| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1. GENERAL The Company for Cooperative Insurance (the “Company”) is a Saudi joint stock Company established in Riyadh, Kingdom of Saudi Arabia by Royal Decree Number M/5 and incorporated on January 18, 1986 corresponding to Jumada Al-Awal 8, 1406H under Commercial Registration No. 1010061695. The Company’s head office is located on Thumamah Road (At Takhassusi) ArRabi District, P.O. Box 86959, Riyadh 11632, Kingdom of Saudi Arabia.The purpose of the Company is to transact cooperative insurance operations and all related activities including reinsurance and agency activities. Its principal lines of business include medical, motor, marine, fire, engineering, energy, aviation, takaful and casualty insurance.On July 31, 2003 corresponding to Jumada Thani 2, 1424H the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). On December 1, 2004 corresponding to Shawwal 18, 1425H, the Saudi Arabian Monetary Authority (“SAMA”) as the principal authority responsible for the application and administration of the Insurance Law and its implementing regulations, granted the Company a license to transact insurance activities in Saudi Arabia.The Company conducts the business and advances funds to the insurance operations as required. On January 20, 2004 the Company amended its Articles of Association giving authority to the Board of Directors to determine the disposition of the surplus from insurance operations.On March 20, 2004, the Board of Directors approved the distribution of the surplus from insurance operations in accordance with the Implementing Regulations issued by SAMA, whereby the shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2. BASIS OF PREPARATION(a) Statement of complianceThe interim condensed financial information of the Company as at and for the period ended 30 September 2019 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organisation for Certified Public Accountants (“SOCPA”).The financial statements of the Company as at and for the period and year ended 31 March 2019 and 31 December 2018, respectively, were prepared in compliance with the IAS 34 and the International Financial Reporting Standards (“IFRS”) respectively, as modified by SAMA for the accounting of zakat and income tax (relating to the application of IAS 12 – “Income Taxes” and IFRIC 21 – “Levies” so far as these relate to zakat and income tax).On 18 July 2019, SAMA instructed the insurance companies in the Kingdom of Saudi Arabia to account for the zakat and income taxes in the statement of income. This aligns with the IFRS and its interpretations as issued by the International Accounting Standards Board (“IASB”) and as endorsed in the Kingdom of Saudi Arabia and with the other standards and pronouncements that are issued by the Saudi Organisation for Certified Public Accountants (“SOCPA”) (collectively referred to as “IFRS as endorsed in KSA”).Accordingly, the Company changed its accounting treatment for zakat by retrospectively adjusting the impact in line with International Accounting Standard 8, Accounting Policies, Changes in Accounting Estimates and Errors (as disclosed in note 2(c)(iii) and the effects of this change are disclosed in note 17 to the interim condensed financial information.The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available for sale investments and investment in associates which is accounted for under the equity method and end of service benefits based on actuarial valuation techniques. The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: statutory deposit, accrued income on statutory deposit, property and equipment, intangible assets, investment property, investments in associates, available for sale investments, reserve for discontinued operations, end-of-service indemnities and return payable on statutory deposit. All other financial statement line items would generally be classified as current.2. BASIS OF PREPARATION (continued)(a) Basis of presentation (continued)The Company presents its statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial statements accordingly (Note 18). Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required under IFRSs. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim 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 income or losses of the respective operations.In preparing the Company-level financial statement in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances, transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.The interim condensed financial information does not include all of the information required for full annual financial information and should be read in conjunction with the annual financial statement as of and for the year ended December 31, 2018. This interim condensed financial information is expressed in Saudi Arabian Riyals (SAR) and is rounded off to the nearest thousands.(b) Critical accounting judgments, estimates and assumptionsThe preparation of the interim condensed financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed financial information and the reported amounts of revenues and expenses during the reporting period. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.The estimate and judgments used by management in the preparation of the interim condensed financial information are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2018. Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:i) The ultimate liability arising from claims made under insurance contractsThe estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. Estimates are made at the end of the reporting period both for the expected ultimate cost of claim reported and for the expected ultimate costs of claims incurred but not reported (“IBNR”). Liabilities for unpaid reported claims are estimated using the input of assessments for individual cases reported to the Company. At the end of each reporting period, prior year claims estimates are reassessed for adequacy and changes are made to the provision.The provision for claims incurred but not reported (IBNR) is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using the past claims settlement trends to predict future claims settlement trends. A range of methods such as Chain Ladder Method, Bornhuetter-Ferguson Method and Expected Loss Ratio Method are used by the actuaries to determine these provisions. Actuary had also used a segmentation approach including analyzing cost per member per year for medical line of business. