Lahore, February 27, 2019 (PPI-OT): Takaful Pakistan Limited, a dedicated Takaful company, has witnessed signs of revival in its business and financial profile after the acquisition by new owners. The group of new sponsors reflect a balanced mix of business acumen – needed to grow insurance business in the tough landscape of the insurance industry – and a strong backing of financial support – to take off the company from its current position. Compliance with SECP’s minimum capital requirement has been ensured. The equity position is expected to be enhanced. Sponsors have pledged an explicit undertaking to enhance the equity by internal growth and/or capital injection.
The business has picked up steam; momentum is expected to continue in the foreseeable future as a result of sustained effort to improve underwriting business. The company envisages a diverse segmental mix though it is currently following a motor-centric approach in the beginning to build up business volumes, a testimonial of the strength of the new sponsors. Takaful Pakistan will be undertaking banking enlistment to achieve diverse segmental mix while focusing on Health, Fire and Marine Takaful.
Reinsurance arrangements have been augmented in line with increased growth of the company.
The rating is dependent on the management’s ability to capitalize on the group’s well-built platform for business expansion. At the same time, the equity level must improve and segmental income stream should likewise go up. Liquidity needs to be upheld. Upgradation of I.T infrastructure 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