AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore, July 01, 2020 (PPI-OT): 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 further affected the life insurance industry, with the growth expected to plummet. Additional reduction in investment linked policies and heightened claims are expected.
Moreover, increase in surrenders is likely as a result of economic stagnation. The large investment book is however likely to cushion any impact. The industry intends to sustain its existing position while aiming to launch innovative products. The rating denotes the ability of the company to capitalize on the market share whilst sustaining the persistence. 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: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com