Press Release

JCR-VIS reaffirms IFS Rating of Pak-Kuwait Takaful Company Limited at A-
 

Karachi, January 3, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) Rating of Pak-Kuwait Takaful Company Limited (PKTCL) at ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.

Business volumes continued to grow and while still on the higher side, the proportion of motor business fell in the current year. The company envisages significant growth in its non-motor portfolio during FY11. Claims performance has shown improvement but loss ratio is still significant on account of high claims ratio in the motor segment. As envisaged in the business plan, overall underwriting performance is expected to improve with decrease in motor segment to 50% and, in particular, due to decrease in leasing business, which is considered more loss prone, in the motor portfolio. With increase in volumes, expense ratio has decreased leading to lower underwriting losses for 3Q10. Investment income has also provided notable support to underwriting operations.

With growth in overall business particularly co-takaful arrangements, insurance debt witnessed increase compared to the previous year. Growth in business volumes going forward is expected to result in profitable operations.

For further information on this rating announcement, please contact Syed Ziauddin Ahmed (Ext: 508) or Mr. Zia Usmani (Ext: 507) at 021-35311861-70 or fax to 021-35311873.


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 2011 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