ACR considers future of ReTakaful operation following rating move

ACR is a minority shareholder of ACR ReTakaful Holdings, the parent company of the ReTakaful Companies, with a 20% stake. ACR ReTakaful Holdings’ other shareholders are Khazanah Nasional Berhad and Dubai Islamic Investment Group, which each own a 40% stake in the group. Hans-Peter Gerhardt, ACR group chief executive, explained: “While the long-term prospect of the takaful market appears strong, the retakaful development has been slow so far. ACR will consider its options for the ReTakaful Companies through its perspective as a minority shareholder and as a committed industry stakeholder. We will endeavour to find the best solution in full cooperation with all other shareholders.” Mr Gerhardt added: “At the same time, we would like to reiterate our full support to the management and clients of the ReTakaful Companies, which includes providing our reinsurance capacity.”hideIn a separate move, ACR said that it plans to further integrate another associate company, Asia Capital Reinsurance Malaysia (ACR Malaysia), into the ACR group, as part of its strategic drive to streamline operations. ACR is currently a 30% shareholder of the Kuala Lumpur-based reinsurer. In late November, ACR announced that it had opened a Shanghai representative office after it received regulatory approval received from the China Insurance Regulatory Commission. Mr Gerhardt, said: “Over the years, ACR has built a strong network of relationships in Asia, strategically expanding and deepening our local presence in the region. The Chinese market is of particular strategic importance to us. Our Shanghai representative office will bring us a step closer to establishing an onshore reinsurance operating presence in mainland China.” Dr Yao Jianzhong becomes ACR’s chief representative at the group’s first China representative office, which will for now focus on market research and liaison services, the company said. The creation of ACR’s Shanghai office comes swiftly on the back of the news that ACR had signed an agreement with ArgoGlobal, the Lloyd’s insurer and member of Argo Group, to establish a Special Purpose Syndicate (SPS) at Lloyd’s to underwrite Chinese risks. The new SPS, announced in September and intended to begin underwriting for the 2016 year of account, will be managed by ArgoGlobal Managing Agency and will be supported by a corporate member capitalised entirely by ACR. Under this agreement, Lloyd’s China (ArgoGlobal division) will underwrite a selected proportion of this portfolio, with ACR providing the underwriting expertise and local risk knowledge of the Chinese market. The portfolio is anticipated to represent approximately £30-£35m of gross net premium in 2016. The new SPS will then underwrite an 80% quota share of this proportion, with the remaining 20% being retained by ArgoGlobal’s Syndicate 1200. ACR also recently announced the appointment of Hans-Joachim Guenther as its group chief underwriting officer, based at ACR’s Singapore headquarters. Mr Guenther was previously chief underwriting officer and head of reinsurance for Europe & Asia Pacific at Endurance Specialty Insurance, where his responsibilities included front-line and back-end underwriting functions and platforms as well as the expansion of the Bermudian company’s business presence in Asia.

ACR considers future of ReTakaful operation following rating move

Want to read this article?

Read Next

Strebel to replace Gonzalez as head of Swiss Re China

Premium increases continue to slow down in US commercial P&C market

Berkshire Hathaway discloses minority $6.72bn stake in Chubb

Alternative solutions and specialty drive Scor’s Q1 growth

US commercial lines sector combined ratio increased to 96.2% in 2023

Strebel to replace Gonzalez as head of Swiss Re China

Premium increases continue to slow down in US commercial P&C market

Berkshire Hathaway discloses minority $6.72bn stake in Chubb

Alternative solutions and specialty drive Scor’s Q1 growth

US commercial lines sector combined ratio increased to 96.2% in 2023

Want to read this article?

Read Next

Strebel to replace Gonzalez as head of Swiss Re China

Premium increases continue to slow down in US commercial P&C market

Berkshire Hathaway discloses minority $6.72bn stake in Chubb

Alternative solutions and specialty drive Scor’s Q1 growth

US commercial lines sector combined ratio increased to 96.2% in 2023

Related Articles