Abu Dhabi’s RIQ and ADNOC Launch $500 Million Reinsurance Collaboration for Enhanced Financial Stability and Strategic Support of National Oil Projects

September 4, 2025

Abu dhabi is rapidly establishing itself as a leading hub for the reinsurance industry, and a new partnership is poised to accelerate that trajectory. RIQ, an Artificial Intelligence-driven reinsurance platform, has reached an agreement with the abu Dhabi National Oil company (ADNOC) to provide over $500 million in risk coverage over the next decade.

RIQ’s innovative Approach to Reinsurance

Launched earlier this year by International Holding Company (IHC) in collaboration with BlackRock and Lunate, RIQ is transforming the reinsurance landscape.The platform, strategically located in Abu Dhabi Global Market (ADGM), offers a extensive range of reinsurance solutions. It specializes in structuring capital-efficient coverage for intricate operational, climate-related, and specialized risk categories.

RIQ’s core differentiator lies in its utilization of cutting-edge technologies. Advanced data modelling, AI-augmented underwriting processes, and in-depth analytical capabilities empower the platform to address the evolving complexities of risk management. This is particularly crucial in sectors like energy, which face growing vulnerabilities from both operational incidents and climate change.

Strategic Alliances Fuel Growth

This collaboration builds upon RIQ’s existing strategic alliance with IHC, creating a combined commitment of over $1 billion in reinsurance premiums through the platform over the coming ten years. the company reportedly has over $1 billion in equity commitments and ultimately aims to manage $10 billion in annual reinsurance premiums.

Ahmad Khalfan Al Mansoori, Chairman of ADNOC Re, highlighted the importance of the partnership. He stated that the agreement will substantially enhance ADNOC’s operational stability by delivering tailored reinsurance solutions, addressing both current industrial risks and increasingly prevalent climate challenges. He also emphasized the crucial role of RIQ’s AI platform in strengthening risk management and ensuring business continuity within the evolving energy sector.

Abu Dhabi’s Emerging Reinsurance Hub

RIQ is now undergoing the final stages of its regulatory approval process to be formally authorized as a reinsurer. This move, alongside the newly established partnerships, demonstrates Abu Dhabi’s commitment to becoming a global center for reinsurance. The emirate is strategically combining intelligent capital, advanced technology, and sophisticated risk solutions to attract investment and foster innovation within the industry.

Mark Wilson, CEO of RIQ, expressed his enthusiasm for the collaboration with ADNOC, acknowledging the institution’s ambition and long-term vision.He underscored that the alliance unites advanced technology, strategic capital, and specialized expertise to redefine the future of reinsurance, starting from Abu Dhabi.

Key partnership Details

Partner	Contribution
RIQ	AI-powered reinsurance platform and technological expertise
ADNOC	Over $500 million in risk coverage commitment over 10 years
IHC, BlackRock, Lunate	Initial funding and strategic support for RIQ’s launch

Did You Know? The global reinsurance market is projected to reach $352.32 billion by 2032, according to a recent report by fortune business Insights.

Pro Tip: When evaluating reinsurance options, carefully assess the provider’s technological capabilities and their ability to adapt to evolving risk landscapes.

What impact will AI have on the future of risk management in the energy sector? How will Abu Dhabi’s growing role in reinsurance affect global market dynamics?

Understanding the Reinsurance Landscape

Reinsurance is essentially insurance for insurance companies. It allows primary insurers to transfer some of their risk to another entity, thereby protecting themselves from catastrophic losses. This process is vital for maintaining the stability of the insurance industry and ensuring that insurers can meet their obligations to policyholders, even in the face of large-scale events like natural disasters or major industrial accidents. The rise of AI is transforming reinsurance by enabling more accurate risk assessments, automated underwriting, and faster claims processing.

Frequently Asked Questions about RIQ and Reinsurance

• What is reinsurance? Reinsurance is insurance that insurance companies buy from other companies to limit their own risk.
• What role does AI play in reinsurance? AI helps with risk modeling, fraud detection, and automating aspects of the underwriting process.
• What is the significance of Abu Dhabi becoming a reinsurance hub? It indicates a growing concentration of capital and expertise in the region, making it a more competitive global market.
• how does RIQ differentiate itself from other reinsurance platforms? RIQ leverages AI and advanced data analytics to provide tailored reinsurance solutions.
• What are the key risks ADNOC is looking to reinsure? operational risks, climate-related risks, and specialty risks within the energy sector.

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How dose the ADNOC-RIQ partnership contribute to the UAES economic diversification goals?

