Niger insurance urges public to buy Takaful insurance products

The management of Niger Insurance plc has enjoined members of the insuring public to buy Takaful insurance products as part of efforts to imbibe savings culture.

The company’s Managing Director, Clinton Uranta, made this call during a chat with correspondents in Lagos.

Unlike the conventional insurance which majority of the Shariah scholars believe is unlawful due to involvement of Riba (interest), Maisir (gambling) and Gharar (uncertainty), Takaful, the Islamic alternative to insurance, is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members.

It is a pact among a group of persons who agree to jointly indemnify the loss or damage that may be inflicted upon any of them, out of the fund they donate collectively. The Takaful contract so agreed usually involves the concepts of Mudarabah, Tabarru´ (to donate for benefit of others) and mutual sharing of losses with the overall objective of eliminating the element of uncertainty.

Uranta said the people should not see the takaful products as religious products especially as the bottom line is savings, which can either be savings for school fees, pilgrimage, house rent or any other thing.

While pointing out that takaful is not new to insurance industry globally as it is also being offered by many insurance companies globally, he said the product has been doing very well since it was introduced by Niger Insurance.

A large number of Takaful companies exist in the Middle East, Far East, Iran, Turkey, and Sudan and even in some non-Islamic countries. There are over 60 companies offering Takaful services in 23 countries around the world.

“In our own unique way, we have expanded the product in such a way that even non Muslims embrace it. But the bottom line is savings. Savings for school fees pilgrimage, house rent and what have you. That was how we modified it to suit our people in Nigeria. So you asked me whether it is doing well, it is doing well and we will continue to bring innovation into it to make it more attractive to the insuring public,” he stated.

Uranta also spoke on the branch expansion and restructuring programmes embarked upon by the company, saying the firm now has two additional regional offices in Sokoto and Yola to increase its total outlets to 45, while efforts are ongoing to open more new branches in the nearest future.

He also hinted that the insurance outfit has set a premium income target of N 12 billion for itself in 2011 based on the fact that the economy is on the recovery path, coupled with the fact that the company recently made new appointments and embarked on internal restructuring.

Niger Insurance Plc is a public quoted composite insurance company. The management team of the company is made up of trained, experienced and competent professionals with extensive management and technical skill.

Niger Insurance is fully computerised with the most advanced software technology. The computer network is capable of expansion and upgrading to meet with present and future increases in the volume of business.

The company has also put in place sound reinsurance treaties with local and foreign first class reinsurance companies led by Swiss Re. These comprehensive securities ensure financial stability and exude confidence in its service to both present and prospective customers.

Courtesy by; Vanguard

Amana Takaful plans going public in Maldives

The Maldivian subsidiary of Sri Lanka's Amana Takaful Insuracne Plc, Amana Takaful (Maldives) Private Limited has applied to be listed in the Maldives Stock Exchange (MSE).

According to the MSE website (www.mse.com.mv) the company has submitted its application and it will be the first foreign owned company and Shariah compliant company that has applied for a listing in MSE.

Once the listing is completed Amana Takaful will become the fifth company listed on the MSE.

Amana Takaful (Maldives) Private Limited started its operations in Maldives in 2004 after receiving a license from the Maldivian Insurance Authority to engage in General Insurance in 2004.

Today the company has grown as one of the largest players in the Maldives providing insurance solutions to key sectors of the government and also non-government organizations.

In collaboration with one of the largest Takaful operators in the world, Malaysia Takaful, Amana Takaful started its Sri Lankan operation in 1998 by offering both General and Family Takaful solutions.

They are the first and only insurance company in Sri Lanka to pioneer the process of refunding surplus at the end of each policy term. The company has a very competitive customer base and has operations throughout Sri Lanka.

Recently a subsidiary company of Amana Group, Amana Bank Limited obtained the license from the Sri Lanka's Central Bank and the Finance Ministry to conduct commercial banking in the country.

