Adnic, Talbot to form underwriting JV
Abu Dhabi, August 17, 2009
Abu Dhabi National Insurance Company (Adnic) and UK-based Talbot Underwriting, have obtained authorisation from the Dubai Financial Services Authority (DFSA) to establish a risk services underwriting joint venture entity.
Underwriting Risk Services (Middle East) (URSME), which will be based in the Dubai International Financial Centre (DIFC), will offer clients facultative reinsurance products and enable the joint venture partners to expand their commercial insurance business across the Mena region.
Samir Abdul Ahad, Adnic's deputy CEO, underwriting and claims, has been appointed as senior executive officer of URSME and will lead URSME's DIFC operations.
James O'Shea, partner at international law firm Clyde & Co, who led the team advising Adnic and Talbot, said: 'In spite of less than favourable global economic conditions over the last nine months, the Mena region is still viewed by insurers and reinsurers as a key potential growth market and the entry into the market of a well established player like Talbot, allied to the experienced regional presence of Adnic, confirms our view that we will see steadily increasing investment in the coming years across the entire spectrum of insurance/reinsurance offerings.
“The market continues to grow, both in terms of the number of players and the sophistication and depth of product offerings,” he added.
'The DIFC platform ought to provide URSME with the opportunity to establish itself as a key player in the regional market. The DIFC provides a clear and practical regulatory framework and serves as an ideal hub for reinsurance, insurance intermediation and insurance management operations from which foreign insurers and intermediaries can access the GCC and Mena region.'
The Clyde & Co team advising Adnic and Talbot on the joint venture as well as the authorisation and regulatory process comprised James O'Shea, partner, and associates Mark Beswetherick and Tanya Janfada.
The Clyde & Co Real Estate and Employment teams also advised the joint venture partners on leasing and employment issues associated with the new venture in the DIFC. – Reuters