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The Malaysian government is encouraging takaful operators to invest abroad in order to internationalise its Islamic finance industry. Takaful operators will be allowed to invest abroad without limit, lifting a requirement for them to hold at least 80 percent of assets locally. However, Takaful firms in the country are usually reluctant to invest abroad due to a low risk appetite and lack of expertise. Furthermore, the domestic focus is partly due to ample supplies of sukuk in Malaysia. Another obstacle to internationalisation is the meagre experience of some Malaysian takaful firms. Dependence on local assets, however, has come at a price, with many takaful firms missing their target returns.

According to a report released at the opening of the 8th Annual World Takaful Conference (WTC) in Dubai on Monday, the growth of family takaful has outperformed the growth in conventional life insurance, with an annual growth rate of 32 per cent. Its gross contributions are set to treble to $5.6 billion by 2016. However, the latest industry data reveals a slight deceleration in the growth rates. A critical factor that will determine the industry's success is the existence of players with the right quality, as well their readiness to respond to new market opportunities. The report addresses the increased need for a pertinent reference source to help industry leaders navigate the evolving family takaful landscape.

Saudi's Bank Aljazira has gotten the approval to sell shares in its insurance unit Aljazira Takaful Taawuni Co. The unit will offer 10.5 million shares at 10 riyals per share in IPO. Bank Aljazira plans to own 30 percent in the new firm. The new firm is to have capital of 350 mln riyals.

The CMA Board has issued its resolution approving the initial public offering of 10,500,000 shares, which represent 30% of Aljazira Takaful Ta’awuni Company’s share capital. The offer price will be SAR 10 per share, and the subscription period will be from 03/07/1434H (13/05/2013G) to 09/07/1434H (19/05/2013G). The prospectus will be published within sufficient time prior to the subscription period. The prospectus includes all relevant information that the investor needs to know before making an investment decision, including the company's financial statements, activities and management.

The Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) which are expected to come into force by the middle of this year, would require composite insurers and takaful players to split their life and general insurance businesses under separate licences. Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil said the Act would have an impact not only on talent hiring but also on retaining the existing talent, and would lead to staff pinching, resulting in higher wages but little improvement in productivity and efficiency. According to analysts, the impact would be felt more by takaful operators due to the higher number of composite or dual licences issued to them compared with conventional insurers.

Takaful Insurance of Africa is banking on product diversification and opening of more shops to establish itself better in the region. The insurer has already acquired an operating licence from the Retirement Benefits Authority to start a Shariah-compliant pension scheme while the Insurance Regulatory Authority (IRA) allowed it to transact long-term insurance business or family Takaful known in conventional insurance as life insurance. Moreover, TIA is planning its expansion, especially in regions of Kenya with a high Muslim population. The company posted profits of Sh26 million for the year 2012.

Insurance professionals have confirmed that, contrary to their expectation, consumers of takaful insurance, targeted at Muslims in the Northern part of the country, consist more of Christians from the South-East extraction. Moreover, the Vice Chairman of the Chartered Insurance Institute of Nigeria (CIIN) Oyo State Chapter, Mr. Babatunde Omosola, confirmed that takaful insurance products have been doing well in the market because they meet the needs of low income earners including motorcyclists, teachers and farmers, and very simple too. Meanwhile, the President of CIIN, Mr. Wole Adetimehin, has reassured that the institute would remain focused in its support the industry by building the necessary human capital to grow the industry.

In line with the Sharia law on insurance of sharing profits and losses, Takaful Insurance of Africa company has shared Sh15.6 million surplus from its premium pool with clients. The company on Saturday issued 2,000 clients who contributed to the company's premium pool over the last one year with cheques for various amounts depending with the money they paid for various covers. The three highest paid customers took home Sh240,000, Sh150,000 and Sh100,000 respectively. According to its five-year plan, the company plans to spread its wings all over the country and to establish networks in Nyanza, Western and also Isiolo county.

Great Eastern Takaful Sdn targets RM20mil of total weighted contribution from its new product, i-Great Idaman. The family Takaful term plan provides biennial cash payout combined with protection. The group expects to get about 5,000 to 6,000 customers within the one year of the launch. According to Great Eastern Takaful chief executive officer Zafri Ab Halim the target market were individuals with middle to high income. He added that the product was suitable for people who already have medical protection and are seeking for other type of offerings.

Insurance Australia Group (IAG) is growing in Asia, but also interested in Australia. Its chief executive Mike Wilkins recommended Australia pull down tax barriers in order to encourage Islamic finance. The federal government is yet to respond to a subsequent Board of Taxation review. Indonesia is also a target market for IAG. In order to fund its takaful liabilities, IAG would need to invest the cash flows received from policyholders into sharia-compliant products such as sukuk. At present however, because sukuk is based on several transfers of assets into and out of an SPV, the cost of issuance os well above a conventional bond.

