| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1. GENERAL The Company for Cooperative Insurance (the “Company”) is a Saudi joint stock Company established in Riyadh, Kingdom of Saudi Arabia by Royal Decree Number M/5 and incorporated on January 18, 1986 corresponding to Jumada Al-Awal 8, 1406H under Commercial Registration No. 1010061695. The Company’s head office is located on Thumamah Road (At Takhassusi) ArRabi District, P.O. Box 86959, Riyadh 11632, Kingdom of Saudi Arabia.The purpose of the Company is to transact cooperative insurance operations and all related activities including reinsurance and agency activities. Its principal lines of business include medical, motor, marine, fire, engineering, energy, aviation, takaful and casualty insurance.On July 31, 2003 corresponding to Jumada Thani 2, 1424H the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). On December 1, 2004 corresponding to Shawwal 18, 1425H, the Saudi Arabian Monetary Authority (“SAMA”) as the principal authority responsible for the application and administration of the Insurance Law and its implementing regulations, granted the Company a license to transact insurance activities in Saudi Arabia.The Company conducts the business and advances funds to the insurance operations as required. On January 20, 2004 the Company amended its Articles of Association giving authority to the Board of Directors to determine the disposition of the surplus from insurance operations.On March 20, 2004, the Board of Directors approved the distribution of the surplus from insurance operations in accordance with the Implementing Regulations issued by SAMA, whereby the shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2. BASIS OF PREPARATION(a) Statement of complianceThe accompanying interim condensed financial statements (interim condensed financial information) of the Company for the three-month period ended March 31, 2019 has been prepared in accordance with International Financial Reporting Standards (IFRSs) as modified by Saudi Arabian Monetary Authority (SAMA) for the accounting of zakat and income tax, which requires, adoption of all IFRSs as issued by the International Accounting Standard Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 “Income Taxes” and IFRIC 21 “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated April 11, 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are to be accrued on a quarterly basis through equity under retained earnings.The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available for sale investments and investment in associates which is accounted for under the equity method and end of service benefits based on actuarial valuation techniques. The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: statutory deposit, accrued income on statutory deposit, property and equipment, intangible assets, investment property, investments in associates, available for sale investments, reserve for discontinued operations, end-of-service indemnities and return payable on statutory deposit. All other financial statement line items would generally be classified as current.The Company presents its statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial statements accordingly (Note 18). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim condensed statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. 2. BASIS OF PREPARATION (continued)(a) Basis of presentation (continued)In preparing the Company-level financial statement in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.The interim condensed financial information does not include all of the information required for full annual financial information and should be read in conjunction with the annual financial statement as of and for the year ended December 31, 2018. This interim condensed financial information is expressed in Saudi Arabian Riyals (SAR) and is rounded off to the nearest thousands.(b) Critical accounting judgments, estimates and assumptionsThe preparation of the interim condensed financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.The estimate and judgments used by management in the preparation of the interim condensed financial information are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2018. Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:i) The ultimate liability arising from claims made under insurance contractsThe estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. Estimates are made at the end of the reporting period both for the expected ultimate cost of claim reported and for the expected ultimate costs of claims incurred but not reported (“IBNR”). Liabilities for unpaid reported claims are estimated using the input of assessments for individual cases reported to the Company. At the end of each reporting period, prior year claims estimates are reassessed for adequacy and changes are made to the provision.The provision for claims incurred but not reported (IBNR) is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using the past claims settlement trends to predict future claims settlement trends. A range of methods such as Chain Ladder Method, Bornhuetter-Ferguson Method and Expected Loss Ratio Method are used by the actuaries to determine these provisions. Actuary had also used a segmentation approach including analyzing cost per member per year for medical line of business. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims.ii) Impairment of available-for-sale financial assetsThe Company determines that available-for-sale financial assets are impaired when there has been a significant or prolonged decline in the fair value of the available-for-sale financial assets below its cost. The determination of what is significant or prolonged requires judgment. For equity and mutual funds, a period of 12 months or longer is considered to be prolonged and a decline of 30% from original cost is considered significant as per Company policy. In making this judgment, the Company also evaluates among other factors, the normal volatility in share price, the financial health of the investee, industry and sector performance, changes in technology, and operational and financing cash flows. 2. BASIS OF PREPARATION (continued)(b) Critical accounting judgments, estimates and assumptions (continued)iii) Impairment of receivablesA provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired.iv) Fair value of financial instrumentsFair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics.The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases the fair values are estimated from observable data in respect of similar financial instruments or using models. Where market observable inputs are not available, they are estimated based on appropriate assumptions. