Lahore, July 01, 2022 (PPI-OT):The rating reflects the maintained market position of the Company, garnering a strong foothold in the takaful industry. Pak-Qatar has been able to sustain its system share gradually while controlling cost post-Pandemic, while simultaneously benefiting from the large investment book. The rating affirmations reflect the stability in PQFTL’s risk-adjusted capitalization levels, neutral business profile, and strong operating performance trends that compare favourably with the industry, essentially driven by the demonstrated strength of embedded underwriting fundamentals. The strong balance sheet strength is eminent through the Company’s relatively liquid investment portfolio mainly composed of equity investments and Government securities.

The Company’s operating results are bolstered by its comprehensive reinsurance program and prudent underwriting guidelines, which translated into a significant increase of 25% in the gross premium written earned by PQFTL in CY21. The Company has benefited from its association with FWU, a Germany based firm, in the form of technical partnership, as the sponsors provide impetus in the form of synergic benefits. Going forward, the management aims to penetrate into untapped segments.

The rating takes comfort from the ability of the Company to capitalize on the market share whilst sustaining the performance. Maintaining the surplus in takaful fund and liquidity position is essential. while continuing to focus on improving profitability.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com