Pak-Qatar Family Takaful Limited - PFM

RATING REPORT | Mar-26

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Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
19-Mar-26 AM2+(p) Stable Upgrade -
16-Sep-25 AM2(p) Stable Maintain -
16-Sep-24 AM2(p) Stable Initial -
About the Entity

Pak-Qatar, a dedicated family takaful provider, commenced operations in 2007 as an unlisted public company and operates through a network of over 160 branches. Major ownership rests with Pak Qatar Investment Ltd. (~34.78%), followed by Qatar Islamic Insurance Group (~6.22%) and Qatar International Islamic Bank (~5.64%). Directors and their related families hold (~14.39%), while the remaining shareholding is distributed among individual investors (~11.54%), with ~21.67% floated for public offering. The Board is chaired by H.E. Sheikh Ali Bin Abdullah Al-Thani, while Mr. Waqas Ahmad serves as the CEO, supported by an experienced team.

Rating Rationale

Pak-Qatar Family Takaful Limited (“Pak Qatar” or “the Company”) draws its strength from its sponsors and robust market positioning. The Group enjoys a prominent presence in the insurance sector, consistently sustaining market share and generating stable income supported by its sizeable investment portfolio. In addition to its core Takaful operations, Pak Qatar operates as a licensed Pension Fund Manager (PFM) and has been accredited with a PFM Rating for its role in pension management. The assigned rating upgrade reflects the Company’s strong sponsor support, stable market position, and its expanding role in the pension fund management segment. The Company successfully launched the Pak Qatar GoKP Islamic Pension Fund in Dec’25, followed by the Pak Qatar GoPB Islamic Pension Fund in Jan’26, positioning it as an active participant in managing government-backed pension schemes and strengthening its presence in the emerging pension management space. The Pension Fund Management industry reported AUMs of approximately PKR 133.6bln as of Dec’25, with growth prospects supported by regulatory and government initiatives aimed at expanding pension coverage. In recent years, provincial governments, particularly Khyber Pakhtunkhwa (KP) and Punjab, transitioned from the traditional Defined Benefit pension framework toward Voluntary Pension Schemes (VPS), creating significant opportunities for private-sector Pension Fund Managers. Pak Qatar maintains a well-established operational structure, supported by strong digital infrastructure and integrated risk management functions. Independent legal, underwriting, and internal audit functions reinforce governance, internal controls, and regulatory compliance. Working alongside its sister concern, Pak Qatar Asset Management Company Limited (PQAMC), which manages pension portfolios in line with prescribed policies, the Company benefits from the Group’s integrated investment management capabilities. As of end-Sep’25, Pak Qatar maintained participant funds of PKR 63.9bln, supported by a diversified Shariah-compliant product suite covering health, life, investment, and pension products. The Company leverages its nationwide branch network and digital platforms, including the mobile application “PQFS,” to enhance customer outreach and service accessibility. Going forward, continued collaboration with PQAMC, expanding pension fund mandates, and strengthened digital distribution are expected to support growth in the pension management business and reinforce the Company’s position within Pakistan’s evolving pension and Takaful landscape. The Company’s financial performance reflects robust growth, with GPW rising ~77% during CY24 and ~3% in 9MCY25, primarily driven by single-premium business. Market share increased from 4.4% to ~6.3% as of 9MCY25. Investment income from gains on revaluation and disposals, coupled with disciplined underwriting, supports profitability. Claims outstanding have stabilized, and the Company maintains ample liquidity, ensuring policyholder obligations are met. The Company maintains a stable equity base with a PSX listing completed in Dec’25, strengthening compliance, governance, and reporting standards.

Key Rating Drivers

The rating takes comfort from the ability of the Company to capitalize on the market share whilst sustaining the performance. While maintaining the liquidity position is critical, with a continuing focus on improving profitability.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Pak-Qatar Family Takaful Limited - PFM


Rating Analysis

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Profile
Background

Pak-Qatar Family Takaful Limited (“Pak Qatar” or the “Company”) was incorporated in Mar'06 and is one of the leading dedicated Family Takaful operators in Pakistan. The Company is a progressive and technology-driven Shari’ah-compliant institution that has been providing innovative Takaful solutions since 2007. In Dec'25, Pak Qatar achieved a significant milestone by becoming the first dedicated Family Takaful operator to list on the PSX. The proceeds from the IPO will support the Company’s regulatory capital, digital expansion, product innovation, and overall growth initiatives.


Operations

The Company's business is categorized under three statutory funds: (i) Individual Family plans, sold through Direct Sales Force and Banka-Takaful, including unit-linked plans and Decreasing Term Assurance (DTA) as non-linked plans, (ii) Group Family, and (iii) Group Health. It has also successfully launched the GoKP Islamic Pension Fund in Dec'25 and followed by the GoPB Islamic Pension Fund in Jan'26, enhancing its presence in government pension schemes.


Ownership
Ownership Structure

Major ownership is vested with PQIL (~34.78%), Qatar Islamic Insurance Group (~6.22%), Qatar International Islamic Bank (~5.64%), alongside H.E. Sheikh Ali Bin Abdullah (~5.77%). Directors and their related families hold (~ 14.39%). The remaining stake is distributed among various individual investors (~11.54%). ~21.67% stake is floated for public offering.


Stability

The Company's shareholding structure has remained unchanged, contributing to stability and continuity. Additionally, the sponsoring groups of the Company provide further stability, ensuring a strong foundation for its operations.


Business Acumen

The Company benefits from the strategic backing of Qatar Royal family-linked institutions—Qatar International Islamic Bank (~9.95%) and Qatar Islamic Insurance Company (~10.97%), enhancing the Company's business strength, credibility, and governance.


