First western Islamic insurer opens in London

The first British Islamic insurance company has been launched, with forecasts of attracting more than 200,000 policyholders over the next five years.

Principle Insurance is the first Islamic-compliant insurer in Western Europe and will allow Britain's estimated 2m Muslims to insure their car or house in line with Shariah law.

Bradley Brandon-Cross, chief executive of Principle Insurance, said London was becoming the centre of Islamic finance and predicted strong growth in Principle's business in the coming months.

He said: "This company will give Muslims in this country the opportunity to buy products in line with their beliefs. At the moment, there are half a million British Muslims who are car owners and this will benefit them."