Takaful Insurance for Africa's largest shareholder, Cooperative Insurance Company (CIC) is relishing its decision to invest in Kenya's first Takaful company.
CIC's GM, Kenneth Kimani, citied TIA's strong progress and the fact that Takaful in Kenya offers better opportunities for growth than conventional insurance.
CIC owns 20% of TIA which saw more than $1m of premiums collected in the first four months of operations. The firm, formed earlier this year, currently has a monopoly on underwriting Shari'ah compliant general insurance business in Kenya.
Kimani told The Islamic Globe: "The investment in TIA makes good business sense and it blends nicely with our business model as a cooperative [entity]."
CIC is owned by over 1,500 co-operative societies and over 2,500 individual co-operators with the Co-operative Bank of Kenya holding a 21% stake.
Kimani said that despite CIC's plans to expand into Malawi, Rwanda and South Sudan next year, it will not open Takaful windows in those countries. "TIA remains an independent investment on its own and we intend to remain a conventional insurer," he said.
CIC purchased its stake in TIA for $1.1m.
© The Islamic Globe 2011