The Maldives Stock Exchange first established on 14th April 2002 was operated by the Capital Market Development Authority (CMDA) as part of the regulator.


However to separate the Exchange operation, Maldives Stock Exchange (MSE) was licensed as a private sector exchange by Capital Market Development Authority (CMDA) on 23rd January 2008 under the Maldives Securities Act.

As such the MSE is operated by the Maldives Stock Exchange Company Pvt Ltd, effective from 24th January 2008.

The primary function of MSE is to facilitate companies raising capital through the issue of new securities. The secondary function of the MSE is to provide a regulated market for the trading of existing stocks between investors. The MSE is also the centre for trading, reporting and pricing of the stocks. The trading information is released to the public by the MSE ensuring transparency in market dealings.

The four companies that are already listed on the MSE include the Maldives Transport and Contracting Company Plc (MTCC), Bank of Maldives Plc (BML), State Trading Organization Plc (STO), and the Maldives Tourism Development Corporation.

Courtesy by: Daily mirror

HSBC in tie-up with Allianz Takaful

HSBC and Allianz Takaful, a major player in the Takaful insurance, have jointly announced a Bancassurance partnership to promote Islamic insurance products in Qatar.
Javed Akhtar, HSBC senior area sales manager said: “We developed this strategic partnership with a leading and established Takaful product provider in recognition of our customers’ need to have access to quality Takaful products. We are very confident that this tie-up will enable us to better serve the needs of our customers.”
Through qualified financial planning managers located in a network of branches around Qatar, the bank will promote and sell ‘family Takaful products’ comprising plans for protection, savings, investment and children’s education. The products are denominated in dollars and riyals and are available to both conventional and Islamic banking customers.
Commenting on the partnership, Abdulrahman Khalil Tolefat, Allianz Takaful chairman said: “HSBC is a global partner for Allianz and we are one of the bank’s preferred services providers. We are very proud to have formed this partnership here in Qatar and to be able to offer our products to HSBC and Amanah customers. HSBC customers will now get access to Allianz’ state-of-the-art Shariah-compliant products and services through HSBC relationship managers in their branches.”

Courtesy by: Gulf Time

Capital Standards Rating (CSR) assigns BB to Al Safat Takaful Company

Kuwait: Capital Standards Rating Co. (CSR) has assigned an Insurer Financial Strength Rating (IFSR) of 'BB' and a National rating of 'BBBkw' to Al Safat TakafulAl Safat TakafulAl Safat Takaful Insurance Company
Al Safat Takaful
Kuwait | Financial Services
News | Profile | Officers
Company K.S.C. (closed). The outlook is stable. This is the first time that CSR rates Al Safat. The rating is based on the consolidated financial statements until June 2010.

The ratings reflect Al Safat's adequate capitalization, improving operating performance and relatively sufficient liquidity position. The company implements a conservative reserve accumulation strategy and relies heavily on reinsurance for its marine & aviation and general accident segments. Al Safat is expanding its insurance business and the company's underwriting performance indicators are improving. The company's rating is however constrained by its small market share of the Gross Premiums Written (GPW) and concentration in the Kuwaiti market. The investment in equities and unlisted funds further adds to the volatility of the company's financial profile. The outlook reflects CSR's view of the continued improvement in the company's insurance underwriting performance.

Al Safat Takaful Insurance CompanyAl Safat Takaful Insurance Company was established in 2005 according to Islamic Sharia and offers takaful insurance services in Kuwait. The company provides Islamic insurance in various segments such as marine & aviation, motor vehicles, fire and general accident, life and health. The major shareholders (not less than 10% stake) of the company are; Al Safat Group (28.9%), Al Ghanim Group (12.5%), Al Kharafi Group (10%), Commercial Bank of Kuwait (10%), Investors Group Holding (10%), Kuwait Finance & Investment Company (10%), and Commercial Real Estate Company (10%). This diverse group of prominent investors supports the company's insurance business.