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims. (b) Critical accounting judgments, estimates and assumptions (continued)ii) Impairment of available-for-sale financial assetsThe Company determines that available-for-sale financial assets are impaired when there has been a significant or prolonged decline in the fair value of the available-for-sale financial assets below its cost. The determination of what is significant or prolonged requires judgment. For equity and mutual funds, a period of 12 months or longer is considered to be prolonged and a decline of 30% from original cost is considered significant as per Company policy. In making this judgment, the Company also evaluates among other factors, the normal volatility in share price, the financial health of the investee, industry and sector performance, changes in technology, and operational and financing cash flows. iii) Impairment of receivablesA provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired.iv) Fair value of financial instrumentsFair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics.The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases the fair values are estimated from observable data in respect of similar financial instruments or using models. Where market observable inputs are not available, they are estimated based on appropriate assumptions. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed. All models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data; however, areas such as credit risk (both own credit risk and counterparty risk), volatilities and correlations require management to make estimates. Please refer fair value of financial instruments disclosure in note 14. (c) Significant accounting policiesThe accounting policies used in the preparation of the interim condensed financial information are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 31 December 2018, except for the adoption of the new standards mentioned in note 2(c)(i) and change in the accounting for zakat and income tax as mentioned in 2(c)(iii) below:i) Standard effective from January 1, 2019 The Company adopted IFRS 16 using the modified retrospective approach. The Company elected to apply the standard to contracts that were previously identified as lease applying IAS 17 and IFRIC 4. The Company therefore did not apply the standard to contracts that were not previously identified as containing a lease applying IAS 17 and IFRIC 4. The Company elected to use the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application, and lease contracts for which the underlying asset is of low value. During the period the Company has performed an assessment of IFRS 16 and resolved that impact of difference as compared to leases accounted for applying IAS 17 & IFRIC 4 is not material to the Company’s financial statements as a whole.ii) Standards issued but not yet effectiveIn addition to the above mentioned standards, the following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the International Financial Reporting Standards which have been published and are mandatory for compliance for the Company with effect from future dates. 2. BASIS OF PREPARATION (continued)(c) Significant accounting policies (continued)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 to address issues arising from the different effective dates of IFRS 9 and the new insurance contracts standard (IFRS 17). The amendments introduce two alternative options of applying IFRS 9 for entities issuing contracts within the scope of IFRS 4: a temporary exemption; and an overlay approach. The temporary exemption enables eligible entities to defer the implementation date of IFRS 9 for annual periods beginning before 1 January 2022 and continue to apply IAS 39 to financial assets and liabilities. An entity may apply the temporary exemption from IFRS 9 if: (i) it has not previously applied any version of IFRS 9, other than only the requirements for the presentation of gains and losses on financial liabilities designated as FVPL; and (ii) its activities are predominantly connected with insurance on its annual reporting date that immediately precedes 1 April 2016.The overlay approach allows an entity applying IFRS 9 to reclassify between profit or loss and other comprehensive income an amount that results in the profit or loss at the end of the reporting period for certain designated financial assets being the same as if an entity had applied IAS 39 to these designated financial assets.An entity can apply the temporary exemption from IFRS 9 for annual periods beginning on or after 1 January 2018. An entity may start applying the overlay approach when it applies IFRS 9 for the first time.The Company performed an assessment of the amendments and reached the conclusion that its activities are predominantly connected with insurance. The Company intends to apply the temporary exemption from IFRS 9 and, therefore, continue to apply IAS 39 to its financial assets and liabilities for the period ended September 30, 2019 and 2018. The Company is eligible and have chosen to apply the temporary exemption under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company's financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. IASB through its amendments to IFRS 4 issued in September 2016 had allowed temporary exemption if a Company meets the following criteria:- the Company has not previously applied any version of IFRS 9; and - its activities are predominantly connected with insurance that is defined as total percentage of carrying amount of insurance liabilities is greater than 90% of its total liabilities.The Company performed a high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects no significant impact on its statement of financial position and equity, except for the effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. Further, the Company believes that IFRS 9 would have an impact on the classification of financial instruments required to be mandatorily mentioned at fair value i.e investments classified under available for sale investments in Note 5. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed review.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2022, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 “Revenue from Contracts with Customers” and IFRS 9 “Financial Instruments” have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. 