Abu Dhabi National Insurance Co (ADNIC) aims to extend its reach in the Middle East and North Africa region and enhance the efficiency of its reinsurance business through its alliance with London-based Talbot Underwriting.

The sources informed that earlier this month, both conglomerates confirmed their establishment of a reinsurance joint-venture licensed and regulated by the Dubai Financial Centre. The new company, Underwriting Risk Services Middle East (Ursme), will provide reinsurance to insurance companies throughout the region.

The sources informed that Talbot is a world-class company that specialises in reinsurance. Reinsurance enables insurance companies to alleviate their own risks and increase coverage limits to their clients, thereby increasing their underwriting revenues.

Talbot is one of two arms of the Bermuda-based Validus Holdings, which holds about $5 billion (Dh18.4 billion) in assets.