Takaful Corner

The next phase of growth

This section explores the latest trends in the rapidly burgeoning global takaful (shari’a-compliant insurance) market which is estimated to eventually grow to between US$7bn (Swiss Re estimate) and US$15bn (Takaful Re estimate) by 2015.

First Takaful Put On Credit Watch

First Takaful Insurance has been put on credit watch by Standard and Poors following profitability concerns. S&P is monitoring the Kuwait-based insurer’s BBB- counterparty credit and insurer’s financial strength after its annual results for 2009 “raised concerns” about future earnings. Wolfgang Rief, S&P credit analyst, said the rating action mainly reflects the agency’s view of the “deteriorating underwriting performance of the takaful fund, poor investment results for both members and shareholders, and diminished growth in a very difficult economic and competitive environment”.

A Guide To Islamic Finance

Islamic insurance, or ‘takaful’, is an alternative to conventional insurance and offers a shari’a-compliant option that may also appeal to those looking for an ethically driven insurance provider.

Corporate Governance

Dr Omar Clark Fisher explores the alignment of corporate governance and company performance in relation to takaful companies, while calling for a far more active role for policyholders in the decision-making process.

Downturn Blamed For Al Jasr Launch Delay

The launch of Al Jasr Takaful Insurance Company has been postponed due to unfavourable economic conditions, it has been revealed. Shaikh Nawaf Bin Mohammed Bin Jabr Al Tani, chairman of the founders’ committee, announced the delay during a recent meeting in Doha. He said the changing business and investment environment caused by the economic downturn had prompted the decision.

Tokio Marine Launches Egyptian Takafuls

Marine and fire insurance provider Tokio Marina Holdings Inc is one of the latest international companies to establish takaful units in Africa following a spate of Egyptian-led Islamic bond launches. Tokio, in partnership with Egypt Kuwait Holding Co (EKH), set up the Nile Family Takaful Co and Nile General Takaful Co last month. The companies have a 40% and 60% holding respectively. Shares in the takaful units are capitalised at $5.5 million each.

IFSB Issues Takaful Guidance

Islamic financial services industry set for improved “soundness” and “stability” following IFSB ruling in Kuala Lumpur.

Three Companies Mull Takaful JV

Italan insurer Assicurazioni Generali, Qatar Islamic Bank (QIB), and broker Beema are looking into forming a joint venture in the takaful sector. QIB chairman, Sheikh Jassim bin Hamad bin Jassim bin Jabr Al Thani, said: “QIB is delighted to look into the possibilities of establishing strategic partnerships in the takaful business with a view to create a leading takaful player. Our plans are to launch the takaful products in the GCC countries first, giving priority to our local and regional markets, and then place a particular focus on geographic areas which are relevant to takaful.”

Potholes In The Streets Of Gold?

This section explores the latest trends in the rapidly burgeoning global takaful (shari’a-compliant insurance) market which is estimated to eventually grow to between US$7bn (Swiss Re estimate) and US$15bn (Takaful Re estimate) by 2015.