Abu Dhabi’s IHC, BlackRock Start $1 Billion Reinsurance Firm

International Holding Co., Abu Dhabi’s largest listed company that’s overseen by a key member of the emirate’s royal family, is setting up a $1 billion reinsurance venture with BlackRock Inc.

The yet-to-be-named firm will launch with more than $1 billion in initial equity commitments and aims to manage $10 billion in liabilities, backed by partnerships with BlackRock and Abu Dhabi-based asset manager Lunate, according to a statement.

Headquartered in Abu Dhabi’s financial free zone, ADGM, the firm will be chaired by Sultan Al Jaber — the United Arab Emirates’ minister for industry and advanced technology. It will be led by Mark Wilson, the former chief executive officer of Aviva Plc and AIA Group Ltd.

BlackRock will provide an initial minority investment and will support the venture with insurance asset management, advisory services and technology. Lunate will serve as a partner, offering its experience across public and private markets.

The new firm will make use of AI as a core part of the strategy, enhancing underwriting capabilities by improving the quality and speed of risk assessments.

BlackRock received a commercial license to operate in Abu Dhabi last year, and the latest deal deepens its ties to the emirate.

The firm is partnering with MGX on a partnership that aims to build $30 billion worth of data centers and other artificial intelligence infrastructure. Lunate, meanwhile, acquired a stake in ADNOC Oil Pipelines from BlackRock and KKR & Co. last year.

IHC, MGX, and Lunate are part of a vast empire overseen by Sheikh Tahnoon bin Zayed Al Nahyan — the UAE’s national security adviser and a brother to its president.

The UAE, of which Abu Dhabi is the capital, has been pushing to diversify away from its dependence on oil. It’s expanding into areas like technology, finance and health care.

Home to three sovereign wealth funds that control close to $1.7 trillion in assets, Abu Dhabi has become a magnet for international investors. At the same time, the UAE has pushed global financial giants to set up local partnerships to help build the domestic economy.

Photograph: Sultan Al Jaber; photo credit: Hollie Adams/Bloomberg