PACRA Maintains IFS Rating of Pak Qatar General Takaful Limited
The rating reflects adequate risk absorption capacity – strengthened by capital injections – of the company. However, in more recent years, intense competition has resulted in pressure on the profitability of the sector. Furthermore, the management follows a conservative stance (high liquidity, low risk philosophy) for its investment book. Hence, stable, though relatively low, investment income supplements profits. The management need to continue its efforts to fortify business profile in the wake of intensive competition from window takaful. The ratings incorporates the effect of association of the company with Qatar based investors.
The rating is dependent on the management’s ability to cohesively execute the business plan. Furthermore, improvement in market share and underwriting profitability are considered vital. Meanwhile, prudent management of premium receivables from corporate customers is essential. Also, implementation of real time IT infrastructure along with an upgraded MIS should, among others, strengthen the claims management system.
PQTL, incorporated in 2006, started operations in 2007. H.E. Sheikh Ali bin Abdullah AlThani member of Qatar's Royal Family is the key sponsor of the company. He, directly and through his different Qatarbased Financial Institutions (mainly Qatar International Islamic Bank, Qatar Islamic Insurance Company, Masraf AlRayan) control around 54% stake in PQTL. The other major sponsor is Mr. Said Gul, who controls around 37% stake. Mr. Gul, a Pakistani origin businessman settled in Qatar, has main interest in construction business.
PakQatar has a seven-member board; chaired by H.E. Sheikh AlThani. Majority of board members are executives of sponsoring financial institutions and associated with the company since inception including the Managing Director Mr. Said Gul. The management team comprises qualified and experienced professionals.