2. BASIS OF PREPARATION (continued)(c) Significant accounting policies (continued)iii) Change in accounting policy in relation to accounting for zakatAs mentioned in note 2(a), the basis of preparation has been changed for the period ended 30 September 2019, based on latest instructions from SAMA dated 18 July 2019. Previously, zakat was recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. As per SAMA instructions dated 18 July 2019, the zakat and income tax shall be recognized in the statement of income. The Company has accounted for this change in the accounting for zakat retrospectively and the effects of the above change are disclosed in note 17 to the interim condensed financial information. The change has resulted in reduction of reported income of the Company for the three month and nine month periods ended 30 September 2018 by SR 13.6 million and SR 43.3 million, respectively. The change has had no impact on the interim statement of cash flows for the period ended 30 September 2018.Zakat:The Company is subject to Zakat in accordance with the regulations of the General Authority of Zakat and Income Tax (“GAZT”). Zakat expense is charged to the statement of income. Zakat is not accounted for as income tax and as such no deferred tax is calculated relating to zakat. (d) Segmental reportingA segment is a distinguishable component of the Company that is engaged in providing products or services (a business segment), which is subject to risk and rewards that are different from those of other segments. For management purposes, the Company is organized into business units based on their products and services and has four reportable segments as follows: Medical - coverage for health insurance. Motor insurance. Property and Casualty - coverage for property, engineering, marine, aviation, energy and general accidents insurance. Manafeth - third party liability insurance for foreign vehicles and the profit of this segment is shared with other insurance companies. Protection & Savings. Shareholders’ segment - reporting shareholder operations of the Company. Income earned from investments is the only revenue generating activity. Certain direct operating expenses and other overhead expenses are allocated to this segment on an appropriate basis. The surplus or loss from the insurance operations is allocated to this segment on an appropriate basis.Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief executive officer that makes strategic decisions. No inter-segment transactions occurred during the period. (e) Seasonality of operations There are no seasonal changes that may affect insurance operations of the Company. | 2 |
| Disclosure of 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, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 5,879,185 (938,871) 4,940,314 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (6,085,323) 930,928 (5,154,395) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 3,614,155 (552,782) 3,061,373 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: September 30, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,975,411 3,330,828Less: Realizable value of salvage and subrogation (32,332) (59,672) 3,943,079 3,271,156Add: Incurred but not reported claims reserve 1,801,232 1,684,183Add: Premium deficiency reserve 1,596 7,272Gross outstanding claims and reserves 5,745,907 4,962,611 Less: Reinsurers’ share of gross outstanding claims (3,297,230) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (254,818) (191,837)Reinsurers’ share of outstanding claims and reserves (3,552,048) (2,917,646) Net outstanding claims and reserves 2,193,859 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at September 30, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 5.74 billion (2018: SAR 4.96 billion). Significant portion of gross reserves relates to medical and property and casualty line of business which are a best-estimate of the expected ultimate claim trends as at September 30, 2019. | 7 (ii) |
| Disclosure of reinsurers/ retakaful share of unearned premium/ contributions, net [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: September 30, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 5,879,185 (938,871) 4,940,314 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (6,085,323) 930,928 (5,154,395) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 3,614,155 (552,782) 3,061,373 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: September 30, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,975,411 3,330,828Less: Realizable value of salvage and subrogation (32,332) (59,672) 3,943,079 3,271,156Add: Incurred but not reported claims reserve 1,801,232 1,684,183Add: Premium deficiency reserve 1,596 7,272Gross outstanding claims and reserves 5,745,907 4,962,611 Less: Reinsurers’ share of gross outstanding claims (3,297,230) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (254,818) (191,837)Reinsurers’ share of outstanding claims and reserves (3,552,048) (2,917,646) Net outstanding claims and reserves 2,193,859 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at September 30, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 5.74 billion (2018: SAR 4.96 billion). Significant portion of gross reserves relates to medical and property and casualty line of business which are a best-estimate of the expected ultimate claim trends as at September 30, 2019. | 7 (i) |
| Disclosure of investments [text block] | 5. MUDARABA DEPOSITSThe deposits are held with banks and financial institution registered with Capital Market Authority in the Kingdom of Saudi Arabia. These deposits are predominately in Mudaraba structures. These deposits are denominated in Saudi Riyal and have an original maturity of more than three months to one year and yield on average financial incomes at rates 3.26%. The movements in deposits during the period/ year is as follows: September 30, 2019(Unaudited) December 31,2018(Audited) SAR’000Insurance Operations Balance at the beginning of the period/ year 1,387,500 - Placed during the period/ year 4,358,494 1,387,500Proceeds during the period/ year (4,208,633) - Balance at the end of the period/ year 1,537,361 1,387,500Shareholders’ Operations Balance at the beginning of the period/ year 851,625 82,035Placed during the period/ year 3,450,054 851,625Matured during the period/ year (2,524,583) (82,035)Balance at the end of the period/ year 1,777,096 851,625 Total 3,314,457 2,239,125 | 5 |
