| 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 al-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) Basis of presentationThe accompanying interim condensed financial statements (interim condensed financial information) of the Company for the three and six months period ended Jun 30, 2018 has been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) 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 related to zakat and income tax. As per the SAMA Circular no. 381000074519 dated 14 Rajab 1438H (corresponding to 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 shareholders 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. 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.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 information 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 condensed 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 information have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations. 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 information 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 do not include all of the information required for full annual financial information and should be read in conjunction with the annual financial information as of and for the year ended December 31, 2017. These interim condensed financial information are expressed in Saudi Arabian Riyals (SAR) and are 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 statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2017. Following are the accounting judgments and estimates that are critical in preparation of these interim condensed financial statements: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.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. 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 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.For unquoted investments, fair value is determined by reference to the market value of a similar investment or where the fair values cannot be derived from active markets, they are determined using a variety of valuation techniques. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values.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, 2017, 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 accounting policies, estimates and assumptions used in the preparation of these interim condensed financial information are consistent with those used in the preparation of the annual financial information for the year ended December 31, 2017 except as explained below:- 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.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2021.The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.The Company is eligible and have chosen to apply the deferral approach 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. As such, it is not possible to fully assess the effect of the adoption of IFRS 9.- IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2021, 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 income statement and the balance sheet. The Company has decided not to early adopt this new standard.2. BASIS OF PREPARATION (continued)- IFRS 16 - “Leases”, applicable for the period beginning on or after 1 January 2019. The new standard eliminates the current dual accounting model for lessees under IAS 17, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, IFRS 16 proposes on-balance sheet accounting model. The Company has decided not to early adopt this new standard. (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. 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 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: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 4,405,244 (591,125) 3,814,119 4,390,229 (553,813) 3,836,416Premiums written during the period / year 3,851,576 (538,258) 3,313,318 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (4,158,086) 546,145 (3,611,941) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 4,098,734 (583,238) 3,515,496 4,405,244 (591,125) 3,814,1197. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET (continued)(ii) Gross outstanding claims and reserves, net comprise of the following: June 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 1,969,068 2,483,435 Less: Realizable value of salvage and subrogation (94,340) (108,671) 1,874,728 2,374,764 Add: Incurred but not reported claims reserve 1,562,574 1,700,269 Add: Premium deficiency reserve 118,389 137,248 Gross outstanding claims and reserves 3,555,691 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,301,831) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (202,731) (391,207)Reinsurers’ share of outstanding claims and reserves (1,504,562) (1,766,484) Net outstanding claims and reserves 2,051,129 2,445,797There 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 June 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.5 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business | 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: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 4,405,244 (591,125) 3,814,119 4,390,229 (553,813) 3,836,416Premiums written during the period / year 3,851,576 (538,258) 3,313,318 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (4,158,086) 546,145 (3,611,941) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 4,098,734 (583,238) 3,515,496 4,405,244 (591,125) 3,814,1197. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET (continued)(ii) Gross outstanding claims and reserves, net comprise of the following: June 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 1,969,068 2,483,435 Less: Realizable value of salvage and subrogation (94,340) (108,671) 1,874,728 2,374,764 Add: Incurred but not reported claims reserve 1,562,574 1,700,269 Add: Premium deficiency reserve 118,389 137,248 Gross outstanding claims and reserves 3,555,691 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,301,831) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (202,731) (391,207)Reinsurers’ share of outstanding claims and reserves (1,504,562) (1,766,484) Net outstanding claims and reserves 2,051,129 2,445,797There 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 June 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.5 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business | 7 (i) |
| 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 June 30, 2018(Unaudited) Three months ended June 30, 2017(Unaudited) SAR’000Insurance operations Change in fair value (82,936) 62,435 Net amount recycled to interim statement of income - insurance operations (259) (23,677) (83,195) 38,758 Shareholders’ operations Change in fair value (94,827) (39,371)Net amount recycled to interim statement of income - shareholders’ operations - 21,118 (94,827) (18,253) Six months ended June 30, 2018(Unaudited) Six months ended June 30, 2017(Unaudited) SAR’000Insurance operations Change in fair value (99,192) 55,380 Net amount recycled to interim statement of income - insurance operations 2,614 (65,178) (96,578) (9,798) Shareholders’ operations Change in fair value (47,651) 63,861 Net amount recycled to interim statement of income - shareholders’ operations (3,516) (8,467) (51,167) 55,394 | 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: June 30, 2018(Unaudited) December 31,2017(Audited) SAR’000Policyholders 1,856,872 1,742,599 Brokers and agents 511,777 365,938 Related parties (note 13) 33,812 155,600 2,402,461 2,264,137 Receivables from reinsurers 273,776 110,677 Administrative service plan 24,861 22,169 2,701,098 2,396,983 Provision for doubtful receivables (156,403) (139,305)Receivables, net 2,544,695 2,257,678 | 3 |
| Disclosure of cash and cash equivalents [text block] | 6. CASH AND CASH EQUIVALENTS June 30, 2018(Unaudited) December 31,2017(Audited) SAR’000Insurance operations Murabaha deposits - 200,133 Bank balances and cash 705,875 915,011 705,875 1,115,144 Shareholders’ operations Murabaha deposits - 100,000 Bank balances and cash 165,524 182,059 165,524 282,059 Total cash and cash equivalents 871,399 1,397,203Bank balances and cash includes call account balance of SAR 157 million (December 31, 2017: SAR 188 million). Both bank balances and murabaha 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, 2017: 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: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 4,405,244 (591,125) 3,814,119 4,390,229 (553,813) 3,836,416Premiums written during the period / year 3,851,576 (538,258) 3,313,318 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (4,158,086) 546,145 (3,611,941) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 4,098,734 (583,238) 3,515,496 4,405,244 (591,125) 3,814,1197. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET (continued)(ii) Gross outstanding claims and reserves, net comprise of the following: June 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 1,969,068 2,483,435 Less: Realizable value of salvage and subrogation (94,340) (108,671) 1,874,728 2,374,764 Add: Incurred but not reported claims reserve 1,562,574 1,700,269 Add: Premium deficiency reserve 118,389 137,248 Gross outstanding claims and reserves 3,555,691 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,301,831) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (202,731) (391,207)Reinsurers’ share of outstanding claims and reserves (1,504,562) (1,766,484) Net outstanding claims and reserves 2,051,129 2,445,797There 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 June 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.5 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business. | 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: June 30, 2018 December 31, 2017 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 4,405,244 (591,125) 3,814,119 4,390,229 (553,813) 3,836,416Premiums written during the period / year 3,851,576 (538,258) 3,313,318 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (4,158,086) 546,145 (3,611,941) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 4,098,734 (583,238) 3,515,496 4,405,244 (591,125) 3,814,1197. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET (continued)(ii) Gross outstanding claims and reserves, net comprise of the following: June 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 1,969,068 2,483,435 Less: Realizable value of salvage and subrogation (94,340) (108,671) 1,874,728 2,374,764 Add: Incurred but not reported claims reserve 1,562,574 1,700,269 Add: Premium deficiency reserve 118,389 137,248 Gross outstanding claims and reserves 3,555,691 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,301,831) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (202,731) (391,207)Reinsurers’ share of outstanding claims and reserves (1,504,562) (1,766,484) Net outstanding claims and reserves 2,051,129 2,445,797There 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 June 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.5 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business. | 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 2017. 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. 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 to 2017. Based on advice from zakat consultant, appropriate provisions have been made and management believes that finalization of the abovementioned assessments is not expected to have a material impact on the financial information. | 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 June 30, 2018 (December 31, 2017: SAR 1.25 billion) consisting of 125 million shares (December 31, 2017: 125 million shares) of SAR 10 each. Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat. June 30, 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 December 31, 2017 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. 14. FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)The valuation of each publicly traded investment is based upon the closing market price of that stock as of the valuation date, less a discount if the security is restricted. Fair values of private equity investments and mutual funds classified in Level 3 are determined based on the investees’ latest reported net assets values as at the date of statement of financial position taking into account the fair value of underlying investments by the fund. The fair value of underlying investments are taken by the fund manager from reliable and third party sources including Reuters, Bloomberg. As at June 30, 2018 the Company has invested an amount of SAR 5.1 billion (classified as available for sale investments) in MENA Islamic Fund SPC registered in the Cayman Islands (refer Note 4). These investments are classified under level 3, valued based on latest reported net assets values. Fair values of other investments (including sukuks) classified in Level 3 are determined based on discounted cash flows, which incorporate assumptions regarding an appropriate credit spread. There were no transfers in between levels during the period ended June 30, 2018.