Lahore, February 28, 2022 (PPI-OT):Pak-Qatar General Takaful Limited (PQGTL or the Company) is one of earliest dedicated takaful companies in Pakistan, possessing strong business acumen through its association with Qatar based financial institutions, while also being allied to its sister concern; Pak-Qatar Family Takaful.
PQGTL rallied against its peers and established window takaful operators during the year in order to sustain its competitive position in the industry. On account to combat the economic implications of COVID-19, the massive reduction in policy rates had provided impetus to the motor segment depicting a prudent underwriting approach being utilized, however, with the revival in the economy and observed hike in policy rates, diversification of segmental mix remains critical. The Company continues to enjoy synergic benefits using cross selling through sister concern. Enhancement of bank business and induction of new sale force is under development. Increase in business volumes and takaful presence needs improvement hence therein.
During CY21, bank financing and automotive sector growth facilitated the industry progression. A conservative investment approach was undertaken by the industry participants, with investment mix majorly construing fixed income securities along-with minor equity exposure. As COVID re-emerged through its “Omicron” variant, its potential implications are yet to unfold in the coming year. Reduction in management expenditure and product innovation shall remain crucial for the industry participants for solidification of market position.
The rating is dependent on the management’s ability to cohesively execute its business plan. Furthermore, improvement in market share and underwriting profitability are considered vital. Meanwhile, prudent management of premium receivables from corporate customers is essential. Also, implementation of real-time IT infrastructure along with an upgraded MIS should, among others, strengthen the claims management system.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com