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Sun Life Takaful Extends Tie-Up With Bank Rakyat

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sun-life-takafulKUALA LUMPUR: Sun Life Malaysia Takaful Bhd (Sun Life Takaful), which signed a four-year bancatakaful agreement with Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) yesterday, expects to rake in RM150 million in premiums a year from subscriptions via the lender.

The partnership between the two parties started in March 2013, with the introduction of Reducing Term Takaful to provide takaful coverage to Bank Rakyat’s personal financing product, namely Al-Aslah, that caters to government employees. The range of products was later expanded to Houseowner Takaful, and then Microtakaful in July 2013 to support the micro financing business.

Sun Life Takaful CEO Muhammad Fikri Mohamad Rawi said the partnership aims to meet the increasing demand for takaful protection in Malaysia as well as allow Sun Life Takaful to tap into Bank Rakyat’s base of five million customers in the country.

“Sun Life Takaful will benefit from Bank Rakyat’s expansive distribution network and brand strength in the marketplace, while Bank Rakyat’s customers will benefit from access to Sun Life Takaful’s products and services,” he told reporters after the signing ceremony here.

Over the next four years, Muhammad Fikri said, the company is targeting to secure about 960,000 Bank Rakyat customers, after having secured 500,000 customers over the past two years.

As at December 2014, he added, the country’s takaful fund asset size had reached RM22.7 billion, an increase of 30.7% over the past five years.

“In terms of fee-based income, Bank Rakyat has obtained more than RM30 million. Over the next four years, I think Bank Rakyat will obtain more than RM100 million,” Muhammad Fikri said.

Under the bancatakaful agreement, Sun Life Takaful offers various products to Bank Rakyat’s customers, including Decreasing Term Takaful, Houseowner Takaful, Microtakaful, as well as personal accident and a medical and health plan through direct and telemarketing channels.

Muhammad Fikri said the takaful operator managed to rake in RM250 million in premiums since the partnership began.

Sun Life Takaful is a unit of Sun Life Malaysia, a joint venture between Canada-based Sun Life Financial Inc and Khazanah Nasional Bhd.

Originally published on www.thesundaily.my

Takaful Industry Offers Lucrative Opportunities, Says Takaful Ikhlas

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takaful-industryKUALA LUMPUR, Oct 11 (Bernama) — The takaful industry offers lucrative opportunities as the takaful penetration rate is only 14 per cent nationwide, said Takaful Ikhlas Sdn Bhd Chief Commercial Officer, Family Takaful, Wan Rosli Shaharuddin Wan Yaacob.

“There are many opportunities not only for agents but also for young entrepreneurs looking to supplement their income, and we at Takaful Ikhlas always welcome them to become takaful entrepreneurs,” he said on a recent BernamaTV ‘Ruang Bicara’ programme.

He said Takaful Ikhlas agents who meet their financial year targets get to enjoy incentives such as travel and prizes of cash and goodies.

Takaful Ikhlas offers general, family and group takaful plans, and riders for individuals and commercial business ventures.

To a question, Wan Rosli said the company has 3,000 agents nationwide, including 80 Group Agency Managers and 236 Agency Managers.

“Every year we honour Takaful Ihklas high-performing agents at a special awards event,” he said, adding four agents are members of the Million Dollar Round Table (MDRT).

Members of the global association of the world’s leading life insurance and financial services professionals show exceptional professional knowledge, strict ethical conduct and outstanding client service.

On the rising costs of medical treatment, he said the company’s IKHLASlink Secure Takaful plan introduced in April has collected contributions totalling RM5 million from 10,000 policies.

The plan’s optional riders cover critical illnesses, personal accidents, hospitalisation and surgical care benefits, with periodic payments and just one total contribution, he added.

Meanwhile, President and Chief Executive Officer Ab Latiff Abu Bakar said the company’s e-IKHLAS portal is gaining in popularity with its offer of a 25 per cent rebate on takaful certificates bought online.

“Our i-SMART app is used by over 500 family Takaful agents to facilitate their transactions on their i-Pad device, and replaces the manual procedure used previously,” he said.

He said since its launch in June, the company’s Facebook account has garnered 41,000 likes’, the highest in the takaful industry, with the figure expected to rise further with various brand visibility campaigns.

Takaful Ikhlas currently has 13 branch offices nationwide.