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed. All models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data; however, areas such as credit risk (both own credit risk and counterparty risk), volatilities and correlations require management to make estimates. Please refer fair value of financial instruments disclosure in note 14. The accounting and risk management policies adopted in the preparation of these condensed interim financial information are consistent with the Company’s audited financial statements for the year ended December 31, 2018, except for adoption of the amendments to existing standards which has had no material impact on the financial information of the Company.(c) Significant accounting policiesThe significant accounting policies used in the preparation of these financial information are consistent with those used in the preparation of the previous financial year, except for the adoption of the following new standards and other amendments to existing standards mentioned below which have had no significant financial impact on the financial statements of the Company on the current year or prior year and is expected to have no significant effect in future years:- The Company adopted IFRS 16 using the modified retrospective approach. The Company elected to apply the standard to contracts that were previously identified as lease applying IAS 17 and IFRIC 4. The Company therefore did not apply the standard to contracts that were not previously identified as containing a lease applying IAS 17 and IFRIC 4. The Company elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. During the period the Company has performed an assessment of IFRS 16 and resolved that impact of difference as compared to leases accounted for applying IAS 17 & IFRIC 4 is not material to the Company’s financial statements as a whole.Standards issued but not yet effectiveIn addition to the above mentioned standards, the following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the International Financial Reporting Standards which have been published and are mandatory for compliance for the Company with effect from future dates.IFRS 9 - “Financial Instruments”, (including amendments to IFRS 4, Insurance Contracts) In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39's requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.2. BASIS OF PREPARATION (continued)(C) Significant accounting policies (continued)In September 2016, the IASB published amendments to IFRS 4 to address issues arising from the different effective dates of IFRS 9 and the new insurance contracts standard (IFRS 17). The amendments introduce two alternative options of applying IFRS 9 for entities issuing contracts within the scope of IFRS 4: a temporary exemption; and an overlay approach. The temporary exemption enables eligible entities to defer the implementation date of IFRS 9 for annual periods beginning before 1 January 2022 and continue to apply IAS 39 to financial assets and liabilities. An entity may apply the temporary exemption from IFRS 9 if: (i) it has not previously applied any version of IFRS 9, other than only the requirements for the presentation of gains and losses on financial liabilities designated as FVPL; and (ii) its activities are predominantly connected with insurance on its annual reporting date that immediately precedes 1 April 2016.The overlay approach allows an entity applying IFRS 9 to reclassify between profit or loss and other comprehensive income an amount that results in the profit or loss at the end of the reporting period for certain designated financial assets being the same as if an entity had applied IAS 39 to these designated financial assets.An entity can apply the temporary exemption from IFRS 9 for annual periods beginning on or after 1 January 2018. An entity may start applying the overlay approach when it applies IFRS 9 for the first time.The Company performed an assessment of the amendments and reached the conclusion that its activities are predominantly connected with insurance. The Company intends to apply the temporary exemption from IFRS 9 and, therefore, continue to apply IAS 39 to its financial assets and liabilities for the period ended March 31, 2019 and 2018. The Company is eligible and have chosen to apply the temporary exemption under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company's financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. IASB through its amendments to IFRS 4 issued in September 2016 had allowed temporary exemption if a Company meets the following criteria:- the Company has not previously applied any version of IFRS 9; and - its activities are predominantly connected with insurance that is defined as total percentage of carrying amount of insurance liabilities is greater than 90% of its total liabilities.The Company performed a high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects no significant impact on its statement of financial position and equity, except for the effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. Further, the Company believes that IFRS 9 would have an impact on the classification of financial instruments required to be mandatorily mentioned at fair value i.e investments classified under available for sale investments in Note 5. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2022, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. 2. BASIS OF PREPARATION (continued) (d) Segmental reportingA segment is a distinguishable component of the Company that is engaged in providing products or services (a business segment), which is subject to risk and rewards that are different from those of other segments. For management purposes, the Company is organized into business units based on their products and services and has four reportable segments as follows: Medical - coverage for health insurance. Motor insurance. Property and Casualty - coverage for property, engineering, marine, aviation, energy and general accidents insurance. Manafeth - third party liability insurance for foreign vehicles and the profit of this segment is shared with other insurance companies. Protection & Savings. Shareholders’ segment - reporting shareholder operations of the Company. Income earned from investments is the only revenue generating activity. Certain direct operating expenses and other overhead expenses are allocated to this segment on an appropriate basis. The surplus or loss from the insurance operations is allocated to this segment on an appropriate basis.Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief executive officer that makes strategic decisions. No inter-segment transactions occurred during the period. (e) Seasonality of operations There are no seasonal changes that may affect insurance operations of the Company. | 2 |
