| 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 nine months period ended September 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: September 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 5,059,357 (754,819) 4,304,538 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (6,206,783) 838,412 (5,368,371) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 3,257,818 (507,532) 2,750,286 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: September 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 2,016,071 2,483,435 Less: Realizable value of salvage and subrogation (83,110) (108,671) 1,932,961 2,374,764 Add: Incurred but not reported claims reserve 1,695,259 1,700,269 Add: Premium deficiency reserve 56,893 137,248 Gross outstanding claims and reserves 3,685,113 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,458,639) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (173,040) (391,207)Reinsurers’ share of outstanding claims and reserves (1,631,679) (1,766,484) Net outstanding claims and reserves 2,053,434 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 September 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.7 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business. | 7 |
| 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: September 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 5,059,357 (754,819) 4,304,538 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (6,206,783) 838,412 (5,368,371) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 3,257,818 (507,532) 2,750,286 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: September 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 2,016,071 2,483,435 Less: Realizable value of salvage and subrogation (83,110) (108,671) 1,932,961 2,374,764 Add: Incurred but not reported claims reserve 1,695,259 1,700,269 Add: Premium deficiency reserve 56,893 137,248 Gross outstanding claims and reserves 3,685,113 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,458,639) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (173,040) (391,207)Reinsurers’ share of outstanding claims and reserves (1,631,679) (1,766,484) Net outstanding claims and reserves 2,053,434 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 September 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.7 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business. | 7 |
| Disclosure of investments in available-for-sale investments [text block] | 4. AVAILABLE-FOR-SALE INVESTMENTSAvailable-for-sale investments comprise the following: Note September 30,2018(Unaudited) December 31,2017(Audited) SAR’000Insurance operations Mutual funds 4.1 2,842,499 2,663,286Sukuks 228,710 281,860Equity - 15,284Total 3,071,209 2,960,430 Shareholders’ operations Mutual funds 4.1 2,676,534 2,464,779Sukuks 100,000 100,000 Total 2,776,534 2,564,779 Total available-for-sale investments 5,847,743 5,525,2094.1 As at September 30, 2018 the Company has invested an amount of SAR 5.2 billion (December 31, 2017 SAR 4.3 billion), which include SAR 2.8 billion (December 31, 2017 SAR 2.2 billion) and SAR 2.4 billion (December 31, 2017 SAR 2.1 billion) for insurance and shareholders’ operations respectively, in MENA Islamic Fund SPC “Fund” registered in the Cayman Islands. These investments are structured through four investment companies registered with CMA “Capital Markets Authority” in the Kingdom of Saudi Arabia. However, the investment Manager of this Fund is Ivystone Investments Limited registered in Cayman Islands and administrator of this fund is Northern Trust International Fund Administration Services (Ireland) Limited registered in Ireland.4.2 Movements in available-for-sale investments are as follows: September 30, 2018(Unaudited) December 31, 2017(Audited) Quoted securities Unquoted securities Total Quoted securities Unquoted securities Total SAR’000Insurance operations Balance at the beginning of the period / year 41,245 2,919,185 2,960,430 402,628 2,752,958 3,155,586 Purchases - 553,660 553,660 43,806 1,453,478 1,497,284 Disposals (18,805) (327,966) (346,771) (402,628) (1,213,533) (1,616,161)Changes in fair value of investments 6,359 (102,469) (96,110) (2,561) (73,718) (76,279)Balance as at the end of the period/ year 28,799 3,042,410 3,071,209 41,245 2,919,185 2,960,430 Shareholders’ operations Balance at the beginning of the period/ year 39,340 