Originally published on www.bernama.com.my

Wethaq Takaful Egypt Eyes Launch Of Two Real Estate Funds In 2016

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Kuwait-Based_Wethaq_Takaful_Insurance_CompanyWethaq Takaful Insurance – Egypt plans to establish two real estate funds aimed to pump investments expected to reach 500 million Egyptian pounds (US$65.5 million) within 2016, chairman announced.

According to Wethaq’s chairman Antar Gad, the two funds will include real estate investments varied between administrative and residential facilities.

The official further stated that his company would submit soon an official request to the Egyptian Financial Supervisory Authority (EFSA) so as to launch the two new funds within next year.

Originally published on www.zawya.com

 

Amundi’s CIO Braces For 4% Sukuk Yields On Oil: Islamic Finance

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Amundi_AssetsIslamic global bond yields may rise more than one percentage point next year to approach 4 percent on a double blow from falling oil prices and rising U.S. borrowing costs, Amundi Asset Management says.

The average yield on dollar sukuk has climbed 23 basis points to 2.99 percent so far in December, heading for the biggest monthly increase since August 2013, according to a Deutsche Bank AG index. Yields could test 4 percent next year if the U.S. economy improves “tremendously” and theFederal Reserve raises interest rates, said Ahmad Najib Nazlan, chief investment officer for conventional and Islamic fixed income at Amundi Malaysia.

Gulf Cooperation Council members, including Saudi Arabia and Bahrain, may have to tap the sukuk market for financing as their oil revenue declines, Najib said in a Dec. 12 interview. Prospects for the Malaysian economy won’t be rosy in 2015 because the oil price will weigh on the current account, Najib said, adding that he intends to go underweight government bonds.

“I definitely see a correction in sukuk in the coming quarters if oil prices remain at this level,” said Kuala Lumpur-based Najib at Amundi, which oversees $1.3 trillion globally. “We have seen some names reducing positions in the market already.”

Amundi became the biggest foreign-asset management fund in Malaysia after it bought Kuala Lumpur-based KAF Fund Management in March, Najib said. It manages 14 billion ringgit ($4 billion) in the Southeast Asian nation and is the biggest asset manager in Europe, he said.

Treasury Yields

The International Monetary Fund warned in October, when Brent crude was above $85 a barrel in comparison to $61 now, that oil-exporting countries could see their fiscal surpluses move into deficits if prices stayed low for a prolonged period.

Global sukuk yields are currently the highest since May 6 and are up from the year’s low of 2.76 percent on Nov. 28. Brent has slumped 47 percent from 2014’s high in June after the Organization of Petroleum Exporting Countries, which includes Saudi Arabia, refused to cut production at a meeting in Vienna last month to halt the slide. Ten-year U.S. Treasury yields peaked at 4 percent in 2009 and are currently 2.11 percent. Rates will head higher once the Fed starts to raise interest rates in 2015, Najib said.

Zulkiflee Mohd. Nidzam, head of foreign exchange and bond trading at Kuala Lumpur-based Asian Finance Bank Bhd., predicts sukuk yields will rise to 3.5 percent at the most in 2015. “I don’t think the governments in the Middle East will allow yields to rise too fast,” Zulkiflee said in a phone interview yesterday. “Furthermore, they can always cut oil production to relieve the burden of higher borrowing costs.”

Fund Spending

Sales of Shariah-compliant securities in the GCC will probably rise next year as governments and corporates may find it more efficient to tap the sukuk market to fund spending, Najib said. Some companies may also refinance their existing debt early to take advantage of lower borrowing costs before the Fed tightens, he said.

Global issuance of bonds that pay returns on assets to comply with Islam’s ban on interest climbed 6.8 percent this year to $45.3 billion, near 2012’s unprecedented $46.8 billion, according to data compiled by Bloomberg. GCC sales amount to $14.9 billion of the total, down 30 percent from a year earlier. Offerings in Malaysia, the world’s biggest sukuk market, rose 41 percent to 57 billion ringgit. The ringgit has dropped 6.1 percent this quarter, the worst performance in Southeast Asia, on concern the decline in crude oil will dent government revenue in a nation that’s a net exporter of the fuel.

Overweight Corporates

The surplus in the country’s current account, the broadest measure of trade, shrank to 7.6 billion ringgit last quarter, the least since June 2013. The government is aiming to reduce its fiscal deficit to 3 percent of gross domestic product next year from 3.5 percent, having run a shortfall since 1998. “We prefer to be invested in sukuk with a maturity of five to seven years and will probably diversify from credits that are oil-related,” Amundi’s Najib said. “In Malaysia, we are light on govvies and overweight on selective corporates.”

