Abu Dhabi investment firm International Holding Company (IHC) has joined forces with BlackRock to establish a reinsurance platform valued at $1 billion, which will be based in the Abu Dhabi Global Market (ADGM). The partnership aims to incorporate additional hybrid and debt financing into the venture.

The unnamed platform will offer underwriting capabilities and will follow a buy-and-build strategy, focusing on initial liabilities that exceed $10 billion. BlackRock will contribute its expertise in insurance asset management, advisory services, and its Aladdin technology to the initiative. The US investment firm, led by Larry Fink, is also expected to make a minority investment commitment to the venture once the deal is finalized.

Lunate, another Abu Dhabi-based alternative investment manager, will participate in this partnership, marking its entry into the reinsurance sector. Dr. Sultan Al Jaber, who heads the state-backed oil giant ADNOC and serves as the UAE Minister of Industry and Advanced Technology, will chair the new venture. Mark Wilson, the former CEO of Aviva and AIA Group Limited, will manage the operational aspects of the platform.

In a statement, the companies indicated that the platform will employ an AI-native approach to improve data and market analytics, thereby optimizing capital efficiency. The sectors targeted by the new platform will include Property and Casualty (P&C), Life, and specialized insurance products.

(Writing by Bindu Rai, editing by Seban Scaria)