IHC, BlackRock Launch $1bn AI-powered Reinsurance Venture
A powerful new player is entering the global reinsurance market. Abu Dhabi’s International Holding Company (IHC), in collaboration with BlackRock, has announced the creation of a $1 billion reinsurance platform. The venture, which will be based in the Abu Dhabi Global Market (ADGM), is designed to serve global clients while focusing on the Middle East and Asia. Backed by over $1 billion in initial equity, the company aims to manage $10 billion in liabilities.
Chaired by Dr Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, and led by Mark Wilson, former CEO of Aviva and AIA Group, the company combines strategic leadership with deep industry expertise. Abu Dhabi-based Lunate, a growing alternative investment firm, joins the partnership. This marks Lunate’s entry into reinsurance, supported by its global multi-asset investment experience.
Dr Al Jaber emphasized the value of launching the firm in ADGM. He highlighted its robust regulatory environment, rapidly expanding insurance sector, and status as a dynamic financial hub. Additionally, he pointed out that the company’s AI-powered underwriting will increase efficiency and precision. Notably, BlackRock’s chairman Larry Fink called the venture transformative. He stated it would boost the development of Abu Dhabi’s capital markets and financial ecosystem. He also stressed BlackRock’s commitment to applying its advisory, asset management, and Aladdin tech capabilities to drive growth.
A Rising Market, Powered by AI and Capital
IHC’s reinsurance platform will offer a wide range of solutions, including property and casualty, life, and specialised products. The timing is strategic global demand for reinsurance has surged due to natural disasters, pandemics, and geopolitical risks. As a result, premiums have risen and policy terms have tightened. According to Research and Markets, the reinsurance industry is expected to reach $696 billion in 2025, growing to $1.02 trillion by 2029. These trends underscore the sector’s expanding role in protecting investments and fueling economic stability.
The venture aims to differentiate itself with an AI-native foundation. Free from legacy systems, its digital-first approach will streamline risk assessment and enhance capital allocation. This shift reflects broader trends in the insurance space, where data and technology now play central roles. Moreover, the company will adopt a buy-and-build strategy. While the initial equity exceeds $1 billion, further capital will be raised through hybrid and debt instruments. BlackRock will also take a minority stake after the final agreements are signed.
ADGM’s Growth Fuels Regional Momentum
The Abu Dhabi Global Market continues to attract international businesses and investment. Since its establishment in 2015, ADGM has grown rapidly. In the third quarter of 2024 alone, assets under management rose 215% year-over-year. The number of operational entities in the free zone also grew by 31%, reflecting strong interest across asset management, fintech, and professional services.
Mark Wilson noted that Abu Dhabi lies at the intersection of capital markets innovation and artificial intelligence. With strategic partners and robust capital support, he believes the venture will redefine the insurance landscape. IHC CEO Syed Shueb echoed that sentiment, saying the initiative highlights IHC’s commitment to sustainable growth and regional prosperity.
This collaboration not only strengthens Abu Dhabi’s global financial standing but also positions the new platform as a forward-looking leader in reinsurance innovation.
