IslamicFinance.de

Nopporn Wong-Anan wrote in Arabianbusiness on 30 March that Saleh Malaikah, chairman of Islamic reinsurance operator BEST Re sees the takaful business growing by 17 % over the next 3 years. The growth prospects lying in the fact that insurance coverage is not widely used in the Middle East and shows therefore potential; Saudi Arabia has a market share of 20 % in takaful from the overall insurance market, and promises the highest growth rate. In Malaysia the takaful market share has reached 30 %.

Allianz Indonesia grew by 8.5 % and is the fourth biggest life insurer in the country. In 2008 the MENA region has proven to be one of Allianz's growth powerhouses. Revenues from the region grew to 2.4 billion euros, an increase of 40 percent from last year. In Asia Pacific Property and casualty business (P&C) remains growth driver, unique opportunities to strengthen distribution.

Allianz offers conventional and Islamic coverage.

Press Release

LONDON, March 30, 2009 -- In a report published today, Standard & Poor's Ratings Services explains the way that its rating approach has been adapted to meet the growth of takaful insurance.

The article, "Standard & Poor's Approach To Rating Takaful And Retakaful (Islamic Re/Insurance) Companies," says that the last five years have seen takaful (Islamic insurance) grow from a niche product servicing relatively limited demand to become a mainstream risk management offering.

"In particular, we have seen rapid growth in the Arab world and an expansion across Europe. A further market development has been the growth of retakaful as a Sharia-compliant version of reinsurance," said Standard & Poor's credit analyst Kevin Willis.

Standard & Poor's has rated a number of Islamic insurers and reinsurers and so is able to comment on the way that the rating criteria have been adapted to address the specifics of this product.

Allianz Takaful, the regional subsidiary of Allianz Group, has announced the launch of its Middle East operations in Bahrain. The company will be offering Allianz's globally trusted financial services in full compliance with Sharia principles. The company will be introducing a variety of products starting from motor insurance to sophisticated items such as retirement and saving schemes.

Dr Abdul Rahman Khalil Tolefa is CEO.

The UNEP FI Insurance Working Group, supported by leading academic institutions from the United States and Europe, is conducting a landmark global survey on the understanding and integration of environmental, social and governance (ESG) factors in insurance underwriting and product development. The nature and scope of this survey makes it the first of its kind.

The core objectives are to:

- Assess the understanding and integration of ESG factors in insurance underwriting and product development globally
- Assess the financial materiality of ESG factors in insurance underwriting and product development
- Provide recommendations for sustainable insurance underwriting
- Provide research input for potential projects on other core insurance processes (e.g. investment, claims management, and sales & marketing)
- Establish a solid business case for the development of "Principles for Sustainable Insurance"

Visit http://www.unepfi.org/events/2009/survey to find out more and participate.

Press Release

LONDON (Standard & Poor's) March 11, 2009--Standard & Poor's Ratings Services said today that the ratings and outlook on Dubai-based reinsurer Takaful Re Ltd. (TRL; BBB/Stable/--) are unaffected by the withdrawal of the ratings on Arab Insurance Group (B.S.C.) (ARIG) at ARIG's request. ARIG is the majority shareholder of TRL, with a 54% holding, and is also the major service provider.

Press Release

PARIS (Standard & Poor's) March 9, 2009--Standard & Poor's Ratings Services said today that it revised its outlook on Dubai-based insurer Dubai Islamic Insurance & Reinsurance Co. (Aman) to negative from stable. At the same time, we affirmed the 'BBB' long-term counterparty credit and insurer financial strength ratings on Aman.

"The outlook revision reflects the increasing pressure on Aman's risk-adjusted capital adequacy, arising mainly from the continuing decline in investment markets in the Gulf region," said Standard & Poor's credit analyst Lotfi Elbarhdadi.

Pak-Qatar Family Takaful Limited (PQFTL) has been assigned an initial Insurer Financial Strength (IFS) rating of 'A-' (Single A Minus) by JCR-VIS Credit Rating Co. Ltd.

Etiqa Takaful Bhd recorded for the financial year ended June 30 last year a premium of RM 1.044 bn. It is the first takful company to cross this level and the largest in the world. Currently, the company has about a million policy holders.

Mohd Tarmidzi Ahmad Nordin is Chief Executive Officer.

Press Release

PARIS, February 27, 2009--Gulf Islamic financial institutions and takaful companies are feeling the repercussions of the current global financial market disruption less than most of their conventional counterparts because Sharia law prohibits interest-based financial products, according to a new report by Standard & Poor's Ratings Services.

