5 Interactive Distance Learning Programs on Islamic Banking and Finance

Wednesday, July 29, 2009

Islamic business insurance from Salaam Halal


Muslim CEOs running UK-based companies will soon be able to opt for takaful risk management solutions from stand-alone Islamic insurer, Salaam Halal.

According to a report by Reuters, the move represents a branching out by Salaam Halal, which has so far focused on providing takaful motor and home insurance.

Takaful, a form of insurance legal under Islamic law, adheres to strict guidelines on investments.

Insurance funds cannot be invested in alcohol or gambling and there is clear segregation between assets owned by members and those owned by the insurer.

The new business will target Muslim-owned small and medium sized businesses with less than £1m annual turnover, including lawyers, doctors, retailers, and accountants.

“It was always our intention to look at these markets,” said Salaam Halal CEO Bradley Brandon-Cross.

“We will be very much focusing on this project in 2010,” he added.

There are an estimated 140,000 Muslim-owned SMEs in the UK.

--Insurance Daily

IGI Investment Bank, Pak-Qatar sign MoU

IGI Investment Bank, a part of the IGI Financial Services, recently signed a bancatakaful agreement with Pak-Qatar Family Takaful aiming to further strengthen its portfolio by adding Family (Life) Takaful Insurance to its insurance advisory services. Under this agreement, clients will be able to secure their own and their family’s future the Islamic way through a host of Shariah compliant Takafu—Islamic insurance—products offered to the bank. IGI Investment Bank will, therefore, be able to cater to all those clients who are seeking a Halal alternative to conventional insurance

--Daily Times

UK's only Islamic insurer targets entrepreneurs


* Eyes Muslim-owned SMEs with less than 1 mln stg turnover

* Mulls life insurance partnership, Europe expansion

LONDON, July 24 (Reuters) - Salaam Halal, the UK's only stand-alone Islamic insurer, will expand next year to offer insurance -- or takaful -- to companies run by Muslim businesses, the company's CEO said on Friday.

Bradley Brandon-Cross told Reuters the company, which launched in 2008, wants to launch the first takaful product range for Muslim-owned small and medium-sized business in Britain, which he estimated number around 140,000.

Major European insurers have been considering a move into the European takaful market, seeking to tap demand from the millions of Muslims on the continent [ID:nLE729394], but the market is still in its infancy and growth is hard to predict.

Salaam Halal -- which has so far focused on car and home insurance -- will particularly target businessmen with less than 1 million pounds ($1.65 million) annual turnover, typically lawyers, accountants, doctors and retailers.

"It was always our intention to look at these markets. We will be very much focusing on this project in 2010," Brandon-Cross said.

Takaful works like mutual-insurance but there is a clear segregation of the assets owned by members and those owned by the insurer. Members contribute to a common pool to fund claims and members benefit if the pool is left in surplus.

Investments made using the pool of funds adhere to sharia law and shun sectors such as alcohol and gambling.

Ernst & Young has estimated the global takaful contributions will reach $7.7 billion in 2012, double the volume in 2007, at the conservative end of estimates.

Salaam Halal is considering offering life savings products in partnership with other insurers in the UK and outside the UK, which Brandon-Cross declined to name. The company may also move into European countries with large Muslim populations, such as France, Germany and the Netherlands.

--Thomson Reuters

Takaful Ikhlas Appoints Two New Syariah Committee Members

Takaful Ikhlas Sdn Bhd has appointed Associate Professor Dr Shamsiah Mohamad and Dr Muhammad Naim Omar as the company syariah committee members, effective April 1, 2009.

In a statement here today, the company said Shamsiah is currently serving as at the 'Fiqh' and 'Usul' Islamic Academic Studies Department of University Malaya while Muhammad Naim is an Assistant Professor of law studies at the International Islamic University (IIU).

The Takaful Ikhlas Syariah Committee's role is to assist the board and top management to provide counsel and guidance in ensuring the company operates and manages its business in accordance with Syariah principles.


--BERNAMA

Saturday, July 18, 2009

Takaful Malaysia confident of outperforming sector's growth target

SYARIKAT Takaful Malaysia Bhd (STMB), the pioneer Islamic insurer in Malaysia, expects to outperform the industry's 25 per cent growth target for 2009, says group managing director Datuk Hassan Kamil.