The Landmark Partnership: RIQ & ADNOC Reinsurance Deal

Abu Dhabi National Oil Company (ADNOC) and Reinsurance International Qatar (RIQ) have announced a significant $500 million reinsurance collaboration, designed to bolster financial stability and provide crucial support for ADNOC’s extensive national oil projects. This strategic alliance, finalized in late August 2025, marks a pivotal moment in risk management within the UAE’s energy sector and highlights a growing trend towards sophisticated financial partnerships in the oil and gas industry. The collaboration focuses on mitigating risks associated with ADNOC’s upstream and downstream operations, including exploration, production, refining, and petrochemicals.

Key Objectives of the Reinsurance Agreement

The core aims of this $500 million reinsurance program are multifaceted:

Enhanced Financial Resilience: Providing ADNOC with a robust financial safety net against potential losses stemming from operational risks, market fluctuations, and unforeseen events.

Strategic Project Support: Facilitating the continued development and expansion of ADNOC’s ambitious national oil projects, ensuring project continuity even in challenging circumstances.This includes major initiatives like the expansion of Ruwais refinery and increased oil production capacity.

Risk Transfer & Optimization: Effectively transferring a portion of ADNOC’s risk portfolio to RIQ, optimizing ADNOC’s capital allocation and freeing up resources for core business activities.

Capacity Building: Strengthening the UAE’s overall reinsurance capacity and expertise,contributing to the long-term sustainability of the energy sector.

Supporting UAE’s Economic Diversification: By securing critical infrastructure and projects, the partnership indirectly supports the UAE’s broader economic diversification goals, reducing reliance solely on oil revenue.

Understanding the Roles: ADNOC & RIQ

ADNOC (Abu Dhabi National Oil Company): As one of the world’s leading energy producers, ADNOC manages a vast and complex portfolio of oil and gas assets. This reinsurance agreement allows ADNOC to proactively manage its risk exposure, ensuring the uninterrupted execution of its 2030 growth strategy. ADNOC’s risk profile includes geological risks, operational hazards, geopolitical factors, and market volatility.

RIQ (Reinsurance International Qatar): RIQ, a prominent player in the regional reinsurance market, brings specialized expertise in energy sector risk assessment and management. Their involvement provides ADNOC with access to a deep pool of reinsurance capacity and a proven track record in handling large-scale energy risks.RIQ’s financial strength and underwriting capabilities are central to the success of this collaboration.

Scope of Coverage: What Risks are Addressed?

The $500 million reinsurance program covers a broad spectrum of risks associated with ADNOC’s operations. These include, but are not limited to:

Property Damage: Covering physical damage to ADNOC’s assets, including oil fields, refineries, pipelines, and storage facilities, due to natural disasters, accidents, or sabotage.

Business Interruption: Protecting ADNOC against financial losses resulting from disruptions to its operations, such as production outages or supply chain disruptions.

Liability Risks: Covering ADNOC’s legal liabilities arising from accidents, environmental damage, or other incidents.

Political risk: Mitigating risks associated with political instability, regulatory changes, or government actions that could impact ADNOC’s operations.

Energy Price Volatility: Providing a degree of protection against significant fluctuations in oil and gas prices.

Benefits for the UAE energy sector

This reinsurance collaboration extends beyond ADNOC, offering broader benefits to the UAE’s energy sector:

Increased Investor Confidence: Demonstrating a commitment to robust risk management enhances investor confidence in ADNOC and the UAE’s energy sector as a whole.

Attracting Foreign Investment: A stable and secure investment habitat attracts foreign capital, supporting the growth and development of the energy industry.

Strengthened National Economy: Protecting critical energy infrastructure safeguards a vital source of revenue for the UAE’s economy.

Development of Local Expertise: The partnership fosters the development of local expertise in reinsurance and risk management, contributing to the long-term sustainability of the sector.

Improved Risk Modeling: Collaboration between ADNOC and RIQ will likely lead to more sophisticated risk modeling and assessment techniques, benefiting the entire industry.

Real-World Implications & Case Studies (Related Examples)

While this specific collaboration is new, similar reinsurance arrangements have proven effective in other major oil and gas projects globally. Such as, the Kashagan oil field development in Kazakhstan utilized extensive reinsurance coverage to mitigate the significant risks associated with operating in a challenging environment. The Gulf of Mexico oil spills highlighted the critical need for robust liability coverage, leading to increased reinsurance demand in the offshore energy sector. These examples demonstrate the value of proactive risk management in protecting large-scale energy investments.

Future Trends in Energy Reinsurance

The ADNOC-RIQ partnership reflects several emerging trends in energy reinsurance:

Increased Demand for Capacity: as energy projects become larger and more complex, the demand for reinsurance capacity is growing.

Focus on Climate Change Risks: Reinsurers are increasingly incorporating climate change risks into their underwriting assessments, reflecting the growing threat of extreme weather events.

Integration of Technology: The use of data analytics