Originally published on www.bloomberg.com

Deloitte Launches The 2014 Takaful Insurance Report In Islamic Finance

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deloitteDespite the global Takaful insurance market exhibiting impressive double digit growth of 18% over the period 2007-2012, the regulatory environment remains a work in progress and faces the challenge of inconsistency and conflicting interpretation across jurisdictions. An executive roundtable jointly hosted by Deloitte Middle East and IRTI-IDB Group on November 30, 2014 in Dubai brought together industry executives to debate key regulatory and investment strategies for sustainable industry growth, as well as the findings of Deloitte’s 2014 Takaful Insurance Report for Asia, Middle East and Africa, entitled ““The Way Forward for Takaful” and launched end of November 2014 as a joint research initiative in collaboration with INCEIF and Henley Business School..

Joe El Fadl, Partner in charge of the Financial Services Industry at Deloitte Middle East, commented: “Strengthening the regulatory frameworks of the Takaful industry requires focused effort and the support of all industry stakeholders. National regulators as well as industry standard-setting bodies (SSBs) are working together on initiatives to improve Takaful practices and policy-making processes. This event aimed to deepen dialogue among stakeholders on various regulatory issues and market practice challenges facing the Takaful operators.”

The day-long event was also the occasion for sharing the findings of Deloitte’s 2014 Takaful Insurance Report, which was produced by the Deloitte Islamic Finance Knowledge Center in the Middle East for the first time as a joint research initiative in collaboration with INCEIF and Henley Business School. The roundtable debated the key findings and themes of the report in three sessions – Asia, Middle East and Africa. A wide spectrum of industry representatives had the opportunity to debate the regulatory and investment strategies in these markets with heads of the AAOIFI, IIRA and other policy-makers.

“These fresh Islamic finance analytics mark the beginning of a new approach in our industry which promotes a culture of industry-driven research modelled around case-study building which is supported by global practitioners’ insights and perspectives. We are particularly delighted with the roundtable debate which cross-examined our report findings and discussed an interesting plan for the way forward,” said Dr. Hatim El Tahir, Director of the Deloitte Islamic Finance Knowledge Center in the Middle East.

Examining six key markets of Saudi Arabia, the UAE, Bahrain, Malaysia, Indonesia and Pakistan, the report identifies practice gaps and product offerings, and suggests ways to complement one another. Among the findings the study observes that Takaful product offerings and diversity of products are lacking, and that the Takaful business is by far underpenetrated in the six countries examined.

“For the Takaful industry to make an impact in the global market and be able to compete head-to-head with the big boys, Takaful firms need to move beyond the complacent area of family products into the real growth areas such as shipping and airlines, and re-Takaful. These are some of the issues tackled in the report. INCEIF is proud to be a part of this important initiative for the industry as we stay on course not only to promote new research frontiers in Islamic finance but also to promote strong university-industry symbiosis,” said Daud Vicary Abdullah, President & CEO of INCEIF – The Global University of Islamic Finance.

Professor John Board, Dean, Henley Business School, UK, added, “What this report shows is that there is a general need to increase the awareness of and need for personal insurance. If Takaful leads the way in this, then it will have achieved something remarkable.”

In addition to six key markets in the Middle East and South Asia, the report looks at Africa as an emerging niche market, particularly exploring Kenya, Nigeria and Tunisia where the Takaful industry is still in its initial stages. The joint research initiative between Deloitte Islamic Finance Knowledge Centre in the Middle East, INCEIF and Henley Business School, University of Reading was further boosted by valuable industry insight and sponsorship from FWU Group.

“The Takaful industry is well poised to expand beyond its home markets of Malaysia and the GCC. Significant untapped business potential exists in Indonesia, Turkey, Nigeria, Egypt, the Maghreb countries and Europe (UK, France and Germany). Overall this is a very timely research report and I commend Deloitte for their insightful analyses and practical findings,” said Sohail Jaffer, Deputy CEO, FWU Group.

Originally published on www.ameinfo.com

Turkey Championing Islamic Insurance

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Islamic-insuranceSharia-compliant insurance, or takaful, is set to grow in Turkey, with its predominantly Muslim population showing increasing interest in Islamic finance products and the government keen to support their growth.

Insurance of any kind can be a hard sell in Turkey, with the population generally averse to insurance cover and penetration levels as low as 1.4%, according to some estimates.