Al Safat TakafulAl Safat TakafulAl Safat Takaful Insurance Company
Al Safat Takaful
Kuwait | Financial Services
News | Profile | Officers
is aiming to improve its market position in the Kuwaiti market which is becoming increasingly competitive with the presence and entrance of takaful insurers. The company's started underwriting in 2005 and by the end of FY2007, the company's Gross Premiums Written (GPW) has increased to KWD 3.09 mn. In FY2008, the GPW increased to KWD 3.86 mn registering 19% YoY growth. As of 2008, the takaful market in Kuwait represents only 16.7% of the overall insurance industry and this percentage continues to increase along with an increase in new Takaful Insurance companies joining the market. This indicates an increasing competition in the Takaful market. In FY2009, the GPW witnessed a 31.4% decline which was mainly due to a significant decline (91.2%) in Marine & Aviation premiums.

Al Safat's underwriting quality measured by the loss ratio has not changed significantly over the last 3 years. The majority of the claims have been incurred by the motor vehicle segment, whichis in line with the insurance industry norms. The expense ratio significantly improved in 2009 mainly driven by the increase in Net Premiums. We expect any improvement in the expense ratio in the near future would largely be driven by the increase in premium written.

For Takaul companies, shareholders' account's revenue is solely driven by investment income. Such heavy reliance on investment income is not sustainable during economic downturns, as investment income tends to be highly volatile. However, relying on investment income on the shareholders' accounts is common in the takaful industry due to the fact that the sole purpose of the shareholders' account is to support policyholders and to protect the value of shareholders.

The principal methodology used in rating Al Safat TakafulAl Safat TakafulAl Safat Takaful Insurance Company
Al Safat Takaful
Kuwait | Financial Services
News | Profile | Officers
Company is "Insurance Methodology", and it can be found at www.capstandards.com in the 'methodologies brief' sub-directory under the Rating tab.

In a continuous effort to benefit both local and regional issuers, CSR has developed rating scales that reflect issuers' scale and focus, whether global or regional. CSR developed a National Rating Scale along with its International Rating Scale to give maximum benefit for issuers when dealing with stakeholders (banks, investors, regulatory bodies, etc.). Small and regional issuers with only local and regional operations might be interested in knowing their creditworthiness when compared to their local peers only. While larger, internationally focused issuers would be more interested in knowing their position compared to global players. In all CSR's Ratings, an International Rating is assigned along with an equivalent National Rating.

Malaysia's Great Eastern Takaful plans regional growth

KUALA LUMPUR | Mon Dec 20, 2010 3:09am EST

KUALA LUMPUR Dec 20 (Reuters) - Malaysian Islamic insurer Great Eastern Takaful will expand to Indonesia and Brunei to tap the Muslim market for sharia-compliant products, its chief executive officer said on Monday.

The company, which is owned by a subsidiary of Singapore's Great Eastern Holdings Limited and Malaysia's armed forces cooperative, also has Singapore and China on its radar for expansion.

It plans to go to Indonesia in 2011 and Singapore and China in 2014 or 2015.

"Both (Indonesia and Brunei) are majority Muslim population and this sharia-compliant insurance will definitely attract the population," Great Eastern Takaful chief executive Mohamad Salihuddin Ahmad told reporters.


"Beyond that we are also looking into Singapore and China because these are the two countries where Great Eastern has a presence."

Indonesia is regarded as the next Asian growth market for Islamic finance. Its Islamic bank assets were 66 trillion rupiah as of December 2009, compared with 2,534 trillion rupiah for the banking industry as a whole, central bank figures show.

In Malaysia, Islamic banking assets totalled about $95 billion, or 19.6 percent of the total, as of December 2009, the central bank has estimated.

(Reporting by Liau Y-Sing, Editing by Saumyadeb Chakrabarty)

Courtesy by:Reuters