Insurer with Islamic specialist Cobalt underwriters

Takaful insurance

XL Group has launched the first sharia compliant insurance for large corporate and middle market clients after signing a binder agreement with Cobalt Underwriting, which specialises in sharia compliant insurance and reinsurance.

Insurance will initially focus on property cover up to $300m and is targeted at the worldwide market apart from the US and Canada.

Cobalt Underwriting chief executive Richard Bishop said the agreement with XL group was “market changing.”

“XL Group has provided the capacity needed to encourage these customers to seek sharia compliant property insurance from us, and we look forward to developing and expanding what we can offer in the future,” he said.

Jason Harris, chief executive of property and commercial insurance for XL Group described commercial sharia compliant insurance as a “growing, untapped market”.

“While we expect a significant portion of the business to come in through the London market, our network, which allows us to serve clients in more than 140 countries, represents a strong asset in serving this important market segment,” he said.

Cobalt launched with financing from Capita Insurance Services and the Bank of London and Middle East, the largest western Shariah-compliant financial institution. Capita will provide business outsourcing services to the MGA for a minimum five year period and owns a minority stake in Cobalt’s holding company.