The Pakistan Credit Rating Agency Limited
31-Mar-22
Analyst
Maryam Arshad
maryam.arshad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Harmonizes IFS Rating of Salaam Takaful Limited
| Rating Type | IFS | |
|
Current (31-Mar-22 ) |
Previous (01-Feb-22 ) |
|
| Action | Harmonize | Upgrade |
| 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 “Salaam Takaful Limited”.
About
the Entity
Salaam Takaful Limited (STL) is an unlisted public limited company incorporated in June 2006, with its registered head-office in Karachi. Salaam Takaful has a seven-member board. Mr. Rizwan Hussain is the CEO of Takaful Pakistan. He brings more than 30+ years of experience as a seasoned Insurance/Takaful industry professional. He has been able to build a team of qualified professionals in past two years. The leadership and team of experienced professionals have helped the company to maintain healthy profitability along with rapid growth. Along with Mr. Rizwan Hussain and Family, Mr. Salim Godil is also one of the major shareholders, he also owns significant business interests including Toyota Central Motors, one of the largest Toyota auto dealerships in Pakistan. Other shareholders include, Al Baraka Bank Pakistan Limited, House Building Finance Company (Owned by State Bank of Pakistan), Mal Al Khaleej Investment LLC and Sitara Chemical Industries Limited.