Takaful also has a minimal profile in the Turkish market at present. The two firms that offer Islamic insurance products, Neova Sigorta and Asya Emeklilik, account for less than 0.5% of the insurance sector’s assets, which stood at an overall TL24.2bn ($10.9bn) in 2013, according to official data.

However, the increasing success of Islamic banks could point to a market opening for takaful underwriters. Turkey’s four functioning Islamic banks, known as participation banks because of political sensitivities in the constitutionally secular country, have posted strong asset growth since 2005, with their holdings now accounting for around 5% of the $811bn assets held by the banking sector in August.

Consultancy firm Ernst & Young (E&Y) has identified Turkey as a new market for sharia-compliant insurance. In the “Global Takaful Insights 2014” report, released in September, Turkey’s takaful market dynamics were noted as gaining traction thanks to the establishment of more participation banks, adding to the four already in operation.

With the government having announced plans to launch three state-owned Islamic banks as subsidiaries of the state-run conventional banks, Ziraat Bank, Halkbank and VakıfBank, by the end of 2015, greater depth will be added to the Islamic financial sector. This in turn will encourage new entrants as well as a broadening of the product base to include takaful options. The E&Y report added that the government intends to give the sector longer-term backing. “The Turkish government’s aim to triple the share of Islamic banking assets in the country by 2023 with the help of state-owned participation banks and incoming players will help support the gradual growth of Turkey’s takaful industry.”

Slow take-off

Even though Turkey’s large and relatively young population offers a potentially lucrative market for takaful underwriters, E&Y suggests a number of hurdles have to be removed before such products could take off, with supply-side constraints and a limited legal infrastructure for Islamic finance currently hindering growth.

“Challenges for Turkey’s takaful market also include a fragmented market which lacks the pricing power and tough competition among insurers at the lower end of the market,” E&Y noted. Another study prepared by the General Council for Islamic Banks and Financial Institutions (CIBFI) and Thomson Reuters, agreed on Turkey’s developing potential as a takaful market.

In its survey, up to 38% of respondents expressed some interest in participation banking, with 10% saying they would definitely be interested. The study, “Turkey Participation Finance Report 2014”, said while 10% was a low figure it nonetheless indicated market potential for takaful service providers.

Personnel gap

Specialist training for staff is an area highlighted by the CIBFI report as necessary for the development of a strong Islamic financial market in Turkey, which requires the establishment of dedicated study programmes at universities. This personnel gap could be bridged through proposals such as the establishment of an Islamic university. Mehmet Gormez, head of the Religious Affairs Directorate, told local media in October that the government was planning to develop Istanbul’s May 29 University into an international Islamic university.

Gormez said the university would help provide solutions to specific problems faced by Muslims, something he said existing higher schools of Islamic learning failed to do. Advanced courses in Islamic finance, for example, would help deepen knowledge and understanding on subjects such as takaful insurance. Another boost for the market could come if the government decides to include takaful options in compulsory insurance schemes such as automotive or catastrophe insurance.

Earthquake insurance has become mandatory for homeowners and businesses in Turkey since 2012 following huge losses from a series of deadly quakes. As a result, the Turkish Catastrophe Insurance Pool has 6.6m policies written, giving a penetration rate of 37%, according to data from the Turkish Insurance Association. While still short of blanket coverage, the pool represents one of the largest aggregations of issued policies, after compulsory third-party vehicle insurance.

Originally published on www.spyghana.com

Islamic Insurance Growth Faces Roadblocks: Report

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takafulDUBAI,  While the Gulf Arab states increased market penetration with Islamic insurances, also called Takaful, Malaysia continues to lead the global Takaful industry while Takaful operators face the problem of over-regulation and resource scarcity, said the 2nd Takaful report by consultancy Deloitte released here on Sunday.

According to the study, the global Takaful industry from 2007 to 2012 at a rate of 18 per cent per year and hit in the first half of 2013 a volume of 18.3 billion dollars in relation to gross contributions. Dr. Hatim El-Tahir, the director for Islamic finance knowledge at Deloitte said while he expected the market to continue to grow at this pace in the coming years, the Takaful operators were increasingly facing headwinds. “The markets for Takaful, globally, are very fragmented, which hampers growth somewhat,” said El-Tahir.

Malaysia which has an insurance penetration of and with a total population of approximately 30 million people of which 70 percent are Muslims faces the least headwinds, not only because of a sophisticated Islamic finance regulation, but also because Takaful in the South-East Asian country is also accepted by non-Muslim people, especially the big Chinese population, said El-Tahir.

