PACRA Upgrades IFS Rating of Pak-Qatar Family Takaful Limited

Lahore, June 12, 2018 (PPI-OT): The rating reflects sustained market position of the company, having decent foothold in takaful industry. The company has demonstrated momentum in terms of business expansion. The company has limited reliance on single premium; persistency ratio is also good. The company benefits from its brand as being the dedicated takaful company having significant size. Moreover, after having established branch network, Pak-Qatar Family is gradually expanding wings through alternate distribution networks; wherein the success remains to be seen.

Meanwhile, competition from window takaful should be managed well. The profitability of the company has remained strong as compared to peers, reflecting strong business profile. The financial risk profile has been strengthened based on several fresh injection of equity. Pak Qatar Family Takaful has strong liquidity coverage to policyholder’s liabilities, which is further topped up by a cushion from liquid investments of the shareholder’s fund.

The rating depends upon the company’s ability to improve its market share while improving the persistency of Gross Contribution. Product diversification in non-banca segments should be translated into size-able volumes with enhanced profitability. Meanwhile, financial metrics need to continuously improve.

For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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PACRA Upgrades IFS Rating of Pak-Qatar Family Takaful Limited

Lahore, June 12, 2018 (PPI-OT): The rating reflects sustained market position of the company, having decent foothold in takaful industry. The company has demonstrated momentum in terms of business expansion. The company has limited reliance on single premium; persistency ratio is also good. The company benefits from its brand as being the dedicated takaful company having significant size. Moreover, after having established branch network, Pak-Qatar Family is gradually expanding wings through alternate distribution networks; wherein the success remains to be seen.

Meanwhile, competition from window takaful should be managed well. The profitability of the company has remained strong as compared to peers, reflecting strong business profile. The financial risk profile has been strengthened based on several fresh injection of equity. Pak Qatar Family Takaful has strong liquidity coverage to policyholder’s liabilities, which is further topped up by a cushion from liquid investments of the shareholder’s fund.

The rating depends upon the company’s ability to improve its market share while improving the persistency of Gross Contribution. Product diversification in non-banca segments should be translated into size-able volumes with enhanced profitability. Meanwhile, financial metrics need to continuously improve.

For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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