Press Release

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

Karachi, December 14, 2011: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) rating of Pak Qatar General Takaful Limited (PQGTL) at ‘BBB+’ (Triple B Plus). Outlook on the assigned rating remains ‘Stable.’

Even though efforts have been made to increase business in other segments, motor business continues to constitute a sizeable proportion of underwriting mix. Underwriting results of the company have shown improvement in the on-going year following compromised underwriting performance since inception, particularly in 2010. Reduction in net claims ratio and expense ratio translated into better underwriting results for the on-going year. However, consistency of these trends remains to be tested.
Leverage indicators of PQGTL have increased on timeline basis on account of net losses. In view of future business growth targets, equity growth either through profit generation or external injection is warranted to contain leverage indicators within prudent limits. Liquid assets in relation to outstanding claims have decreased over the period, though overall liquidity profile is considered satisfactory.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 (10 lines) or fax to 35311873.

Syed Ziauddin Ahmed

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