Hannover Re has been granted a license to set up a branch in the Kingdom of Bahrain
Following the establishment of its subsidiary Hannover ReTakaful last year, the reinsurer is now opening a branch office in the Kingdom of Bahrain: Hannover Re Bahrain is expected to commence business operations at the start of the coming year and will concentrate exclusively on traditional reinsurance in the region. The Central Bank of Bahrain (CBB) awarded the company the required licence at the end of June.
"This concentration of our activities in the Arab world will enable our clients to profit from even greater market intimacy and access our full range of services from a single location", Wilhelm Zeller, chief executive officer of Hannover Re, emphasised. "At the same time, the stronger presence in Bahrain will also reduce our operational risk since the two offices optimally complement and dovetail with one another."
While Hannover ReTakaful writes reinsurance worldwide in accordance with Islamic law (known as Retakaful business), traditional business serving Arab markets has hitherto been transacted mostly from the company's Hannover Home Office. In addition to the enormous growth market for Islamic insurance products, demand for conventional covers nevertheless remains undiminished in the region. By establishing this new branch office Hannover Re will now be able to offer its clients both Sharia-compliant and conventional solutions on a concentrated basis from just one location.