI-native), with tech and software sitting at the core of the reinsurance platform, to enable the company to enhance its data and market analytics, as well as to optimise its capital efficiency.
The company is being designed to match its underwriting capabilities with cutting-edge AI technologies, with a goal to become a key global player and also to accelerate development of markets in the Gulf region.
BlackRock is expected to provide insurance asset management and advisory support, while the new company will also utilise its Aladdin technology capabilities.
Asset manager Lunate will also be a partner, bringing its private and public markets expertise and global, multi-asset investment experience.
The IHC, which is one of the world’s largest holding investment companies and is linked to the Abu Dhabi ruling dynasty, with its leader being His Highness Sheikh Tahnoon bin Zayed Al Nahyan, sees insurance as a critical tool for driving economic development and investment growth.
“A strong, local, and purpose-built reinsurance platform will both harness and deliver upon the opportunities presented by the growing financial ecosystem in the Gulf,” the IHC explained.
Once up and running, the new Abu Dhabi based reinsurance firm will offer tailored solutions across Property and Casualty (P&C), Life, and specialized business lines, operating across key international jurisdictions.
The goal is to create “a local platform capable of adapting to the diverse demands of the global market, while maintaining a strategic focus on the Middle East and Asia,” the IHC said.
Modern technology and an AI-first approach to building a technology-led reinsurer from the ground-up is the strategy, while leveraging best in class investment support from its partners.
Enhanced data analytics, pricing strategies and use of capital are all set to feature it seems, as the new company looks to optimise its risk and capital to be more efficient.
Adopting a buy-and-build strategy, initial liabilities exceeding $10 billion will be targeted and the initial equity commitments are expected to surpass $1 billion, alongside additional hybrid and debt financing.
Once agreements are signed, BlackRock is set to provide a minority investment commitment to the new reinsurer.
The company will be chaired Dr. Sultan Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology.
Well-known insurance industry leader Mark Wilson, the former CEO of Aviva Plc and AIA Group Limited, is set to lead the new reinsurer once it is established.
Dr. Sultan Ahmed Al Jaber commented on the news, “We are excited to bridge global capital with regional opportunities in this fast-growing market to launch a value accretive business with solid financial returns while shaping the future of insurance with cutting edge technology.
“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. Furthermore, establishing the company in ADGM gives us access to a robust regulatory framework, a rapidly growing insurance market, and dynamic financial hub.”
Mark Wilson, CEO of the new reinsurer, added, “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.”
Syed Basar Shueb, CEO of IHC, also said, “This venture embodies IHC’s commitment to innovation and strategic growth. 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.”
Larry Fink, Chairman and CEO of BlackRock, further commented, “We are proud to collaborate with IHC and Lunate in this transformative endeavor to help accelerate the development of a more dynamic insurance, capital markets and financial ecosystem in Abu Dhabi and the broader region. We look forward to applying our asset management, advisory and technology capabilities to support its growth.”
Murtaza Hussain, Managing Partner of Lunate, stated, “We are excited to partner with IHC and BlackRock to build a regional champion in the insurance industry. We look forward to contributing our investment expertise, as we capitalize on opportunities in adjacent business areas. Equally, we are proud to be a part of the evolution of Abu Dhabi’s financial ecosystem.”
