The Bahrain-based Arab Insurance Group (ARIG) announced that it has taken the lead of a group of financial institutions in launching Takaful Re, which it describes as “the first major Islamic Reinsurance Company.”
The announcement from the Dubai Financial Center in the United Arab Emirates said Takaful Re is the first reinsurance company in the MENA region which is to be “organized and operated in a fully Shari’a compliant manner.” The bulletin added that the new company “will be the strongest capitalized company currently active in the field of Islamic reinsurance.”
ARIG said it has “teamed up with several major regional financial institutions in promoting Takaful Re. These include the inter-governmental Saudi based Islamic Development Bank, UAE based Dubai Investments, Emirates Industrial Bank, Emirates Funds (of the Emirates Bank Group) as well as Qatar Islamic Insurance Company and Wethaq Takaful Insurance Company of Kuwait.”
Takaful Re’s initial authorized capital is $500 million with issued and paid up capital of $125 million, which, said the announcement, will ensure “the commitment of meaningful capacity to the Takaful markets to attract and lead business and secure a financial strength rating commensurate with the expectations of its future clients.”
Addressing a press conference at the DIFC on the occasion, ARIG’s Chairman, Mr. Khalid Ali Al Bustani, commented: “All parties in this venture consider the absence of a takaful reinsurance company in the region to be a missing-link in the rapidly growing takaful insurance industry. Double digit growth levels with an increasing tendency have been witnessed in this segment during the past years creating a promising opportunity. The launch of Takaful Re is a major step to provide valuable service to the takaful insurance companies, who will now be able to place their reinsurance business in full compliance with the recommendations and requests of their Shari’a boards.”
Was this article valuable?
Here are more articles you may enjoy.