Financial Strength

Pak-Qatar benefits from a strategic partnership with FWU AG, gaining access to customized Banca products, the Sales & Administration System (SIS) platform, and distribution support. FWU operates locally with a 26-member sales team. Backed by strong sponsors like the Qatar Royal family and Qatar International Islamic Bank, Pak-Qatar’s market position is further reinforced.


Governance
Board Structure

The overall governance of the Company rests with a nine-member Board, comprising seven Non-Executive Directors (including one female director), one Independent Director, and one Executive Director, with representation from FWU AG and Mr. Said Gul.


Members’ Profile

The Board is chaired by His Excellency Sheikh Ali Bin Abdullah Al-Thani, who brings strong business acumen and also leads Umm-Haish International and Al-Jazeera Trading. Mr. Farrukh Viqaruddin Junaidy, an Independent Director, brings over 30 years of diverse experience, while other Board members also possess broad industry expertise.


Board Effectiveness

During CY24, the Board met seven times and is supported by three committees: Audit, HR & Remuneration, and Investment, all chaired by Non-Executive Directors. The committees meet quarterly, except HR & Remuneration, which convenes twice a year. Meeting minutes are adequately documented.


Transparency

The Company’s External Auditors, Yousaf Adil, Chartered Accountants, gave an unqualified opinion on the CY24 annual financial statements.


Management
Organizational Structure

The Company has a well-defined organizational structure. As an Executive Director, Mr. Muhammad Kamran Saleem acts as a liaison between the Board and key individuals, including the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Internal Auditor (CIA).


Management Team

Mr. Waqas Ahmed was appointed as CEO by the Board in Jun’24. With over three decades of expertise in the insurance industry, Mr. Waqas previously served as the Company's COO. Mr. M. Ahsan Qureshi, CFO, has diversified experience of more than two decades. He is assisted by a team of qualified and experienced professionals.


Management Effectiveness

The management is assisted by three committees: i) Underwriting & Re-Takaful, ii) Claims Settlement, and iii) Risk Management & Compliance. These committees are headed by a Non-Executive Director who meets quarterly. Meeting minutes are documented adequately.


Control Environment

Internal Audit plan, approved by Audit Committee, encompasses the review of the internal control system which includes policies/procedures, physical safeguards, and monitoring of compliance function pertaining to NBFC regulations. The compliance and risk functions are segregated and are overseen by dedicated resources.


Investment Risk Management
Research & Analysis

The Company has mandated that investment advisors follow a top-down approach for research and analysis. The investment advisor conducts evaluations and shares reports with the Pension Fund Manager (PFM) to ensure overall conformity under the advisory agreement.


Investment Decision Making

Pak Qatar Pension Fund is managed in accordance with its offering document’s investment policy. Pak Qatar Asset Management Company Limited ("PQAMC" or the "AMC") has been engaged as Investment Advisor for the Pension Fund managed by Pak Qatar. The advisory role complies with the PFM rules, while risk is mitigated under exposure limits disclosed in the offering document of the fund. Low-risk funds are managed to ensure liquidity, confirming volatility criteria in accordance with the investment profile, while higher-risk funds are more tolerant of volatility to have enhanced returns in accordance with their investment mandate.


Risk Management Function

Under the advisory agreement, the investment advisor shares the portfolio with Pak Qatar, ensuring compliance of sub-funds under the pension fund with the Offering Document. Pak Qatar has an approved list of counterparties, which are reviewed quarterly and shared with the investment advisor to assist with its advisory role.


Investment Risk Management

Pak Qatar has a risk mitigation policy that complies with the risk appetite of sub-funds under the pension fund. All transactions conducted in the pension fund are in compliance with the defined risk exposure limits in accordance with the regulations and disclosed in the Offering Document.


Customer Relationship Management
Investor Services

The Investor Services Department enhances retail outreach by offering investor education, personalized solutions, and client reporting. Retail investments in AMC’s mutual funds are now accessible via the CDC and the Mobile App. Additionally, the AMC is leveraging Pak Qatar Family Takaful's 100+ branch network for retail distribution, with marketing and distribution segmented into retail (via Pak Qatar) and corporate (managed directly by AMC's sales team).


Extent of Automation/Integration

Pak Qatar has enhanced operations and customer service with its in-house Takaful Information and Management System (TIMS), providing real-time MIS reports, streamlined workflows across underwriting, claims, and finance, and robust security features.


Investor Reporting

In addition to publishing fund manager reports on a monthly basis, the AMC also disseminates unit holder statements every month through email, which include net asset value and month-end closing values.


Product Offerings

Pak Qatar offers a wide range of Shariah-compliant insurance products, including individual and group family takaful plans, banca takaful, investmentlinked takaful, and microtakaful options. These products provide financial protection and savings, adhering to Islamic principles while catering to diverse customer needs. It also launched pension funds to provide individuals with a Shariah-compliant retirement savings option.


Financial Risk
Degree of Concentration

Pak Qatar have the most granular ticket size among Asset Managers, with more than one hundred forty thousand participants being covered. As of Dec'25 the Pension Fund managed by Pak Qatar has grown to around PKR 211mln (Jun'25: PKR 145mln).


Financial Performance

During 9MCY25, the Company reported an underwriting loss of ~PKR 892mln, whereas the investment income supported the bottomline reported at ~149mln. Profitability is expected to remain limited when compared to the peers as the Company is a dedicated takaful player, and considers the impact of participant profit only. This may remain limited, however, wil incorporate the impact of volumetric growth, going forward.
 
 

Mar-26

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Pak-Qatar Family Takaful Limited - PFM


Rating Scale

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Mar-26

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Pak-Qatar Family Takaful Limited - PFM


regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
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Mar-26

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