This is the first time that Capita Insurance Services has invested in an insurance intermediary business alongside the provision of business outsourcing services, a strategy it is looking to develop. The deal, which is backed by XL Group, who will provide the insurance capacity for selected marine, property and casualty and trade credit products, also involves outsourcing specialist Capita providing business outsourcing services to Cobalt for a minimum of five years.

The provision of Shariah compliant insurance in London is limited and this deal significantly enhances access to this type of insurance and reinsurance capacity.

Global reinsurance intermediary Aon Benfield advised on the strategic planning, feasibility and licensing of Cobalt, while The Bank of London and Middle East also provided start-up support.

The HFW team consisted of Partner Ashwani Kochhar and Associate William Reddie.