| Disclosure of statement of compliance [text block] | (a) Statement of complianceThe accompanying interim condensed financial statements (interim condensed financial information) of the Company for the three-month period ended March 31, 2019 has been prepared in accordance with International Financial Reporting Standards (IFRSs) as modified by Saudi Arabian Monetary Authority (SAMA) for the accounting of zakat and income tax, which requires, adoption of all IFRSs as issued by the International Accounting Standard Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 “Income Taxes” and IFRIC 21 “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated April 11, 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are to be accrued on a quarterly basis through equity under retained earnings.The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available for sale investments and investment in associates which is accounted for under the equity method and end of service benefits based on actuarial valuation techniques. The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: statutory deposit, accrued income on statutory deposit, property and equipment, intangible assets, investment property, investments in associates, available for sale investments, reserve for discontinued operations, end-of-service indemnities and return payable on statutory deposit. All other financial statement line items would generally be classified as current.The Company presents its statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial statements accordingly (Note 18). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim condensed statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. 2. BASIS OF PREPARATION (continued)(a) Basis of presentation (continued)In preparing the Company-level financial statement in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.The interim condensed financial information does not include all of the information required for full annual financial information and should be read in conjunction with the annual financial statement as of and for the year ended December 31, 2018. This interim condensed financial information is expressed in Saudi Arabian Riyals (SAR) and is rounded off to the nearest thousands. | 2 (a) |
| Disclosure of issued IFRS not yet adopted [text block] | Standards issued but not yet effectiveIn addition to the above mentioned standards, the following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the International Financial Reporting Standards which have been published and are mandatory for compliance for the Company with effect from future dates.IFRS 9 - “Financial Instruments”, (including amendments to IFRS 4, Insurance Contracts) In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39's requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.2. BASIS OF PREPARATION (continued)(C) Significant accounting policies (continued)In September 2016, the IASB published amendments to IFRS 4 to address issues arising from the different effective dates of IFRS 9 and the new insurance contracts standard (IFRS 17). The amendments introduce two alternative options of applying IFRS 9 for entities issuing contracts within the scope of IFRS 4: a temporary exemption; and an overlay approach. The temporary exemption enables eligible entities to defer the implementation date of IFRS 9 for annual periods beginning before 1 January 2022 and continue to apply IAS 39 to financial assets and liabilities. An entity may apply the temporary exemption from IFRS 9 if: (i) it has not previously applied any version of IFRS 9, other than only the requirements for the presentation of gains and losses on financial liabilities designated as FVPL; and (ii) its activities are predominantly connected with insurance on its annual reporting date that immediately precedes 1 April 2016.The overlay approach allows an entity applying IFRS 9 to reclassify between profit or loss and other comprehensive income an amount that results in the profit or loss at the end of the reporting period for certain designated financial assets being the same as if an entity had applied IAS 39 to these designated financial assets.An entity can apply the temporary exemption from IFRS 9 for annual periods beginning on or after 1 January 2018. An entity may start applying the overlay approach when it applies IFRS 9 for the first time.The Company performed an assessment of the amendments and reached the conclusion that its activities are predominantly connected with insurance. The Company intends to apply the temporary exemption from IFRS 9 and, therefore, continue to apply IAS 39 to its financial assets and liabilities for the period ended March 31, 2019 and 2018. The Company is eligible and have chosen to apply the temporary exemption under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company's financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. IASB through its amendments to IFRS 4 issued in September 2016 had allowed temporary exemption if a Company meets the following criteria:- the Company has not previously applied any version of IFRS 9; and - its activities are predominantly connected with insurance that is defined as total percentage of carrying amount of insurance liabilities is greater than 90% of its total liabilities.The Company performed a high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects no significant impact on its statement of financial position and equity, except for the effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. Further, the Company believes that IFRS 9 would have an impact on the classification of financial instruments required to be mandatorily mentioned at fair value i.e investments classified under available for sale investments in Note 5. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2022, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. | 2 (c ) ii |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | (b) Critical accounting judgments, estimates and assumptionsThe preparation of the interim condensed financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.The estimate and judgments used by management in the preparation of the interim condensed financial information are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2018. Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:i) The ultimate liability arising from claims made under insurance contractsThe estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. Estimates are made at the end of the reporting period both for the expected ultimate cost of claim reported and for the expected ultimate costs of claims incurred but not reported (“IBNR”). Liabilities for unpaid reported claims are estimated using the input of assessments for individual cases reported to the Company. At the end of each reporting period, prior year claims estimates are reassessed for adequacy and changes are made to the provision.The provision for claims incurred but not reported (IBNR) is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using the past claims settlement trends to predict future claims settlement trends. A range of methods such as Chain Ladder Method, Bornhuetter-Ferguson Method and Expected Loss Ratio Method are used by the actuaries to determine these provisions. Actuary had also used a segmentation approach including analyzing cost per member per year for medical line of business. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims.ii) Impairment of available-for-sale financial assetsThe Company determines that available-for-sale financial assets are impaired when there has been a significant or prolonged decline in the fair value of the available-for-sale financial assets below its cost. The determination of what is significant or prolonged requires judgment. For equity and mutual funds, a period of 12 months or longer is considered to be prolonged and a decline of 30% from original cost is considered significant as per Company policy. In making this judgment, the Company also evaluates among other factors, the normal volatility in share price, the financial health of the investee, industry and sector performance, changes in technology, and operational and financing cash flows. 2. BASIS OF PREPARATION (continued)(b) Critical accounting judgments, estimates and assumptions (continued)iii) Impairment of receivablesA provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired.iv) Fair value of financial instrumentsFair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics.The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases the fair values are estimated from observable data in respect of similar financial instruments or using models. Where market observable inputs are not available, they are estimated based on appropriate assumptions. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed. All models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data; however, areas such as credit risk (both own credit risk and counterparty risk), volatilities and correlations require management to make estimates. Please refer fair value of financial instruments disclosure in note 14. The accounting and risk management policies adopted in the preparation of these condensed interim financial information are consistent with the Company’s audited financial statements for the year ended December 31, 2018, except for adoption of the amendments to existing standards which has had no material impact on the financial information of the Company. | 2 (b) |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | (c) Significant accounting policiesThe significant accounting policies used in the preparation of these financial information are consistent with those used in the preparation of the previous financial year, except for the adoption of the following new standards and other amendments to existing standards mentioned below which have had no significant financial impact on the financial statements of the Company on the current year or prior year and is expected to have no significant effect in future years:- The Company adopted IFRS 16 using the modified retrospective approach. The Company elected to apply the standard to contracts that were previously identified as lease applying IAS 17 and IFRIC 4. The Company therefore did not apply the standard to contracts that were not previously identified as containing a lease applying IAS 17 and IFRIC 4. The Company elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. During the period the Company has performed an assessment of IFRS 16 and resolved that impact of difference as compared to leases accounted for applying IAS 17 & IFRIC 4 is not material to the Company’s financial statements as a whole.Standards issued but not yet effectiveIn addition to the above mentioned standards, the following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the International Financial Reporting Standards which have been published and are mandatory for compliance for the Company with effect from future dates.IFRS 9 - “Financial Instruments”, (including amendments to IFRS 4, Insurance Contracts) In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39's requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.2. BASIS OF PREPARATION (continued)(C) Significant accounting policies (continued)In September 2016, the IASB published amendments to IFRS 4 to address issues arising from the different effective dates of IFRS 9 and the new insurance contracts standard (IFRS 17). The amendments introduce two alternative options of applying IFRS 9 for entities issuing contracts within the scope of IFRS 4: a temporary exemption; and an overlay approach. The temporary exemption enables eligible entities to defer the implementation date of IFRS 9 for annual periods beginning before 1 January 2022 and continue to apply IAS 39 to financial assets and liabilities. An entity may apply the temporary exemption from IFRS 9 if: (i) it has not previously applied any version of IFRS 9, other than only the requirements for the presentation of gains and losses on financial liabilities designated as FVPL; and (ii) its activities are predominantly connected with insurance on its annual reporting date that immediately precedes 1 April 2016.The overlay approach allows an entity applying IFRS 9 to reclassify between profit or loss and other comprehensive income an amount that results in the profit or loss at the end of the reporting period for certain designated financial assets being the same as if an entity had applied IAS 39 to these designated financial assets.An entity can apply the temporary exemption from IFRS 9 for annual periods beginning on or after 1 January 2018. An entity may start applying the overlay approach when it applies IFRS 9 for the first time.The Company performed an assessment of the amendments and reached the conclusion that its activities are predominantly connected with insurance. The Company intends to apply the temporary exemption from IFRS 9 and, therefore, continue to apply IAS 39 to its financial assets and liabilities for the period ended March 31, 2019 and 2018. The Company is eligible and have chosen to apply the temporary exemption under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company's financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. IASB through its amendments to IFRS 4 issued in September 2016 had allowed temporary exemption if a Company meets the following criteria:- the Company has not previously applied any version of IFRS 9; and - its activities are predominantly connected with insurance that is defined as total percentage of carrying amount of insurance liabilities is greater than 90% of its total liabilities.The Company performed a high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects no significant impact on its statement of financial position and equity, except for the effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. Further, the Company believes that IFRS 9 would have an impact on the classification of financial instruments required to be mandatorily mentioned at fair value i.e investments classified under available for sale investments in Note 5. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2022, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. | 2 (C ) |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of reinsurers/ retakaful share of outstanding claims, net [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: March 31, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 2,457,033 (236,669) 2,220,364 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (1,953,563) 300,011 (1,653,552) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 4,323,763 (481,497) 3,842,266 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: March 31, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,116,693 3,330,828Less: Realizable value of salvage and subrogation (47,347) (59,672) 3,069,346 3,271,156Add: Incurred but not reported claims reserve 1,660,192 1,684,183Add: Premium deficiency reserve 1,815 7,272Gross outstanding claims and reserves 4,731,353 4,962,611 Less: Reinsurers’ share of gross outstanding claims (2,523,918) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (225,516) (191,837)Reinsurers’ share of outstanding claims and reserves (2,749,434) (2,917,646) Net outstanding claims and reserves 1,981,919 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at March 31, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 4.73 billion (2018: SAR 4.96 billion). Significant portion of reserves relates to medical line of business which are a best-estimate of the expected ultimate claim trends as at March 31, 2019. | 7 (ii) |
| Disclosure of reinsurers/ retakaful share of unearned premium/ contributions, net [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: March 31, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 2,457,033 (236,669) 2,220,364 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (1,953,563) 300,011 (1,653,552) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 4,323,763 (481,497) 3,842,266 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: March 31, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,116,693 3,330,828Less: Realizable value of salvage and subrogation (47,347) (59,672) 3,069,346 3,271,156Add: Incurred but not reported claims reserve 1,660,192 1,684,183Add: Premium deficiency reserve 1,815 7,272Gross outstanding claims and reserves 4,731,353 4,962,611 Less: Reinsurers’ share of gross outstanding claims (2,523,918) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (225,516) (191,837)Reinsurers’ share of outstanding claims and reserves (2,749,434) (2,917,646) Net outstanding claims and reserves 1,981,919 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at March 31, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 4.73 billion (2018: SAR 4.96 billion). Significant portion of reserves relates to medical line of business which are a best-estimate of the expected ultimate claim trends as at March 31, 2019. | 7 (i) |
| Disclosure of investments [text block] | 4. AVAILABLE-FOR-SALE INVESTMENTS (continued)The movement of changes in fair value of investments is as follows: Three months ended March 31, 2019(Unaudited) Three months ended March 31, 2018(Audited) SAR’000Insurance Operations Change in fair value 80,587 (16,256)Net amount recycled to interim statement of income - insurance operations - 2,873 80,587 (13,383) Shareholders’ Operations Change in fair value 100,539 47,176 Net amount recycled to interim statement of income - shareholders’ operations 1,145 (3,516) 101,684 43,660 Total 182,271 30,2775. MUDARABA DEPOSITSThe deposits are held with banks and financial institution registered with Capital Market Authority in the Kingdom of Saudi Arabia. These deposits are predominately in Mudaraba structures. These deposits are denominated in US Dollars and have an original maturity of more than three months to one year and yield on average financial incomes at rates 4.08%. The movements in deposits during the period/ year is as follows: March 31, 2019(Unaudited) December 31,2018(Audited) SAR’000Insurance Operations Balance at the beginning of the period/ year 1,387,500 - Placed during the period/ year 1,520,464 1,387,500Proceeds during the period/ year (1,387,500) - Balance at the end of the period/ year 1,520,464 1,387,500Shareholders’ Operations Balance at the beginning of the period/ year 851,625 82,035Placed during the period/ year 905,508 851,625Matured during the period/ year (851,625) (82,035)Balance at the end of the period/ year 905,508 851,625 Total 2,425,972 2,239,125 | 4-5 |
| Disclosure of investments in available-for-sale investments [text block] | 4. AVAILABLE-FOR-SALE INVESTMENTS (continued)The movement of changes in fair value of investments is as follows: Three months ended March 31, 2019(Unaudited) Three months ended March 31, 2018(Audited) SAR’000Insurance Operations Change in fair value 80,587 (16,256)Net amount recycled to interim statement of income - insurance operations - 2,873 80,587 (13,383) Shareholders’ Operations Change in fair value 100,539 47,176 Net amount recycled to interim statement of income - shareholders’ operations 1,145 (3,516) 101,684 43,660 Total 182,271 30,277 | 4 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 3. RECEIVABLES, NETReceivables comprise net amounts due from the following: March 31, 2019(Unaudited) December 31,2018(Audited) SAR’000Policyholders 1,446,468 778,456Brokers and agents 732,482 757,943Related parties (note 13) 75,403 55,506 2,254,353 1,591,905Receivables from reinsurers 55,181 62,517Administrative service plan 17,789 23,105 2,327,323 1,677,527Provision for doubtful receivables (141,740) (159,540)Receivables, net 2,185,583 1,517,987 | 3 |
| Disclosure of cash and cash equivalents [text block] | 6. CASH AND CASH EQUIVALENTS March 31, 2019(Unaudited) December 31,2018(Audited) SAR’000Insurance Operations Mudaraba deposits 110,000 210,000 Bank balances and cash 990,344 907,258 1,100,344 1,117,258Shareholders’ Operations Mudaraba deposits 400,000 400,000Bank balances and cash 104,094 82,982 504,094 482,982 Total cash and cash equivalents 1,604,438 1,600,2406. CASH AND CASH EQUIVALENTS (continued)Mudaraba deposits are maintained with banks and financial institutions and have a maturity of three months or less from the date of acquisition. These earn commission at an average rate of 3.99% per annum as at March 31, 2019 and December 31, 2018.Bank balances and cash includes call account balance of SAR 43 million (December 31, 2018: SAR 65 million). Both bank balances and mudaraba deposits (including off-balance sheet exposures) are placed with counterparties with sound credit ratings under Standard and Poor's and Moody’s ratings methodology. | 6 |
| Disclosure of statutory deposit [text block] | 10. STATUTORY DEPOSITIn compliance with Article 58 of the Insurance Implementing Regulations of SAMA, the Company has deposited 10 percent of its share capital, amounting to SAR 125 million (December 31, 2018: SAR 125 million), in a bank designated by SAMA. The statutory deposit is maintained with the National Commercial Bank and can be withdrawn only with the consent of SAMA. | 10 |
