ACR Capital Holdings, the parent of Asia Capital Reinsurance, a Singapore-based reinsurer, has announced the formation of ACR ReTakaful Holdings Limited, a Dubai-based retakaful company. ACR ReTakaful will be a joint venture among ACR Capital and Malaysian and Dubai investment companies. [Link to press release]. ACR annouced that the retakaful company will have $300 million of capital and plans to establish retakaful operating companies in Malaysia and Dubai.
Malaysia in particular has seen significant penetration by takaful companies into traditional insurance markets. Takaful is a shari’a compliant alternative to insurance and is a growing market in countries and regions with significant Muslim populations. Retakaful, as the name implies, provides opportunities to takaful companies to cede risk to a “reinsurer” that conducts its business in a manner that is also shari’a compliant.
