Lahore, July 01, 2021 (PPI-OT):The rating reflects the maintained market position of the Company, garnering a strong foothold in the takaful industry. Pak-Qatar has been able to sustain its system share gradually while controlling costs among the pandemic and simultaneously benefiting from the large investment book leading to improved investment income. The Company has benefited from its association with FWU, a Germany based firm, in the form of technical partnership whereas the sponsors add impetus in the form of synergic benefits.

The growth in profit despite slight YoY decline in net contribution is healthy as the Company envisages greater operational efficiency bolstered by investment income. This has driven down the management and commission expenses when comparing results CY20 and CY19. The liquidity is adequate; though steadily rising. Going forward, the management aims to penetrate into untapped segments while continuing to focus on improving profitability.

During CY20, the total GPW of the industry grew by 4.6% to PKR 233bln in CY20 as against a decline of 1.2% to PKR 223bln in CY19. COVID-19 is an ongoing challenge. While it has taken a toll on many businesses, its ramifications are still unfolding. However, due to present pandemic situation, the demand for Life Insurance products is expected to increase over near term which in-turn is expected to result in new business growth for the industry. The rating denotes the ability of the Company to capitalize on the market share whilst sustaining the performance. Maintaining the surplus in takaful fund and liquidity position is essential.

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