2,525,439 2,564,779 58,065 1,319,926 1,377,991 Purchases - 464,066 464,066 40,007 4,179,252 4,219,259 Disposals (15,007) (176,032) (191,039) (66,480) (2,950,426) (3,016,906)Changes in fair value of investments 2,985 (64,257) (61,272) 7,748 (23,313) (15,565)Balance as at the end of the period/ year 27,318 2,749,216 2,776,534 39,340 2,525,439 2,564,779 Total 56,117 5,791,626 5,847,743 80,585 5,444,624 5,525,2094. AVAILABLE-FOR-SALE INVESTMENTS (continued)The movement of changes in fair value of investments is as follows: Three months ended September 30, 2018(Unaudited) Three months ended September 30, 2017(Unaudited) SAR’000Insurance operations Change in fair value 3,082 43,280 Net amount recycled to interim statement of income - insurance operations - (28,671) 3,082 14,609 Shareholders’ operations Change in fair value (13,621) 72 Net amount recycled to interim statement of income - shareholders’ operations - 1,810 (13,621) 1,882 Nine months ended September 30, 2018(Unaudited) Nine months ended September 30, 2017(Unaudited) SAR’000Insurance operations Change in fair value (96,110) 98,660 Net amount recycled to interim statement of income - insurance operations 2,614 (93,849) (93,496) 4,811 Shareholders’ operations Change in fair value (61,272) 63,933 Net amount recycled to interim statement of income - shareholders’ operations (3,516) (6,657) (64,788) 57,276 | 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: September 30,2018(Unaudited) December 31,2017(Audited) SAR’000Policyholders 1,016,194 1,200,264Brokers and agents 721,151 908,273Related parties (note 13) 56,575 155,600 1,793,920 2,264,137 Receivables from reinsurers 100,583 110,677 Administrative service plan 43,963 22,169 1,938,466 2,396,983 Provision for doubtful receivables (150,212) (139,305)Receivables, net 1,788,254 2,257,678 | 3 |
| Disclosure of cash and cash equivalents [text block] | 6. CASH AND CASH EQUIVALENTS September 30,2018(Unaudited) December 31,2017(Audited) SAR’000Insurance operations Murabaha deposits - 200,133 Bank balances and cash 765,764 915,011 765,764 1,115,144 Shareholders’ operations Murabaha deposits - 100,000 Bank balances and cash 164,214 182,059 164,214 282,059 Total cash and cash equivalents 929,978 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: September 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 5,059,357 (754,819) 4,304,538 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (6,206,783) 838,412 (5,368,371) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 3,257,818 (507,532) 2,750,286 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: September 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 2,016,071 2,483,435 Less: Realizable value of salvage and subrogation (83,110) (108,671) 1,932,961 2,374,764 Add: Incurred but not reported claims reserve 1,695,259 1,700,269 Add: Premium deficiency reserve 56,893 137,248 Gross outstanding claims and reserves 3,685,113 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,458,639) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (173,040) (391,207)Reinsurers’ share of outstanding claims and reserves (1,631,679) (1,766,484) Net outstanding claims and reserves 2,053,434 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 September 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.7 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business. | 7 |
| 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: September 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 5,059,357 (754,819) 4,304,538 8,406,669 (1,091,407) 7,315,262Premiums earned during the period / year (6,206,783) 838,412 (5,368,371) (8,391,654) 1,054,095 (7,337,559)Balance as at the end of the period / year 3,257,818 (507,532) 2,750,286 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: September 30, December 31, 2018 2017 (Unaudited) (Audited) SAR’000Gross outstanding claims 2,016,071 2,483,435 Less: Realizable value of salvage and subrogation (83,110) (108,671) 1,932,961 2,374,764 Add: Incurred but not reported claims reserve 1,695,259 1,700,269 Add: Premium deficiency reserve 56,893 137,248 Gross outstanding claims and reserves 3,685,113 4,212,281 Less: Reinsurers’ share of gross outstanding claims (1,458,639) (1,375,277)Less: Reinsurers’ share of incurred but not reported claims (173,040) (391,207)Reinsurers’ share of outstanding claims and reserves (1,631,679) (1,766,484) Net outstanding claims and reserves 2,053,434 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 September 30, 2018, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 3.7 billion (2017: SAR 4.2 billion). Significant portion of reserves relates to medical line of business. | 7 |
