PWC says a £200m takaful reinsurance syndicate mooted

A £200m takaful reinsurance syndicate could be launched at Lloyd's, according to Mohammad Khan, director for takaful at PriceWaterhouseCoopers.

Khan told the Reuters Islamic Banking and Finance Summit that such a Lloyd's syndicate would include mainly financial institutions and to a lesser extent individual investors. It could become operational by early-2010 and would write business worldwide.

"Once you get one syndicate you get others, that is not a problem. The Lloyd's model is about sharing, if you think about it, the model lends itself quite neatly to Sharia because it is mutual," Khan said.

"I do not think Lloyd's is just looking at one (syndicate), it would not make sense... Lloyd's is quite serious about this," he said.

A Lloyd's spokesman told Reuters: "We have an active interest in understanding whether the Lloyd's platform could be utilised to underwrite Retakaful business, but are currently only researching whether a syndicate at Lloyd's is viable."