JCR-VJS Credit Rating Company Limited has maintained the Insurer Financial Strength (IFS) rating of Pak Qatar General Takaful Limited (PQGTL) at 'BBB+' (Triple B Plus). PQGTL benefits from the support of Qatar based sponsors including renowned financial institutions. There has been change at the helm of the organisation since our last review.
Furthermore, there has been improvement in systems and organisational set-up with addition of two departments and consolidation of key functions and resources at the group level. Business growth has lagged behind budgeted targets, particularly in non-motor segments leading to high proportion of motor in the business mix. On account of riskier nature of motor business, claims ratio has remained high.
Outlook on the rating has been revised from Positive' to 'Stab1e' in view of the company's business mix/performance and deteriorating macro-economic outlook including declining performance of the insurance/takaful industry as regards underwriting results and investment returns. The management is making efforts at improving underwriting performance and reducing proportion of motor business. JCR-VIS will continue to monitor performance of the company for improvements in business mix/performance and achievement of budgeted growth.-PR