KARACHI: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Insurer Financial Strength (IFS) rating of Pak-Qatar Family Takaful Limited (PQFTL) at ‘A (single A).
The outlook on the assigned rating has been revised from ‘stable to ‘positive.’ Given low penetration of life coverage in the country, market dynamic for companies offering Life insurance/ Family Takaful product remains favorable. PQFTI is one of the two Family Takaful operators in Pakistan.
Growth in business volumes of PQFTL has been led by unit-linked Individual Family products, with the company having been able to capture a larger market share in recent years. A large part of this business is generated through the Bancassurance partners. The company’s own sales force is also being strengthened to provide meaningful contribution towards achieving business targets.
The assigned rating takes into account improvement in underwriting performance of PQFTL. Surplus in the Participant s Takaful fund has improved during 2013, with all three business units reporting surplus.
The company is sponsored by some of the largest Qatar-based financial institutions. The sponsors of PQFTL also have presence in the General Takaful segment in Pakistan.