Bermuda-based insurance group Armour has bought into a London Sharia-compliant insurance and reinsurance company.

Armour has invested in Cobalt Insurance and the firm’s Sean Dalton has joined the London company’s board as a non-executive director.

Cobalt has also appointed former Lloyd’s chairman Max Taylor as chairman of the board, while John Turner, chairman of Aon Risk Solutions in the US and Americas and former Brit Insurance Group chief financial officer Andrew Baddeley have also joined the board in non-executive positions.

Mr Dalton said: ““Cobalt’s position as the sharia re/insurance distributor for Lloyd’s and London market fits well with our niche strategies at Armour.

“We have observed with interest the impressive development of Cobalt’s leadership position in this fast growing sector.”

Richard Bishop, the CEO of Cobalt, said the investment — the terms of which have hot been disclosed — and the new board members would help the firm reach its goal of becoming “a wider financial group serving a growing market in conjunction with leading London market capacity.”

Armour focuses on niche operations in the insurance, reinsurance and asset management sectors.

The company was formed by Brad Huntingdon and John Williams in 2007.

Armour’s operations include underwriting operations, insurance and reinsurance companies, asset management companies and specialist service companies.

Armour joins the original Cobalt investors including Capita and the Bank of London and Middle East.

Mr Bishop added: “We have developed not only a model to serve brokers and their clients seeking sharia compliant insurance and reinsurance solutions but also a range of products that interface with insurers within the London insurance market.”

“This is a highly skilled and experienced sector of the global insurance market that is actively seeking diverse and added-value propositions, particularly within emerging markets.

“Our capacity providers have strong financial ratings and therefore deliver the confidence that our clients require.”