PACRA maintains IFS Rating of PakQatar Family Takaful Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- July 01, 2020 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The rating reflects improved market position of the company, garnering a decent foothold in the takaful industry. PakQatar has been able to sustain its system share gradually while registering 6% growth in the form of sustainable persistency. 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 topline is healthy as the company envisages greater business volumes. This has driven up the management and commission expenses. The liquidity is adequate; though on the rise. Going forward, the new management aims to penetrate into untapped segments while focusing on improved profitability.

Prior to COIVD-19, the life insurance industry witnessed miniscule growth of 1% YoY as single premium declined due to the underperformance of equity markets, which made the unit-linked investment funds unattractive to policy holders for investment purposes. The current pandemic has...