| 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 September 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. September 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 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, etc. As at September 30, 2018 the Company has invested an amount of SAR 5.2 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 September 30, 2018 and 2017.The fair values of bank balances 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’000September 30, 2018 (Unaudited) Level 1 Level 2 Level 3 TotalAvailable-for- sale investments Insurance operations Mutual funds 28,799 - 2,813,700 2,842,499 Sukuks - - 228,710 228,710 28,799 - 3,042,410 3,071,209 Shareholders’ operations Mutual funds 27,318 - 2,649,216 2,676,534 Sukuks - - 100,000 100,000 27,318 - 2,749,216 2,776,534 Total 56,117 - 5,791,626 5,847,743December 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 September 30, 2018 (Unaudited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance September 30Insurance operations Mutual funds 2,637,325 553,655 (275,188) 372 (102,464) 2,813,700 Sukuks 281,860 - (53,150) - - 228,710 2,919,185 553,655 (328,338) 372 (102,464) 3,042,410 Shareholders’ operations Mutual funds 2,425,439 464,066 (176,038) 3,516 (67,767) 2,649,216 Sukuks 100,000 - - - - 100,000 2,525,439 464,066 (176,038) 3,516 (67,767) 2,749,216 Total 5,444,624 1,017,721 (504,376) 3,888 (170,231) 5,791,626 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 September September September December 30, 2018 30, 2017 30, 2018 31, 2017 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Insurance premium written 28,947 27,785 33,918 3,631 Associates Insurance premium written 14,103 1,067 4,482 (40)Najm fees paid 8,141 29,883 18,531 (7,883)Waseel fees paid 6,094 4,366 - - United Insurance Co. fees and claims, net 3,157 3,354 889 3,393 Entities controlled, jointly controlled or significantly influenced by related parties Insurance premium written 24,133 133,543 18,175 152,009Rent expenses paid 23 - 561 (56)Amount of claims paid to hospitals 16,834 15,931 (5,527) 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: September 30, 2018 (Unaudited) September 30, 2017 (Unaudited) SAR’000Salaries and other allowances 7,017 6,823 End of service indemnities 1,238 2,666 | 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 September 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written 892,126 127,185 37,227 151,243 1,207,781 1,207,781 Reinsurance ceded - local - - - (12,257) (12,257) (12,257)Reinsurance ceded - international (91,790) - - (112,514) (204,304) (204,304)Fees income from takaful 925 - - - 925 925 Excess of loss premiums - (3,111) (579) (1,445) (5,135) (5,135)Net premiums written 801,261 124,074 36,648 25,027 987,010 987,010 Changes in unearned premiums 654,404 103,458 1,134 6,214 765,210 765,210 Net premiums earned 1,455,665 227,532 37,782 31,241 1,752,220 1,752,220 Reinsurance commissions 605 134 - 24,335 25,074 25,074 Other underwriting income - 2,561 - - 2,561 2,561 TOTAL REVENUES 1,456,270 230,227 37,782 55,576 1,779,855 1,779,855 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,474,841 144,141 6,683 97,349 1,723,014 1,723,014 Reinsurers’ share of claims paid (26,752) (1,778) - (90,905) (119,435) (119,435)Net claims paid 1,448,089 142,363 6,683 6,444 1,603,579 1,603,579 Changes in outstanding claims, net (104,464) 2,097 1,452 2,340 (98,575) (98,575)Changes in incurred but not reported claims reserve, net 189,790 (24,130) 144 (3,428) 162,376 162,376 Changes in premium deficiency reserves (61,496) - - - (61,496) (61,496)Net claims and other benefits incurred 1,471,919 120,330 8,279 5,356 1,605,884 1,605,884 Changes in reserve for takaful activities 23 - - - 23 23 Policy acquisition costs 50,799 22,484 8,263 11,523 93,069 93,069 Other underwriting expenses 20,334 2,436 2,746 4,687 30,203 30,203 Manafeth insurance share - - 13,972 - 13,972 13,972 TOTAL UNDERWRITING COSTS AND EXPENSES 1,543,075 145,250 33,260 21,566 1,743,151 1,743,151 NET UNDERWRITING (LOSS)/ INCOME (86,805) 84,977 4,522 34,010 36,704 36,704 General and administrative expenses (115,353) (734) (116,087)Reversal of allowance for doubtful debts 6,191 - 6,191Dividend and realized gain on investments, net 4,357 27,936 32,293 Share of profit from investments in associates, net - 7,803 7,803 Other income 10,229 - 10,229 NET (LOSS)/ INCOME FOR THE PERIOD (57,872) 35,005 (22,867)15. OPERATING SEGMENTS (continued) For the three months period ended September 30, 2017 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written 854,491 345,873 39,297 181,462 1,421,123 1,421,123 Reinsurance ceded - local - - - (76,877) (76,877) (76,877)Reinsurance ceded - international (100,913) 3 - (82,552) (183,462) (183,462)Fees income from takaful 825 - - - 825 825Excess of loss premiums - (5,842) (669) (5,345) (11,856) (11,856)Net premiums written 754,403 340,034 38,628 16,688 1,149,753 1,149,753Changes in unearned premiums 685,587 15,992 6,934 13,511 722,024 722,024Net premiums earned 1,439,990 356,026 45,562 30,199 1,871,777 1,871,777Reinsurance commissions 459 - - 33,637 34,096 34,096Other underwriting income - 3,363 - - 3,363 3,363TOTAL REVENUES 1,440,449 359,389 45,562 63,836 1,909,236 1,909,236 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,219,958 235,547 9,580 50,722 1,515,807 1,515,807 Reinsurers’ share of claims paid (13,850) (106) (16) (42,558) (56,530) (56,530)Net claims paid 1,206,108 235,441 9,564 8,164 1,459,277 1,459,277 Changes in outstanding claims, net 987 (1,675) 1,137 (6,374) (5,925) (5,925)Changes in incurred but not reported claims reserve, net 31,898 - - 2,877 34,775 34,775 Net claims and other benefits incurred 1,238,993 233,766 10,701 4,667 1,488,127 1,488,127 Changes in reserve for takaful activities (2,920) - - - (2,920) (2,920)Policy acquisition costs 60,034 52,436 8,013 15,440 135,923 135,923 Other underwriting expenses 21,960 3,936 3,560 1,739 31,195 31,195 Manafeth Insurance share - - 18,325 - 18,325 18,325 TOTAL UNDERWRITING COSTS AND EXPENSES 1,318,067 290,138 40,599 21,846 1,670,650 1,670,650 NET UNDERWRITING INCOME 122,382 69,251 4,963 41,990 238,586 238,586General and administrative expenses (116,874) (1,308) (118,182)Reversal of allowance for doubtful debts 2,245 - 2,245 Dividend and realized gain on investments, net 22,973 12,694 35,667 Share of profit from investments in associates, net - 3,998 3,998 Other income 13,435 - 13,435 NET INCOME FOR THE PERIOD 160,365 15,384 175,749 15. OPERATING SEGMENTS (continued) For the nine months period ended September 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written 3,739,131 492,676 109,111 718,439 5,059,357 5,059,357 Reinsurance ceded - local - - - (35,704) (35,704) (35,704)Reinsurance ceded - international (108,503) - - (610,612) (719,115) (719,115)Fees income from takaful 4,166 - - - 4,166 4,166 Excess of loss premiums - (12,503) (2,356) (6,142) (21,001) (21,001)Net premiums written 3,634,794 480,173 106,755 65,981 4,287,703 4,287,703 Changes in unearned premiums 707,468 337,327 3,224 15,814 1,063,833 1,063,833 Net premiums earned 4,342,262 817,500 109,979 81,795 5,351,536 5,351,536 Reinsurance commissions 1,956 135 - 69,615 71,706 71,706 Other underwriting income - 8,489 - - 8,489 8,489 TOTAL REVENUES 4,344,218 826,124 109,979 151,410 5,431,731 5,431,731 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 4,749,709 526,730 21,160 613,276 5,910,875 5,910,875 Reinsurers’ share of claims paid (87,615) (7,895) - (588,967) (684,477) (684,477)Net claims paid 4,662,094 518,835 21,160 24,309 5,226,398 5,226,398 Changes in outstanding claims, net (539,676) 5,240 5,222 4,049 (525,165) (525,165)Changes in incurred but not reported claims reserve, net 253,043 (23,271) (10,130) (6,485) 213,157 213,157 Changes in premium deficiency reserves (80,355) - - - (80,355) (80,355)Net claims and other benefits incurred 4,295,106 500,804 16,252 21,873 4,834,035 4,834,035 Changes in reserve for takaful activities (1,149) - - - (1,149) (1,149)Policy acquisition costs 150,152 83,511 24,873 36,327 294,863 294,863 Other underwriting expenses 70,964 7,863 9,034 16,473 104,334 104,334 Manafeth Insurance share - - 46,321 - 46,321 46,321 TOTAL UNDERWRITING COSTS AND EXPENSES 4,515,073 592,178 96,480 74,673 5,278,404 5,278,404 NET UNDERWRITING (LOSS)/ INCOME (170,855) 233,946 13,499 76,737 153,327 153,327General and administrative expenses (314,129) (4,445) (318,574)Allowance for doubtful debts (10,907) - (10,907)Dividend and realized gain on investments, net 56,316 136,326 192,642 Share of profit from investments in associates, net - 21,668 21,668 Other income 19,174 - 19,174 NET (LOSS)/ INCOME FOR THE PERIOD (96,219) 153,549 57,330 15. OPERATING SEGMENTS (continued) For the nine months period ended September 30, 2017 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written 3,620,384 1,066,995 149,457 716,906 5,553,742 5,553,742Reinsurance ceded - local - - - (235,776) (235,776) (235,776)Reinsurance ceded - international (116,623) 3 - (391,883) (508,503) (508,503)Fees income from takaful 5,007 - - - 5,007 5,007 Excess of loss premiums - (17,273) (2,268) (12,287) (31,828) (31,828)Net premiums written 3,508,768 1,049,725 147,189 76,960 4,782,642 4,782,642 Changes in unearned premiums 632,134 15,838 9,738 7,911 665,621 665,621 Net premiums earned 4,140,902 1,065,563 156,927 84,871 5,448,263 5,448,263 Reinsurance commissions 554 4 - 83,699 84,257 84,257 Other underwriting income 7 12,914 - - 12,921 12,921 TOTAL REVENUES 4,141,463 1,078,481 156,927 168,570 5,545,441 5,545,441 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 3,518,156 774,911 31,024 151,037 4,475,128 4,475,128 Reinsurers’ share of claims paid (38,841) (12,289) (894) (125,656) (177,680) (177,680)Net claims paid 3,479,315 762,622 30,130 25,381 4,297,448 4,297,448 Changes in outstanding claims, net 15,686 (47,219) 1,202 (2,840) (33,171) (33,171)Changes in incurred but not reported claims reserve, net 67,400 11,901 - 6,310 85,611 85,611 Net claims and other benefits incurred 3,562,401 727,304 31,332 28,851 4,349,888 4,349,888 Changes in reserve for takaful activities (3,011) - - - (3,011) (3,011)Policy acquisition costs 170,889 117,711 25,506 36,619 350,725 350,725 Other underwriting expenses 71,998 11,530 13,661 11,595 108,784 108,784 Manafeth insurance share - - 70,364 - 70,364 70,364 TOTAL UNDERWRITING COSTS AND EXPENSES 3,802,277 856,545 140,863 77,065 4,876,750 4,876,750 NET UNDERWRITING INCOME 339,186 221,936 16,064 91,505 668,691 668,691 General and administrative expenses (330,742) (5,343) (336,085)Reversal of allowance for doubtful debts 14,594 - 14,594 Dividend and realized gain on investments, net 130,924 105,483 236,407 Share of profit from investments in associates, net - 11,093 11,093 Other income 24,908 - 24,908 NET INCOME FOR THE PERIOD 508,375 111,233 619,608 15. OPERATING SEGMENTS (continued) As at September 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 76,430 5 - 431,097 507,532 507,532 Reinsurer’s share of incurred but not reported claims 18,919 - - 154,121 173,040 173,040 Reinsurer’s share of outstanding claims 27,306 16,378 2,000 1,412,955 1,458,639 1,458,639 Deferred excess of loss premiums - 1,630 - 1,525 3,155 3,155 Deferred policy acquisition costs 89,155 20,077 1,273 11,139 121,644 121,644 Investments (including investment property) 3,088,872 2,882,064 5,970,936Receivables, net 1,788,254 1,788,254 Cash and cash equivalents 765,764 164,214 929,978 Unallocated assets 598,287 127,294 725,581Total assets 211,810 38,090 3,273 2,010,837 8,505,187 3,173,572 11,678,759 Liabilities Gross unearned premiums 2,390,663 336,683 23,758 506,714 3,257,818 3,257,818 Gross outstanding claims 219,707 144,016 13,030 1,556,208 1,932,961 1,932,961 Incurred but not reported claims reserve 1,303,244 195,685 13,338 182,992 1,695,259 1,695,259 Premium deficiency reserve 56,893 - - - 56,893 56,893 Unearned commission income 5,950 - - 25,947 31,897 31,897 Reserve for takaful activities 9,427 - - - 9,427 9,427 Reinsurers’ balances payable 117,109 117,109 Unallocated liabilities and accumulated surplus 2,130,374 284,967 2,415,341 Total liabilities and surplus 3,985,884 676,384 50,126 2,271,861 9,231,738 284,967 9,516,705 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) 3,049,051 2,739,580 5,788,631Receivables, net 2,257,678 2,257,678 Cash and cash equivalents 1,115,144 282,059 1,397,203 Unallocated assets 476,323 210,782 687,105Total 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 September 30, 2018, the Company was contingently liable for letters of credit and guarantees, issued on its behalf by the banks, amounting to SAR 644 million (December 31, 2017: SAR 189 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 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 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 |
