First Shariah-compliant M&A insurance policy in MENA region launched

September 14, 2017

JEDDAH — American International Group, Inc. (AIG), advised by global law firm Norton Rose Fulbright, has placed the first Shariah-compliant mergers and acquisitions (M&A) insurance policy in the Middle East and North Africa region (MENA).

AIG offers a range of market-leading Islamic insurance solutions for M&A transactions, through its partnership with Shariah-compliant managing general agent Cobalt Underwriting. AIG’s Warranty and Indemnity (W&I) insurance product helps protect buyers and sellers from financial losses if misrepresentations or inaccuracies in representations or warranties occur. Buyers can distinguish bids, sellers can reduce indemnity obligations – and both can close more efficiently.

The Norton Rose Fulbright team advising AIG was led by corporate/M&A partner Adjou Ait Ben Idir of the firm’s Dubai office assisted by senior associate Agnieszka Braciszewska (lead associate), senior associate Rachel Moylan (IT/IP aspects) and of counsel Louisa Lynch (real estate aspects). Partner Dominic Stuttaford of the firm’s London office advised on tax aspects.

Mark Storrie, Emerging Markets M&A Manager at AIG said: “Shariah-compliant M&A insurance provides a unique and exclusive solution for MENA clients investing both in the region and globally, removing a potential barrier to the use of M&A insurance and significantly expanding the potential size of the MENA M&A insurance market. We are very pleased to have placed the first policy in the region.”

Sheikh Zubair Miah, Internal Shariah Scholar of Cobalt Underwriting, added: “The MENA region has always been at the forefront of Islamic finance. AIG’s Islamic M&A insurance product is another step in the positive direction ensuring that all aspects of Islamic financial transactions are Shariah-compliant, relinquishing the need to rely on the principle of necessity (Dharurah). Cobalt is pleased to have worked with AIG to introduce its highly rated W&I insurance product, which has been reviewed and structured to ensure it strictly adheres to principles of Islamic insurance.”

Norton Rose Fulbright’s global insurance team advises on the full range of contentious and transactional matters, bringing together broad geographical experience with deep industry knowledge. This combination drives our involvement in a diverse range of domestic and cross-border work on some of the most complex and ground-breaking matters. — SG

September 14, 2017
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