"IFIs didn't invest in the structured products that have hampered many conventional banks' financial profiles and performance," said Standard & Poor's credit analyst Mohamed Damak in the report, titled Rated Gulf Islamic Financial Institutions And Takaful Companies Have Shown Resilience To Global Market Dislocation, But They Are Not Risk Immune. "And most IFIs should be equipped to weather the financial downturn and keep the effects on their financial profiles at manageable levels."

Salaam Halal Insurance, Britain's first Shari`ah-compliant insurer, was launched last July and price-comparison websites show a great demand and competitiveness.

The Qatar Islamic Insurance Company (QIIC) hopes to buy half-a-million shares of Al Jisr Takaful Company which is being set up as a joint venture between Qatari and Bahraini investors. The paid-up capital of the proposed Islamic insurer will be QR 250 mn and some 30 per cent of its equity will be divided equally between Qatari and Bahraini owners through a public offer.

The owners are national insurance firms and major institutions from the two countries. Qatar Foundation as well as the civil and military pension funds in Qatar are tipped to own around 40 % of the proposed company’s equity. The remaining 60 % of the equity will be offered to the Qatari and Bahraini public (citizens) through an initial public offering (IPO).

The Central Bank of Bahrain has granted licenses to Legal and General Gulf and Legal and General Gulf Takaful. The two companies will be established with total paid up capital of BD 10 mn which will be contributed equally by British Insurer Legal & General Group Plc. (LGEN.L) and Ahli United Bank B.S.C. (AUBB.BH).

Allianz Re has announced that Allianz SE Life Reinsurance Branch Labuan (ARLL), recently recieved regulatory approval to establish a separate fund to support the life and health retakaful business (Family Retakaful). As a branch office of Allianz SE, ARLL enjoys an S&P rating of "AA" and A.M.Best rating of "A ". ARLL will offer retakaful solutions to Family Takaful providers.

Iran Daily reported on 15 January that an insurance bank in Iran is proposed by Iran Insurance Company. Mohammad Javad Sahamian Moqaddam told Fars News Agency that the proposed bank will be set up after implementation the insurance laws.

HLTM Takaful launches capital protection investment-linked scheme called The Alpha Crescent Investment Plan, which is a 3-year 100% capital protected plan. It is based on the concept of murabahah and wa’ad where the potential investment returns at maturity were referenced against the performance of the Alpha Crescent Index.

HLTM Takaful, which is managing the plan, said it would be distributed by Hong Leong Bank Bhd.

HLTM Takaful chief executive officer is Ab Latiff Abu Bakar.

AMEInfo reported on 6 January about the announcement of Noor Investment Group to launch its Noor Takaful brand. All services will be offered either through Noor Takaful Family or Noor Takaful General, which are headquartered in Dubai and have a combined paid up capital of Dhs 150 mn, offering a suite of general and family takaful coverage for individuals, businesses and corporate clients. The aim is to expand the reach of these companies to include the Middle East and North African region.

According to Arabian Business, the international expansion plans of Noor are holded for the time.

http://www.arabianbusiness.com/542803-noor-investments-international-exp...

Switzerland-based Zurich Financial Services Group has established a joint Islamic insurance venture with Abu Dhabi National Takaful Company (ADNTC). The joint venture, called Zurich Takaful Company Limited, will be based in Dubai at Dubai International Finance Centre (DIFC) and will deal with family takaful businesses across the Middle East. It is 51% owned by Zurich and 49% owned by ADNTC. Zurich’s initial focus will be establishing its DIFC office as a regional hub, which will then act as a springboard for future growth in the region.

Mahanum Abdul Aziz reported on 19 April on Bernama that Takaful Ikhlas Targets RM 70 mn in premium from its government housing loan scheme.

Syed Moheeb Syed Kamarulzaman is president and chief executive officer.

Source: http://www.bernama.com.my/bernama/state_news/news.php?id=327888&cat=st

David Masters reported on 15 April about the new Ernst & Young Report in the Insurance Daily, which says that the GCC countries contribute USD 1 bn to the USD 2 bn global Takaful market, which is supposedly growing at 20 %. Worldwide there are 133 Takaful operators. 59 of these operate within the GCC countries of Saudi Arabia, Qatar, Oman, Kuwait, Bahrain and the United Arab Emirates.

Ernst & Young’s head of Islamic finance is Sameer Abdi.

Source: http://www.insurancedaily.co.uk/2008/04/15/takaful-market-booming-in-gcc/

Full study at E&Y:

http://www.ey.com/global/content.nsf/UK/_Islamic_Financial_Services