| Disclosure of investments in available-for-sale investments [text block] | 4. AVAILABLE-FOR-SALE INVESTMENTSAvailable-for-sale investments comprise the following: September 30, 2019(Unaudited) December 31,2018(Audited) SAR’000Insurance Operations Mutual funds 47,875 191,404Fixed income portfolio (Governments and corporations securities ) 1,050,048 790,304Discretionary Portfolio Management – Equity share 157,978 - Sukuks 31,709 225,140Funds placed with portfolio manager - 28,059Total 1,287,610 1,234,907 Shareholders’ Operations Mutual funds 694,007 1,210,899Fixed income portfolio (Governments and corporations securities ) 410,854 358,556Discretionary Portfolio Management – Equity share 194,373 - Sukuks - 90,000Funds placed with portfolio manager - 10,768Total 1,299,234 1,670,223 Total available-for-sale investments 2,586,844 2,905,130Movements in available-for-sale investments are as follows: September 30, 2019(Unaudited) December 31, 2018(Audited) Quoted securities Unquoted securities Total Quoted securities Unquoted securities Total SAR’000Insurance Operations Balance at the beginning of the period / year - 1,234,907 1,234,907 41,245 2,919,185 2,960,430 Purchases 153,750 107,338 261,088 - 1,784,785 1,784,785Disposals - (405,419) (405,419) (42,932) (3,436,511) (3,479,443)Changes in fair value of investments 4,228 192,806 197,034 1,687 (32,552) (30,865)Balance as at the end of the period/ year 157,978 1,129,632 1,287,610 - 1,234,907 1,234,907 Shareholders’ Operations Balance at the beginning of the period/ year - 1,670,223 1,670,223 39,340 2,525,439 2,564,779 Purchases 180,093 205,343 385,436 - 2,076,116 2,076,116Disposals - (904,725) (904,725) (40,007) (2,952,467) (2,992,474)Changes in fair value of investments 14,280 134,020 148,300 667 21,135 21,802Balance as at the end of the period/ year 194,373 1,104,861 1,299,234 - 1,670,223 1,670,223 Total 352,351 2,234,493 2,586,844 - 2,905,130 2,905,130As at September 30, 2019 the Company invested in Shraiah Notes amounting to SAR 2.3 billion (December 31, 2018 SAR 2.3 billion). The Shariah Notes are issued by a special purpose vehicle “SPV” established in Cayman Islands. The administrator of these Shariah Notes is a Company registered in Dubai International Financial Center in Dubai. The underlying investments of Shariah Notes include mutual funds (real estate, private equity etc.), Discretionary Portfolio – Equity share and fixed income portfolios. The legal ownership of these underlying investments is not with the Company, however, the Company is the ultimate beneficial owner of the underlying investments while having control over the Shariah Notes and underlying investments. The custody of the underlying investments is in the custody account of the SPV or its nominee account opened with fund and portfolio managers. 4. AVAILABLE-FOR-SALE INVESTMENTS (continued)The movement of changes in fair value of investments is as follows: Three months ended September 30, 2019 (Unaudited) Three months ended September 30, 2018(Unaudited) Nine months ended September 30, 2019 (Unaudited) Nine months ended September 30, 2018(Unaudited) SAR’000Insurance Operations Change in fair value 70,990 3,082 197,034 (96,110)Net amount recycled to interim statement of income - - - 2,614 70,990 3,082 197,034 (93,496)Shareholders’ Operations Change in fair value 16,655 (13,621) 148,300 (61,272)Net amount recycled to interim statement of income - - 1,145 (3,516) 16,655 (13,621) 149,445 (64,788) Total 87,645 (10,539) 346,479 (158,284) | 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, 2019(Unaudited) December 31,2018(Audited) SAR’000Policyholders 1,180,811 778,456Brokers and agents 324,009 757,943Related parties (note 13) 53,456 55,506 1,558,276 1,591,905Receivables from reinsurers 67,164 62,517Administrative service plan 12,623 23,105 1,638,063 1,677,527Provision for doubtful receivables (255,828) (159,540)Receivables, net 1,382,235 1,517,987 | 3 |
| Disclosure of cash and cash equivalents [text block] | 6. CASH AND CASH EQUIVALENTS September 30, 2019(Unaudited) December 31,2018(Audited) SAR’000Insurance Operations Mudaraba deposits - 210,000 Bank balances and cash 1,308,468 907,258 1,308,468 1,117,258Shareholders’ Operations Mudaraba deposits - 400,000Bank balances and cash 255,629 82,982 255,629 482,982 Total cash and cash equivalents 1,564,097 1,600,2406. CASH AND CASH EQUIVALENTS (continued)Mudaraba deposits are maintained with banks and financial institutions and have a maturity of three months or less from the date of acquisition. These earn commission at an average rate of nil as at September 30, 2019 (December 31, 2018: 3.99% per annum).Bank balances and cash includes call account balance of SAR 247 million (December 31, 2018: SAR 65 million). Both bank balances and mudaraba deposits (including off-balance sheet exposures) are placed with counterparties with sound credit ratings under Standard and Poor's and Moody’s ratings methodology. | 6 |
| Disclosure of statutory deposit [text block] | 10. STATUTORY DEPOSITIn compliance with Article 58 of the Insurance Implementing Regulations of SAMA, the Company has deposited 10 percent of its share capital, amounting to SAR 125 million (December 31, 2018: SAR 125 million), in a bank designated by SAMA. The statutory deposit is maintained with the National Commercial Bank and can be withdrawn only with the consent of SAMA. | 10 |
| Disclosure of gross unearned premiums/ contributions [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: September 30, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 5,879,185 (938,871) 4,940,314 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (6,085,323) 930,928 (5,154,395) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 3,614,155 (552,782) 3,061,373 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: September 30, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,975,411 3,330,828Less: Realizable value of salvage and subrogation (32,332) (59,672) 3,943,079 3,271,156Add: Incurred but not reported claims reserve 1,801,232 1,684,183Add: Premium deficiency reserve 1,596 7,272Gross outstanding claims and reserves 5,745,907 4,962,611 Less: Reinsurers’ share of gross outstanding claims (3,297,230) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (254,818) (191,837)Reinsurers’ share of outstanding claims and reserves (3,552,048) (2,917,646) Net outstanding claims and reserves 2,193,859 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at September 30, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 5.74 billion (2018: SAR 4.96 billion). Significant portion of gross reserves relates to medical and property and casualty line of business which are a best-estimate of the expected ultimate claim trends as at September 30, 2019. | 7 (i) |
