Takaful insurer sets up in Bahrain

MANAMA, Bahrain— Dubai Islamic Insurance & Reinsurance Co. and several investors have been granted a license by the Bahrain Central Bank to establish a new takaful insurer in Bahrain.

Aman Bahrain Insurance Co. has been formed with $20 million in capital from Dubai Islamic Insurance & Reinsurance, Al Salam Bank and other investors.

A spokeswoman said the new insurer has not yet announced what coverages it will write.

Sultan Saeed Al Mansoori, chairman of Dubai Islamic Insurance & Reinsurance, said in a statement that the new insurer's formation was prompted by feasibility studies that "showed a high demand for Islamic takaful insurance" in Bahrain.

That demand was "the main reason that encouraged us to establish an Islamic insurance comp any in Bahrain," he said.