PACRA Maintains IFS Rating of Pak Qatar General Takaful Limited

Pakistan's general insurance industry holds a total size of ~PKR 99bln during 6MCY24 (6MCY23: ~PKR 84bln), exhibiting a growth of ~18% in Gross Premium Written (GPW). The industry reported an increase of ~130% in underwriting results (6MCY24: ~PKR 6bln, 6MCY23: ~PKR 2.6bln). Overall, the investment income experienced an increase of ~52% to ~PKR 11.7bln during 6MCY24 (6MCY23: ~PKR 7.7bln). However, current economic conditions remain imperative for the insurance industry's overall performance.
Pak Qatar General Takaful Limited ('Pak Qatar' or 'the Company') gathers support from its strategic associations with Qatar-based sponsors holding considerable acumen in the financial space through Pak Qatar Family Takaful Ltd. (a pioneer Shariah complaint life insurance company in Pakistan), Pak Qatar General Takaful Ltd. (a dedicated non-life takaful operator in Pakistan) and Pak Qatar Asset Management Co. (a recent initiative of the sponsors in the asset management space). Over the years, the Company has maintained a stable market position amidst stiff competition from established players operating a takaful window. Pak Qatar's GPW was impacted by lower volumes and posted an ~11% decline, however, increased premiums provided some respite. Segment-wise, motor held the major share (~45%) in generating the overall GPW for the Company, followed by fire & property (~21%), and health (~15%). This remains in line with the Company's vision of a balanced portfolio mix to ensure a favorable loss ratio. The Company envisages strengthening its presence in the motor segment by focusing on the dealership networks. Moreover, proactive efforts to capitalize on synergies through cross-selling opportunities with the sister concerns are progressing. The Company's investment portfolio posted growth, however requires attention. On the financial risk front, the liquidity profile remains adequate with an effective claim management system. However, the equity base needs to be strengthened. Maintaining re-takaful arrangements with well-reputed reinsurance companies bodes well for the Company.
The rating is dependent on the management’s ability to timely and successfully execute the envisioned plan. Also, improvement in market share and underwriting profitability remain imperative. Meanwhile, prudent management of premium receivables from corporate customers is essential. This along with upholding the liquidity profile and enhancement in equity levels are important to the rating.

About the Entity
Pak Qatar General Takaful Limited (“Pak Qatar” or “the Company”) was incorporated in 2006 as an unlisted public limited company that started operations in 2007. H.E. Sheikh Ali bin Abdullah Al-Thani, a member of Qatar's Royal Family, holds ~41.8% stake and Mr. Said Gul, a Pakistani businessman in Qatar, holds ~48.3% stake in the Company. H.E. Sheikh Ali chairs the Board since 2007. While, Mr. Saqib Zeeshan heads the Company as the CEO. They are supported by an experienced team.