Protection Insurance Broker

10/04/2013

Asia Capital Re opens branch office in Dubai

Singapore-based reinsurer Asia Capital Reinsurance Group (Asia Capital Re) has received final regulatory approval to open its branch office in the DIFC and began operations from 1 April 2013. Headed by Senior Executive Office Rainer Lehner, the Dubai office is Asia Capital Re's second branch office after Hong Kong.

“The economic growth in the Middle East has spurred governments across the region to proactively support investments in the infrastructure, commercial and residential property sectors,” says Dr Reto Brosi, Principal Officer of Asia Capital Re.

"We see tremendous corresponding opportunities for the (re)insurance sector to support this burgeoning growth. As a major economic centre in the region, Dubai is strategically located for Asia Capital Re to better service our expanding client base across the Middle East with our unparalleled combination of international underwriting expertise and deep local insight of the region’s risk exposures and business culture," Dr Brosi adds.

"Supported by colleagues in our Singapore headquarters, our Dubai Branch Office offers full-fledged underwriting capabilities for facultative and treaty businesses including property, energy and engineering lines. It also provides dedicated support in risk engineering, capital relief solutions, enterprise risk management, actuarial services and underwriting. Having a physical presence in the Middle East also allows us to respond even more quickly and be closer to our valued business partners,” says Mr Lehner.

09/04/2013

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Protection Insurance Broker providing quality life insurance,business group insurance,Personnel Insurance,General Claims,Overseas Insurance in UAE.

09/04/2013

UAE stock markets ease

Dubai:
Retail investors’ profit booking snapped three days of positive run on Dubai Financial Market on Sunday. The index dropped 0.29 per cent to close at 1875.07 with major heavyweight stocks taking a toll.
However, there was one bright spot with Dubai Islamic Bank gaining the most in almost two years after the Shariah compliant lender announced that it paid a government loan it had taken in 2008 before it was due. Also, since last week there has been speculation in the market that the bank would buy the remaining stake in Islamic mortgage lender Tamweel. The shares of DIB surged 4.13 per cent to Dh2.27 and was the topmost gainer on the day.
Emaar fell 2.24 per cent to Dh5.23 ahead of its AGM on Tuesday when it is expected to vote on its 10 per cent dvidend proposal. Emirates NBD slipped 0.98 per cent to Dh4.05.

06/04/2013

Oman: CMA grants approval for first sukuk issuance

Oman's financial regulator Capital Market Authority (CMA) has granted in-principle approvals to two companies to issue the country's first sukuk.



Tilal Development Company (TDC) earlier said that it is planning to float a OMR50 million (US$130 million) sukuk issue by this year.

Mr Abdullah bin Salem bin Abdullah Al Salmi, Executive President of CMA, says the regulating authority has introduced more or less same procedures for sukuk and the instrument will be traded on the stock exchange like any other bond issue. The draft law for Islamic insurance or takaful firms and amendments in Capital Market Law for accommodating Shariah compliant debt instrument are now in the final stages.

CMA earlier said that a joint stock company or a special purpose vehicle can be used to float sukuk, and will not be subject to taxation. The draft regulation also stipulates that a company can issue sukuk only to the extent of its net worth, which is not a condition in many other countries.

03/04/2013

Tunis Re's retakaful business grows 62%

Tunis Re's retakaful business grew 62% year-on-year to TND1.38 million (US$880,000) in turnover in 2012, on the back of more intense marketing efforts and an increase in portfolio.



“We are seeing a continuous growth in respect of the retakaful market,” said Mrs Lamia Ben Mahmoud, Chairwoman of Tunis Re in an interview with Middle East Insurance Review. “Since the launch of Tunis Retakaful in 2011, we have adopted a competent marketing strategy towards the takaful operators; our underwriters are committed to making periodic visits to our partners and to be present in various Arab and African meetings.”

