Takaful premium growth slows as oil slump affects Gulf states
Declining oil revenues have contributed to a slowdown in premium growth of takaful, or Islamic insurance, in the Gulf states to less than 1% last year. The drop from as much as 20% annual growth in previous years is also attributed to a plateauing of pricing, according to S&P Global Ratings. Although earnings were higher for the insurers, S&P warns profits were unevenly spread across the sector and that the capital and credit strengths of some companies have been eroded.

Growth in gross premiums in the Islamic (takaful and Islamic cooperative tawuni) insurance sector in the GCC slowed significantly to less than 1% in 2016, according to a report published yesterday by S&P Global Ratings.