| Disclosure of gross outstanding claims/ benefits [text block] | 7. UNEARNED PREMIUM AND GROSS OUTSTANDING CLAIMS AND RESERVES, NET(i) The movement in unearned premiums is as follows: September 30, 2019 December 31, 2018 (Unaudited) (Audited) Gross Due from reinsurers Net Gross Due from reinsurers Net SAR’000Balance as at the beginning of the period / year 3,820,293 (544,839) 3,275,454 4,405,244 (591,125) 3,814,119 Premiums written during the period / year 5,879,185 (938,871) 4,940,314 7,641,245 (1,098,103) 6,543,142Premiums earned during the period / year (6,085,323) 930,928 (5,154,395) (8,226,196) 1,144,389 (7,081,807)Balance as at the end of the period / year 3,614,155 (552,782) 3,061,373 3,820,293 (544,839) 3,275,454(ii) Gross outstanding claims and reserves, net comprise of the following: September 30, December 31, 2019 2018 (Unaudited) (Audited) SAR’000Gross outstanding claims 3,975,411 3,330,828Less: Realizable value of salvage and subrogation (32,332) (59,672) 3,943,079 3,271,156Add: Incurred but not reported claims reserve 1,801,232 1,684,183Add: Premium deficiency reserve 1,596 7,272Gross outstanding claims and reserves 5,745,907 4,962,611 Less: Reinsurers’ share of gross outstanding claims (3,297,230) (2,725,809)Less: Reinsurers’ share of incurred but not reported claims (254,818) (191,837)Reinsurers’ share of outstanding claims and reserves (3,552,048) (2,917,646) Net outstanding claims and reserves 2,193,859 2,044,965There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. The management and external actuary had made a detailed assessment of technical reserves and the various parameters in the valuation of technical liabilities. As at September 30, 2019, based on the recommendations of external actuary, management had recorded technical reserves (Gross outstanding claims and reserves) which amounted to SAR 5.74 billion (2018: SAR 4.96 billion). Significant portion of gross reserves relates to medical and property and casualty line of business which are a best-estimate of the expected ultimate claim trends as at September 30, 2019. | 7 (ii) |
| Disclosure of zakat [text block] | 17. ZAKATa) Status of assessmentsThe Company had filed Zakat returns with the General Authority of Zakat and Tax (“GAZT”) for the years from 2005 to 2018. In relation to 2005 and 2006, the final assessments had been finalized and the Company had filed an appeal against the assessments of GAZT which is raised to Board of Grievances. During the year ended December 31, 2018 GAZT, based on letter dated 6/2/1440H corresponding to 15/10/2018, demanded Zakat amounting to SR 53 million in relation to assessment years 2005 and 2006 which was paid by the Company from zakat provision. GAZT issued a final demand order amounting to SR 235 million pertaining to assessment years 2007 to 2013. The Company paid SR 235 million from the zakat and withholding tax provision during July 2019. Further, GAZT has yet to commence its review for the years 2014 and 2018. Management believes that, appropriate provisions have been made that finalization of the above mentioned assessments is not expected to have a material impact on the interim condensed financial information.b) Change in accounting treatment in relation to zakatThe change in the accounting treatment for zakat (as explained in note 2(c)(iii)) has the following impact on the line items of the interim statements of income and changes in shareholders' equity. As at and for the three-month period ended September 30, 2018:Financial statement impacted Account As previously stated for three months ended September 30, 2018 Effect of restatement relating to zakat As restated for three months ended September 30, 2018 SAR ’000Statement of income Zakat charge for the period - (13,648) (13,648)Statement of income Basic and diluted earning per share (0.18) (0.11) (0.29)As at and for the nine-month period ended September 30, 2018:Financial statement impacted Account As previously stated for nine months ended September 30, 2018 Effect of restatement relating to zakat As restated for nine months ended September 30, 2018 SAR ’000Statement of income Zakat charge for the period - (43,309) (43,309)Statement of income Basic and diluted earning per share 0.46 (0.35) 0.11 Statement of changes in shareholders’ equity Net income for the period attributable to the shareholders 57,330 (43,309) 14,021 Statement of change in shareholders’ equity Zakat charge for the period (43,309) 43,309 - | 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, 2019 (December 31, 2018: SAR 1.25 billion) consisting of 125 million shares (December 31, 2018: 125 million shares) of SAR 10 each. Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat. September 30, 2019 Authorized and issued Paid up No. of Shares SAR’000Held by the public 66,713,009 667,130 667,130Public Pension Agency 29,737,685 297,377 297,377General Organization for Social Insurance 28,549,306 285,493 285,493 125,000,000 1,250,000 1,250,000 December 31, 2018 Authorized and issued Paid up No. of Shares SAR’000Held by the public 66,713,009 667,130 667,130Public Pension Agency 29,737,685 297,377 297,377General Organization for Social Insurance 28,549,306 285,493 285,493 125,000,000 1,250,000 1,250,000 | 8 |
| Disclosure of statutory reserve [text block] | 11. LEGAL RESERVEIn accordance with the Articles of Association of the Company and in compliance with Article 70(2)(g) of the Insurance Implementing Regulations issued by SAMA, the Company is required to allocate 20% of its net income for the year to the legal reserve until it equals the value of share capital. This transfer is only made at the year end. The legal reserve is not available for distribution to the shareholders until the liquidation of the Company. | 11 |