| Disclosure of gross unearned premiums/ contributions [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: March 31, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 2,457,033 (236,669) 2,220,364 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (1,953,563) 300,011 (1,653,552) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 4,323,763 (481,497) 3,842,266 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: March 31, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,116,693 3,330,828Less: Realizable value of salvage and subrogation (47,347) (59,672) 3,069,346 3,271,156Add: Incurred but not reported claims reserve 1,660,192 1,684,183Add: Premium deficiency reserve 1,815 7,272Gross outstanding claims and reserves 4,731,353 4,962,611 Less: Reinsurers’ share of gross outstanding claims (2,523,918) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (225,516) (191,837)Reinsurers’ share of outstanding claims and reserves (2,749,434) (2,917,646) Net outstanding claims and reserves 1,981,919 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at March 31, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 4.73 billion (2018: SAR 4.96 billion). Significant portion of reserves relates to medical line of business which are a best-estimate of the expected ultimate claim trends as at March 31, 2019. | 7 (i) |
| Disclosure of gross outstanding claims/ benefits [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: March 31, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 2,457,033 (236,669) 2,220,364 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (1,953,563) 300,011 (1,653,552) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 4,323,763 (481,497) 3,842,266 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: March 31, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,116,693 3,330,828Less: Realizable value of salvage and subrogation (47,347) (59,672) 3,069,346 3,271,156Add: Incurred but not reported claims reserve 1,660,192 1,684,183Add: Premium deficiency reserve 1,815 7,272Gross outstanding claims and reserves 4,731,353 4,962,611 Less: Reinsurers’ share of gross outstanding claims (2,523,918) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (225,516) (191,837)Reinsurers’ share of outstanding claims and reserves (2,749,434) (2,917,646) Net outstanding claims and reserves 1,981,919 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at March 31, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 4.73 billion (2018: SAR 4.96 billion). Significant portion of reserves relates to medical line of business which are a best-estimate of the expected ultimate claim trends as at March 31, 2019. | 7 (ii) |
| Disclosure of zakat [text block] | 17. ZAKATStatus of assessmentsThe Company had filed Zakat returns with the General Authority of Zakat and Tax (“GAZT”) for the years from 2005 to 2018. In relation to 2005 and 2006, the final assessments had been finalized and the Company had filed an appeal against the assessments of GAZT which is raised to Board of Grievances. During the year ended December 31, 2018 GAZT, based on letter dated 6/2/1440H corresponding to 15/10/2018, demanded Zakat amounting to SR 53 million in relation to assessment years 2005 and 2006 which was paid by the Company from zakat provision. In relation to 2007 to 2013, GAZT had raised assessments and management had subsequently filed their response. Further, GAZT has yet to commence its review for the years 2014 and 2018. Based on advice from zakat consultant management believes that, appropriate provisions have been made and management believes that finalization of the above mentioned assessments is not expected to have a material impact on the financial statements. | 17 |
| Disclosure of classes of share capital [text block] | 8. SHARE CAPITALThe authorized, issued and paid up capital of the Company was SAR 1.25 billion at March 31, 2019 (December 31, 2018: SAR 1.25 billion) consisting of 125 million shares (December 31, 2018: 125 million shares) of SAR 10 each. Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat. March 31, 2019 Authorized and issued Paid up No. of Shares SAR’000Held by the public 66,713,009 667,130 667,130Public Pension Agency 29,737,685 297,377 297,377General Organization for Social Insurance 28,549,306 285,493 285,493 125,000,000 1,250,000 1,250,000 December 31, 2018 Authorized and issued Paid up No. of Shares SAR’000Held by the public 66,713,009 667,130 667,130Public Pension Agency 29,737,685 297,377 297,377General Organization for Social Insurance 28,549,306 285,493 285,493 125,000,000 1,250,000 1,250,000 | 8 |
| Disclosure of statutory reserve [text block] | 11. LEGAL RESERVEIn accordance with the Articles of Association of the Company and in compliance with Article 70(2)(g) of the Insurance Implementing Regulations issued by SAMA, the Company is required to allocate 20% of its net income for the year to the legal reserve until it equals the value of share capital. This transfer is only made at the year end. The legal reserve is not available for distribution to the shareholders until the liquidation of the Company. | 11 |
| Disclosure of fair value reserve on investments [text block] | 14. FAIR VALUES OF FINANCIAL INSTRUMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or the most advantageous) market between market participants at the measurement date under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique. The fair values of recognised financial instruments are not significantly different from the carrying values included in the financial information. The estimated fair values of financial instruments are based on quoted market prices, when available. Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments: - Level 1: quoted market price: financial instruments with quoted unadjusted prices for identical instruments in active markets. - Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data.