CBB, Allianz Group announce launch of Allianz operations in Bahrain

The CBB, earlier this year, granted a licence for the establishment of Allianz Takaful (Bahrain), which will undertake family takaful, with a focus on life insurance, investment-linked insurance as well as health and medical insurance.

Allianz plans for Bahrain also include the proposed establishment of the company's central office, which will monitor, support, guide and control the various insurance operations of Allianz throughout the Middle East and North Africa (MENA) region as well as in the Indian Subcontinent. Allianz has established the Middle East as its third major growth region, in addition to Asia Pacific and New Europe.

Allianz is one of the world's leading insurers and financial services providers. Founded in 1890, Allianz SE is now present in more than 70 countries with over 170,000 employees. The company, with total revenues of more than $142.5bn and a net income of more than $10bn in fiscal 2006, is also one of the world's largest asset managers, with third-party assets of $1.1 trillion billion under management at year-end 2006.

"The CBB is delighted to welcome the Allianz Group to Bahrain and we look forward to a close working relationship with Allianz Takaful (Bahrain)," said Mr. Anwar Khalifa Al Sadah, Deputy Governor, at the CBB.

Mr. Al Sadah will welcome today Dr Werner Zedelius, Member of the Board of Management at Allianz SE, the holding company of Allianz Group, and Mr. Sam Ghosh, the new Bahrain-based Regional Chief Executive Officer of Allianz.

"The insurance business, in general, and takaful, in particular, is a developing business opportunity with tremendous potential throughout the MENA region," said Mr. Al Sadah.

"We, at the CBB, strive to ensure a conducive, business-friendly environment that not only protects the integrity of our financial sector but also enables CBB licensees to deliver the growing demand for financial services, including insurance and takaful."

The CBB is a strong advocate of and has an established policy of engaging the industry in the formulation of rules and regulations, he pointed out.

"We consider cooperation between the CBB and our licensees of vital importance for the continued development of Bahrain as a premier international financial centre and we look forward to working with Allianz in Bahrain to develop the insurance and takaful industry,"

said Mr. Al Sadah.

Dr Zedelius said: "We see huge potential to realize profitable growth in the region. Customer demand for insurance and financial services in the Middle East is rising, and Allianz traditionally enjoys a very good reputation in the region. With the Middle East as our third major growth region, we will elevate our presence there to a new level and set the course for internal and external growth."

Mr. Ghosh added: "We are determined to grow in the life and health insurance business, where we want to expand throughout the region. In the property and casualty insurance business, rising wealth and huge development projects in the region offer great opportunities. In addition, we will further develop our takaful business, where Allianz can already build on business experience."

Mr. Abdul Rahman Al Baker, Executive Director, Financial Institutions Supervision, said there is a significant need for the insurance and takaful services in the MENA region, driven by robust economic growth, renewed Government investment in large infrastructure projects and strong private sector investment in real estate and other economic sectors.

In addition, increasing public awareness and acceptance about the need for insurance is also contributing to the growing demand for insurance products, both conventional and Islamic, he said.

"The CBB is confident that the entry of international players, such as Allianz, in the region's insurance market will help unlock the insurance opportunity and develop the industry to its full potential," said Mr. Al Baker.