“Allah carte” insurance powers ahead
Co-operative “takaful” insurance model, designed to be compliant with Sharia law, is a promising source of M&A activity


	U.A.E-based Takaful Emarat Insurance’s net profit jumps by nearly 800% to $3m
	Fitch identifies M&A opportunities in the fast-growing Malaysian takaful sector
	Zurich insurance acquires MAA Takaful to better penetrate Gulf and Southeast Asia


Curation Comment

The sudden flowering of takaful insurance is a great example of how technology is allowing niche financial solutions to flourish and scale to the point where large operators like Zurich are stepping in to leverage that scale into new segments. It is an example of how a sudden boom can lead to an over-crowded and murky marketplace, and lead to calls for regulatory clarity and international harmonization, especially as insurance claims start ramping up and customers start to discover that the companies underwriting them are not properly funded. Fitch thus predicts further M&A action in the sector particularly as minimum risk-based capital requirements and risk practices get introduced, as has happened in Malaysia, causing operators with limited scale and capital burdens to exit or merge over time.

 

Zurich Insurance Co. Ltd. has completed the 525-million Malaysian ringgits ($131.5-) acquisition of Malaysia's MAA Takaful Bhd., reported Free Malaysia Today citing Insurance Journal.

Zurich Insurance purchased the insurer from MAA Group Bhd. and Bahrain's Solidarity Group Holding B.S.C.

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