PACRA Assigns Positive Outlook to Pak Qatar General Takaful Limited

Pak Qatar General Takaful Limited is benefiting from the increased awareness of its brand. The group functions under the common brand name of Pak Qatar. This has created intrinsic advantage for all the associated companies. The ownership is committed to the ventures and has strong view on governance and team play. The Company demonstrates an improvement in business momentum, reporting Gross Premium Written at PKR 1,087mln during 9MCY25 (9MCY24: PKR 882mln), supported by a diversified contribution mix across Motor, Fire & Property, Accident & Health, Marine, and Miscellaneous segments, while mitigating the concentration risk and supporting earnings stability.
Underwriting performance improved, underpinned by prudent portfolio rationalization, including the exit from loss-making corporate and group health business and a strategic shift toward small-ticket retail policies. The strategy shift led to positive underwriting results and a combined ratio of below 100%, reflecting improved risk selection and pricing discipline. Liquidity profile strengthened during the period, with liquid investments increasing by more than ~16% to reach PKR 1,478mln as of 9MCY25, improving the liquidity coverage ratio to 3.0x (9MCY24: 1.7x). The improvement in coverage is supported by a decline in outstanding claims due to enhanced claims settlement processes, indicating an adequate claims-paying capacity. The investment portfolio remains diversified across mutual funds and debt securities; however, investment income moderated during 9MCY25 due to monetary easing, exposing investment earnings to interest rate volatility risk and necessitating portfolio realignment.
The Company’s capitalization profile improved materially following the successful IPO in January 2026, which strengthened the equity base and enhanced regulatory capital headroom, meeting SECP’s phased minimum capital requirements. PQGTL’s IPO witnessed the book-building phase with many times oversubscription, underscoring strong investor confidence. The robust demand reflects market optimism toward the Company’s fundamentals and the growing potential of general takaful in Pakistan. The outlook on the Company is Positive. The Company maintains re-takaful arrangements with well-rated local and international reinsurers, providing effective risk transfer and capital protection. Overall, the Company remains well-positioned to benefit from improving macroeconomic conditions and rising demand for Shariah-compliant insurance solutions, while sustained performance depends on continued underwriting discipline, prudent investment management, and timely capital strengthening.
Pakistan's general insurance industry holds a total size of ~PKR 170bln during 9MCY25(9MCY24: ~PKR 171bln), exhibiting a slight decrease of ~0.5% in Gross Premium Written (GPW). The industry reported a decrease of ~50.4% in underwriting results, amounting to ~PKR 4.7bln (9MCY24: ~PKR 9.6bln). Overall, the investment income experienced a decrease of ~13.9% to ~PKR 22bln (9MCY24: ~PKR 26bln). The current economic conditions remain imperative for the overall performance of the insurance industry.
The rating is dependent on management’s ability to effectively execute the business strategy while improving market share and sustaining underwriting profitability. Prudent management of premium receivables, particularly from corporate clients, remains essential to support cash flow stability. At the same time, maintaining a sound liquidity profile and continued enhancement of the equity base in line with regulatory requirements will remain key considerations for the rating.

About the Entity
Pak-Qatar General Takaful Limited (“Pak Qatar” or “the Company”) was incorporated in 2006 and started operations in 2007 as a dedicated general Takaful operator in Pakistan. The Company is backed by H.E. Sheikh Ali bin Abdullah Al-Thani and Mr. Said Gul, with Mr. Saqib Zeeshan as CEO.