General Insurance Article - First Shariah compliant M&A insurance product launched

American International Group advised by global law firm Norton Rose Fulbright, has placed the first Shariah-compliant insurance policy in the Middle East and North Africa region (MENA) for merger and acquisitions activity.

 AIG offers a range of market-leading Islamic insurance solutions for M&A transactions, through its partnership with Shariah-compliant managing general agent Cobalt Underwriting. AIG’s Warranty and Indemnity (W&I) insurance product helps protect buyers and sellers from financial losses if misrepresentations or inaccuracies in representations or warranties occur. Buyers can distinguish bids, sellers can reduce indemnity obligations – and both can close the deal more efficiently.

 The Norton Rose Fulbright team advising AIG was led by corporate/M&A partner Adjou Ait Ben Idir of the firm’s Dubai office assisted by senior associate Agnieszka Braciszewska (lead associate), senior associate Rachel Moylan (IT/IP aspects) and of counsel Louisa Lynch (real estate aspects). Partner Dominic Stuttaford of the firm’s London office advised on tax aspects.

 Mark Storrie, Emerging Markets M&A Manager at AIG said: “Sharia-compliant W&I insurance provides a unique and exclusive solution for MENA clients investing both in the region and globally. With any transaction, there is always the risk of an unknown or undiscoverable issue turning what was thought to be the perfect deal into something rather less attractive. This insurance product offers a practical solution, and we are very pleased to have placed the first policy in the region.”

 Sheikh Zubair Miah, Internal Shariah Scholar of Cobalt Underwriting added: “The MENA region has always been at the forefront of Islamic finance. AIG’s Islamic M&A insurance product is another step in the positive direction ensuring that all aspects of Islamic financial transactions are Shariah-compliant, relinquishing the need to rely on the principle of necessity (Dharurah). Cobalt is pleased to have worked with AIG to introduce its highly rated W&I insurance product, which has been reviewed and structured to ensure it strictly adheres to principles of Islamic insurance.”

 Adjou Ait Ben Idir commented: “W&I insurance is becoming a key component of structuring M&A transactions in MENA. Our market knowledge and strong capabilities in both M&A and insurance have already allowed us to advise on a great number of W&I policies worldwide and we think that the use of Sharia complaint W&I policies will increase in MENA. We are very pleased to have, once again, successfully advised AIG.”

Back to Index

Similar News to this Story

Survey shows Lloyds Managing Agents facing tough challenges
Mazars has published its annual Lloyd’s Coverholder Management Survey. It found that 55% of Lloyd’s Managing Agents are struggling with resources in t
Impact of Artificial Intelligence on the reinsurance sector
For the past few years, Artificial Intelligence (AI) has been rolled out with spectacular speed in an increasing number of areas, such as medicine, th
Technology transforming the travel insurance industry
The move by the Co-op to marry technology with unlimited medical expenses - with its first foray into the travel insurance market - has been hailed as

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.