By Patience Saghana
African Reinsurance Corporation (Africa Re) has launched a new subsidiary called African Takaful Reinsurance Company (Africa Retakaful).
The new company is a subsidiary of African Re to give the much needed back up to takaful insurance companies around the globe. Africa Retakaful is wholly owned by Africa Re and licensed in Egypt under the Investment and Free Zone Law.
The Shariah compliant company of the reinsurer is expected to accept business from all regions in Africa, Middle East including GCC countries and Asia.
The Gulf Cooperation Council (GCC) countries consist of Oman, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates (UAE) and the GCC countries supply 1/3 of U.S. oil and own up to $500 billion of U.S.
capital. The World Economic Forum recently released a study on these rapidly expanding countries, which have high standards of living and are seeking to diversify their economies away from oil.
Africa Retakaful is fully compliant with Shariah rules and standards so as to provide the retakaful protection for all Takaful and Shariah complaint clients. With Africa Re’s outstanding experience of the traditional reinsurance business, and its unique position as the leader of the African reinsurance industry, the Corporation will from inception support this new outfit (Africa Retakaful) to become one of the important players in the industry.
This step has been necessitated by the increasing need of Africa’s Takaful Insurance companies for Retakaful, and the fact that Africa Re was established basically to support the needs of the African insurance markets, and for a more balanced portfolio will extend its services to the Takaful players in the Middle East and Asia.
Mr. Bakary Kamara, Chairman of Africa Retakaful stated that the launch of Africa Retakaful as the first Retakaful Operator in Africa will form a milestone for the global Takaful industry by providing all shariah compliant retakaful products to the Islamic based primary takaful products in general, and will assist in developing the Takaful Insurance business in Africa to more prosperous levels”.
Kamara who also doubles as the Group Managing Director of Africa Re Group explained further that the Cairo based company will start writing business from 1st September 2010, and will provide the same quality service that Africa Re’s clients are used to receiving. The company will write business with the same underwriting policy of the Group, and use its existing capacity for all regions in Africa and Asia.
Kamara added that Africa Retakaful will provide the required protection for Shariah complaint products only, and our clients are invited to deal with Africa Retakaful.
It was decided that the clients will decide to place the business with either Africa Retakaful or Africa Re exclusively. In all cases Africa Re, which enjoys the A- rating from S&P and AM Best respectively will provide all the required support for Africa Retakaful.
Meanwhile, Mr. Omar Gouda has been appointed Managing Director of African Reyakaful. Omar, a seasoned and respected reinsurance expert who is well known at home ( Egypt ) and in the Middle East was the Regional Director of North East Africa and Middle East of Africa Re before his appointment.