This morning, at an elegant breakfast at Summerplace in Johannesburg, Absa Insurance Company Limited, a wholly-owned subsidiary of Absa Financial Services Limited, and Takafol South Africa, announced that they have reached an agreement on the terms of the sale of the Takafol SA business to Absa Insurance Company.
Strategically positioned alongside Absa Islamic Banking, Absa Takaful will further cement the Group’s position as the leading provider of Islamic financial solutions.
Since its establishment in 2003, Takafol SA has grown considerably and continues to provide its customers with quality products and excellent service. AIC’s relationship with Takafol SA dates back to 2008 when AIC started underwriting Takafol SA’s business. This resulted in Takafol SA’s personal lines and commercial business growing by over 66%.
The integration of the administration of Takafol SA’s products into AIC will provide more direct control over underwriting, pricing and robust management. Furthermore, this new offering, as part of Absa’s Islamic range of products, will meet global standards of Shari’ah governance.
Recent customer insights have revealed that there has been a fundamental shift in customers’ requirements. The product-driven era is over and the focus is now on providing holistic financial solutions. Through AIC and supported by Absa Islamic Banking, Absa Takaful will be in a better position to respond to customer needs in an extremely dynamic environment.
Edwyn O’Neill, Absa Insurance Company’s Managing Director, says: “This deal demonstrates Absa’s commitment to provide the Islamic community with a holistic financial services offering that is Shari’ah compliant. Today, we cement our relationship with the Islamic community and recognise the need for similar products in the rest of Africa.”
“The global Takaful and Re-Takaful industry is experiencing significant growth, with the principles of mutual or joint guarantee being its foundation and playing a significant role in societies’ economic and social development. Integration into the Absa Group positions Takafol South Africa to expand Absa’s Takaful offering into the African continent,” says Uwaiz Jassat, Takaful South Africa’s CEO.
The incorporation of Takafol South Africa into the Absa Group marks a significant milestone in strengthening the partnership and unlocking value for clients.
Amman Muhammad, Managing Director of Absa Islamic Banking, says: “This acquisition provides us with an opportunity to significantly grow in South Africa and the rest of the continent also. Absa Takaful will see us expand our service offering beyond banking and provide customers with an unparalleled Islamic value proposition. Since our launch in 2006, Absa Islamic Banking has succeeded in gaining market share through our continuous innovation and by offering a specialised Islamic product portfolio.”
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