PACRA assigns initial Asset Manager Rating to Pak-Qatar Family Takaful Limited

Pak-Qatar Family Takaful Limited ("PQFTL" or "the Company") derives its strength from its sponsors and solid market position. The Group has a strong presence in the insurance sector, consistently retaining market share and maintaining stable income while leveraging its substantial investment portfolio. PQFTL holds an entity rating of A++ with stable outlook from PACRA. PQFTL also being a licensed Pension Fund Manager along being an Insurance/Takaful service provider has been validated with an Asset Manager Rating for the role of pension manager. PQFTL has taken a trend-setting initiative by acquiring Pension Fund Manager license from SECP. Currently, only AMCs have been providing the service of Pension Fund Manager while the Insurance sector has accommodated only to mortality cover business. The company registered as Pension Fund Manager in Jan’2022 while it launched its pension fund under the name of Pak Qatar Islamic Pension Fund (PQIPF) in Dec’22.
Industry of Islamic Pension Fund Managers have an AUM standing of ~PKR 39bln as of Dec’23 with the market size expected to expand with the advent of govt. policies. Provincial governments are expeditiously moving away from conventional pension model to VPS. The issuance of new rules from KPK and Punjab government for appointment of Pension Fund Managers to channelize funds to approved pension funds, to handle government employee’s pensions, has expanded space to private fund managers. PQFTL has a well-established structure with strong digital footprints. The Company has established a comprehensive risk management function that is integrated across all its operations as a private takaful operator. It also maintains a legal, underwriting and internal audit function to assess internal controls and ensure compliance. PQFTL along with its sister concern Pak Qatar Asset Management Company Limited (PQAMC), which serves as investment advisor and oversees the portfolios of Pension Funds in accordance with investment policy distinguishes itself in the market with a unique product suite and a flexible Shariah compliant structure.
The combination of technical expertise from both PQFTL and PQAMC under the group umbrella is expected to enhance the management efficacy of the VPS. As of the end of end Dec'23, PQFTL possesses a participant fund totaling PKR 34bln, with a product bouquet ranging from health, life, investment and newly added pension fund, expanding market visibility. PQAMC is mandated to manage investment for PQFTL, delivering good returns for CY23, aligning with the industry pattern.
The asset manager rating "AM2(p)" takes comfort from the ability of the Company to capitalize on the market share whilst sustaining the performance. While maintaining the liquidity position is critical with continuing focus on improving profitability.

About the Entity
Pak-Qatar Family Takaful Limited (‘Pak-Qatar’ or ‘the Company’), a dedicated family takaful provider, began operations in 2007 as an unlisted public company and operates through a network of more than 160 branches. Major ownership is vests with Mr. Said Gul and his affiliated entity (~38.8%), alongside H.E. Sheikh Ali Bub Abdullah Al-Thani and Associated Institutions (~31.9%) and FWU AG, a technical partner based in Germany (~15.2%). The remaining stake is distributed among various individual investors (~14.9%). The Board is chaired by H.E. Sheikh Ali Bin Abdullah Al-Thani, a member of the Qatar Royal Family. Mr. Waqas Ahmad, appointed as the CEO in Mar-24, is support by an experienced team.