The Pakistan Credit Rating Agency Limited
Press Release


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 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. The management needs to continue efforts in the wake of intensive competition from window takaful sector. The rating incorporates the association of the company with Qatar ­based investors., having presence in the life sector, strengthening the brand. Increase in business volume and takaful presence needs improvement hence therein.
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.

About the Entity
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 Qatar based 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.

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.