Pru Life UK Takes Step Towards Islamic Financial Promotion and Education with AAIIBP Partnership

The partnership seeks to promote Islamic finance and Takaful, a Shariah-compliant form of insurance. 

A pioneer in investment-linked life insurance products, Pru Life UK has proudly announced its partnership with Al Amanah Islamic Investment Bank of the Philippines (AAIIBP). This partnership aims to help expand the reach of financial inclusion particularly to Filipino communities in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). 

In order to achieve this goal, the partnership will promote Islamic finance as well as Takaful, a Shariah-compliant form of insurance that means joint guarantee. Through financial education as well as capacity-building initiatives, Pru Life UK and AAIIBP hope to help BARMM communities achieve financial security. 

AAIIBP is the first Islamic bank in the Philippines. The bank promotes and accelerates socio-economic development through banking, financing and participating in agricultural, commercial and industrial ventures that are based on the concept of Islamic banking. 

“Pru Life UK’s Takaful journey is driven by our commitment to social inclusion, aiming to provide financial protection to more Filipino families,” said Atty. Paul Mandal, Pru Life UK’s Chief Legal, Government Relations and Sustainability. “We are excited to collaborate with AAIIBP on financial education and capacity-building to help address the need to fill in the gap in financial education especially for Muslim communities.” 

Insurance Product Complaint with Shariah 

In line with the goal of the partnership, Pru Life UK is planning to launch an insurance product that is compliant with Shariah’s rules and principles. Shariah is a set of Islamic laws that serves as a guidance on how to live a moral life.

According to Shariah’s rules and principles when it comes to finance, taking interest on loans, which is known as riba, is prohibited. They likewise state that both profits and losses must be shared in contracts. 

“As the country’s first Islamic bank, AAIIBP is committed to advancing financial inclusion through Shariah-compliant solutions,” said AAIIBP Chairman & CEO Amilbahar Amilasan, Jr. “The partnership with Pru Life UK on financial education and capacity building is a significant milestone in our efforts to uplift Muslim communities and empower them to become key contributors to the nation’s progress.” 

“We are eager to witness the positive impact this collaboration will bring,” the AAIIBP executive added. 

Pru Life UK’s Takaful Journey 

Pru Life UK’s partnership with AAIIBP is the latest step in its Takaful journey, which aims to bring community investment and engagement initiatives for the Muslim community. Takaful is rooted in the principles of cooperation and mutual protection. It functions like a mutual fund wherein eligible participants agree to guarantee each other. 

As part of its journey, the insurance company launched its Adopt-a-Madrasah program in October 2024. Adopt-a-Madrasah covers over 450 students and teachers from three community madrasahs in Bangkal, Davao City. 

Pru Life UK targets to expand the reach of the program by launching a series of financial education sessions. These are set to take place within the year in key sites across the country, especially in Mindanao.