UAE Records Biggest Three-Year Takaful Rise

The UAE and India were the biggest growth markets for Islamic insurance during a three-year period, an Ernst & Young report has revealed. A 135 per cent compound annual growth rate for takaful was registered across the emirates and India between 2005 and 2008 – 100 per cent more than the 35 per cent increase experienced in Indonesia. Meanwhile, the Gulf recorded 45 per cent growth during the same period. According to the report, takaful contributions will exceed $8.9bn this year compared to $5.3bn in 2008.

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.

Insurer Back In Profit After Tough 2008

After posting huge losses for 2008, Takaful Re has completed a swift turnaround in 12 months to regain a firm financial footing. The Dubai-based insurer reported a US$10 million profit for 2009 compared with the previous year’s $10.6 million deficit. Gross contributions increased 43% to $48.7 million from $34 million during the same period.

Making His Mark

Fareed Lutfi of the Emirates Insurance Association and the GCC Commission for Insurance and Reinsurance Companies.

Dubai-Listed Companies Post Strong 2009 Results

Takaful companies listed in Dubai recovered last year to post healthy profits following a turbulent 2008 that saw revenues tumble during the financial crisis. Dubai Islamic Insurance & Reinsurance Co (Aman) reported a 162% growth in net profit to Dhs20.5 million – a significant turnaround from the previous year’s Dhs33.2 million loss. The company’s revenues climbed from Dhs492.9 million to Dhs495.8 million during the same period. Less positive was its net technical returns, which dropped 55.6% to Dhs30.2 million last year.

Gulf Insurance Set For 2010 Consolidation

The next 18 months will see “significant” conventional and Islamic deals among Gulf Arab insurance companies as they consolidate to tap huge growth potential, local lawyers have claimed. Speaking at the Islamic Banking and Finance Summit in Dubai, Peter Hodgins, partner at international law firm Clyde & Co, said deal activity in the region would be “significant in terms of jurisdiction and in terms of names”, Reuters reported.

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.

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.”

Accelerated Evolution

Policy spoke to Walid Sidani, CEO of Abu Dhabi National Insurance Company (Adnic), about the company’s ambitious plans for the future.

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