Ministry of Finance's Assistant Undersecretary for Economic Affairs, Mr. Yusuf Abdullah Humood said that the Bahraini private sector should benefit from the services provided by the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC). The corporation's benefits include support of exports and provision of services to exporters, banks, investors and other economic establishments. Moreover, the influx of overseas investments is increased and the necessary insurance for new projects and exports of goods is provided. Last year, the ICIEC approved to cover 6 projects of Bahraini investors and banks at the value of USD 273 million.

In a statement to the Kuwait Stock Exchange KIB has revealed plans to swap its 8.56 per cent stake in Warba Insurance for the latter firm’s 33.6 per cent stake in Ritaj Takaful Insurance.The deal, which requires Central Bank approval would see KIB’s stake in the Shari’ah-compliant insurer rise to 73.6 per cent. The bank said it was divesting the Warba Insurance stake because the firm is not Shari’ah compliant.

Kuwait Intl Bk is planning to swap its 8.56% Stake in Warba for 33.6% of Islamic Insurer Ritaj Takaful Insurance Co. The Islamic commercial bank said in a statement posted on the Kuwait bourse website on Wednesday that it has decided to exit its interest in Warba.

Qatar Islamic Insurance Company ( QIIC ) Chairman Sheikh Abdulla bin Thani Al Thani has said that his firm would pursue its strategic plans for the Years 2013-2015 to ensure its continued growth. The company recorded good results in 2012 by generating a premium of QR206m and aggregate net profit of QR74m. The shareholders' profit reached QR58m, constituting earnings per share of QR3.5. The general assembly on Sunday approved the company's nine-point agenda, including its financial statements for the year 2012 and election of two people in the current QIIC Board of Directors.

According to Qatar Islamic Insurance Company (QIIC) Chairman Sheikh Abdulla bin Thani Al Thani, the company recorded good results in 2012 by generating a premium of QR206m and aggregate net profit of QR74m, of which net policyholders’ surplus amounted to QR16m.He noted the shareholders’ profit reached QR58m, constituting earnings per share of QR3.5. The Board of Directors, in co-ordination with the Shariah Supervisory Board, has decided to reimburse policyholders with cash surplus equaling 20 percent of the premiums written in 2012. The general assembly approved the company’s nine-point agenda, including its financial statements for the year 2012 and election of two people in the current QIIC Board of Directors.

Insurers in the Middle East and North Africa (Mena) exuded confidence as they expect that the premium growth will exceed that of the region’s gross domestic product. The region’s low insurance penetration, favourable demographics and relatively moderate natural catastrophe exposure are considered to contribute to the sector's growth. However, high levels of competition, regulatory deficiencies, market fragmentation and political risks are relevant perceived weaknesses of the Mena insurance marketplace. The majority of Islamic insurers say that the potential of Islamic insurance has been overestimated.

Alliance Financial Group (AFG) is selling its 30% stake in AFG Takaful to American International Assurance. The stake comprises 30 million shares of RM1 each, and is being sold for RM45mil. AIA AFG Takaful's core business is to carry out family takaful business. AFG said the disposal was not expected to have any material effect on AFG's net assets per share, earnings per share and gearing of AFG for FY ending March 31, 2013.

Kenya Reinsurance Corporation ( Kenya Re) is one of several local firms to venture into the Islamic re-insurance business with establishment of a Sh50 million Re-Takaful (or Sharia compliant reinsurance) window. Managing Director Jadiah Mwarania said demand for Shari’ah-compliant products has been growing and Kenya Re is seeking to ensure it retains existing business and expand into new markets. Kenya Re also launched a newly appointed board that would guide, monitor and supervise the new venture to ensure compliance with Sharia rules and principles. Mwarania expressed confidence that rekakaful would enable Kenya Re increase market share and attain financial growth.

Great Eastern Takaful Sdn Bhd (Great Eastern Takaful) has appointed Zafri Abdul Halim as the CEO, effective from March 1, 2013. Before, he was the company’s chief financial officer. Zafri holds a Master of Science in Project Management from George Washington University and a Bachelors Degree in Accountancy in addition to being a member of Malaysian Institute of Accountant and a certified Chartered Accountant. He said, Great Eastern Takaful will pursue its main strategies in penetrating the local market with its dual agency approach and direct agency under Great Eastern Takaful Own Agency (GOA).

The UAE insurance market is the largest and most developed insurance market in the Gulf region in 2011 where insurance premiums during the period recorded a 10% increase compared with 2010. UAE's insurance market has doubled in volume and achieved a CAGR of 21% through to 2010. The market, however, remains dominated by non-life insurance, which still accounts for 85% of total premiums. A total of 61 insurers operated in the country in 2011. The UAE government is working on reforms to implement a comprehensive legal framework in order to expand the insurance industry in its different forms.