Press Release

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

Karachi, December 6, 2013: JCR-VIS Credit Rating Company Limited has reaffirmed the financial strength rating of Pak-Kuwait Takaful Company Limited (PKTCL) at ‘A-’ (Single A Minus). Outlook on the assigned rating is ‘Stable’.

The assigned rating incorporates the moderate risk adjusted capitalization level of PKTCL and conservative investment profile. In addition to a more diversified business mix, the company’s underwriting performance has featured improvement on a timeline basis, translating into improved bottom line. Rating also reflects effective board oversight and sound management profile. Liquidity profile has experienced some weakening over time but is supportive of the company’s current rating.

With growth in non-motor portfolio, business mix has diversified over time. Moreover, the company has curtailed exposure in some product lines which entail high risk. Despite the cautious strategy adopted by the management, business volumes have depicted growth in FY12 and in the on-going year. Moreover, improvement in claims and expense ratio has translated into underwriting profits in 1H13. Continuity of this trend will be tested over time.

Net equity has increased on a timeline basis on account of retained profits. While remaining on the higher side, leverage indicators have trended downwards in 1H13. In order to maintain capitalization levels while pursuing growth objectives, external equity injection may be required unless the pace of internal capital generation increases.

For further information on this rating announcement, please contact Mr. Abdur Rahim (Ext: 508) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311873.

Jamal Abbas Zaidi
Deputy CEO

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 2013 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