“Malaysia accounts for 71 percent of the entire Takaful market in South-East Asia,” the expert said. Nevertheless, in neighboring Indonesia which is with a total population of 254 million people the biggest Muslim nation, Takaful lacks of political support, said Dr. Sohail Jaffar, deputy CEO at Luxembourg-based Takaful operator FWU Group.

Malaysia which has 12 standalone Takaful operators, is followed by the six Arab Gulf countries (GCC) as they have implement law for compulsory health and motor insurance, but demand for Islamic life insurance, also called family Takaful, is less than two percent, according to Deloitte. In the Gulf region, the United Arab Emirates (UAE) and Saudi Arabia lead with Takaful as both oil states represent nearly 80 percent of gross written premiums.

However, Takaful operators in the GCC are legally not allowed to develop a product in one country and market it in another Gulf country but they need approval from all six national regulators in Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman in order to do so. The lack of resources such as qualified staff, missing research capabilities and low demand for life insurance products, in the Middle East in particular, have slowed down the growth of Takaful.

Oversupply is another obstacle. In Kuwait alone, there are 30 Takaful operators which means many can’t generate sufficient profits simply because the market is too small. According to Ernst and Young, the global Takaful industry is poised to reach a volume of 20 billion dollars by 2017, still a small segment in the 2 trillion dollars Islamic finance segment worldwide.

Originally published on www.news.xinhuanet.com

UAE, Saudi Arabia Offer Opportunities For The Islamic Insurance Sector

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Islamic-insuranceAccording to the EY report Waves of change: The shifting insurance landscape in rapid-growth markets, significant opportunities for growth are present in emerging markets such as Saudi Arabia and the UAE.

Gordon Bennie, EY MENA Financial Services Leader, said, “Islamic Insurance market growth has accelerated in countries where penetration rates were once low, such as Saudi Arabia, where consistent and rapid premium growth has been observed. In their search for growth and revenue, insurers need to optimize capital and asset liability strategies and remain cost competitive, without losing sight of their customers’ needs. Adapting to evolving market and regulatory change will be a challenge that requires employing new technologies and building flexibility into all aspects of the industry.”

The report features a risk-opportunity matrix ranking 21 rapid-growth markets (RGMs) in terms of their future prospects for insurers. The rankings are based on projected economic and premium growth until 2020, financial stability, regulatory change, macroeconomic volatility, liquidity risk and other factors.

“Technology continues to shape the industry, with legacy systems restraining some carriers’ ability to embrace big data analytics or meet the expectations of digitally savvy customers. The need for strong digital operations and rich customer experiences will be an ongoing strategic theme across the industry for some time to come. Opportunities for global expansion into new markets represent a powerful force accelerating the growth in insurance premiums today, especially as economic performance struggles in much of the developed world,” added Bennie.

Growth in the UAE and Saudi Arabia

The UAE has been the fastest-growing islamic insurance market among the GCC states, with a compounded annual growth rate (CAGR) of 17% over the past six years. The environment in the UAE offers intriguing growth potential with modest risk.

Similarly, the CAGR in insurance premiums per capita in Saudi Arabia was in excess of 10% from 2008 through 2012. Most of this growth has been at the back of mandatory products such as Saudi Arabia’s adoption of a health insurance system and third-party motor insurance.

Challenges facing today’s insurance industry

Financial results around profitability and solvency pose concerns for the industry, especially in Saudi Arabia, where almost half of the industry participants reported underwriting losses in the first half of 2014 and many reporting shareholder’s equity that is less than the mandatory required capitalization from Saudi Arabian Monetary Agency (SAMA), the local insurance regulator.

Sanjay Jain, Director, MENA Insurance Advisory, EY, said, “Technical profitability, slowdown in premium growth and regulatory compliance are the top three challenges for MENA insurance CEOs. We are seeing evidence of much needed consolidation in the sector with a few M&A announcements in the last six months.”

Market fragmentation is often blamed for poor financial results. However there are other challenges, which once addressed, can provide significant opportunities for the better-managed insurers going forward.

Future is ripe for growth

There have been many regulatory developments across the GCC, with Saudi Arabia, the UAE and Qatar currently going through a period of regulatory transition. SAMA, for example, has been extremely active in issuing guidance notes and new regulations such as underwriting practices, reserving, actuarial backed pricing and solvency requirements.

