KARACHI: JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength Rating of Pak Qatar General Takaful Limited at single A minus. The outlook on the assigned rating is stable.

The previous rating action was announced on Sept. 28, 2017, said press release on Tuesday.

The rating incorporates strong sponsor support from Qatar based financial institutions. Since the past two years, PQGTL has adopted a consolidation strategy whereby loss making portfolios have been shed off.

Given the prevailing competition in the insurance market, the company also faces significant pressure on premium rates. As a result, business volumes of the company have reduced on a timeline basis.

The company continues to diversify its business mix from motor oriented to other non-motor segments. On account of lower net retention, risk of the company has declined in terms of business booked. Going forward, extent of risk on own account would be an important rating driver.