The Returns for Takaful and Re-Takaful Companies

Lit. Guides
Free Essays
Company Analysis
The Profits and the Returns for Takaful and Re-Takaful Companies
The Profits and the Returns for Takaful and Re-Takaful Companies Report
Exclusively available on IvyPanda
Updated: May 18th, 2022
Background Of The Companies
An Analysis of the Returns
Growth In Takaful Operations
The Returns Vs Takaful Operations
A Description Of The Asset Performance
Revaluation Of Losses And Gains On The Income Statement
We will write a custom Report on The Profits and the Returns for Takaful and Re-Takaful Companies specifically for you
for only $16.05 $11/page

811 certified writers online
Dar Al Takaful PJSC was established in 2008 with a paid-up capital of AED 100 Million. It started as an Islamic Insurance Company based in Dubai and it was for your insurance needs. Currently, Takaful has extended to other Muslim populated areas across the world. Along with Takaful, Re-Takaful started in 1985. Re-Takaful may be categorized as another cooperative system of reimbursement. Takaful operators now attract considerable interest, which creates awareness and the need for Re-Takaful to comply with the requirements of Sharia (Ernst&Young, 4). These are the key elements of the strong adherence to the communitys first principles that are fulfilled by the Takaful Company. The Sharia in question regulates the Islamic insurance market. It sufficed to mention that Takaful does not have a long history of operating in the UAE. It has grown due to the rapid expansion of a number of companies. These companies were built on the assumption that the public wanted Islamic institutions. In the year 2010, the market share was 6 percent of the total premiums written. However, between 2005 and 2008 the UAEs Takaful market grew by 135 percent, before shrinking in a declining local economy (Ernst&Young 6). With the help of data charts, this work debates and analyses the profits and the returns for Takaful and Re-Takaful companies.

Background Of The Companies
To begin with, the momentous growth of Takaful and Islamic finance was in the sections of Asia, The Middle East, Europe, and Africa. The firm in question expanded at an estimated compound annual expansion rate of 39% between the year 2005 and the year 2008. To be specific, this was in terms of premiums growth. A growth of 28% in South Asia and 45% in the GCC also occurred. In addition, the growth of international insurance was 7%. One should note that the approximate size of the firms premium was USD8.9bn in 2008 and USD5.3bn in 2008. In as much as Takaful is still a small firm, it is continuously growing (Bhatty, 1).

An Analysis of the Returns
According to Islamic Finance News (7), global Takaful contributions grew by 19% in 2010 to US$ 8.3b. Total contributions are expected to reach US$ 12b by the end of the year 2012. This is illustrated by figure 1 below.

Global Takaful Contributions Growth. Source: “Industry growth and preparing for regulatory change”. The World Takaful Report 2012. Web.
Figure 1: Global Takaful Contributions Growth. Source: Industry growth and preparing for regulatory change. The World Takaful Report 2012. Web.
Current Global Takaful Growth. Source: “Industry growth and preparing for regulatory change”. The World Takaful Report 2012. Web.
Figure 2: Current Global Takaful Growth. Source: Industry growth and preparing for regulatory change. The World Takaful Report 2012. Web.
Growth In Takaful Operations
As shown in figure 2 above, the growth in GCC (excluding Saudi) market comprises 33% of the entire Takaful global market. It also comprises 32% of South-East Asia implying that these two markets are the most dynamic markets in terms of growth. Nonetheless, in terms of the size of the market, the Takaful market is the largest in Saudia Arabia. This owes to the fact that it commands an asset base of approximately US$ 5.5b as of 2012.

The for the Takaful peer group was 26.5% from 2007 to Q3 2009. All firms recorded increased growth rates with the exception of Wethaq Takaful and First Takaful. It is worth noting that both companies are based in Kuwait (Islamic Finance News, 22). The companies were faced with very strong rivalry in the local markets from new entrants and conventional insurers in the Takaful market (See chart 1) below.

Chart 1
Chart 1
The Returns Vs Takaful Operations
The outcomes from the first nine months reveal that the rate of growth may remain sturdy in 2009. The predicted outcome in a number of regional variations portrays a stronger performance by Abu Dhabi compared to Dubai-based firms. For instance, insurance firms in the area tend to insure long-tailed and most complicated risks. Due to inadequate Re-Takaful ability, it is tricky for Takaful operations. In 2008, the GCC peer grouping yielded an average of 40.4% as contrasted to 37.7% in 2006 (See chart 8). This style of reduced risk retention progressed in the first 3 quarters of 2009 with 47.4% of premiums yielded (Zaywa, 2011). This indicates that Takaful operations are progressively shifting to more intricate and long-tailed risk classes that to this day were subjugated by predictable insurers. That said Re-Takaful ability is crucial for the progressive growth of the Takaful industry (Alpen Capital, 12).

Chart 2
Chart 2
In the past years, GCC Takaful firms have displayed increased expenditure ratios as compared to their conservative rivals. This is mainly due to the rather reduced use of technology and the reduced economies of scale. This statement is clearly illustrated by chart 3 below.

