Mandarin Re, an international short-tail-lines reinsurer, has received regulatory approval from the Labuan Financial Services Authority to establish a retakaful window, paving the way for the company to offer Shariah-compliant reinsurance solutions globally.
The approval is granted pursuant to Sec. 77(4) of the Labuan Islamic Financial Services and Securities Act (2010).
The newly established retakaful window operates as a dedicated Islamic division within the conventional reinsurer, allowing Mandarin Re to deliver treaties and programmes structured to support wakalah, mudharabah, and wakalah-waqf takaful providers.
To ensure compliance with Islamic jurisprudence and regulatory frameworks, Mandarin Re has appointed Dr. Mohd Rofaizal bin Ibrahim of Afsha Shariah Advisory Sdn. Bhd., a lecturer at the Islamic University of Selangor, to act as its Shariah Advisor.
Dr. Mohd Rofaizal will oversee the governance and structural integrity of the company’s Islamic underwriting operations.
With the new licence, Mandarin Re is now able to help takaful operators world-wide to access additional capacity, allowing them to better serve their communities.
For the reinsurer, the establishment of a retakaful window marks a key strategic milestone in its international expansion strategy, providing portfolio diversification into the growing Islamic financial sector.
Initial development will focus on partnership development with takaful operators, brokers, and financial institutions in Southeast Asia and selected Middle Eastern markets.
Mandarin Re’s initiatives in this area will be headed by Chief Underwriting Officer, Arthur Underwood, bringing substantial expertise in developing and delivering Shariah-compliant risk-sharing solutions tailored for primary takaful operators.
Mandarin Re will use its strong market connections in Malaysia, Indonesia, Brunei, Pakistan, and the Middle East to extend Shariah-compliant capital to business partners in those areas.
Chief Executive Officer, Redzal bin Mohamad, commented: “I have worked with Shariahcompliant products for most of my career. It brings me great pleasure to at last be able to offer risk-sharing solutions compliant with my own faith, built on ta’awun (mutual assistance) and joint responsibility, through Mandarin Re.”
Chief Operating Officer, Mikhail Grishin, said: “This is not simply a regulatory achievement. It’s an important strategic step in our development as a global reinsurer that delivers much-needed risk capacity to underserved markets around the world.”
Underwood added: “Takaful companies around the world are underserved, not just in the Middle East, but also in Europe and North America. With this licence, we are able to help them provide for the members of their communities by extending their ability to share risk.”
