The JV is yet another example of the mass of activity involving Western firms heading to do business, including the creation of on-the-ground operations, in the Gulf region.

In a sign of how the Gulf continues to be wealth management hotbed, International Holding Co (IHC), a listed Abu Dhabi company, is entering a $1 billion reinsurance venture with BlackRock, the world’s largest asset manager.

The new venture – so far unnamed – will launch with more than $1 billion in initial equity commitments. It aims to manage $10 billion in liabilities, backed by partnerships with BlackRock and Abu Dhabi-based asset manager Lunate, IHC said to a statement late last week.

The new entity will be based in Abu Dhabi Global Markets, the financial jurisdiction. It will be led by Mark Wilson, the former chief executive officer of Aviva and AIA Group.

“We are proud to collaborate with IHC and Lunate in this transformative endeavour 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,” Larry Fink, BlackRock’s CEO and chairman, said.

Initial equity commitments are expected to surpass $1 billion, which will be bolstered by additional hybrid and debt financing. After the signing of definitive documentation, BlackRock will provide a minority investment commitment to the venture.

“At the core 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 bolster underwriting capabilities by improving the quality and speed of risk assessments, thereby optimising capital efficiency,” IHC said.

The venture is an example of how Abu Dhabi, along with other Gulf jurisdictions such as Dubai, are trying to diversify business sectors and reduce a traditional reliance on energy. As chronicled regularly by this news service, several private banks, wealth managers, fiduciary services firms and other advisors have set up shop in the Gulf. 

US-listed BlackRock 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. 

BlackRock secured a commercial licence to operate in Abu Dhabi in 2024.