PACRA Maintains IFS Rating of Pak-Qatar General Takaful Limited

The rating reflects sustained market position of the company along with adequate risk absorption capacity of the company. However, in more recent years, intense competition has resulted in pressure on the profitability of the dedicated takaful. 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 providing synergic benefits. 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

Pak-Qatar has an eight-member board including the Managing Director – Mr. Said Gul. Mr. Gul has been associated with the company since inception