The Pakistan Credit Rating Agency Limited
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Rohail Amjad

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PACRA Maintains IFS Rating of Pak Qatar General Takaful Limited

Rating Type IFS
Action Maintain Maintain
Long Term A A
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects sustained market position of the company, having decent foothold in takaful industry. The company is facing challenge in terms of business expansion. The growth is a challenge especially due to slowdown in banca and rise in the competition in the takaful market. The company benefits from its brand as being the dedicated takaful company having significant size. Moreover, after having established branch network, PakQatar Family is gradually expanding wings through alternate distribution networks; wherein the success remains to be seen. Meanwhile, competition from window takaful should be managed well. The profitability of the company has remained strong as compared to peers, reflecting strong business profile. The financial risk profile has been strengthened based on several fresh injection of equity. Pak Qatar Family Takaful has strong liquidity coverage to policyholder’s liabilities, which is further topped up by a cushion from liquid investments of the shareholder’s fund
The rating depends upon the company's ability to improve its market share while improving the persistency of Gross Contribution. Product diversification in non-banca segments should be translated into size-able volumes with enhanced profitability. Meanwhile, financial metrics need to continuously improve

About the Entity
PakQatar Family, commencing operations in 2007 as unlisted public company and operates through a network of 65 branches. Major shareholding in the hands of (i) H.E. Sheikh Ali Bin Abdullah Al-Thani - belongs to Qatar's Royal Family (10%), (ii) Three Qatar based Financial Institutions (29%), and (iii) Pak Qatar Investment (Private) Limited (30%). Technical partner is FWU AG (15%), a German based firm having operations in Europe and Middle East, maintains permanent establishment in Pakistan - by virtue of this technical arrangement. Among the main sponsors of the company, Mr. Said Gul is a Pakistani origin businessman settled in Qatar; he has main interest in construction business. Mr. Said Gul and H.E Al-Thani also own majority stake in Pak Qatar General Takaful.

PakQatar Family has a seven-member board including - Mr. Said Gul being the Director and has been associated with the company since inception. H.E. Sheikh Ali Bin Abdullah Al-Thani (H.E. Ali), royal family member, is chairman of the board, while Qatar based Financial Institutions and FWU-AG each have one nominee director, respectively, while Mr. Said Gul represents himself through Pak Qatar Investment (Private) Limited. Mr. Nasir Ali Syed; CEO of the company since 2012, carries more than two decades of experience in life insurance industry.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.