- Level 3: valuation techniques for which any significant input is not based on observable market data. The fair values of bank balances, cash and other financial assets in statement of financial position which are carried at amortized cost, are not significantly different from the carrying values included in the financial statements due to the short term nature of balances. The table below presents the available-for-sale investments based on the fair value hierarchy: SAR’000March 31, 2019 (Unaudited) Level 1 Level 2 Level 3 TotalAvailable-for- sale investments Insurance Operations Mutual funds -261,912-261,912Fixed income portfolio (Governments and corporations securities ) -871,286-871,286Sukuks --141,140141,140Funds placed with portfolio manager 6,944 - - 6,944 6,9441,133,198141,1401,281,282 Shareholders’ Operations Mutual funds -660,742618,1811,278,923Fixed income portfolio (Governments and corporations securities ) -387,703-387,703Funds placed with portfolio manager 9,622 - - 9,622 9,6221,048,445618,1811,676,248 Total 16,5662,181,643759,3212,957,530December 31, 2018 (Audited) Available-for-sale investments Insurance Operations Mutual funds - 191,404 - 191,404Fixed income portfolio (Governments and corporations securities ) - 790,304 - 790,304Sukuks - - 225,140 225,140Funds placed with portfolio manager 28,059 - - 28,059 28,059 981,708 225,140 1,234,907 Shareholders’ Operations Mutual funds - 609,270 601,629 1,210,899Fixed income portfolio (Governments and corporations securities ) - 358,556 - 358,556Sukuks - - 90,000 90,000Funds placed with portfolio manager 10,768 - - 10,768Total 10,768 967,826 691,629 1,670,223 38,8271,949,534916,7692,905,13014. FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)Reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy: SAR’000 Total gain or loss recognized in March 31, 2019 (Unaudited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance March 31Insurance Operations Sukuks 225,140 - (84,000) - - 141,140 225,140 - (84,000) - - 141,140 Shareholders’ operations Mutual funds 601,629 - (4,514) - 21,066618,181 Sukuks 90,000 - (90,000) - - - 691,629 - (94,514) - 21,066618,181 Total 916,769 - (178,514) - 21,066759,321 SAR’000 Total gain recognized in December 31, 2018 (Audited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance December 31Insurance Operations Mutual funds 2,637,325 928,066 (3,667,918) 16,318 86,209 - Sukuks 281,860 - (56,720) - - 225,140 2,919,185 928,066 (3,724,638) 16,318 86,209 225,140 Shareholders’ operations Mutual funds 2,425,439 937,028 (3,005,602) 185,388 59,376 601,629 Sukuks 100,000 - (10,000) - - 90,000 2,525,439 937,028 (3,015,602) 185,388 59,376 691,629 Total 5,444,624 1,865,094 (6,740,240) 201,706 145,585 916,769 | 14 |
| Disclosure of earnings per share [text block] | 16. EARNINGS PER SHAREBasic and diluted earnings per share have been calculated by dividing the income attributed to shareholders’ by 125 million shares. | 16 |
| Disclosure of related party transactions [text block] | 13. RELATED PARTY TRANSACTIONS AND BALANCESRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Transactions for the period ended Balance receivable / (payable) as at March March March December 31, 2019 31, 2018 31, 2019 31, 2018 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Insurance premium written 22,502 16,010 6,592 4,091General Organization for Social Insurance - Other services 37 - - - Associates Insurance premium written/ (reversed) (22) 76 (68) 210Najm fees paid 2,668 7,278 (1,200) -Waseel fees paid 1,849 1,896 - -United Insurance Co. fees and claims, net 2,797 2,741 3,131 3,712 Entities controlled, jointly controlled or significantly influenced by related parties Insurance premium written 75,776 41,692 68,879 51,205Rent expenses paid 17 30 - -Amount of claims paid to hospitals 24,868 8,418 (2,968) (12,088)In accordance with the Company’s Articles of Association, the Board of Directors is entitled each year to remuneration of up to 10% of the remaining profit from Shareholders’ operations, as defined, based on a decision by the General Assembly.The compensation of key management personnel during the period is as follows: March 31, 2019 (Unaudited) March 31, 2018 (Unaudited) SAR’000Salaries and other allowances 2,525 2,270 End of service indemnities 162 159 | 13 |
| Disclosure of entity's operating segments [text block] | 15. OPERATING SEGMENTS (continued) For the three months period ended March 31, 2019 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 8,305 148,353 42,904 5,463 - 205,025 205,025- Micro Enterprises 55,997 4,585 - 15,353 - 75,935 75,935- Small Enterprises 68,722 4,444 - 5,700 80 78,946 78,946- Medium Enterprises 121,870 7,332 - 3,460 320 132,982 132,982- Corporates 1,723,826 13,848 - 223,881 2,590 1,964,145 1,964,1451,978,720 178,562 42,904 253,857 2,990 2,457,033 2,457,033 Reinsurance ceded - local - - - (6,990) (365) (7,355) (7,355)Reinsurance ceded - international (4,516) - - (222,470) (2,328) (229,314) (229,314)Fees income from takaful - - - - 798 798 798 Excess of loss premiums - (4,493) (477) (1,446) - (6,416) (6,416)Net premiums written 1,974,204 174,069 42,427 22,951 1,095 2,214,746 2,214,746 Changes in unearned premiums, net (553,986) (14,454) (116) 1,454 290 (566,812) (566,812)Net premiums earned 1,420,218 159,615 42,311 24,405 1,385 1,647,934 1,647,934 Reinsurance commissions 840 - - 25,979 - 26,819 26,819 Other underwriting income - 3,520 - - - 3,520 3,520 TOTAL REVENUES 1,421,058 163,135 42,311 50,384 1,385 1,678,273 1,678,273 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,436,972 83,230 6,635 294,867 5,013 1,826,717 1,826,717 Reinsurers’ share of claims paid (23,371) (2,282) - (289,229) (4,572) (319,454) (319,454)Net claims paid 1,413,601 80,948 6,635 5,638 441 1,507,263 1,507,263 Changes in outstanding claims, net (14,190) 15,105 (329) (484) (21) 81 81 Changes in incurred but not reported claims reserve, net (29,525) (30,118) (350) 2,323 - (57,670) (57,670)Changes in premium deficiency reserves (4,510) - - (947) - (5,457) (5,457)Net claims and other benefits incurred 1,365,376 65,935 5,956 6,530 420 1,444,217 1,444,217 Changes in reserve for takaful activities - - - - (880) (880) (880)Policy acquisition costs 49,141 20,171 8,477 8,826 257 86,872 86,872 Other underwriting expenses 29,906 892 3,735 5,126 546 40,205 40,205 Manafeth insurance share distribution - - 19,182 - - 19,182 19,182 TOTAL UNDERWRITING COSTS AND EXPENSES 1,444,423 86,998 37,350 20,482 343 1,589,596 1,589,596 NET UNDERWRITING (LOSS)/ INCOME (23,365)76,137 4,961 29,902 1,042 88,677 88,677General and administrative expenses (123,303) (221) (123,524)Reversal of provision for doubtful debts 17,800 - 17,800Dividend and realized gain on investments, net 31,008 23,253 54,261Share of profit from investments in associates, net 425 4,560 4,985Other income 5,877 - 5,877NET INCOME FOR THE PERIOD 20,484 27,592 48,076 15. OPERATING SEGMENTS (continued) For the three months period ended March 31, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 6,290 166,842 37,810 5,395 - 216,337 216,337- Micro Enterprises 63,174 7,488 - 6,385 - 77,047 77,047- Small Enterprises 33,040 4,357 - 4,181 106 41,684 41,684- Medium Enterprises 73,797 7,454 - 3,571 511 85,333 85,333- Corporates 1,482,514 12,748 - 173,946 6,103 1,675,311 1,675,311 1,658,815 198,889 37,810 193,478 6,720 2,095,712 2,095,712 Reinsurance ceded - local - - - (3,854) - (3,854) (3,854)Reinsurance ceded - international (1,979) - - (174,050) (6,124) (182,153) (182,153)Fees income from takaful - - - - 1,233 1,233 1,233 Excess of loss premiums - (4,772) (579) (2,347) - (7,698) (7,698)Net premiums written 1,656,836 194,117 37,231 13,227 1,829 1,903,240 1,903,240 Changes in unearned premiums, net (233,268) 116,181 2,289 5,699 124 (108,975) (108,975)Net premiums earned 1,423,568 310,298 39,520 18,926 1,953 