Analyst
Waqas Ahmad
waqas.ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Harmonizes IFS Rating of Dawood Family Takaful Limited
Rating Type | IFS | |
Current (31-Mar-22 ) |
Previous (29-Jun-21 ) |
|
Action | Harmonize | Maintain |
IFS Rating | A+ (ifs) | A |
Outlook | Stable | Stable |
Rating Watch | - | - |
Insurer Financial Strength (IFS) rating is an independent opinion on the relative “capacity of an insurance company to meet policyholder and contract obligations”. To facilitate insurance companies and users of IFS ratings, PACRA has modified the IFS rating scale. The primary objective behind this modification was to: a) Create distinction in symbols and definitions of IFS Ratings and Credit Ratings; previously same symbols were being used for both type of ratings. Now IFS symbols are exclusive for IFS ratings b) Eliminate ambiguities in terms of “Rating Category” and “Notch”; this has now been achieved in the modified scale, which will be helpful in understanding the meaning and connotation of each rating category and notch, c) Update certain definitions for more clarity.
This is expected to eliminate any overlap or ambiguity regarding rating categories and notches; thus, facilitating all stakeholders. The modified scale is applicable for all outstanding IFS ratings including “Dawood Family Takaful Limited”.
About
the Entity
Dawood Family Takaful Limited (DFTL) is an unlisted Shariah-compliant Life Insurer which came into existence in May 2007 and commenced operations beginning 2009. It operates through a branch network of 58 branches, with the Head Office in Karachi. DFTL is majorly owned by First Dawood Group (FDG) holding 52% stake, followed by the Bank of Khyber (15%), BRR Guardian Modaraba (10%) and the GulfCap (8%).
DFTL has a six-member BoD, which includes CEO, three representatives of Dawood Group, one of BoK, and one independent directors. Mr. Ghazanfar-ul-Islam, who had been associated with the company for eight years as CFO, was appointed as CEO in Mar’18. He possesses vast Takaful industry and Islamic finance experience. A team of professionals assists the CEO.