Get your 100% original paper on any topic done
in as little as 3 hours
Chart 3
Chart 3
The Takaful participants are somehow limited to their options of Shariah complying investments. In general, the investments involve listed real estate and equities.

Chart 4
Chart 4
A Description Of The Asset Performance
Spotlight to uncertain investments (real estates and equities) in the Takaful operations was estimated at around 61%, by the conclusion of September 2009. This is in contrast to 59% for the predictable peer group (See chart 4) above. Such a holding is usually at around 10% to 20% of the entire investments in complicated regulatory systems. Increased investment risk spotlight is a crucial problem in the to the newly reputable Takaful operations (Atiqah, 14). We predict asset profiles to alter extensively in the future. This is in reaction to the approval of more intricate ruling with capital prerequisites founded on both asset risk exposures and insurance counterpart exposures.

The asset performance was very unpredictable, exhibiting the increased focus on real estate and local equities. Roughly, all participants with the exception of Qatar Islamic Insurance Co earned profits in the initial nine months of 2009 and suffered losses in 2008. This adhered to the course of the entire equity market. The standard investment outcome (with the inclusion of the fair value variations) in 2009 was 4.5%, compared to the negative outcome of 16.3% in 2008 (See chart 5) below. A number of the profits in 2009 vanished in the final four months due to the latest market fluctuations after the standstill announcement of the Dubai World debt.

Chart 5
Chart 5
Revaluation Of Losses And Gains On The Income Statement
In conclusion, the asset piece summarized involves revaluation of losses and gains taken straightforwardly to equity. A number of insurers have selected definite investments as available-for-sale. This implies that the revaluation of losses and gains on the same investments are not exhibited in the P&L statement, but are in use directly to equity. A Mudaraba levy is usually based exclusively on the losses and gains displayed on the P&L statement. This implies that there can be a disconnection involving the asset of the members fund and the charges on the Mudarib (Alpen Capital, 16). Evidently, the impact of the principles for Takaful and Re-Takaful companies is noteworthy. As illustrated in this work, it is the same principles that led to the growth of the firms.

Alpen Capital. GCC Takaful Industry. 2010. Web.

Atiqah, Asha. History, Progress and Future Challenges of Islamic Insurance (Takaful) In Malaysia. 2010. Web.

Bhatty, Ajmal. The Growing Importance of Takaful Insurance. 2010. Web.

We will write a custom Report on The Profits and the Returns for Takaful and Re-Takaful Companies specifically for you!
Get your first paper with 15% OFF
Ernst&Young. Industry Growth and Preparing for Regulatory Change. 2012. Web.

Islamic Finance News. The Takaful and Re-Takaful Industry. 2010. Web.

Zawya. Takaful and Re-Takaful Leaders Lauded at London Gathering. 2011.Web.

This report on The Profits and the Returns for Takaful and Re-Takaful Companies was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Wal-Mart Has Been Revamping Its Stores
Analysis of Paragon Shipping Inc Company
Find free essays, topics
Need a custom Report sample written from scratch by
professional specifically for you?

803 certified writers online

Select a referencing style:

Chicago (N-B)
Chicago (A-D)

IvyPanda. (2022, May 18). The Profits and the Returns for Takaful and Re-Takaful Companies.

Powered by CiteTotal, bibliography maker
Adjusting Entries in the Financial Statements
IAS 16 Model: Property, Plant & Equipment
Pegging The Saudi Riyal To The Us Dollar
Equipment and Leasehold Improvement of Koss Corporation
Midax Advertising Agency Analysis
Saudi Arabian Amiantit Fiberglass Industries Analysis
Qantas Airways Limited Financial Performance
Antitrust Charges Against Johnson & Johnson
3 hours!
We’ll deliver a 100% original paper this fast
Learn More
Paper Details
Reading time 4 min
Type Report
Pages 4
Words 1168
Subjects Business Company Analysis
Related Papers
Takaful Insurance Company in the UAE
Takaful Insurance Company of South Africa
Islamic Finance and Takaful Insurance
The Allianz SF Insurance Company and Its Activities in Saudi Arabia
Car Insurance in Saudi Arabia vs. USA
Al Hilal Bank’s Operation Management Practices
Concept of Asset Revaluation
Open support chat
Your privacy is extremely important to us. We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe.
Contact Us
+1 (866) 236-7979
+1 (800) 303-8389
, . , , , , , .
Study Hub
Free Essays
Writing Tools
Lit. Guides
Donate a Paper
Study Blog
Referencing Guides
Free Textbooks
Tongue Twisters
About Us
Honor Code
Job Openings
Expert Application
Video Contest
Writing Scholarship
IvyPanda Shop
Terms and Conditions
Privacy Policy
Cookies Policy
Copyright Principles
DMCA Request
Service Notice
This is IvyPanda’s free database of academic paper samples. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. The database is updated daily, so anyone can easily find a relevant essay example.

Copyright 2022 – IvyPanda is operated by , , a company registered in the .
Registered office: , . , , , , .

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper