AIG is the third insurer to provide capital to the MGA after QBE and XL

AIG has agreed to provide financial lines capacity to specialist sharia-compliant managing general agency (MGA) Cobalt Underwriting.

The deal will provide additional capital to support Cobalt’s existing lines in property, casualty and financial lines and offer additional capacity for energy and marine underwriting.

In May 2013 Capita bought a minority stake in the company, as part of its strategy to build a portfolio of minority equity stakes in MGAs combined with business outsourcing contracts.

Capita Insurance Services corporate insurance chief executive Colin Grint said: “I am delighted that AIG has partnered with Cobalt MGA, our first Capita MGA investment, to provide increased capital.

“This is an important addition to Cobalt’s breadth of offering and continued growth.

“Cobalt already has agreements with global powerhouses QBE and XL, which highlights that shariah-compliant insurance is now an increasingly important mainstream part of the international insurance industry.”

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