International Holding Company (IHC), a global investment firm focused on creating dynamic value networks, has announced its plans to establish a new AI-driven reinsurance platform headquartered in the Abu Dhabi Global Market (ADGM).
This new platform, which is yet to be named, will deliver essential underwriting capabilities, powered by state-of-the-art AI technologies, to help accelerate rapid growth in the Gulf region and support the ongoing evolution of regional capital markets, according to a statement.
BlackRock will partner with the platform to provide leading insurance asset management, advisory services, and its Aladdin technology capabilities to the initiative. Lunate will also join as a partner, contributing its extensive expertise in private and public markets and its global, multi-asset investment experience to support the platform.
Insurance is a vital component for driving economic growth and investment. A strong, local, and purpose-built reinsurance platform will both harness and capitalize on the opportunities presented by the expanding financial ecosystem in the Gulf.
Tailored solutions and international operations
The platform will offer tailored solutions covering Property and Casualty (P&C), Life, and specialized insurance products. Based in ADGM, it will operate across key international jurisdictions, creating a local platform capable of adapting to the diverse demands of the global market, while strategically focusing on the Middle East and Asia.
At the heart of the company’s operations will be an AI-native approach, unencumbered by legacy technology, to enhance data analytics, pricing strategies, and company operations. This technology will strengthen underwriting capabilities by improving the quality and speed of risk assessments, thereby optimizing capital efficiency.
Buy-and-build strategy
The platform will implement a buy-and-build strategy, targeting initial liabilities exceeding $10 billion. Initial equity commitments are expected to surpass $1 billion, which will be supported by additional hybrid and debt financing. After the signing of definitive documentation, BlackRock will provide a minority investment commitment to the venture.
IHC also announced that the company will be chaired by Dr. Sultan bin Ahmed Al Jaber, UAE minister of Industry and Advanced Technology and managing director and group CEO of ADNOC, and led by seasoned industry expert Mark Wilson, former CEO of Aviva Plc and AIA Group Limited, who brings considerable experience to this initiative.
Dr. Sultan Ahmed Al Jaber said, “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.”
Read more: Abu Dhabi’s IHC reports FY2024 revenue of $25.3 billion, 54.4 percent growth
Redefining the future of insurance
Syed Basar Shueb, CEO of IHC, stated, “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, 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.”
Moreover, Murtaza Hussain, managing partner of Lunate, said, “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 capitalise on opportunities in adjacent business areas. Equally, we are proud to be a part of the evolution of Abu Dhabi’s financial ecosystem.”
Mark Wilson, CEO of the company, noted, “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.”
