ZURICH (Bloomberg) - Swiss Reinsurance Co., the world's second-largest reinsurer, is starting a Sharia-compliant family and general insurance business in Kuala Lumpur, Malaysia.

The Zurich-based company has received a composite license from the Malaysian financial regulator Bank Negara, Swiss Re said yesterday in an e-mailed statement.

Bank Negara has moved toward liberalisation of the Malaysian insurance industry by granting eight so called takaful and retakaful licenses. Takaful is a Sharia-compliant alternative to conventional insurance, where uncertainty and interest aren't allowed. Insurance broker Willis Group Holdings Ltd. said in July it would increase its investment at its Malaysia unit.

"This new license will allow us to consolidate and enlarge the scope of our efforts by also providing general retakaful solutions," the company said. Swiss Re has been offering family retakaful solutions in the Middle East for three years.

Around $1.7 billion takaful premiums were written in 2007. Swiss Re said the global takaful market could reach $7 billion by 2015. "The 1.5 billion Muslims around the world, and also non-Muslims interested in the principles underpinning Sharia- compliant products, represents a growing client segment for the insurance sector," the company said.