Recovery in the general and family insurance portfolio and improved equity market in the past four months has improved the company's outlook, he said.

STMB has added professional financial advisers to its distribution channels and hopes to expand its customer base to include the middle-upper Malaysian market.

"We want to elevate the company to the next level, targeting more cash from the demand of customers in this income bracket (with higher contributions or premium size)," Hassan said, after the signing ceremony between STMB and Standard Financial Planner (SFP) in Kuala Lumpur yesterday SFP will market STMB's products through its network of more than 300 representatives, who include Bank Negara Malaysia-licensed financial advisers.

The tie-up would improve the company's bottom line by 10 per cent, he added.

For the third quarter ended March 31 2009, the insurer posted a pre-tax loss of RM11.46 million down from a pre-tax profit of RM11.07 million in the same quarter last year.

Revenue also declined to RM187.67 million from RM280.67 million previously.

Hassan also said that STMB is on track to regain its number one position in the market in two years, when it secures more than 50 per cent of RM11 billion assets in the industry, from its current RM4 billion or 40 per cent.

--Business Times

STMB teams up with Standard Financial Planner

Syarikat Takaful Malaysia Bhd (STMB) has entered into a distribution agreement with Standard Financial Planner Sdn Bhd (SFP) to enhance the penetration rate of STMB’s family and general products into the middle-upper Malaysian market.

The agreement signed yesterday makes STMB the first takaful player to add professional financial advisers to its existing portfolio of distribution channels.

SFP is to market STMB products through its nationwide network of more than 300 representatives, of whom 75 are licensed financial advisers.

STMB group managing director Datuk Mohamad Hassan Kamil said SFP’s financial advisers would play an instrumental role in reaching out to potential customers in the middle-upper income bracket.

“STMB will also work closely with the financial advisers to offer comprehensive insurance, investment and saving options to satisfy the holistic demand of these customers,” he said in a statement yesterday.

The engagement of SFP is part of STMB’s strategy to gain more customers with higher contributions or premium size.

SFP is the market leader and the largest independent financial advisory group in Malaysia.

--The Star online

Friday, July 17, 2009

Takaful Malaysia Eyes Over 50 Per Cent Mart Share

Syarikat Takaful Malaysia Bhd aims to capture more than half of the takaful industry's total asset market share within the next two years amid the current economic slowdown.

Group managing director, Datuk Mohamad Hassan Kamil, said the industry's total assets amounted to between RM11 billion and RM12 billion while the company's share currently was RM4.05 billion.

"We will grow slightly above the current takaful market rate, which is between 20 and 25 percent per annum," he told a media briefing after signing an agreement with Standard Financial Planner Sdn Bhd (SFP) here Wednesday.

SFP, which was set up in 1999, is one of only ten licensed financial advisors in Malaysia.

It is a member of the Australian-based Professional Investment Group of Companies that operates across seven countries.

Hassan said under the agreement, SFP would market Takaful Malaysia's products through its nationwide network of more than 300 representatives, of which 75 percent were licensed financial advisors with Bank Negara Malaysia.

He said the addition of SFP to its existing portfolio of distribution channels would boost the company's revenue by 10 percent.

"This will enhance the penetration rate of our family and general products into the middle-upper Malaysian market as well as making them more accessible wider customer base.

"We will work closely with SFP's financial advisors to offer comprehensive insurance, investment and saving options to satisfy the holistic demand from customers," he said.

Takaful Malaysia posted a pre-tax loss of RM11.461 million for the third quarter ended March 31, 2009 compared to a pre-tax profit of RM11.07 million in the same quarter last year.

Revenue declined to RM187.667 million from RM280.678 million previously.

Hassan said Takaful Malaysia planned to undertake a rebranding exercise to reflect its fresh characteristics in conjunction with its 25th year anniversary in December.


-- BERNAMA

Etiqa bags Best Banca Takaful award

ETIQA Takaful Bhd has won the Best Banca Takaful award at the International Takaful Award 2009 held in conjunction with the Third International Takaful Summit 2009 in London recently.

Etiqa Takaful was the only Malaysian takaful company to win in the global 17-category event, it said in a statement.

Etiqa Takaful was hailed for its performance despite the economic environment and innovative yet simple products in Banca Takaful.

“Etiqa Takaful’s growth in the banca takaful business does indeed exhibit its capabilities to provide appropriate financial solutions together with its Banca partners” said Mohamed Abdullah, director of the Middle East Business Forum.

