AIG promoting Islamic Banking and Finance?

[WhiskeyGirl]

ISLAMICBANKING-SUMMIT/TAKAFUL (PIX)

(For other news from the Reuters Islamic Banking and Finance Summit, click on (http://www.reuters.com/summit/IslamicBankingandFinance10?pid=50 0) By Liau Y-Sing

...

Etiqa sees contributions, or the Islamic equivalent of premiums, rising a fifth this year, versus the industry's 12 percent, but slower than last year's 40 percent, its chief Shahril Azuar Jimin said on Thursday.

The growth rate in the previous year was driven by an aggressive hiring of agents which was aimed at rapidly expanding its sales force.

...

Takaful's profit-sharing concept has helped to increase the popularity of Islamic insurance, Shahril said.

"That is seen as part of a greater business proposition so we're not selling compulsion or religion," he said at the Reuters Islamic banking summit.

"The shift from conventional insurance into takaful (is) primarily because... (of) more public understanding that it is not seen as a religious thing but it is also a financial tool."

A shortage of long-term Islamic investments, a lack of sharia reinsurance capacity and the absence of consistency on the sharia compliance of products have been cited as restraining factors.

Some takaful operators' profit margins have also been under pressure due to volatility in equities and the real estate sector.

Still, low insurance penetration in the Middle East have fuelled optimism about the prospects of sharia insurance, leading conventional insurers such as Allianz <ALVG.DE> and AIG <AIG.N> to enter the market. ($1=3.386 Malaysian Ringgit)

http://www.forexyard.com/en/news/Reuters-Summit-Etiqa-Takaful-sees-strong-contributions-growth-2010-02-18T103826Z

Why is AIG entering the market?  Will this be another financial black hole for American taxpayers? 

Another brick in the tomb of this great nation?

What happened to separation of state and religion?

How are they going to keep the profit/loss from various lines of business separate?  Chinese wall?