| Disclosure of fair value reserve on investments [text block] | 14. FAIR VALUES OF FINANCIAL INSTRUMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or the most advantageous) market between market participants at the measurement date under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique. The fair values of recognised financial instruments are not significantly different from the carrying values included in the financial information. The estimated fair values of financial instruments are based on quoted market prices, when available. Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments: - Level 1: quoted market price: financial instruments with quoted unadjusted prices for identical instruments in active markets. - Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data.- Level 3: valuation techniques for which any significant input is not based on observable market data. The fair values of bank balances, cash and other financial assets in statement of financial position which are carried at amortized cost, are not significantly different from the carrying values included in the interim condensed financial information 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, 2019 (Unaudited) Level 1 Level 2 Level 3 TotalAvailable-for- sale investments Insurance Operations Mutual funds - 47,875 - 47,875 Fixed income portfolio (Governments and corporations securities ) - 1,050,048 - 1,050,048 Discretionary Portfolio Management - Equities 157,978 - - 157,978 Sukuks - - 31,709 31,709 157,978 1,097,923 31,709 1,287,610 Shareholders’ Operations Mutual funds - 36,393 657,614 694,007Fixed income portfolio (Governments and corporations securities ) - 410,854 - 410,854Discretionary Portfolio Management - Equities 194,373 - - 194,373 194,373 447,247 657,614 1,299,234 Total 352,351 1,545,170 689,323 2,586,844 SAR’000December 31, 2018 (Audited) Level 1 Level 2 Level 3 TotalAvailable-for-sale investments Insurance Operations Mutual funds - 191,404 - 191,404Fixed income portfolio (Governments and corporations securities ) - 790,304 - 790,304Sukuks - - 225,140 225,140Funds placed with portfolio manager 28,059 - - 28,059 28,059 981,708 225,140 1,234,907 Shareholders’ Operations Mutual funds - 609,270 601,629 1,210,899Fixed income portfolio (Governments and corporations securities ) - 358,556 - 358,556Sukuks - - 90,000 90,000Funds placed with portfolio manager 10,768 - - 10,768Total 10,768 967,826 691,629 1,670,223 38,827 1,949,534 916,769 2,905,13014. FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)Reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy: SAR’000 Total gain or loss recognized in September 30, 2019 (Unaudited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance September 30Insurance Operations Sukuks 225,140 - (193,431) - - 31,709 225,140 - (193,431) - - 31,709Shareholders’ operations Mutual funds 601,629 - (4,514) - 60,499 657,614 Sukuks 90,000 - (90,000) - - - 691,629 - (94,514) - 60,499 657,614 Total 916,769 - (287,945) - 60,499 689,323 SAR’000 Total gain recognized in December 31, 2018 (Audited) Balance January 1 Purchases Sales Statement of income Other comprehensive income Balance December 31Insurance Operations Mutual funds 2,637,325 928,066 (3,667,918) 16,318 86,209 - Sukuks 281,860 - (56,720) - - 225,140 2,919,185 928,066 (3,724,638) 16,318 86,209 225,140 Shareholders’ operations Mutual funds 2,425,439 937,028 (3,005,602) 185,388 59,376 601,629 Sukuks 100,000 - (10,000) - - 90,000 2,525,439 937,028 (3,015,602) 185,388 59,376 691,629 Total 5,444,624 1,865,094 (6,740,240) 201,706 145,585 916,769 | 14 |
| Disclosure of earnings per share [text block] | 16. EARNINGS PER SHAREBasic and diluted earnings per share have been calculated by dividing the income attributed to shareholders’ by 125 million shares. | 16 |
| Disclosure of related party transactions [text block] | 13. RELATED PARTY TRANSACTIONS AND BALANCESRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the three and nine month period and the related balances: Transactions for the three month period ended Transactions for the nine month period ended Balance receivable / (payable) as at September September September December 30, 2019 30, 2018 30, 2019 30, 2018 30, 2019 31, 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000Major shareholders Insurance premium written 30,983 28,947 54,047 46,312 34,427 4,091General Organisation for Social Insurance – Other Services - - 82 - - - Associates Insurance premium written 15,156 14,103 15,082 14,228 703 210Najm fees paid 2,721 8,141 9,806 30,684 4,971 -Waseel fees paid 4,614 6,094 11,613 12,198 - -United Insurance Co. fees and claims, net 2,920 3,157 8,667 8,040 2,729 3,712 Entities controlled, jointly controlled or significantly influenced by related parties Insurance premium written 33,808 24,133 119,415 71,361 18,326 51,205Rent expenses paid 41 23 223 113 - -Amount of claims paid to hospitals 9,631 16,834 46,918 31,660 (5,741) (12,088)In accordance with the Company’s Articles of Association, the Board of Directors is entitled each year to remuneration of up to 10% of the remaining profit from Shareholders’ operations, as defined, based on a decision by the General Assembly.The compensation of key management personnel during the period is as follows: September 30, 2019 (Unaudited) September 30, 2018 (Unaudited) SAR’000Salaries and other allowances 7617 7,017End of service indemnities 522 1,238 | 13 |
| Disclosure of entity's operating segments [text block] | . OPERATING SEGMENTS (continued) For the three months period ended September 30, 2019 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 5,521 136,542 38,169 7,341 - 187,573 187,573 - Micro Enterprises 28,111 4,374 - 4,375 - 36,860 36,860 - Small Enterprises 55,494 3,331 - 3,771 32 62,628 62,628 - Medium Enterprises 85,604 2,693 - 4,040 317 92,654 92,654 - Corporates 886,032 7,030 - 141,410 8,451 1,042,923 1,042,923 1,060,762 153,970 38,169 160,937 8,800 1,422,638 1,422,638 Reinsurance ceded - local - - - (4,117) (6,428) (10,545) (10,545)Reinsurance ceded - international (89,276) - - (138,607) (1,574) (229,457) (229,457)Fees income from takaful - - - - 1,968 1,968 1,968 Excess of loss premiums - (2,953) (477) (151) - (3,581) (3,581)Net premiums written 971,486 151,017 37,692 18,062 2,766 1,181,023 1,181,023 Changes in unearned premiums, net 594,512 3,560 7 7,193 80 605,352 605,352 Net premiums earned 1,565,998 154,577 37,699 25,255 2,846 1,786,375 1,786,375 Reinsurance commissions 576 - - 27,898 - 28,474 28,474 Other underwriting income - 2,979 - - - 2,979 2,979 TOTAL REVENUES 1,566,574 157,556 37,699 53,153 2,846 1,817,828 1,817,828 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,117,906 75,074 6,118 244,780 948 1,444,826 1,444,826 Reinsurers’ share of claims paid (19,547) (2,812) - (239,196) (869) (262,424) (262,424)Net claims paid 1,098,359 72,262 6,118 5,584 79 1,182,402 1,182,402 Changes in outstanding claims, net 123,043 9,167 54 1,067 (15) 133,316 133,316 Changes in incurred but not reported claims reserve, net 150,275 (4,241) (12) (1,427) - 144,595 144,595 Changes in premium deficiency reserves - - - (319) - (319) (319)Net claims and other benefits incurred 1,371,677 77,188 6,160 4,905 64 1,459,994 1,459,994 Changes in reserve for takaful activities - - - - (125) (125) (125)Policy acquisition costs 49,984 23,703 7,876 9,083 244 90,890 90,890 Other underwriting expenses 20,375 770 3,170 5,837 93 30,245 30,245 Manafeth insurance share distribution - - 16,234 - - 16,234 16,234 TOTAL