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’000June 30, 2018 (Unaudited) Level 1 Level 2 Level 3 TotalAvailable-for- sale investments Insurance operations Mutual funds 29,845 - 2,788,114 2,817,959Sukuks - - 281,860 281,860 29,845 - 3,069,974 3,099,819 Shareholders’ operations Mutual funds 27,851 - 2,514,625 2,542,476Sukuks - - 100,000 100,000 27,851 - 2,614,625 2,642,476 Total 57,696 - 5,684,599 5,742,295December 31, 2017 (Audited) Available-for-sale investments Insurance operations Mutual funds 25,961 - 2,637,325 2,663,286Equity shares 15,284 - - 15,284Sukuks - - 281,860 281,860 41,245 - 2,919,185 2,960,430 Shareholders’ operations Mutual funds 39,340 - 2,425,439 2,464,779Sukuks - - 100,000 100,000 39,340 - 2,525,439 2,564,779 Total 80,585 - 5,444,624 5,525,20914. 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 June 30, 2018 (Unaudited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance June 30Insurance operations Mutual funds 2,637,325 379,084 (121,698) 372 (106,969) 2,788,114 Sukuks 281,860 - - - - 281,860 2,919,185 379,084 (121,698) 372 (106,969) 3,069,974 Shareholders’ operations Mutual funds 2,425,439 314,637 (174,282) 3,516 (54,685) 2,514,625 Sukuks 100,000 - - - - 100,000 2,525,439 314,637 (174,282) 3,516 (54,685) 2,614,625 Total 5,444,624 693,721 (295,980) 3,888 (161,654) 5,684,599 SAR’000 Total gain or loss recognized in December 31, 2017 (Audited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance December 31Insurance operations Mutual funds 2,448,388 1,546,680 (1,433,630) 162,860 (86,973) 2,637,325 Sukuks 304,570 - (22,710) - - 281,860 2,752,958 1,546,680 (1,456,340) 162,860 (86,973) 2,919,185Shareholders’ operations Mutual funds 890,076 3,823,681 (2,347,066) 81,053 (22,305) 2,425,439Sukuks 100,000 - - - - 100,000Murabaha 329,850 - (329,850) - - - 1,319,926 3,823,681 (2,676,916) 81,053 (22,305) 2,525,439 Total 4,072,884 5,370,361 (4,133,256) 243,913 (109,278) 5,444,624 | 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 June June June December 30, 2018 30, 2017 30, 2018 31, 2017 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Insurance premium written 1,355 202 13,486 3,631 Associates Insurance premium written/ (reversed) 49 8,264 57 (40)Najm fees paid 15,265 12,283 11,536 (7,883)Waseel fees paid 4,208 5,938 - - United Insurance Co. fees and claims, net 2,142 3,998 889 3,393 Entities controlled, jointly controlled or significantly influenced by related parties Insurance premium written 5,536 85,565 20,269 152,009Rent expenses paid 60 - (56) (56)Amount of claims paid to hospitals 6,408 13,487 (3,560) 10,216 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: June 30, 2018 (Unaudited) June 30, 2017 (Unaudited) SAR’000Salaries and other allowances 4,573 4,682End of service indemnities 321 1,458 | 13 |
| Disclosure of entity's operating segments [text block] | 15. OPERATING SEGMENTSConsistent with the Company’s internal reporting process; operating segments have been approved by management in respect of the Company’s activities, assets and liabilities. Information disclosed in the note is based on current reporting to the chief operating decision maker. Segment assets do not include insurance operations’ property and equipment, prepayments and other assets, receivables, net and cash and cash equivalents. Accordingly, they are included in unallocated assets. Segment liabilities do not include reserve for discontinued operations, surplus distribution payable, due to shareholders operations, reinsurance balances payable, claims payable, accrued expenses and other liabilities and fair value reserve for available-for-sale investments. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities (including the related charges for provision for doubtful debts on premiums receivable and depreciation on the property and equipments) are not reported to chief operating decision maker under related segments and are monitored on a centralized basis. 