--Business Times

Insurance Stands Tall

These are testing times for any financial institution. But if there is a Middle Eastern industry relatively well-placed to weather the pressures of the international downturn, it may be insurance, writes Paul Melly...

Having been a relatively slow developer in the past - by comparison with the region's dynamic banking scene - the insurance business is probably less exposed to the pressures of the credit crunch. And in extending its reach among consumers, it may have room for expansion even at a time of cutbacks elsewhere in the economy. Indeed, the recent underlying trend has been strikingly vigorous.

In 2007, the industry grew by 27 per cent in the UAE and, before the credit crunch, analysts were suggesting that, across the region as a whole, future growth rates could be in the 18-20 per cent range before long. The Saudi insurance sector was already worth SR7 billion ($1.87 billion) and analysts suggested it could double or even triple in size within a relatively short timescale.

While the most bullish growth projections may have to be revised downwards, in light of global economic trends and the softening of the oil price in 2008, the overall pattern appears to be solidly established: the gradually extending reach of an industry that has yet to get to many of the potential personal or small business customers that the Middle Eastern market offers.

Moreover, it already has a solid base on which to build in key economies. In the UAE, for example, expatriates must now be able to show evidence of health insurance cover before they can secure a visa for work or even a visit. To cater for their needs, 30 different health underwriters are now active in Abu Dhabi alone.

Greater take-up
In Saudi Arabia, the authorities have been phasing in a mandatory requirement for the use of nine types of insurance, including employer liability, health and motor cover. That represents a major regulatory change for a country where only 10 per cent of cars used to be insured.

The Saudi industry used to be dominated by the parastatal National Company for Co-operative Insurance; competition was limited and was largely provided by foreign companies represented by agents. Tougher regulatory requirements for the use of insurance have been coupled with the liberalisation of the market, under a 2003 sector framework law, to allow room for a wider range of providers. Banks in the Kingdom have already started to respond by buying stakes in new local underwriters, while foreign players are now able to get directly involved, through joint ventures with local partners.

A significant feature of the reform is that it allows companies to offer both conventional insurance and the Islamic equivalent, 'takaful' - although they have to be able to account for both lines of business separately, so that auditors can clearly see that the Islamic services have been provided on the basis of sharia-compliant financing and security. But this is a small price to pay for insurers keen to move into what is a particularly dynamic segment of the industry across the Middle East. Because so many potential consumers are Muslims, takaful has huge scope for growth - emulating the expansion already enjoyed by Islamic banking.

By early 2008, the Saudi regulators had licensed a score of new takaful companies. In Egypt, the pioneering provider of takaful, Egyptian Saudi Insurance House, founded in 2002, saw its premium income quintuple
over the first five years of its operation.

Other investors - Egypt Kuwait Holding (EKH) in partnership with Tokio Marine & Nichido Fire Insurance, Bahrain's Ithmaar/Solidarity Group and a UAE consortium of Amlak, Arab Orient Insurance Company and Abu Dhabi Islamic Bank - are also moving into the Egyptian takaful business.

Fewer than 1 per cent of Egyptians use insurance at present. But the provision of sharia-compliant products is seen as a major tool for overcoming consumer resistance. "EKH sees great opportunities for profitable growth in Egypt, where insurance products have not yet reached the levels of acceptance that could be expected. The offering of the takaful scheme will remove one of the important barriers to the acceptance of insurance products by a large segment of the market," explained the chairman, Nasser al-Kharafi.

Growing volumes
The sheer size and untapped potential of the Saudi and Egyptian markets is a particularly strong attraction for investors seeking to develop new takaful activity, because they can hope to spread the costs of developing business models to comply with local requirements across a large volume of activity. But even in smaller markets, there are signs that takaful - and retakaful (Islamic reinsurance) - is on an upward trend.

February 2008 saw the launch of Al Fajer Retakaful, Kuwait's first such entity, but the third to be established in the Gulf, with Dubai Group holding a 51 per cent stake. With paid-up capital of $178.5 million, and building on Kuwait's strong base in Islamic finance, it aims to be the largest retakaful company in the world. "Given the clearly evident growth in the takaful industry, there are excellent opportunities ahead for a new, strongly capitalised retakaful company," explained Sameer al-Gharaballi, vice-chairman and managing director.

