RIYADH, 16 October 2006 — SABB Takaful Company has been awarded a license to operate in the Kingdom’s insurance industry, allowing it to offer a comprehensive range of Shariah-compliant Takaful products for personal and corporate customers. SABB Takaful will offer both family and general Takaful products, SABB announced here yesterday.
A press release said the Family Takaful product range would consist of life-wrapped unit-linked savings plans, single contribution plans and protection products, aiming to meet clients’ protection needs such as for children’s education. The initial range of general Takaful plans will cover home and contents, travel and personal accident coverage. The corporate and commercial range will offer packaged solutions for small and medium enterprises (SME), marine and cargo risk, and commercial fire protections.
John Coverdale, SABB’s managing director, said: “This development will allow SABB to expand its product range and meet its customers’ needs in the Kingdom’s insurance industry which is set to experience significant growth. SABB Takaful will combine HSBC’s global expertise in insurance and Takaful with SABB’s local knowledge and presence, offering our customers a clear choice of Takaful products for their protection needs.”
SABB has a network of 75 branches, including 12 ladies’ branches. These already offer a comprehensive range of Islamic banking services to personal customers. Through HSBC Amanah, the global Islamic banking division of the HSBC Group established in 1988, SABB Takaful will be able to take advantage of the group’s experience in providing high quality, Shariah-compliant Takaful products. The group already provides Takaful products in Singapore, Malaysia and the UK.
Takaful is an alternative to conventional insurance products. It is based on mutual cooperation in the sharing of risk and addresses key features associated with conventional insurance that do not comply with the Shariah law.
SABB Takaful Company will be a public joint stock company incorporated in Saudi Arabia with a start-up capital of SR100 million. It will be 32.5 percent owned by SABB and 32.5 percent owned by subsidiaries of the HSBC Group. The balance will be floated to the public by an initial public offering (IPO).