Press Release
JCR-VIS Assigns Positive Outlook to Pak Qatar General Takaful Limited
Karachi, November 29, 2012: JCR-VIS Credit Rating Company Limited has maintained the Insurer Financial Strength (IFS) rating of Pak Qatar General Takaful Limited (PQGTL) at ‘BBB+’ (Triple B Plus). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’.
The assigned rating incorporates support of sponsors, which feature well reputed Qatar based Islamic financial institutions. While the management has successfully reduced concentration in the Ijarah portfolio, proportion of overall motor business continues to be on the higher side. Going forward, PQGTL plans to enhance focus on other classes of business in order to improve underwriting mix. Underwriting losses have persisted in 2011 and the on-going year; combined ratio in 9M12 was only slightly lower than 2011. Expense ratio needs to be optimized while improvement in underwriting performance is required to generate positive earnings from core operations.
In order to arrest the rising leverage indicators and achieve compliance with increased solvency requirement, the sponsors have approved equity injection of Rs. 100m in the company before the close of the on-going year. Equity injection is expected to provide support to both liquidity and capitalization.
For further information on this rating announcement, please contact Mr. Abdur Rahim (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 (10 lines) or fax to 35311873.
Jamal Abbas Zaidi
Deputy CEO