UNDERWRITING COSTS AND EXPENSES 1,442,036 101,661 33,440 19,825 276 1,597,238 1,597,238 NET UNDERWRITING INCOME 124,538 55,895 4,259 33,328 2,570 220,590 220,590 General and administrative expenses (126,583) (3,122) (129,705)Allowance for doubtful debts (37,965) - (37,965)Dividend and realized gain on investments, net 28,931 28,215 57,146 Share of profit from investments in associates, net 476 2,198 2,674 Other income 5,458 - 5,458 NET INCOME FOR THE PERIOD BEFORE ZAKAT 90,907 27,291 118,198 15. OPERATING SEGMENTS (continued) For the three months period ended September 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 16,177 107,348 37,227 6,123 - 166,875 166,875 - Micro Enterprises 24,776 5,429 - 2,259 - 32,464 32,464 - Small Enterprises 38,284 2,909 - 2,901 22 44,116 44,116 - Medium Enterprises 56,086 2,399 - 3,837 378 62,700 62,700 - Corporates 755,127 9,100 - 136,123 1,276 901,626 901,626 890,450 127,185 37,227 151,243 1,676 1,207,781 1,207,781 Reinsurance ceded - local - - - (12,257) - (12,257) (12,257)Reinsurance ceded - international (90,333) - - (112,514) (1,457) (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 800,117 124,074 36,648 25,027 1,144 987,010 987,010 Changes in unearned premiums, net 654,296 103,458 1,134 6,214 108 765,210 765,210 Net premiums earned 1,454,413 227,532 37,782 31,241 1,252 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 1,455,018 230,227 37,782 55,576 1,252 1,779,855 1,779,855 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 1,472,679 144,141 6,683 97,349 2,162 1,723,014 1,723,014 Reinsurers’ share of claims paid (25,338) (1,778) - (90,905) (1,414) (119,435) (119,435)Net claims paid 1,447,341 142,363 6,683 6,444 748 1,603,579 1,603,579 Changes in outstanding claims, net (104,463) 2,097 1,452 2,340 (1) (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 1,471,172 120,330 8,279 5,356 747 1,605,884 1,605,884 Changes in reserve for takaful activities - - - - 23 23 23 Policy acquisition costs 50,534 22,484 8,263 11,523 265 93,069 93,069 Other underwriting expenses 20,123 2,436 2,746 4,687 211 30,203 30,203 Manafeth insurance share distribution - - 13,972 - - 13,972 13,972 TOTAL UNDERWRITING COSTS AND EXPENSES 1,541,829 145,250 33,260 21,566 1,246 1,743,151 1,743,151 NET UNDERWRITING (LOSS)/ INCOME (86,811) 84,977 4,522 34,010 6 36,704 36,704 General and administrative expenses (115,353) (734) (116,087)Reversal of allowance for doubtful debts 6,191 - 6,191 Dividend 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 - 10,229NET (LOSS)/ INCOME FOR THE PERIOD BEFORE ZAKAT (57,872) 35,005 (22,867) 15. OPERATING SEGMENTS (continued) For the nine months period ended September 30, 2019 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 19,405 402,309 115,924 19,291 - 556,929 556,929 - Micro Enterprises 177,521 12,628 - 30,870 - 221,019 221,019 - Small Enterprises 219,498 10,770 - 16,165 127 246,560 246,560 - Medium Enterprises 299,881 14,468 - 13,823 846 329,018 329,018 - Corporates 3,670,396 25,443 - 816,414 13,406 4,525,659 4,525,659 4,386,701 465,618 115,924 896,563 14,379 5,879,185 5,879,185 Reinsurance ceded - local - - - (64,434) (8,139) (72,573) (72,573)Reinsurance ceded - international (93,832) - - (767,908) (4,558) (866,298) (866,298)Fees income from takaful - - - - 4,506 4,506 4,506 Excess of loss premiums - (11,710) (1,432) (2,832) - (15,974) (15,974)Net premiums written 4,292,869 453,908 114,492 61,389 6,188 4,928,846 4,928,846 Changes in unearned premiums, net 189,294 14,128 (1,216) 11,560 315 214,081 214,081 Net premiums earned 4,482,163 468,036 113,276 72,949 6,503 5,142,927 5,142,927 Reinsurance commissions 2,002 148 - 76,227 - 78,377 78,377 Other underwriting income - 8,606 - - - 8,606 8,606 TOTAL REVENUES 4,484,165 476,790 113,276 149,176 6,503 5,229,910 5,229,910 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 3,950,344 237,905 19,877 630,251 9,467 4,847,844 4,847,844 Reinsurers’ share of claims paid (60,126) (6,438) - (614,786) (8,684) (690,034) (690,034)Net claims paid 3,890,218 231,467 19,877 15,465 783 4,157,810 4,157,810 Changes in outstanding claims, net 60,320 38,617 1,200 857 (492) 100,502 100,502 Changes in incurred but not reported claims reserve, net 100,319 (43,273) (1,108) (1,874) 4 54,068 54,068 Changes in premium deficiency reserves (4,510) - - (1,166) - (5,676) (5,676)Net claims and other benefits incurred 4,046,347 226,811 19,969 13,282 295 4,306,704 4,306,704 Changes in reserve for takaful activities - - - - (1,425) (1,425) (1,425)Policy acquisition costs 148,195 63,762 23,657 27,011 735 263,360 263,360 Other underwriting expenses 70,492 2,328 9,186 15,473 1,413 98,892 98,892 Manafeth insurance share distribution - - 46,893 - - 46,893 46,893 TOTAL UNDERWRITING COSTS AND EXPENSES 4,265,034 292,901 99,705 55,766 1,018 4,714,424 4,714,424 NET UNDERWRITING INCOME 219,131 183,889 13,571 93,410 5,485 515,486 515,486 General and administrative expenses (376,296) (3,592) (379,888)Allowance for doubtful debts (96,288) - (96,288)Dividend and realized gain on investments, net 94,951 77,065 172,016 Share of profit from investments in associates, net 901 13,123 14,024 Other income 15,630 - 15,630NET INCOME FOR THE PERIOD BEFORE ZAKAT 154,384 86,596 240,980 15. OPERATING SEGMENTS (continued) For the nine months period ended September 30, 2018 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total Shareholders’ operations Total SAR’000REVENUES Gross premiums written - Retail 27,980 418,346 109,111 17,617 - 573,054 573,054 - Micro Enterprises 151,137 16,823 - 13,717 - 181,677 181,677 - Small Enterprises 129,355 10,763 - 9,904 157 150,179 150,179 - Medium Enterprises 193,348 16,654 - 11,380 1,191 222,573 222,573 - Corporates 3,219,608 30,090 - 665,821 16,355 3,931,874 3,931,874 3,721,428 492,676 109,111 718,439 17,703 5,059,357 5,059,357 Reinsurance ceded - local - - - (35,704) - (35,704) (35,704)Reinsurance ceded - international (92,846) - - (610,612) (15,657) (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 3,628,582 480,173 106,755 65,981 6,212 4,287,703 4,287,703 Changes in unearned premiums, net 707,309 337,327 3,224 15,814 159 1,063,833 1,063,833 Net premiums earned 4,335,891 817,500 109,979 81,795 6,371 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 4,337,847 826,124 109,979 151,410 6,371 5,431,731 5,431,731 UNDERWRITING COSTS AND EXPENSES Gross claims paid and related expenses 4,733,583 526,730 21,160 613,276 16,126 5,910,875 5,910,875 Reinsurers’ share of claims paid (73,043) (7,895) - (588,967) (14,572) (684,477) (684,477)Net claims paid 4,660,540 518,835 21,160 24,309 