Lahore, August 10, 2016 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has assigned the Insurer Financial Strength (IFS) rating of “A” (Single A) to Pak Qatar Family Takaful Limited (PQFTL). The rating denotes a strong capacity to meet policyholders and contract obligations.
The rating reflects sustained market position of the company, having decent foothold in banca takaful. In this segment, the company benefits from technical collaboration with FWU AG. The technical collaboration allows Pak Qatar Family to use FWU’s Sales and Administration System, customised Banca product (mutually developed) – backed by strong reinsurance arrangements and FWU’s services for acquiring the distribution partner.
The growth pattern, though high, is behind large players in recent years. 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 is supported by adequate liquidity coverage to policyholders’ liabilities, which is further topped up by a cushion from liquid investments of the shareholders’ fund.
The rating is dependent upon 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 sizeable volumes. The continued profitability would enable the company to completely return Qarz-e-Hasna to the shareholders’ funds, thereby making the statutory funds – health – self-subsistent fully.
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