Press Release
VIS Reaffirms IFS Rating of Pak-Qatar Family Takaful Limited (PQFTL)
Lahore, August 31, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the Insurer Financial Strength (IFS) rating of Pak-Qatar Family Takaful Limited (‘PQFTL’ or ‘the Company’) at ‘AA (IFS)’ (Double 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 July 22, 2025.
The assigned rating reflects PQFTL's established position in the family takaful sector, supported by its growing operational scale, and sound governance framework. During CY25, the Company made an initial offer of shares to the public, raising capital to meet the revised paid-up-capital requirements of the Securities and Exchange Commission. Meanwhile the Company continued to expand its business through product innovation, while strengthening its distribution network. Management also undertook portfolio optimization by selectively repricing and exiting high-loss group business to improve the risk profile. Operational efficiency was supported by continued digitalization, upgrades to the core takaful administration system, enhanced cybersecurity measures, business continuity arrangements, and readiness for IFRS 17 implementation through parallel runs and system enhancements.
PQFTL remained compliant with the Takaful Rules, 2012 and applicable Shariah governance guidelines under the Wakalah Waqf model. An independent Shariah audit confirmed that the Company's products, operations, investments, and surplus distribution were compliant with Islamic principles. Shariah governance continued through oversight by the Shariah Advisory Board, supported by an internal compliance function and quarterly review of investment holdings.
The ratings further draw comfort from PQFTL's improving financial profile. Gross contributions continued to grow, supported by greater emphasis on single and top-up contributions, strengthening the Company's asset base while maintaining relatively low acquisition costs. Profitability remained supported by investment gains, improved underwriting discipline, rationalized expenses, and an investor centric investment strategy with a dedicated investment arm of Asset Management Company channelizing contributions towards mutual funds to exercise greater vigilance and focused approach to portfolio management. Capitalization strengthened following the successful rights issue and initial public offering during CY25, while liquidity indicators remained sound with liquid assets providing adequate coverage against takaful liabilities. The Company also continues to maintain a low cession ratio and strong retention levels, supporting underwriting performance. Going forward, future ratings action remains dependent on PQFTL's ability to sustain profitability, and enhance its competitive position.
For further information on this ratings announcement, please contact 042-35723411-13 or email at info@vis.com.pk
Applicable Rating Criteria: Life Insurance and 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