IIB made its entry into the European Islamic insurance sector in 2006 by acquiring a 4.55% equity stake in British Islamic Insurance Holdings Limited ("BIIH"). BIIH is the first independent group of UK companies to provide insurance ("Takaful") products that are wholly Sharia'ah-compliant and regulated by the Financial Services Authority ("FSA") under the laws of England and Wales. Being a pre-IPO private placement.

The transaction is projected to give IIB a return in excess of 127% over a one year time frame, subject to a successful IPO. The UK insurance industry is one of the largest in the world. The UK has a large Muslim population which has a general preference for Sharia'ah-compliant insurance products over conventional insurance products. BIIH will have the first-mover advantage as it is the first group to offer exclusive Takaful products in the UK. This transaction is an excellent example of IIB's endeavor to be a broad-based investment bank by diversifying its portfolio through adding another industry within the financial services sector of one of the world's major economies.