Bahrain: Trust Re in trilateral surety bond partnership
Source: Middle East Insurance Review | Dec 2017
Bahrain Islamic Bank (BisB) has become the first financial institution in Bahrain to announce a trilateral Memorandum of Understanding in the surety bond business with Takaful International, supported by Trust Re.
With this strategic partnership of the three parties, BisB will offer the required guarantees to their joint customers’ base, strengthening their commitment to the Bahraini market.
Surety bonds and guarantees (such as performance bonds or advance payment bonds) are required under the terms of a construction or engineering contract to secure the performance of the contractors to project owners.
In this rapidly evolving and challenging market, establishing a strong partnership between the bank and the insurer is key to offer maximum support for contractors in the Kingdom, which can now benefit from the synergies between the banking and the insurance industries, according to a statement published on Trust Re’s website.
Mr Younis Jamal Al Sayed, CEO of Takaful International, said the company has launched surety bonds in 2016, which have been well-received in the market, and encouraged further development via BisB. He added that this step is part of the company’s commitment “to offer advanced insurance services to the market, especially with the support of Trust Re, one of the leading global reinsurance companies”.
Mr Fadi AbuNahl, Trust Re Group CEO & Director, said: “This partnership comes as a result of anticipating what the market needs and we have the required expertise to offer these specialised services.” M