--Global Arab Network

Wednesday, July 8, 2009

Meezan Bank and Takaful Pakistan sign agreement

Meezan Bank and Takaful Pakistan have entered into an agreement whereby all customers of Meezan Bank’s Labbaik (Hajj and Umrah) deposit product will be provided Shariah-compliant credit Takaful coverage.

President Meezan Bank Irfan Siddiqui and Takaful Pakistan CEO Capt Jamil Akhtar signed the agreement.

Under the agreement, all Labbaik installment customers that have performed Hajj or Umrah will be provided credit Takaful coverage at very special rates. In case of natural death, accidental death, permanent total disability or insolvency of a Labbaik customer his/her outstanding installments will be paid by Takaful Pakistan.

Speaking on the occasion, Siddiqui said that Meezan Bank had always focused on coming up with Riba-free products and innovative facilities for its customers and the arrangement with Takaful Pakistan was another step in the direction of making Islamic banking the banking of first choice. Jamil said that he was delighted to sign the Takaful agreement with the country’s leading Islamic bank.

--Daily Times

Takaful Malaysia Eyes Over 50 Per Cent Mart Share

Syarikat Takaful Malaysia Bhd aims to capture more than half of the takaful industry's total asset market share within the next two years amid the current economic slowdown.

Group managing director, Datuk Mohamad Hassan Kamil, said the industry's total assets amounted to between RM11 billion and RM12 billion while the company's share currently was RM4.05 billion.

"We will grow slightly above the current takaful market rate, which is between 20 and 25 percent per annum," he told a media briefing after signing an agreement with Standard Financial Planner Sdn Bhd (SFP) here Wednesday.

SFP, which was set up in 1999, is one of only ten licensed financial advisors in Malaysia.

It is a member of the Australian-based Professional Investment Group of Companies that operates across seven countries.

Hassan said under the agreement, SFP would market Takaful Malaysia's products through its nationwide network of more than 300 representatives, of which 75 percent were licensed financial advisors with Bank Negara Malaysia.

He said the addition of SFP to its existing portfolio of distribution channels would boost the company's revenue by 10 percent.

"This will enhance the penetration rate of our family and general products into the middle-upper Malaysian market as well as making them more accessible wider customer base.

"We will work closely with SFP's financial advisors to offer comprehensive insurance, investment and saving options to satisfy the holistic demand from customers," he said.

Takaful Malaysia posted a pre-tax loss of RM11.461 million for the third quarter ended March 31, 2009 compared to a pre-tax profit of RM11.07 million in the same quarter last year.

Revenue declined to RM187.667 million from RM280.678 million previously.

Hassan said Takaful Malaysia planned to undertake a rebranding exercise to reflect its fresh characteristics in conjunction with its 25th year anniversary in December.


-- BERNAMA

T'azur launches Takaful products

T’azur Company, a regional Takaful firm based in Bahrain, today announced the launch of its extensive range of family and general Takaful products.

Addressing a press conference in Bahrain, Sheikh Dr Abdul Aziz Bin Naif Al Orayer, t'azur chairman, said: “The team has created an unparalleled range of Takaful products. Be it for your possessions, your family or your business - t’azur has a high quality and good value Takaful solution. t’azur is now open for business.”

Created by Unicorn Investment Bank, t’azur was established in November 2007 with an authorised capital of $500 million to capitalise on untapped opportunities and immense growth potential across the international insurance sector.

The company will initially offer 20 products – eight in Family Takaful and 12 in General Takaful categories.

T’azur’s products cover all aspects of people’s lives, possessions and well-being. The Family Takaful range of products includes advanced savings plans combined with life insurance, enabling families to plan for their future regardless of unforeseen circumstances.

The General Takaful products address not only the insurance needs of individuals (e.g., motor or home insurance), but also the needs of the business community of Bahrain, through its broad range of Shari’a compliant corporate products.

Sheikh Dr Abdul Aziz said the company has been late to enter the market and hence was able to avoid some of the repercussions of the financial crisis. “We have been able to learn from the mistakes of others,” he said.

The region is a fast growing and dynamic insurance market and we are entering it at the right time with the right products, he said.

“We are a regional company and plan to launch our products in Saudi Arabia, Kuwait and Qatar shortly.”

Nikolaus Frei, t’azur CEO, added: “Insurance in general and our Takaful products in particular, ultimately benefit the whole community.”

