Press Release

JCR-VIS maintains IFS rating of Pak Qatar General Takaful Limited at BBB+
 

Karachi, October 12, 2010: JCR-VIS Credit Rating Company Limited has maintained the Insurer Financial Strength (IFS) rating of Pak Qatar General Takaful Limited (PQGTL) at ‘BBB+’ (Triple B Plus).

PQGTL benefits from the support of Qatar based sponsors including renowned financial institutions. There has been change at the helm of the organization since our last review. Furthermore, there has been improvement in systems and organizational setup with addition of new departments and consolidation of key functions and resources at the group level.

Business growth has lagged behind budgeted targets, particularly in non-motor segments leading to high proportion of motor in the business mix. On account of riskier nature of motor business, claims ratio has remained high. Outlook on the rating has been revised from ‘Positive’ to ‘Stable’ in view of the company’s business mix/performance and deteriorating macro economic outlook including declining performance of the insurance/takaful industry as regards underwriting results and investment returns.

The management is making efforts at improving underwriting performance and reducing proportion of motor business. JCR-VIS will continue to monitor performance of the company for improvements in business mix/ performance and achievement of budgeted growth.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Mr. Zia Usmani (Ext: 507) at 35311861-70 (10 lines) or fax to 35311873.


Faheem Ahmad
President & CEO

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2010 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited