Press Release
VIS Upgrades IFS Rating of Pak-Qatar Family Takaful Limited (PQFTL)
Lahore, July 22, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the Insurer Financial Strength (IFS) rating of Pak-Qatar Family Takaful Limited (‘PQFTL’ or ‘the Company’) to ‘AA (IFS)’ (Double A IFS) from ‘A++ (IFS)’. IFS rating of ‘AA (IFS)’ denotes very strong capacity to meet policyholders and contract obligations. Risk factors are very low, and the impact of any adverse business and economic factors is expected to be very small. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on December 7, 2023.
The rating for Pak-Qatar Family Takaful Limited (‘PQFTL; or ‘the Company’) reflects the Company’s sustained leadership in the family takaful sector, supported by a growing market share (Dec’24: 47%; Dec’23: 35%; Dec’22: 26%), strong governance framework, and strengthened operational efficiency. PQFTL continues to demonstrate sound financial performance, with a significant increase in gross contributions driven by the focus on single and top-up contributions. This shift has allowed the Company to reduce its dependency on policy persistency and has enhanced its asset base while keeping acquisition costs relatively low.
The profitability profile has improved despite elevated claim levels, owing to gains on investments, better risk-adjusted pricing, and rationalized expenses. This repositioning reflects the Company’s strengthened risk management framework, guided by client-centric business decisions and an agile response to market dynamics, in alignment with its prudent investment policies. A pronounced tilt toward mutual funds offering liquidity and portfolio diversification is evident.
PQFTL benefits from a strong and diverse shareholder base with experience in Islamic finance, and it continues to maintain sound Shariah compliance through a dedicated supervisory board and regular audits. Its operations are fully aligned with the Wakalah-Waqf model, ensuring a clear segregation of policyholder and shareholder interests. Moreover, its IT infrastructure, cyber security upgrades, and transition to internationally recognized information security standards reflect a proactive approach to digital transformation and risk management.
Capitalization and liquidity indicators remain adequate, with liquid assets providing ample coverage against takaful liabilities. The Company’s low reliance on re-takaful and strong retention practices further bolster underwriting performance. PQFTL’s adherence to regulatory frameworks, including steady progress toward IFRS 17 implementation, reflects its commitment to compliance and best practices in financial reporting.
Going forward, the rating remains contingent upon PQFTL’s ability to sustain profitability, maintain liquidity buffers, and navigate market volatility.
For further information on this ratings announcement, please contact 042-35723411-13 or email at info@vis.com.pk
Applicable Rating Criteria: Life Insurance Family Takaful
https://docs.vis.com.pk/docs/LifeTakaful-Oct-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf