Absa Group has acquired Takafol South Africa, which is the only company offering Islamic insurance in South Africa. The transaction amount has not been disclosed.
Islamic insurance, or takaful, makes up only one per cent of the global insurance market, but is growing as highly populated Muslim markets such as Indonesia and Malaysia turn to products compliant with Islamic law.
South Africa’s Islamic insurance market brings in about 3 billion rand ($419 million) in annual premiums, Business Day newspaper said on Friday.
Following the acquisition, Absa eventually plans to roll out Islamic insurance products elsewhere on the African continent, said Uwaiz Jassat, the Takafol South Africa executive who will head the new Absa unit.
Global takaful contributions will likely reach $12 billion by the end of 2011 from $9.15 billion last year, according to a report by consultants Ernst & Young said.
Absa is the South African bank majority owned by Britian’s Barclays.
Source : Reuters
