Press Release
VIS Reaffirms IFS Rating of Pak-Qatar General Takaful Limited
Karachi, August 31, 2026: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Insurer Financial Strength rating (IFS) of Pak-Qatar General Takaful Limited (‘PQGTL’ or ‘the Company’) at ‘A+ (IFS)’ (Single A Plus (IFS)). The rating reflects strong capacity to meet policy holders and contract obligations. Risk factors are low, and the impact of any adverse business and economic factors is expected to be small.
PQGTL demonstrated a strengthening financial profile, supported by profitable operations, improving capitalization, and a robust Shariah governance framework. During the review period, the Company successfully completed its Initial Public Offering (IPO), resulting in an enhanced capital base, improved solvency position, reduced financial leverage and therefore enhanced room to grow. In addition, the Board structure was realigned to comply with the Listed Companies (Code of Corporate Governance).
Operationally, PQGTL continued to expand its business while maintaining underwriting discipline. Growth during the review period was primarily driven by the motor and health segments, with management intending to continue focusing on these business lines, supported by expansion of distribution channels and strategic partnerships. Digitalization initiatives, including enhancements to customer service platforms, claims processing capabilities, and broader digital service channels, have supported operational efficiency, customer experience, and business generation. The Company also continues to advance its IFRS 17 implementation program in line with regulatory timelines.
The Company's profitability profile remains satisfactory, supported by continued underwriting profits on a full year basis, and stable investment returns generated from a conservative investment strategy focused on highly liquid Shariah-compliant instruments. Liquidity indicators have strengthened, while capitalization has improved due to sound retention ratio over the years and following new share issuance recently, providing additional capacity to support future business growth.
PQGTL's reinsurance strategy is well-structured, utilizing a mix of proportional and non-proportional treaties to manage risk exposure effectively. The Company's liquidity position is satisfactory, with manageable insurance debt levels and adequate liquid assets relative to technical reserves.
Sharia governance is a cornerstone of PQGTL's operations, with a dedicated Shari’a Advisory Board ensuring compliance across all business activities. The Shariah Board's oversight extends to product certification, investment screening, and surplus distribution, reinforcing the Company's commitment to Islamic principles.
Going forward, PQGTL has an opportunity for growth in Pakistan's underpenetrated insurance market, particularly in the takaful segment. While competition remains intense, PQGTL's strong shareholder support, experienced leadership, and adherence to Sharia principles provide a firm foundation for sustained performance.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Takaful Companies
https://docs.vis.com.pk/docs/TakafulCompanies-Oct-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf