Pakistan Credit Rating Agency Limited Maintains IFS Rating of Dawood Family Takaful Limited

Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength rating of Dawood Family Takaful Limited (DFTL) at “A-” (Single A minus). The rating denotes DFTL’s strong capacity to meet policyholder and contract obligations. At the same time, risk factors are moderate, and the impact of any adverse business and economic factors is expected to be limited.

The rating reflects DFTL’s growing takaful volumes, a result of an effective business strategy employed by its management, though overall market share is likely to improve only gradually, given intense competition.

The company has employed a sound technology infrastructure that lends support to its operational efficiency. To provide further support to the bottom-line, the company maintains an investment portfolio funded from available capital.

However, a sizeable portion of investments – mainly corporate bonds – are not performing well, thereby impacting overall earning yield of the employed funds. Moreover, this, added with an investment in an unlisted bank, suggests relatively weak liquidity profile.

For more information, contact:
Hammad Rashid
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