RGA

What You Should Know

Reinsurance Group of America, Incorporated is a global life and health reinsurer that assumes mortality, morbidity, and longevity risk from primary insurers and invests its reserves largely in interest-bearing bonds and other fixed-income instruments. Reinsurance is a form of conventional insurance and involves gharar (excessive uncertainty) and riba (interest), both prohibited under Islamic law, and the investment income that drives a large share of profit is interest-based. Because the impermissible elements are the core of the business model rather than an incidental line, the stock fails the activity screen and the verdict is non-compliant regardless of the financial ratios. The Islamic alternative is retakaful.