Press Release
JCR-VIS Reaffirms IFS rating of Pak Qatar General Takaful Limited at BBB+
Karachi, December 14, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Pak Qatar General Takaful Limited (PQGTL) at ‘BBB+’ (Triple B Plus). Outlook on the assigned rating remains ‘Stable.’
Even though efforts have been made to increase business in other segments, motor business continues to constitute a sizeable proportion of underwriting mix. Underwriting results of the company have shown improvement in the on-going year following compromised underwriting performance since inception, particularly in 2010. Reduction in net claims ratio and expense ratio translated into better underwriting results for the on-going year. However, consistency of these trends remains to be tested.
Leverage indicators of PQGTL have increased on timeline basis on account of net losses. In view of future business growth targets, equity growth either through profit generation or external injection is warranted to contain leverage indicators within prudent limits. Liquid assets in relation to outstanding claims have decreased over the period, though overall liquidity profile is considered satisfactory.
For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 (10 lines) or fax to 35311873.
Syed Ziauddin Ahmed
Advisor