Watania Takaful

The situation

Watania Takaful manages an investment portfolio of credit-exposed instruments — sukuk, bonds, deposits and reinsurance receivables — all subject to IFRS 9 expected credit loss requirements. As a takaful operator, Watania also has to reconcile IFRS 9 outputs with shariah-compliant accounting principles and the oversight of an Internal Shariah Supervisory Committee.

The challenge

Generic IFRS 9 ECL tools are built for conventional banks, not takaful operators. Modelling credit risk on shariah-compliant instruments, applying staging logic to sukuk portfolios, and producing GPPC-aligned disclosures that satisfy both external auditors and the Shariah Supervisory Committee requires a specialist platform.

The solution

Watania Takaful runs Estimator 9 for IFRS 9 ECL across its investment portfolio. The platform handles three-stage SICR allocation, term-structure PD/LGD modelling for credit-exposed instruments, and produces auditor-ready disclosure packs. Shariah-aware accounting workflows sit alongside the conventional ECL calculations, so the finance team can satisfy both reporting frameworks from the same engine.

Outcomes

• Three-stage
  SICR allocation across the investment portfolio
• Shariah-aware
  Workflows alongside conventional ECL calculations
• ECL on sukuk, bonds and reinsurance receivables
• GPPC-aligned disclosure packs for the auditor