JCR-VIS reaffirms IFS Rating of Takaful Pakistan Limited

Karachi: JCR-VIS Credit Rating Company Limited has reaffirmed the Financial Strength Rating of Takaful Pakistan Limited (TPL) at ‘BBB+’ (Triple B Plus). Outlook on the assigned rating is ‘Stable’.

With on-going efforts towards curtailing costs, underwriting expenses have declined in FY10 with further reduction expected in the on-going year in view of the consolidation strategy under implementation. Both staff strength and number of branches have been reduced. Results of both Participants’ Takaful Fund and Shareholders’ Fund have posted improvement in recent months. Continuation of this trend is necessary to reinstate the financial position of the company. Given the losses in the past, equity stands reduced and the company may also require external capital injection in future. While the office of Chief Executive Officer remains vacant, a senior insurance professional has been appointed as Advisor.

Leave a Reply