15. OPERATING SEGMENTS (continued) For the three months period ended June 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 5,767 143,792 34,074 6,233 189,866 189,866 - Small & Medium Enterprises 157,804 19,502 - 26,444 203,750 203,750 - Corporates 1,017,899 3,308 - 341,041 1,362,248 1,362,248 1,181,470 166,602 34,074 373,718 1,755,864 1,755,864Reinsurance ceded - local - - - (19,593) (19,593) (19,593)Reinsurance ceded - international (8,610) - - (324,048) (332,658) (332,658)Fees income from takaful 2,008 - - - 2,008 2,008 Excess of loss premiums - (4,620) (1,198) (2,350) (8,168) (8,168)Net premiums written 1,174,868 161,982 32,876 27,727 1,397,453 1,397,453 Changes in unearned premiums 286,208 117,688 (199) 3,901 407,598 407,598 Net premiums earned 1,461,076 279,670 32,677 31,628 1,805,051 1,805,051 Reinsurance commissions 683 1 - 20,505 21,189 21,189 Other underwriting income - 2,027 - - 2,027 2,027 TOTAL REVENUES 1,461,759 281,698 32,677 52,133 1,828,267 1,828,267 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,526,358 162,847 5,908 281,269 1,976,382 1,976,382 Reinsurers’ share of claims paid (29,984) (2,244) - (272,581) (304,809) (304,809)Net claims paid 1,496,374 160,603 5,908 8,688 1,671,573 1,671,573 Changes in outstanding claims, net 26,057 1,775 1,779 (859) 28,752 28,752 Changes in incurred but not reported claims reserve, net (69,849) 786 (910) 4,240 (65,733) (65,733)Changes in premium deficiency reserves 17,735 - - (4,847) 12,888 12,888 Net claims and other benefits incurred 1,470,317 163,164 6,777 7,222 1,647,480 1,647,480 Changes in reserve for takaful activities (424) - - - (424) (424)Policy acquisition costs 52,375 29,053 8,094 11,943 101,465 101,465 Other underwriting expenses 21,492 2,632 2,198 5,397 31,719 31,719 Manafeth insurance share - - 11,061 - 11,061 11,061 TOTAL UNDERWRITING COSTS AND EXPENSES 1,543,760 194,849 28,130 24,562 1,791,301 1,791,301 NET UNDERWRITING (LOSS)/ INCOME (82,001) 86,849 4,547 27,571 36,966 36,966General and administrative expenses (106,888) (2,330) (109,218)Allowance for doubtful debts (9,598) - (9,598)Dividend and realized gain on investments, net 12,323 92,799 105,122Share of profit from investments in associates, net - 7,968 7,968Other income 4,604 - 4,604NET (LOSS)/ INCOME FOR THE PERIOD (62,593) 98,437 35,84415. OPERATING SEGMENTS (continued) For the three months period ended June 30, 2017 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 9,274 223,868 50,601 10,693 294,436 294,436- Small & Medium Enterprises 177,036 30,717 - 20,258 228,011 228,011- Corporates 1,130,823 111,683 - 339,286 1,581,792 1,581,792 1,317,133 366,268 50,601 370,237 2,104,239 2,104,239Reinsurance ceded - local - - - (152,939) (152,939) (152,939)Reinsurance ceded - international (8,267) - - (179,378) (187,645) (187,645)Fees income from takaful 2,355 - - - 2,355 2,355 Excess of loss premiums - (4,280) (930) (2,302) (7,512) (7,512)Net premiums written 1,311,221 361,988 49,671 35,618 1,758,498 1,758,498 Changes in unearned premiums 81,884 (8,370) 2,472 (7,521) 68,465 68,465 Net premiums earned 1,393,105 353,618 52,143 28,097 1,826,963 1,826,963 Reinsurance commissions (286) 2 - 25,201 24,917 24,917 Other underwriting income - 4,186 - - 4,186 4,186 TOTAL REVENUES 1,392,819 357,806 52,143 53,298 1,856,066 1,856,066 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,184,139 249,926 11,120 77,768 1,522,953 1,522,953 Reinsurers’ share of claims paid (10,015) (8,313) (270) (69,543) (88,141) (88,141)Net claims paid 1,174,124 241,613 10,850 8,225 1,434,812 1,434,812 Changes in outstanding claims, net 11,651 (17,445) (193) (644) (6,631) (6,631)Changes in incurred but not reported claims reserve, net 17,102 3,300 - 422 20,824 20,824 Net claims and other benefits incurred 1,202,877 227,468 10,657 8,003 1,449,005 1,449,005 Changes in reserve for takaful activities (160) - - - (160) (160)Policy acquisition costs 56,480 33,882 8,791 10,589 109,742 109,742 Other underwriting expenses 24,792 3,994 4,438 5,657 38,881 38,881 Manafeth Insurance share - - 22,805 - 22,805 22,805 TOTAL UNDERWRITING COSTS AND EXPENSES 1,283,989 265,344 46,691 24,249 1,620,273 1,620,273 NET UNDERWRITING INCOME 108,830 92,462 5,452 29,049 235,793 235,793 General and administrative expenses (111,686) (2,552) (114,238)Allowance for/ (Reversal