Pakistan Credit Rating Agency Limited maintains IFS rating of Dawood Family Takaful Limited

Lahore, May 12, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the IFS rating of Dawood Family Takaful Limited (DFTL) at “A-” (single A minus). The rating denotes strong capacity of the company to meet policyholder and contractual obligations.

The rating of DFTL takes comfort from persistent growth of takaful volumes, reflecting an effective business strategy adopted by the management. This is helping the company in gradually bridging the gap towards operational break-even though it depends upon continued business expansion and maintained efficiency.

Herein, the company is eyeing bancassurance as another source of premium stream, though it is behind peers. A sound IT infrastructure provides support to the operational efficacy of DFTL. The company has adequate risk absorption capacity, which has been lately supplemented by initiation of repayment from some of the previously non-performing sukuk investments.

The break-even on a timely basis without material attrition in equity base would be rating positive. Upholding strong governance practices in the wake of relatively stretched profile of one of the sponsors remains critical.

For more information, contact:
Hammad Rashid
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

The post Pakistan Credit Rating Agency Limited maintains IFS rating of Dawood Family Takaful Limited appeared first on Business News Pakistan.

The post Pakistan Credit Rating Agency Limited maintains IFS rating of Dawood Family Takaful Limited appeared first on AsiaNet-Pakistan.

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