Islamic insurance is a cooperative system of support whereby a number of individuals share the risk of potential loss to any one of them. In the event of such loss occurring, the participants defray the cost incurred to that individual from the payments made by each of them and from the profits of investing those payments so that the net excess of these amounts is distributed amongst them.

In this way, Aman manages the insurance operations for the insured as their agent “Wakeel” and invests funds on their behalf as their fund managers “Mudareb”, against a fixed fee for managing insurance operations and a share of profits for investing funds.

Wakala: is a contract between two parties by which one authorizes the other to manage and invest a certain amount of capital against a fixed charge or a specified share of profits.

Mudaraba: is a contract between two parties by which one offers a certain capital whereas the other (the Mudareb) offers his effort and experience to invest the specified capital. Profits are shared between the two parties based on a fixed agreement.

Islamic Insurance aims to:

Support social solidarity.
Help protect the community from the negative impact of adverse circumstances.
Improve quality of life through the peace of mind that comes from security.
Save and invest money through a shared system that distributes profit on premiums invested by policyholders on an annual basis.

Historically, Aman managed policyholders’ funds through the Islamic principle of mudaraba, investing premiums in Shariah-compliant avenues. With the company’s strategic shift, it is now focusing on:

Transitioning to Investment Holdings:
Aman is in the process of exiting its insurance operations to become an investment holding company.

Asset Optimization:
The company aims to optimize its investment portfolio to enhance financial income, as part of its three-year growth plan.