Lahore, December 11, 2017 (PPI-OT):The rating denotes strong capacity of the company to meet policyholder and contractual obligations. The rating reflects DFTL’s ability to continue capturing takaful volumes, though this is enough only to sustain market share (~1% in 2017). This is helping the company in gradually bridging the gap towards operational break-even. However, it requires continued business expansion and maintained efficiency. Herein, the company is eyeing bancassurance as an important source of contribution. A sound IT infrastructure provides support to the operational efficacy of DFTL.
The company has adequate risk absorption capacity. However, investment book of shareholders’ fund still has a proportion of non-performing sukuk investments; some of them are being repaid at agreed restructured terms. The rating is dependent upon continued improvement in surplus in takaful fund, sustained liquidity position, and nurturing of recently achieved core profitability. At the same time, upholding strong governance practices is critical. The sponsors financial profile was relatively stretched, which is now improving.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425