The company’s retakaful portfolio has grown from TND 1 million in the first year of business to TND 3 million this year, she added.

“Our strategy for this line of business is to reinforce our presence in the Tunisian market, especially after the establishment of two other local takaful companies, and to extend our capacity to potential partners mainly from the Arab, African and Asian markets,” said Mrs Ben Mahmoud.

Tunisia currently has one takaful operator, Zitouna Takaful, with two more waiting to enter the market.

01/04/2013

GCC Islamic banking assets continue healthy expansion

Islamic banking assets of commercial banks in the GCC are expected to have grown 14% on year to US$445 billion at the end of 2012, with the outlook for the industry remaining relatively positive in 2013, according to estimates by Ernst & Young's Global Islamic Banking Center.

Qatar was the fastest growing market where Islamic banking assets are expected to have grown by more than 23% during 2012.

“We expect a relatively positive outlook for the Islamic banking industry in the GCC,” Mr Ashar Nazim, partner, Global Islamic Banking Center, Ernst & Young says. “Quality of growth remains under pressure and we expect more Islamic banks initiating an honest introspection of their operating model, especially with regards to the weak data management infrastructure."

He adds: "Inability of most Islamic banks to generate accurate data and on time remains a serious concern for the management, the board as well as the regulators. Where such information is available, the analysis remains very rudimentary and has not really translated to a true competitive advantage."

In comparison to their conventional banking peers, Islamic banks remain technologically disadvantaged as software systems are primarily designed for financial institutions based on conventional banking frameworks. While the industry regulators are looking to tackle this issue, it remains a concern for the industry leading to significantly higher operational and commercial risk.

“Major investments in transforming the operating model are under way. Discussions with management reveal that a common theme across most banks is to get to know their customers,” said Mr Nazim.

Global Islamic banking assets with commercial banks are now at $1.55 trillion at end of 2012 and projected to exceed $2 trillion by 2015. Ernst & Young’s Islamic Banking Universe in its estimates represents banks across 22 major Islamic finance markets.

27/03/2013

Political risk on the slide as "new order" emerges in ME

Political risk has eased in 13 countries including three Middle Eastern countries - Bahrain, Oman and the UAE - after several years of downgrades due to the Arab Spring, the political effects of the global financial crisis and persistent strains in South Asia, according to Aon's annual political risk map.

The map, created in partnership between with Roubini Global Economics, shows 12 countries experiencing downgrades in 2013, compared to 21 a year ago. Among the downgrades include seven African countries, namely Algeria, Cameroon, Chad, Ethiopia, Madagascar, Mali, and Namibia.

According to the map, a "new order" has emerged in the Middle East, reflecting a stabilisation and differentiation of political risk in the MENA region. However the research notes this might be temporary as the region is still fragile and divided between the countries with stronger economic and financial institutions and those with greater wealth which increases their resilience to adverse political and economic events. Moreover, it underscores the importance of strong corporate and financial institutions, which cushion the effects on individual countries.

"Despite the upgrades this year, businesses operating in emerging markets still face significant political risks. We work closely with our clients to identify their exposures to these risks. Supported by powerful data and analytics of current and historical trends this new interactive map gives clients unprecedented clarity when assessing their political risks in the emerging markets," says Mr Matthew Shires, Head of Aon Risk Solutions' political risk team in London.

"This year the political risk exposure across emerging markets remains volatile. However our data illustrates a differentiation led by a country's financial ability to bolster its balance sheets. Our analysis indicates that Oman, Bahrain and UAE have all experienced upgraded political risk exposure, illustrating their strength in the region to withstand the impact of the 2010 Arab Spring," adds Mr Richard Green, CEO of Roubini Global Economics.

26/03/2013

Egyptian parliament approves sukuk law

Egypt's parliament yesterday approved a law allowing the issuance of sukuk which could provide the heavily-indebted government with a new form of finance.

The Upper House voted in favour of the law that was approved by the government and subsequently sent it to President Mohamed Mursi for final approval.

