JCR-VIS Credit Rating Company Limited has reaffirmed the Insurer Financial Strength (IFS) Rating of Pak-Kuwait Takaful Company Limited (PKTCL) at 'A-' (Single A Minus). Outlook on the assigned rating is 'Stable'. Business volumes continued to grow and while still on the higher side, the proportion of motor business fell in the current year.
The company envisages significant growth in its non-motor portfolio during FY11. Claims performance has shown improvement but loss ratio is still significant on account of high claims ratio in the motor segment. As envisaged in the business plan, overall underwriting performance is expected to improve with decrease in motor segment to 50 percent and, in particular, due to decrease in leasing business, which is considered more loss prone, in the motor portfolio. With increase in volumes, expense ratio has decreased leading to lower underwriting losses for 3Q10. Investment income has also provided notable support to underwriting operations.-PR
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