Bahrain is a largely untapped insurance market and provides a great opportunity for Takaful products. While the insurance market as a whole saw a 34 per cent growth in the kingdom last year, the Takaful market grew a massive 300 per cent growth, he said.

The challenge for Takaful firms is to create awareness and attract the vast majority of uninsured people to benefit from the products on offer, he said.

T’azur’s range of Family and General Takaful products are available either directly from t’azur, or through all leading insurance intermediaries in Bahrain.

--TradeArabia News Service

CreditWatch Negative - Kuwait-Based Wethaq Takaful Insurance Ratings Lowered

Standard & Poor's Ratings Services said today that it has lowered its counterparty credit and insurer financial strength ratings on Wethaq Takaful Insurance Co. K.S.C. (Closed) to 'BB+' from 'BBB-'.

The ratings remain on CreditWatch with negative implications, where they were placed on May 27, 2009.

"The downgrade reflects our increasing concerns regarding the impact on Wethaq's financial strength of the situation at TID," said Standard & Poor's credit analyst Lotfi Elbarhdadi.

TID (The Investment Dar; not rated) has a 67% shareholding in Wethaq.

The negative CreditWatch status means that we may further lower the ratings, depending on the development of TID's financial situation. The ratings were originally placed on CreditWatch negative on May 27, 2009, following an announced default by TID on one of its sukuk issues.

Among the key features underlying our opinion on Wethaq's financial strength ratings, as a Takaful (Islamic insurance) player in Kuwait, was an implicit benefit of being part of a large Sharia-compliant shareholder.

We expect to resolve the CreditWatch status or update it within three months.

"The resolution timing will depend upon the outcome of TID's debt restructuring, and on obtaining more clarity on its financial situation and strategic positioning," said Mr. Elbarhdadi.

We will then focus on evaluating the impact of TID's ownership on Wethaq's financial flexibility (defined as its level of access to capital relative to its needs), competitive position, and investments. If the outcome of the review is negative, we may lower the ratings, but we expect the ratings to remain in the 'BB' category.

--Global Arab Network

Saturday, July 4, 2009

Investors keep eye on corporate results

Saudi shares were volatile last week as the financial sector was negatively affected by hardships facing certain Saudi family businesses, mainly Saad Group and Ahmad Hamad Al-Gosaibi & Brothers Co. (AHAB).

The Tadawul All-Share Index (TASI) shed 0.2 percent last week, closing at 5,599.38 points. TASI is currently 16.6 percent higher than the year’s start, according to the Riyadh-based Bakheet Investment Group’s (BIG) weekly report.

The report expected the Saudi exchange to respond to the quarterly results of listed firms, particularly banks and the Saudi Arabian Basic Industries Corp. (SABIC). SABIC shares dropped 5.30 percent last week to SR62.50.

Some insurance companies made solid gains last week. SABB Takaful shares jumped by 41.03 percent to SR110, Saudi Fransi Cooperative Insurance Co. by 30.04 percent to SR88.75, Alahli Takaful Co. by 24.32 percent to SR181.50 and Saudi Arabian Cooperative Insurance Co. by 12.99 percent to SR65.25.

The Saudi stock market turnover fell last week to nearly SR24 billion compared to SR30.9 billion in the previous week.

Shares in National Agriculture Marketing Co. plunged 13.64 percent to SR38 last week.

Uncertainty prevailed in most Arab stock markets last week as investors awaited the release of second quarter corporate results, which they believed would decide the course of regional markets in the coming stage, financial analysts said yesterday. “We think Arab markets will continue to be without direction in the coming few weeks as investors monitor the publication of balance sheets of listed firms to decide their positions for the coming stage,” an Amman-based portfolio manager said.

“I believe regional markets will also be affected by the movement of oil prices and the indicators released about the performance of the world’s recession-hit major economies that are supposed to provide clues for a way out of the current chaos,” he said.

The Amman Stock Exchange (ASE) was also the scene of violent fluctuations last week due to what analysts described as waves of speculation and varying levels of liquidity that played havoc with prices.

The all-share price index gained 0.95 percent last week, closing at 2,742 points, led by the mining sector and the Arab Bank, the ASE weekly report said.