1,554 5,226,398 5,226,398 Changes in outstanding claims, net (540,094) 5,240 5,222 4,049 418 (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 4,293,134 500,804 16,252 21,873 1,972 4,834,035 4,834,035 Changes in reserve for takaful activities - - - - (1,149) (1,149) (1,149)Policy acquisition costs 149,302 83,511 24,873 36,327 850 294,863 294,863 Other underwriting expenses 69,573 7,863 9,034 16,473 1,391 104,334 104,334 Manafeth insurance share distribution - - 46,321 - - 46,321 46,321 TOTAL UNDERWRITING COSTS AND EXPENSES 4,512,009 592,178 96,480 74,673 3,064 5,278,404 5,278,404 NET UNDERWRITING (LOSS)/ INCOME (174,162) 233,946 13,499 76,737 3,307 153,327 153,327 General 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 BEFORE ZAKAT (96,219) 153,549 57,330 15. OPERATING SEGMENTS (continued) As at September 30, 2019 (Unaudited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total - Shareholders’ operations Total SAR’000Assets Reinsurer’s share of unearned premiums 73,569 - - 476,041 3,172 552,782 552,782 Reinsurer’s share of incurred but not reported claims 21,119 13,528 - 217,874 2,297 254,818 254,818 Reinsurer’s share of outstanding claims 201 20,576 2,100 3,254,292 20,061 3,297,230 3,297,230 Deferred excess of loss premiums - 6,507 477 453 - 7,437 7,437 Deferred policy acquisition costs 90,800 21,599 1,471 10,749 432 125,051 125,051 Investments (including investment property, mudaraba deposit, investments in associates and accrued investment income ) 2,876,140 3,181,797 6,057,937 Receivables, net 1,382,235 1,382,235 Cash and cash equivalents 1,308,468 255,629 1,564,097 Unallocated assets 583,601 127,548 711,149Total assets 185,689 62,210 4,048 3,959,409 25,962 10,387,762 3,564,974 13,952,736 Liabilities Gross unearned premiums 2,741,432 313,382 25,279 530,190 3,872 3,614,155 3,614,155 Gross outstanding claims 316,249 193,436 15,392 3,396,309 21,693 3,943,079 3,943,079 Incurred but not reported claims reserve 1,379,895 164,956 12,814 241,001 2,566 1,801,232 1,801,232 Premium deficiency reserve - - - 1,596 - 1,596 1,596 Unearned commission income 1,810 - - 38,517 1,033 41,360 41,360 Reserve for takaful activities - - - - 7,265 7,265 7,265 Reinsurers’ balances payable 239,617 239,617 Unallocated liabilities and accumulated Surplus 1,729,981 244,837 1,974,818Total liabilities 4,439,386 671,774 53,485 4,207,613 36,429 11,378,285 244,837 11,623,122 15. OPERATING SEGMENTS (continued) As at December 31, 2018 (Audited)Operating Segments Medical Motor Manafeth Property & casualty Protection & Savings Total - Insurance operations Total - Shareholders’ operations Total SAR’000Assets Reinsurer’s share of unearned premiums 52,826 - - 485,213 6,800 544,839 544,839Reinsurer’s share of incurred but not reported claims 23,327 - - 166,213 2,297 191,837 191,837Reinsurer’s share of outstanding claims 667 18,382 2,000 2,680,763 23,997 2,725,809 2,725,809Deferred excess of loss premiums - 6,123 - 2,652 - 8,775 8,775Deferred policy acquisition costs 93,533 22,520 1,312 12,793 493 130,651 130,651Investments (including investment property, mudaraba deposit, investments in associates and accrued investment income ) 2,640,189 2,609,043 5,249,232Receivables, net 1,517,987 - 1,517,987Cash and cash equivalents 1,117,258 482,982 1,600,240Unallocated assets 530,954 127,254 658,208Total assets 170,353 47,025 3,312 3,347,634 33,587 9,408,299 3,219,279 12,627,578 Liabilities Gross unearned premiums 2,909,983 327,510 24,063 550,922 7,815 3,820,293 3,820,293Gross outstanding claims 256,395 152,625 14,092 2,821,923 26,121 3,271,156 3,271,156Incurred but not reported claims reserve 1,281,784 194,701 13,922 191,214 2,562 1,684,183 1,684,183Premium deficiency reserve 4,510 - - 2,762 - 7,272 7,272Unearned commission income 1,291 - - 36,265 1,743 39,299 39,299Reserve for takaful activities - - - - 8,690 8,690 8,690Reinsurers’ balances payable 94,720 94,720Unallocated liabilities 1,640,177 253,567 1,893,744Total liabilities 4,453,963 674,836 52,077 3,603,086 46,931 10,565,790 253,567 10,819,357 | 15 |
| Disclosure of commitments and contingencies, general [text block] | 9. CONTINGENT LIABILITIESAs at September 30, 2019, the Company had contingencies related to outstanding letters of guarantee amounting to SAR 179 million (December 31, 2018: SAR 449 million) issued in favour of GAZT related to Zakat assessment raised for previous years (Note 17).As at September 30, 2019, the Company was contingently liable for letters of credit and guarantees, issued on its behalf by the banks, amounting nil (December 31, 2018: SAR 143 million) occurring in the normal course of business.The Company, in common with significant majority of insurers, is subject to litigation in the normal course of its business. Appropriate provisions have been made in relation to pending cases and management believes that finalization of these court cases is not expected to have a material impact on the financial information. | 9 |
| Disclosure of comparative figures [text block] | 19. RECLASSIFICATION OF COMPARATIVE FIGURES Certain of the prior period amounts have been reclassified to conform with the presentation in the current period. These changes were made for better presentation of balances and transactions in the interim condensed financial information of the Company. | 19 |
| Disclosure of board of director's approval of the financial statements [text block] | 20. APPROVAL OF THE INTERIM CONDENSED FINANCIAL INFORMATIONThe interim condensed financial information have been approved by the Audit Committee on behalf of the Board of Directors, on Rabi I 01, 1441H, corresponding to October 29, 2019. | 20 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 12. MANAFETH SHARED AGREEMENTOn January 13, 2015 together with 25 related insurance companies, the Company signed the Manafeth shared agreement relating to third party liability motor insurance which is effective from 1 January 2015. The agreement relates to motor insurance for vehicles entering the Kingdom of Saudi Arabia. The agreement has subsequently been renewed for two years from January 1, 2019 to December 31, 2020 with 25 related insurance companies.The main terms of the above mentioned agreement are as follows:- The Company obtains 15% management fee of the net result of the Manafeth portfolio;- The Company obtains 4.25% of Manafeth’s gross premiums written to cover the related indirect expenses; and- The net result of the Manafeth portfolio after deducting the two above mentioned items is due to be shared equally by the Company and its related insurers. | 12 |
