AIG has released its first Shariah-compliant insurance policy for merger and acquisition (M&A) transactions, targeted at the Middle East and North Africa (MENA) region.

Through its partnership with Shariah-compliant managing general agent Cobalt Underwriting, AIG offers a warranty and indemnity insurance product that protects buyers and sellers from financial losses if misrepresentations or inaccuracies in representations or warranties occur during an acquisition.

The policy allows both parties to finalise deals more effectively by allowing buyers to distinguish bids and reducing indemnity obligations for sellers.

The release of the product was advised by global law firm Norton Rose Fulbright, led by corporate M&A partner Adjou Ait Ben Idir of the firm’s Dubai office.

Mark Storrie, emerging markets M&A manager at AIG commented: “Shariah-compliant W&I insurance provides a unique and exclusive solution for MENA clients investing both in the region and globally. With any transaction, there is always the risk of an unknown or undiscoverable issue turning what was thought to be the perfect deal into something rather less attractive. This insurance product offers a practical solution, and we are very pleased to have placed the first policy in the region.”

Sheikh Zubair Miah, internal Shariah scholar of Cobalt Underwriting added: “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.”


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