of) doubtful debts 6,329 - 6,329 Dividend and realized gain on investments, net 72,585 58,754 131,339 Share of profit from investments in associates, net - 5,045 5,045 Other income 5,330 - 5,330 NET INCOME FOR THE PERIOD 208,351 61,247 269,598 15. OPERATING SEGMENTS (continued) For the six months period ended June 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 13,529 310,752 71,884 11,590 407,755 407,755 - Small & Medium Enterprises 340,066 47,042 - 59,949 447,057 447,057 - Corporates 2,493,410 7,697 - 495,657 2,996,764 2,996,764 2,847,005 365,491 71,884 567,196 3,851,576 3,851,576Reinsurance ceded - local - - - (23,447) (23,447) (23,447)Reinsurance ceded - international (16,713) - - (498,098) (514,811) (514,811)Fees income from takaful 3,241 - - - 3,241 3,241 Excess of loss premiums - (9,392) (1,777) (4,697) (15,866) (15,866)Net premiums written 2,833,533 356,099 70,107 40,954 3,300,693 3,300,693 Changes in unearned premiums 53,064 233,869 2,090 9,600 298,623 298,623 Net premiums earned 2,886,597 589,968 72,197 50,554 3,599,316 3,599,316 Reinsurance commissions 1,351 1 - 45,280 46,632 46,632 Other underwriting income - 5,928 - - 5,928 5,928 TOTAL REVENUES 2,887,948 595,897 72,197 95,834 3,651,876 3,651,876 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 3,274,868 382,589 14,477 515,927 4,187,861 4,187,861 Reinsurers’ share of claims paid (60,863) (6,117) - (498,062) (565,042) (565,042)Net claims paid 3,214,005 376,472 14,477 17,865 3,622,819 3,622,819 Changes in outstanding claims, net (435,212) 3,143 3,770 1,709 (426,590) (426,590)Changes in incurred but not reported claims reserve, net 63,253 859 (10,274) (3,057) 50,781 50,781 Changes in premium deficiency reserves (18,859) - - - (18,859) (18,859)Net claims and other benefits incurred 2,823,187 380,474 7,973 16,517 3,228,151 3,228,151 Changes in reserve for takaful activities (1,172) - - - (1,172) (1,172)Policy acquisition costs 99,353 61,027 16,610 24,804 201,794 201,794 Other underwriting expenses 50,630 5,427 6,288 11,786 74,131 74,131 Manafeth Insurance share - - 32,349 - 32,349 32,349 TOTAL UNDERWRITING COSTS AND EXPENSES 2,971,998 446,928 63,220 53,107 3,535,253 3,535,253 NET UNDERWRITING (LOSS)/ INCOME (84,050) 148,969 8,977 42,727 116,623 116,623General and administrative expenses (198,776) (3,711) (202,487)Allowance for doubtful debts (17,098) - (17,098)Dividend and realized gain on investments, net 51,959 108,390 160,349Share of profit from investments in associates, net - 13,865 13,865Other income 8,945 - 8,945NET (LOSS)/ INCOME FOR THE PERIOD (38,347) 118,544 80,19715. OPERATING SEGMENTS (continued) For the six months period ended June 30, 2017 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 17,819 450,591 110,160 20,110 598,680 598,680- Small & Medium Enterprises 346,752 66,505 - 38,435 451,692 451,692- Corporates 2,401,322 204,026 - 476,899 3,082,247 3,082,247 2,765,893 721,122 110,160 535,444 4,132,619 4,132,619Reinsurance ceded - local - - - (158,899) (158,899) (158,899)Reinsurance ceded - international (15,710) - - (309,331) (325,041) (325,041)Fees income from takaful 4,182 - - - 4,182 4,182 Excess of loss premiums - (11,431) (1,599) (6,942) (19,972) (19,972)Net premiums written 2,754,365 709,691 108,561 60,272 3,632,889 3,632,889 Changes in unearned premiums (53,453) (154) 2,804 (5,600) (56,403) (56,403)Net premiums earned 2,700,912 709,537 111,365 54,672 3,576,486 3,576,486 Reinsurance commissions 95 4 - 50,062 50,161 50,161 Other underwriting income 7 9,551 - - 9,558 9,558 TOTAL REVENUES 2,701,014 719,092 111,365 104,734 3,636,205 3,636,205 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 2,298,198 539,364 21,444 100,315 2,959,321 2,959,321 Reinsurers’ share of claims paid (24,991) (12,183) (878) (83,098) (121,150) (121,150)Net claims paid 2,273,207 527,181 20,566 17,217 2,838,171 2,838,171 Changes in outstanding claims, net 14,699 (45,544) 65 3,534 (27,246) (27,246)Changes in incurred but not reported claims reserve, net 35,502 11,901 - 3,433 50,836 50,836 Net claims and other benefits incurred 2,323,408 493,538 20,631 24,184 2,861,761 2,861,761 Changes in reserve for takaful activities (91) - - - (91) (91)Policy acquisition costs 110,855 65,275 17,493 21,179 214,802 214,802 Other underwriting