Finance Minister Al-Mursi Al-Sayed Hegazy earlier said Egypt could raise around $10 billion a year from the sukuk market - much more than some analysts expect - but added it would take at least three months to push through the necessary regulations.

20/03/2013

Strong demand for trade credit cover seen in MENA

The MENA region is seeing strong demand for trade credit insurance (TCI), with keen appetite especially from the UAE.

Coface’s quarterly country risk assessment survey reveals a strong showing for the GCC, where TCI currently stands at AED20 billion (US$5.4 billion), with the UAE gaining an A3 rating for the first quarter of 2013.

It predicts TCI in the UAE will grow by 50% within two years in terms of volume of transactions covered. Mr Gregory Le Henand, Coface's GCC Country Manager, says the projected growth reflects the UAE’s premier position both as a regional and international import and re-export hub.

“Whilst oil prices remain high at around US$115 per barrel, GDP rates continue to underpin public spending and safeguard trade which is the lifeblood of Dubai’s economy”, he adds.

The company attributes its good results in 2012 to the emerging markets’ performance, with premiums up by 4% in MENA and double digit growth in Asia and Latin America.

Meanwhile, the Arab Investment and Export Credit Guarantee Corporation (Dhaman) will continue to provide investment and export credit guarantee services despite the ongoing political and social events in the Arab world, says its Director-General, Mr Fahad Al-Ibrahim.

Mr Al-Ibrahim says the events in a number of member states did not constitute an obstacle for Dhaman to provide its investment and exports credit guarantee services. Dhaman has also reviewed its policies and underwriting procedures, taken a number of precautionary measures, and increased the size of its operations during 2012.

Export Development Canada (EDC), the country's export credit agency, said it paid out $358 million in claims last year, up from $55 million in 2011, as a result of the unusually large claims in its political risk insurance programme due to turmoil in MENA.

19/03/2013

MENA Insurance CEO Club welcomes Mr Fahad Al-Hesni as new member

The MENA Insurance CEO Club (MICC) has welcomed Mr Fahad Al-Hesni, Managing Director and CEO of Saudi Re, as one of the new members to be inducted in 2013.

This brings the Club’s exclusive membership to 17. There are several more in the process of finalising their membership and more waiting to join the Club to serve the region’s dynamic growth and development.

Mr Al-Hesni is the first CEO from a Saudi Arabia-based company to become a member of the MICC. Dr Bassel Hindawi, Steering Committee Member said: "Fahad is a well-known industry figure who has many years of diversified experience in the insurance industry in the MENA region. With his rich experience, we trust that he will contribute significantly towards the Club's mission of serving as a think tank to shape and spearhead the future development of the regional insurance industry."

Mr Al-Hesni enjoys many years of diversified experience in the (re)insurance industry in the MENA region. He started his insurance career in Tawuniya in 1994 and progressed into different business and technical functions, culminating with the position of Vice President – Property & Casualty. In 2011, Mr Al-Hesni became Managing Director and CEO of Saudi Re.

18/03/2013

GCC: Insurance Federation to see regional motor scheme by end-2013

The Gulf Insurance Federation has approved a preliminary draft to launch a unified motor insurance policy in the GCC region by the end of 2013, say media reports. The Federation is expected to announce the scheme's implementation during an upcoming meeting scheduled in Doha.

The draft has been circulated among major insurance companies in the region to gather suggestions and recommendations. Once implemented, the unified regional policy will eliminate the need to buy separate motor insurance covers within the GCC region.

The proposed policy would not affect motor insurance laws of the countries in the GCC, says Mr Mohamed Mazhar Hamda, Head of the technical committee of the Federation, adding that a mechanism of how accident claims would be settled needed to be worked out. "We are currently busy studying relevant rules and regulations of the member-countries so as to develop an effective mechanism for accidents claims settlements," he was quoted as saying.