MIFC begins roadshows in Qatar and Bahrain

MIFC started a 6-day roadshows on Saturday in Qatar and Bahrain to promote Malaysia as the international hub for Islamic finance.

More than 80 Malaysian delegates including those from MAA Takaful Bhd take part in the roadshows.

Source: Bernama

Swiss Re to set up retakaful operation in Malaysia

Swiss Re has received the approval from BNM to open a dedicated retakaful operation in Kuala Lumpur writing both family and general retakaful businesses.

Swiss Re has been offering family retakaful solutions in the Middle East for the past 3 years.

Statistics on takaful business:

• Average annual growth rate between 2004 and 2007: 25% (inflation adjusted). Conventional: 10.2%
• Takaful premiums in 2007: US$1.7 bil
• 1.5 bil Muslim population worldwide

Source: Business Times

Articles on insurance/takaful over the weekend

Some of the articles appearing in StarBizWeek Special on 8 August that may be worth reading:

Keeping abreast with changes: Various insurance chieftains touch on issues like financial planning, bancassurance, professionalism, sustainability of business and future challenges and growth drivers.

Innovation key to growth for takaful: Leaders of takaful industry talk on sustainability of takaful industry, liberalisation, bancatakaful, human capital and retakaful.

Linking markets with Islamic finance: Towards the end of the article, BNM governor mentions that the insurance industry has a long way to go and develop products for retirement, pension schemes, annuities and medical coverage. Professionalism and capitalisation need to be increased. There should be more mergers in the domestic sector and the need for setting up enabling infrastructure.

Source: The Star

ACR considers strategic alliance with Islamic reinsurer

ACR ReTakaful SEA said that the company was in talks to enter into a strategic alliance with an Islamic reinsurer in Malaysia, which would likely take place in September.

The company also estimated yearly growth for takaful at 20% in Malaysia and up to 15% in Indonesia.

Source: Business Times

Allianz obtained retakaful licence

Allianz SE Life Reinsurance Branch Labuan has received approval to set up a separate fund to transact retakaful business.

Source: Business Times

ACR Targets Malaysia, Indonesia and Brunei

ACR ReTakaful SEA will focus on Malaysia and Indonesia markets which have potential growth rate of 20% or more and 30% or more respectively.

Brunei is another market that ACR ReTakaful SEA willl target.

Year to date, ACR ReTakaful SEA has collected RM20 mil in contributions, this compares with 18-month target of US$40 mil to US$60 mil.

During the initial period, ACR ReTakaful SEA can also accept halal risk from conventional insurers.

Source: Business Times

Retakaful Potential in Indonesia

MNRB Retakaful will concentrate on Indonesia and Britain as growth at home grinds to a halt.

Indonesia's general retakaful market is expected to grow at double-digit rates or more in the next 2 to 3 years. The Indonesian authorities are expected to impose a ruling requiring retakaful cover (instead of conventional reinsurance) for takaful business.

Source: Business Times

ACR Retakaful

Business Times reported that Khazanah will set up the 3rd retakaful operator in Malaysia named ACR Retakaful.

• Capital of US$100 mil.


• Owned by Khazanah (40%), Dubai Islamic Investment Group Ltd (40%) and Asia Capital Reinsurance Group Ptd Ltd (ACR) (20%).


• Operational license expected to be granted by end of May 2008.


• Zainal Abidin Mohd Noor, the former CEO of Etiqa, is expected to be the chief.

Source: Business Times

Munich Re Retakaful Launched

Munich Re has become the 2nd retakaful operator after MNRB to set up an operation in Malaysia.

Some facts on Munich Re Retakaful:

• Working capital of RM25 mil.


• Writing both general and family retakaful business.


• Malaysia office would be the hub for global retakaful activities.


• Expected to breakeven within 3 years.


• Currently 5 staff.


• CEO: Dr Ludwig Stiftl.

http://www.btimes.com.my/Current_News/BTIMES/Friday/Nation/20080404004315/Article/