expenses 50,038 7,594 10,101 9,856 77,589 77,589 Manafeth insurance share - - 52,039 - 52,039 52,039 TOTAL UNDERWRITING COSTS AND EXPENSES 2,484,210 566,407 100,264 55,219 3,206,100 3,206,100 NET UNDERWRITING INCOME 216,804 152,685 11,101 49,515 430,105 430,105 General and administrative expenses (213,868) (4,035) (217,903)Reversal of allowance for doubtful debts 12,349 - 12,349 Dividend and realized gain on investments, net 107,951 92,789 200,740 Share of profit from investments in associates, net - 7,095 7,095 Other income 11,473 - 11,473 NET INCOME FOR THE PERIOD 348,010 95,849 443,859 15. OPERATING SEGMENTS (continued) As at June 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total - Shareholders’ operations Total SAR’000Assets Reinsurer’s share of unearned premiums 10,209 5 - 573,024 583,238 583,238 Reinsurer’s share of incurred but not reported claims 40,863 - - 161,868 202,731 202,731 Reinsurer’s share of outstanding claims 26,916 14,821 2,000 1,258,094 1,301,831 1,301,831 Deferred policy acquisition costs 105,285 25,223 1,349 16,623 148,480 148,480 Investments (including investment property) 3,117,482 2,720,993 5,838,475 Receivables, net 2,544,695 2,544,695 Cash and cash equivalents 705,875 165,524 871,399 Unallocated assets 455,698 220,475 676,173 Total assets 183,273 40,049 3,349 2,009,609 9,060,030 3,106,992 12,167,022 Liabilities Gross unearned premiums 2,978,846 440,141 24,892 654,855 4,098,734 4,098,734 Gross outstanding claims 323,781 140,362 11,578 1,399,007 1,874,728 1,874,728 Incurred but not reported claims reserve 1,135,398 219,815 13,194 194,167 1,562,574 1,562,574 Premium deficiency reserve 118,389 - - - 118,389 118,389 Unearned commission income 4,637 - - 33,848 38,485 38,485 Reserve for takaful activities 9,404 - - - 9,404 9,404 Reinsurers’ balances payable 120,295 120,295 Unallocated liabilities and accumulated surplus 1,861,887 271,201 2,133,088Total liabilities and surplus 4,570,455 800,318 49,664 2,281,877 9,684,496 271,201 9,955,697 15. OPERATING SEGMENTS (continued) As at December 31, 2017 (Audited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total - Shareholders’ operations Total SAR’000Assets Reinsurer’s share of unearned premiums 62,909 6 - 528,210 591,125 591,125 Reinsurer’s share of incurred but not reported claims 28,142 14,987 1,141 346,937 391,207 391,207 Reinsurer’s share of outstanding claims 25,547 19,753 - 1,329,977 1,375,277 1,375,277 Deferred excess of loss premiums - 6,595 - 4,698 11,293 11,293Deferred policy acquisition costs 99,636 47,306 1,822 22,026 170,790 170,790 Investments (including investment property) 2,977,312 2,653,226 5,630,538 Receivables, net 2,257,678 2,257,678 Cash and cash equivalents 1,115,144 282,059 1,397,203 Unallocated assets 548,062 297,136 845,198 Total assets 216,234 88,647 2,963 2,231,848 9,437,888 3,232,421 12,670,309 Liabilities Gross unearned premiums 3,084,610 674,011 26,982 619,641 4,405,244 4,405,244 Gross outstanding claims 757,624 142,151 5,808 1,469,181 2,374,764 2,374,764 Incurred but not reported claims reserve 1,059,424 233,943 24,609 382,293 1,700,269 1,700,269 Premium deficiency reserve 137,248 - - - 137,248 137,248 Unearned commission income 5,346 1 - 48,314 53,661 53,661 Reserve for takaful activities 10,576 - - - 10,576 10,576 Reinsurers’ balances payable 207,922 207,922 Unallocated liabilities and surplus 1,322,131 245,729 1,567,860 Total liabilities and surplus 5,054,828 1,050,106 57,399 2,519,429 10,211,815 245,729 10,457,544 | 15 |
| Disclosure of commitments and contingencies, general [text block] | 9. CONTINGENT LIABILITIESAs at June 30, 2018, the Company was contingently liable for letters of credit and guarantees, issued on its behalf by the banks, amounting to SAR 707 million (December 31, 2017: SAR 189 million) occurring in the normal course of business. | 9 |
| Disclosure of comparative figures [text block] | 19. RECLASSIFICATION OF COMPARATIVE FIGURESCertain 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 Thu al-Qa’dah 19, 1439H, corresponding to August 01, 2018. | 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 was subsequently renewed for year starting from January 1, 2018 to December 31, 2018 with 26 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 |
