AA+ PACRA Rating

Pacra Upgrades Rating Of Alfalah Takaful

The Pakistan Credit Rating Agency (PACRA) has upgraded the IFS rating of Alfalah Takaful Company Limited to "AA+" after completing the rating update process of Insurer Financial Strength (IFS).

The rating captures the strength of the business profile of Alfalah Takaful with noticeable growth in non-captive business. The company has outpaced GPW growth of the industry while keeping the underwriting performance intact. The management's conservative stance, in the form of low risk retention, continues yielding profitability. The rating takes comfort from the robust control environment of Alfalah Takaful enabling efficient monitoring and performance evaluation of the core business in a wholesome manner. The company has been able to attract market attention through introducing innovative product in health and accident segment and intends to fortify its position in the general takaful industry by diversifying its product mix. The company is aiming penetration in motor segment; building synergies with group bank – Bank Alfalah.

The rating recognizes the company's efforts to build a sound investment book over the years comforting its financial risk profile. Currently, the liquidity profile is robust; however, needs to be monitored carefully as the company takes the trajectory of growth. Supporting its prudent risk retention policies, Alfalah Takaful has a sound panel of reinsurers with favorable treaty terms. The rating considers Alfalah Takaful association with Abu Dhabi group which, along with sustained captive business, ensures sound governance.