Hannover Re sets up takaful unit in Bahrain

MANAMA, Bahrain—Hannover Re has launched a wholly-owned subsidiary to underwrite so-called retakaful business, reinsurance that conforms with Islamic law.

Hannover ReTakaful B.S.C. (c) is based in Manama, Bahrain.

In the reinsurance industry, Takaful takes the form of a mutual insurance company.

There are currently about 80 takaful insurers active in 20 countries, according to the Hanover based reinsurance group.

These insurers are obliged to obtain reinsurance from a Sharia-compliant retakaful company and may only resort to traditional reinsurance if sufficient retakaful capacity is lacking, explained Hannover Re.