Press Release

JCR-VIS assigns Positive Outlook to the A- IFS rating of Pak Qatar Family Takaful Limited

Karachi, September 20, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the IFS rating of Pak Qatar Family Takaful Limited (PQFTL) at ‘A-’ (Single A minus). Outlook on the rating has been revised from ‘Stable’ to ‘Positive’.

The rating action takes into account robust growth achieved by PQFTL since our last review in line with the company’s budgeted growth targets. Aggressive growth in branch network and establishment of new bancatakful relationships, have enabled PQFTL to achieve the targeted growth. Major focus of the takaful operator has remained on individual family takaful segment, which is considered as a more sustainable and long-tail line of business. Moreover, PQFTL has also put in place an adequate governance infrastructure supported by experienced management personnel and sound information systems.

Persistency levels in the individual segment are adequate, particularly in view of the relatively short term since commencement of full scale operations. While claims ratio has been on the relatively higher side in group business during the ongoing year, the same comprises a smaller proportion of the overall business mix.

Life insurance and family takaful companies have a long gestation period during which capital erosion is witnessed. While capital base of PQFTL has also witnessed a decline on account of initial losses, the rating takes into account sponsor’s plans, communicated by the management, to inject additional capital during the ongoing year. The primary sponsors of the PQFTL are renowned Qatar based financial institutions.

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.



Faheem Ahmad
President & CEO

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