	English [member]
Start Date	2020-04-01	2019-04-01
End Date	2020-06-30	2019-06-30
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Malath Cooperative Insurance Co.
Company symbol code\| ISIN code	8020 \| SA000A0MJ2J4
Sector\| Industry group	Financials \| Insurance
Disclosure of document information [abstract]
Whether entity wants to report opening statement of financial position	No
Period covered by financial statements	Quarter 2
Reporting period start date	2020-04-01	2019-04-01
Reporting period end date	2020-06-30	2019-06-30
Description of nature of financial statements	Consolidated
Status of financial statements	Reviewed
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

	Primary auditor [member]	Second primary auditor [member]
	English [member]	English [member]
Start Date	2020-04-01	2020-04-01
End Date	2020-06-30	2020-06-30
Auditors information [line items]
Details of auditors signing report [abstract]
Name of auditor signing report	Ibrahim Ahmad Albassam	Abdullah M. Al Azem
Registration number of auditor	337	335
Details of audit firm [abstract]
Name of audit firm	Al-Bassam & Co. Allied Accountants.	Al Azem, Al Sudairy, Al Shaikh & Partners
Registration number of audit firm	337	335
Contact number of audit firm	011 206 5333	112780608
Address of audit firm	P. O. Box 69658Riyadh 11557	P. O. Box 10504Riyadh 11443

	English [member]
Start Date	2020-04-01
End Date	2020-06-30
Auditors report [line items]
Disclosures of auditors report [text block]	INDEPENDENT AUDITOR’S REVIEW REPORT ON THE INTERIM CONDENSED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF MALATH COOPERATIVE INSURANCE COMPANY (A SAUDI JOINT STOCK COMPANY) INTRODUCTION We have reviewed the accompanying interim condensed statement of financial position of Malath Cooperative Insurance Company (the “Company”) as at 30^thJune 2020 and the related interim condensed statement of income and other comprehensive income for the three-month and six-month periods then ended, and the interim condensed statement of changes in equity and interim condensed statement cash of flows for the three-month and six-month periods then ended, and a summary of significant accounting policies and other explanatory notes (the “interim condensed financial statements”). Management is responsible for the preparation and presentation of these interim condensed financial statements in accordance with International Accounting Standard 34 - “Interim Financial Reporting” (“IAS 34”) that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these interim condensed financial statements based on our review. SCOPE OF REVIEW We conducted our review in accordance with International Standard on Review Engagement 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, that is endorsed in the Kingdom of Saudi Arabia. A review of interim condensed financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements is not prepared, in all material respects, in accordance with IAS 34 that is endorsed in the Kingdom of Saudi Arabia.
Contents of auditors report [abstract]
Nature of auditors opinion	Unmodified opinion
Auditors opinion	Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with IAS 34, as endorsed in the Kingdom of Saudi Arabia.
Date of signing audit report by auditor	2020-08-25

Start Date	2020-01-01	2019-01-01	2019-01-01
End Date	2020-06-30	2019-12-31	2019-06-30
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	2,618	3,338	3,806
Deferred policy acquisition costs	23,381	27,331	35,156
Reinsurers/ retakaful share of unearned premiums/ contributions	31,169	17,538	36,779
Prepayments and other assets, insurance/ takaful operations assets	37,635	36,771	18,159
Premiums/ insurance receivables/takaful contributions receivable, net	243,335	183,834	329,408
Reinsurers/ retakaful share of outstanding claims/ benefits, net	144,600	147,703	81,816
Time (Murabaha) deposits, insurance/ takaful operations assets	415,000	360,000	365,000
Available-for-sale investments, insurance/ takaful operations assets	3,372	3,372	3,207
Cash and cash equivalents, insurance/ takaful operations assets	85,695	98,970	55,731
Total insurance/ takaful operations assets	986,805	878,857	929,062
Shareholders assets [abstract]
Statutory deposit	75,000	75,000	75,000
Prepayments and other assets, shareholders assets	18,456	13,597	11,400
Time (Murabaha) deposits, shareholders assets	301,106	280,000	313,000
Available-for-sale investments, shareholders assets	71,939	32,815	33,423
Due from insurance/ takaful operations assets	5,590	28,637	6,793
Cash and cash equivalents, shareholders assets	39,825	71,300	37,414
Total shareholders assets	511,916	501,349	477,030
Total assets	1,498,721	1,380,206	1,406,092
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	412,807	348,546	381,450
Unearned commission income	7,587	4,801	8,948
Surplus distribution payable	8,155	8,821	9,657
Due to shareholders operations	5,590	28,637	6,793
Due to related parties, insurance/ takaful operations liabilities	2	2	1
Reinsurers/ retakaful balance payable	38,964	11,248	35,891
Gross outstanding claims/ benefits including IBNR payable	319,791	318,463	244,590
Other technical reserves	59,055	20,919	26,590
Accrued expenses payable, insurance/ takaful operations liabilities	139,894	142,460	219,473
Total insurance/ takaful operations liabilities	991,845	883,897	933,393
Insurance/ takaful operations surplus (deficit) [abstract]
Surplus (deficit) from insurance/ takaful fund	0	0	0
Total insurance/ takaful operations surplus (deficit)	0	0	0
Total insurance/ takaful operations liabilities and surplus (deficit)	991,845	883,897	933,393
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	38,820	32,220	25,637
Accrued expenses payable, shareholders liabilities	536	536	538
Other liabilities, shareholders liabilities	8,922	8,124	6,879
Total shareholders liabilities	48,278	40,880	33,054
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	500,000	500,000	500,000
Statutory reserve	2,131	2,131	2,131
Fair value reserve on investments, shareholders equity	1,686	634	85
Retained earnings (accumulated losses)	-40,179	-42,296	-58,240
Other reserves	-5,040	-5,040	-4,331
Total equity attributable to owners of parent	458,598	455,429	439,645
Total equity attributable to equity holders of company	458,598	455,429	439,645
Total shareholders liabilities and equity	506,876	496,309	472,699
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	1,498,721	1,380,206	1,406,092

