Tokio Marine Launches Takaful Operations in Egypt
Tokio Marine Holdings Inc. [50962] said its two takaful units, Nile Family Takaful Co. and Nile General Takaful Co., commenced operations in Egypt in January.
The Japanese insurance group has a 40% investment in these two operations through its wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co. Ltd. [85100].
Tokio Marine set up these Shariah-compliant life and nonlife insurance companies in joint ventures with Egypt Kuwait Holding Co., one of the largest private equity holding companies in the Middle East and Africa. With authorized capital of US$500 million, EKH has investments in businesses including energy, manufacturing, fertilizers, insurance and information technology.
The Egypt-based takaful operations were established in October 2008. Each takaful operation is capitalized at about US$5.5 million. Tokio Marine & Nichido and EKH own 40% and 60% stakes in the two takaful operations, respectively.
Nile General Takaful targets the commercial segment with business lines such as motor and homeowners insurance. Nile Family Takaful offers life insurance and loan-related life insurance products.
The two takaful companies are expected to generate about US$3.5 million in annual premium income in the first financial year. This is anticipated to increase to about US$136.4 million in 10 years, according to Tokio Marine.
"As a result, the new companies are expected to gain more than a one-fifth share of the takaful market in Egypt, where robust growth is anticipated," said Tokio Marine.
Tokio Marine also has takaful operations in Bahrain, Dubai, Indonesia, Malaysia and Singapore, said a spokesperson for the insurer.
In 2001, the Japanese insurance group started its first family takaful unit, Arab Eastern Insurance Co. Ltd., in partnership with Hussein Aoueini Co. in Bahrain and Saudi Arabia.
In Indonesia, the general takaful operation P.T. Asuransi Tokio Marine Indonesia [86731] was started in 2004. In Malaysia, family and general takaful insurer Hong Leong Tokio Marine Takaful Bhd. [88876] began operations in 2006.
In Dubai, Tokio Marine has a service company, Tokio Marine Middle East Ltd. Tokio Marine Retakaful Pte. Ltd. [78534] is a Singapore-based family retakaful operation.
Tokio Marine & Nichido Fire Insurance Co. Ltd. currently has a Best's Financial Strength Rating of A++ (Superior).
(By Iris Lai, Hong Kong bureau manager: [email protected])
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News