Blue chip shares recovered in the last two days of the week after the Arab Bank management assured its shareholders that its financial position was unaffected by the hundreds of millions of dollars it had extended as long-term loans to two troubled Saudi business groups.

Kuwait’s KSE all-share index fell 0.4 percent closing week at 8,108 points, against speculation that Kuwaiti stocks were set to rebound after the Interior Minister Sheikh Jaber Khalid Al-Sabah survived a parliamentary no-confidence vote.

The performance of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi was mixed. Dubai’s all-share price index lost 2 percent last week closing at 1,821 points, while Abu Dhabi’s benchmark price gained 1.6 percent to close at 2,671 points.

The Dubai bourse was negatively affected by reports that UAE banks extended loans amounting to $3 billion to troubled Saad and Al-Gosaibi groups.

Egyptian shares behaved differently from other Arab stocks due to strong gains scored by blue chips, analysts said.

Egypt’s AGX30 index, measuring the performance of the market’s 30 most active stocks, climbed 8.9 percent last week closing at 5,965 points.

The GulfBase GCC Index increased slightly to 3,642.45 points last week. The value of GCC traded shares fell by 24.73 percent to $9.68 billion and volume declined by 17.13 percent to 6.15 billion of shares.

--arabnews

Standard & Poor's Voted Best Takaful Ratings Agency

For the second consecutive year, Standard & Poor's Ratings Services today announced that it has been voted "Best Takaful Ratings Company" at the International Takaful Awards 2009. The accolade, presented during an awards ceremony at The 3rd International Takaful Summit 2009 in London, acknowledges our commitment to supporting the development of the Islamic insurance industry.

We published our first Takaful rating in 1997 and we remain the leading rating agency for Islamic insurers, with eight ratings on Takaful and Retakaful firms across Africa, the Middle East, and Asia--more than any other global agency. During 2008, we published updated guidance on our approach to rating Islamic insurers and assigned new ratings to Bahraini-based composite insurer Takaful International Co. BSC, Kuwait-based insurerWethaq Takaful Insurance Co. and Dubai-based Insurer Dubai Islamic Insurance & Reinsurance (Aman).

"We are thrilled to be recognized by the Islamic finance community for our continuing support of the Shariah-compliant risk-management industry, which is driving increased acceptance and understanding of the Takaful business model," said Yann Le Pallec, managing director of Standard & Poor's. "We continue to experience strong demand for new ratings from both Islamic and traditional insurers worldwide."

"Having grown from a niche product servicing limited demand, Islamic insurance has reached a critical mass in the past five years and is now firmly established within the global risk management markets," said Kevin Willis, credit analyst at Standard & Poor's. "The potential for growth is immense, with many consumers switching from conventional insurance or entering the Takaful market for the first time."

The International Takaful Awards 2009 are an initiative of the Middle East Business Forum and Afkar Consulting. Winners were selected from a pool of nominees by a panel of Shariah judges, lawyers, journalists, and practitioners from leading Islamic insurance firms worldwide.

--zawya

Takaful IKHLAS Helps Noridawati Buy Prosthetic Leg

Takaful IKHLAS Sdn Bhd, provider of products and services in syariah-based financial protection, has contributed RM15,000 to help Noridawati Husin buy a prosthetic leg.

In a statement here Friday, its executive vice president/chief operating officer, Wan Mohd Fadzlullah Wan Abdullah, said the contribution was part of the company's corporate social responsibility.

"We hope that with this contribution, it will help change the life of Noridawati's family.

"The prosthetic leg will help ease Noridawati's burden who needs help in her movements as she has to take care of her children who are still small and to earn a living," he said.

Takaful IKHLAS, which started operations in July 2003, is a subsidiary of MNRB Holdings Bhd.

MNRB is listed on main board of Bursa Malaysia and its major shareholder is Permodalan Nasional Bhd.

-- BERNAMA

Allianz Takaful to launch Islamic pensions in 2010

Allianz will launch its first Islamic annuity product next year, the head of its Takaful unit said, tapping into a growing number of clients in the Middle East keen to add to their state pensions.

It has long been hard for takaful -- or sharia-compliant -- insurers to sell such products, because of the lack of long-term Islamic bonds with which to match pension liabilities, Abdul Rahman Tolefat told Reuters on Wednesday.

The German insurer's unit had lobbied banks to issue long term debt and unnamed banks had now issued 25-year to 30-year sukuk, Tolefat said at a conference.