From a bottom-line perspective, areas such as technology enabled transformation, cost efficiencies and process re-engineering can be looked at to improve profitability. From a top-line growth perspective, insurers can consider organic growth as well as M&A routes, strategy refresh, market segmentation and customer-centric distribution channel development.

“The active supervision approach supported by measured regulations from the insurance regulators, is expected to help develop the market over the longer term, even if it means experiencing some challenges in the short-term,” concluded Bennie.

Originally published on www.cpifinancial.com

Takaful Industry Expanding In Africa

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takaful-of-africaTakaful or Insurance in conventional terms has been gaining traction for the past few years as most of us need some kind of insurance against natural calamities. Hassan Bashir, Founder of Takaful Insurance of Africa, says the Kenya-based company’s products can bring possibilities to many and are not exclusively for people of the Muslim faith. Following are the excrepts of a discussion with him about the need of Takaful or insurance for people of all faiths. 

The Africa Report: Why did you launch Takaful Insurance of Africa in 2011?

If someone defaults on payments, will their hands be chopped off?

There was a need for the service. I have been involved in the insurance industry since 1997, and it was something that I had become aware of. For my MBA, I researched customer behavior across the Kenyan insurance industry, and what came out was evidence of dissatisfaction and a need for honesty and ethics in the insurance products and services. I came across a lot of people who did not have insurance, or if they did they only had the basic statutory amount. They said that they did not feel comfortable with some aspects of insurance – that it did not accommodate their religious beliefs – and some people said they felt conventional insurance was a bit like gambling.

What is the difference between conventional insurance and Takaful?

The big difference is that conventional insurance is a risk-transfer model, whereas takaful is a risk-sharing model. In the case of takaful, it’s more like a joint fund, where the company and shareholders are paid a portion of the premiums. The risk remains partly shared and collectively based on all those taking part in the scheme. At the end of the insurance period there is a payout, not a ‘no-claims bonus’, more of a dividend.

Why did you choose Kenya, which has a relatively small Muslim population?

I started in Kenya because I am Kenyan. This is the market I know – and because I saw there was a gap in the market here. I agree there are bigger markets, like Nigeria or Ethiopia, but that means there is potential to grow. Six months ago we opened an office in Somalia. We have made expressions of interest in Uganda, Djibouti and Tanzania, so we have big plans.

Is takaful only for Muslims?

No, not at all. Our products are not exclusively for people of the Muslim faith. We can serve anyone, and we do. Initially, people thought it was only for Muslims, but now around 15% of our client base is non-Muslim and we are growing.

Are people put off Islamic finance solutions by negative connotations of Islamism? 

Some people in our community are ill-informed, it is true. I’ve been asked – directly to my face – “If someone defaults on payments, will their hands be chopped off?” People are only like this because they do not know all the information, so it is our job to educate them. There are sensitivities, which I can understand, but I believe economic development will help change minds. Extremism thrives in spaces where there is poverty and a lack of education, and where people are desperate and have nothing to do and no means of earning a livelihood. But I believe that Islamic finance can bring possibilities to many people by helping them get employment and access to finance. Look at what we are achieving with the index-based livestock takaful. We are continuously educating [pastoralists] so that they understand that the cover is in line with their religious sensitivities and this is to cushion them against the harsh weather so that they sustain their livelihoods despite the droughts that may occur from time to time. In the long run, this will answer the question you asked about the negative perceptions about Islamic finance.

Do you think Kenya will launch a sukuk this year?

I am not sure if it will be this year, but I have no doubt it will happen soon. Kenya wants to become an Islamic finance hub in the East and Central Africa region, and it is well placed to do so. 

Originally published on www.theafricareport.com

UAE: Watania’s Majority Shareholders To Sell Stakes

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WATANIA-TAKAFULAbu Dhabi-listed Islamic insurer National Takaful Company (Watania) said on Sunday its majority shareholders had agreed to sell stakes to strategic investors from the Gulf region, but did not name the selling or buying parties.

In a short bourse filing, Watania said the deal was subject to regulatory approvals. It did not disclose the value of the deal, nor the size of the stake being sold.

Among Watania’s shareholders are Abu Dhabi Investment Council, Ajman Bank and Abu Dhabi National Insurance Co, all with around 15.75 percent of the firm.

It is the second acquisition announcement in the last week involving an Abu Dhabi-listed insurer, with National Bank of Ras Al Khaimah saying on Thursday it was looking to acquire a majority stake in Ras Al Khaimah National Insurance Co for an undisclosed sum.

Originally published on www.arabianbusiness.com