1,794,265 1,794,265 Reinsurance commissions 668 - - 24,775 - 25,443 25,443 Other underwriting income - 3,901 - - - 3,901 3,901 TOTAL REVENUES 1,424,236 314,199 39,520 43,701 1,953 1,823,609 1,823,609 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,743,431 219,742 8,569 234,658 5,079 2,211,479 2,211,479 Reinsurers’ share of claims paid (26,137) (3,873) - (225,481) (4,742) (260,233) (260,233)Net claims paid 1,717,294 215,869 8,569 9,177 337 1,951,246 1,951,246 Changes in outstanding claims, net (461,483) 1,368 1,991 2,568 214 (455,342) (455,342)Changes in incurred but not reported claims reserve, net 133,102 73 (9,364) (7,297) - 116,514 116,514Changes in premium deficiency reserves (36,594) - - 4,847 - (31,747) (31,747)Net claims and other benefits incurred 1,352,319 217,310 1,196 9,295 551 1,580,671 1,580,671 Changes in reserve for takaful activities - - - - (748) (748) (748)Policy acquisition costs 46,643 31,974 8,516 12,861 335 100,329 100,329 Other underwriting expenses 28,411 2,795 4,090 6,389 727 42,412 42,412 Manafeth insurance share distribution - - 21,288 - - 21,288 21,288 TOTAL UNDERWRITING COSTS AND EXPENSES 1,427,373 252,079 35,090 28,545 865 1,743,952 1,743,952 NET UNDERWRITING (LOSS)/ INCOME (3,137) 62,120 4,430 15,156 1,088 79,657 (1,381) 79,657 General and administrative expenses (91,888) - (93,269)Allowance for doubtful debts (7,500) 15,591 (7,500)Dividend and realized gain on investments, net 39,110 5,897 54,701Share of profit from investments in associates, net 526 - 6,423Other income 4,341 20,107 4,341 NET INCOME FOR THE PERIOD 24,246 20,107 44,353 15. OPERATING SEGMENTS (continued) As at March 31, 2019 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total - Shareholders’ operations Total SAR’000Assets Reinsurer’s share of unearned premiums 30,752 - - 445,771 4,974 481,497 481,497 Reinsurer’s share of incurred but not reported claims 25,610 14,932 - 182,677 2,297 225,516 225,516Reinsurer’s share of outstanding claims 403 20,281 2,000 2,475,998 25,236 2,523,918 2,523,918Deferred excess of loss premiums - 1,630 1,432 1,236 - 4,298 4,298Deferred policy acquisition costs 95,657 23,545 1,380 12,785 318 133,685 133,685Investments (including investment property) 1,299,489 1,759,699 3,059,188Receivables, net 2,185,583 - 2,185,583 Cash and cash equivalents 1,100,344 504,094 1,604,438Unallocated assets 2,019,244 1,033,247 3,052,491Total assets 152,422 60,388 4,812 3,118,467 32,825 9,973,574 3,297,040 13,270,614 Liabilities Gross unearned premiums 3,441,895 341,964 24,179 510,026 5,699 4,323,763 4,323,763Gross outstanding claims 241,941 169,629 13,763 2,616,674 27,339 3,069,346 3,069,346Incurred but not reported claims reserve 1,254,542 179,515 13,572 210,001 2,562 1,660,192 1,660,192 Premium deficiency reserve - - - 1,815 - 1,815 1,815Unearned commission income 739 - - 30,308 2,242 33,289 33,289 Reserve for takaful activities - - - - 7,810 7,810 7,810Reinsurers’ balances payable 266,140 266,140 Unallocated liabilities and accumulated surplus 1,617,441 269,646 1,887,087Total liabilities and surplus 4,939,117 691,108 51,514 3,368,824 45,652 10,979,796 269,646 11,249,442 15. OPERATING SEGMENTS (continued) As at December 31, 2018 (Audited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total - Shareholders’ operations Total SAR’000Assets Reinsurer’s share of unearned premiums 52,826- - 485,213 6,800 544,839 544,839Reinsurer’s share of incurred but not reported claims 23,327- - 166,213 2,297 191,837 191,837Reinsurer’s share of outstanding claims 66718,382 2,000 2,680,763 23,997 2,725,809 2,725,809Deferred excess of loss premiums - 6,123 - 2,652 - 8,775 8,775Deferred policy acquisition costs 93,53322,520 1,312 12,793 493 130,651 130,651Investments (including investment property) 1,252,689 1,757,418 3,010,107Receivables, net 1,517,987 - 1,517,987Cash and cash equivalents 1,117,258 482,982 1,600,240Unallocated assets 1,918,454 978,879 2,897,333Total assets 170,35347,025 3,312 3,347,634 33,587 9,408,299 3,219,279 12,627,578 Liabilities Gross unearned premiums 2,909,983327,510 24,063 550,922 7,815 3,820,293 3,820,293Gross outstanding claims 256,395152,625 14,092 2,821,923 26,121 3,271,156 3,271,156Incurred but not reported claims reserve 1,281,784194,701 13,922 191,214 2,562 1,684,183 1,684,183Premium deficiency reserve 4,510 - - 2,762 - 7,272 7,272Unearned commission income 1,291- - 36,265 1,743 39,299 39,299Reserve for takaful activities - - - - 8,690 8,690 8,690Reinsurers’ balances payable 94,720 94,720Unallocated liabilities and surplus 1,640,177 253,567 1,893,744Total liabilities and surplus 4,453,963674,836 52,077 3,603,086 46,931 10,565,790 253,567 10,819,357 | 15 |
| Disclosure of commitments and contingencies, general [text block] | 9. CONTINGENT LIABILITIESAs at March 31, 2019, the Company was contingently liable for letters of credit and guarantees, issued on its behalf by the banks, amounting to SAR 131 million (December 31, 2018: SAR 143 million) occurring in the normal course of business.The Company, in common with significant majority of insurers, is subject to litigation in the normal course of its business. Appropriate provisions have been made in relation to pending cases and management believes that finalization of these court cases is not expected to have a material impact on the financial information. | 9 |
| Disclosure of comparative figures [text block] | 19. RECLASSIFICATION OF COMPARATIVE FIGURES Certain of the prior period amounts have been reclassified to conform with the presentation in the current period. These changes were made for better presentation of balances and transactions in the interim condensed financial information of the Company. | 19 |
| Disclosure of board of director's approval of the financial statements [text block] | 20. APPROVAL OF THE INTERIM CONDENSED FINANCIAL INFORMATIONThe interim condensed financial information have been approved by the Audit Committee on behalf of the Board of Directors, on Sha’ban 24, 1440H, corresponding to April 29, 2019. | 20 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 12. MANAFETH SHARED AGREEMENTOn January 13, 2015 together with 25 related insurance companies, the Company signed the Manafeth shared agreement relating to third party liability motor insurance which is effective from 1 January 2015. The agreement relates to motor insurance for vehicles entering the Kingdom of Saudi Arabia. The agreement has subsequently been renewed for two years from January 1, 2019 to December 31, 2020 with 25 related insurance companies.The main terms of the above mentioned agreement are as follows:- The Company obtains 15% management fee of the net result of the Manafeth portfolio;- The Company obtains 4.25% of Manafeth’s gross premiums written to cover the related indirect expenses; and- The net result of the Manafeth portfolio after deducting the two above mentioned items is due to be shared equally by the Company and its related insurers. | 12 |