"This is really a promising industry, especially in the GCC (Gulf Cooperation Council) -- people are looking for private pensions because state pension are not high enough," he told Reuters on the sidelines of the conference.

Allianz was one of the first Western insurance companies to venture into takaful, in which members contribute to a pool of funds which is used to indemnify participants who suffer a loss, much in the same way as with a mutual insurer.

Allianz Takaful already has a pension product which pays out over a pre-agreed number of years, but annuities that guarantee income until death are still an untapped market.

Allianz Takaful is also lobbying for more access to short- to medium term debt and is asking the Bahraini Central Bank to earmark part of any sukuk issuance to takaful companies, who don't have the clout to compete with large banks.

Earlier this year, the Bahraini Government issued a $750 million sukuk and said last month it will issue a further $530 million of sukuk in local currency.

Takaful companies could still buy these sovereign sukuk on the secondary market but they tend to be too expensive, he told the conference delegates.

Among its projects, Allianz is also pursuing a partnership by the end of the third quarter with a network of distributors. Tolefat declined to say who they are.

--Reuters

Wednesday, July 1, 2009

Badr Al Islami announces first Takaful Savings & Investment Programme

Badr Al Islami has announced the launch of Badr Takaful Savings & Investment Programme, the sharia'h compliant savings and protection scheme, available for the first time to Badr Al Islami and Mashreq.

The new scheme addresses the financial needs of customers looking for sharia'h compliant long term savings or investment plans, such as child education fees planning and retirement planning, with takaful benefits. Customers have the choice to build up their savings by either contributing on a regular basis or as a lumpsum amount, which then gets invested into some of the world's best performing Sharia'h compliant funds.

The programme also provides Takaful benefits, ensuring that savings and investments goals are achieved, even in the event of loss of life of the customer. Customers can choose to protect 60% or 100% of their intention. The product is completely Sharia'h compliant and is approved by the Shariah Board, headed by Sheikh Abdalla Ben Suliman Al-Manei, Chairman of the Shariah Board of Badr Al Islami.

Mubashar Khokhar, CEO of Badr Al Islami said: "Badr Takaful Savings & Investment Programme is an innovative product, bridging the gap of sharia'h compliant solutions in the bancassurance department's product offerings. With the established foundations of Mashreq and the specialized expertise of Badr Al Islami this new scheme allows us to reach out to even more customers who are looking for the most convenient way to save for their needs in future."

In line with other products and services offered through Mashreq and Badr Islami, the scheme is both convenient and affordable. Customers can begin by contributing with a minimal amount of AED 500 per month, and can be obtain policy documents over the counter at Mashreq branches.

--zawya

Dubai Bank signs strategic alliance with SALAMA for Takaful products

Expanding its portfolio of Islamic insurance plans, Dubai Bank today announced it has entered into a strategic alliance with Islamic Arab Insurance Company (SALAMA), a leading provider of Sharia-compliant insurance solutions (Takaful).


Under the terms of the agreement, SALAMA will offer Dubai Bank customers a wide range of Sharia-compliant unit-linked funds through lumpsum investments as well as systematic investment plans.

In addition to the comprehensive protection benefits provided under the scheme, the plans will also assist the bank's customers to save for short and long-term needs such as education, retirement planning and others.

"Adding a host of Takaful plans from industry experts such as SALAMA will greatly support our customers in realising their personal goals for the long-term financial protection of their families," said Mohamed Amiri, Head of Retail Banking at Dubai Bank. "Offering a diverse range of consumer finance solutions, we seek to be an active partner, helping our customers meet their financial needs. Strategic partnerships with Sharia-compliant entities are central to our overall growth plans and value addition initiatives."

According to industry experts, the global Takaful industry has grown by 20 to 25 per cent per annum in recent years, with the Gulf consistently accounting for around a third of worldwide figures. By 2015, the global Takaful sector is expected to reach US$11 billion.

Noel D'Mello, General Manager, Family Takaful, SALAMA, said: "The current global economic conditions have heightened the need for families to plan prudently for wealth protection and accumulation. SALAMA has specialised in customising systematic investments and savings-linked Takaful plans which provide good value for money to the discerning investor. By partnering with the fast-growing Dubai Bank, we are able to provide the benefits of Sharia-compliant Takaful plans to a niche segment of the UAE population."

--arabianbusiness.com