Start Date	2020-04-01	2019-04-01	2020-01-01	2019-01-01
End Date	2020-06-30	2019-06-30	2020-06-30	2019-06-30
Statement of insurance/ takaful operations [abstract]
Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract]
Income from insurance/ takaful operations [abstract]
Net premiums/ contributions earned [abstract]
Net premiums/ contributions written [abstract]
Gross premiums/ contributions written	209,612	101,832	463,410	482,127
Excess of loss expense	6,733	5,303	9,711	10,614
Reinsurance/ retakaful premiums ceded	12,970	12,537	50,483	53,013
Net premiums/ contributions written	189,909	83,992	403,216	418,500
Changes in unearned premiums/ contributions	21,476	-74,824	50,630	96,840
Net premiums/ contributions earned	168,433	158,816	352,586	321,660
Reinsurance/ retakaful commissions	5,471	4,362	9,025	7,562
Investment income from insurance/ takaful operations, net	1,472	3,456	4,703	6,711
Fees and other income from insurance/ takaful operations	3,320	50	3,507	1,760
Total income from insurance/ takaful operations	178,696	166,684	369,821	337,693
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	82,118	123,835	242,775	272,230
Reinsurance/ retakaful share of gross claims/ benefits paid	8,185	7,754	12,657	14,389
Net claims/ benefits paid	73,933	116,081	230,118	257,841
Changes in outstanding claims/ benefits including IBNR	7,350	-7,475	4,431	-23,038
Changes in other technical reserves	41,892	-1,719	38,136	-1,719
Net claims/ benefits incurred	123,175	106,887	272,685	233,084
Policy acquisition costs	17,555	17,933	36,606	32,682
General and administrative expenses, insurance/ takaful operations	25,225	28,038	52,378	56,013
Other underwriting income	632		1,265
Other cost and expenses	8,485	25,685	3,428	23,574
Total cost and expenses	173,808	178,543	363,832	345,353
Surplus (deficit) for period from insurance/ takaful operations	4,888	-11,859	5,989	-7,660
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	4,399	-11,859	5,390	-7,660
Net result for period from insurance/ takaful operations after shareholders appropriation	489	0	599	0
Policyholders share of accumulated surplus, at end of period	489	0	599	0

Start Date	2020-04-01	2019-04-01	2020-01-01	2019-01-01
End Date	2020-06-30	2019-06-30	2020-06-30	2019-06-30
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	4,399	-11,859	5,390	-7,660
Revenue [abstract]
Investment income	3,723	2,723	6,948	5,711
Total revenue	3,723	2,723	6,948	5,711
Expenses [abstract]
General and administrative expenses, shareholders operations	3,398	2,025	3,621	2,213
Total expenses	3,398	2,025	3,621	2,213
Income (loss) from continuing operations before zakat and income tax	4,724	-11,161	8,717	-4,162
Zakat expenses on continuing operations for period	3,300	3,300	6,600	6,600
Profit (loss) from continuing operations	1,424	-14,461	2,117	-10,762
Income (loss) from discontinued operations [abstract]
Income (loss) from discontinued operations	0	0	0	0
Profit (loss) from discontinued operations before zakat and income tax	0	0	0	0
Profit (loss) from discontinued operations	0	0	0	0
Profit (loss) for the period	1,424	-14,461	2,117	-10,762
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	1,424	-14,461	2,117	-10,762
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	0.0285	-0.29	0.0423	-0.22
Total basic earnings (loss) per share	0.0285	-0.29	0.0423	-0.22
Weighted average number of equity shares outstanding	50000	50000	50000	50000

Start Date	2020-04-01	2019-04-01	2020-01-01	2019-01-01
End Date	2020-06-30	2019-06-30	2020-06-30	2019-06-30
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	1,424	-14,461	2,117	-10,762
Other comprehensive income [abstract]
Components of other comprehensive income that will be reclassified to profit or loss [abstract]
Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets	664.0892	0	1,052	316
Total other comprehensive income (loss), available-for-sale financial assets	664.0892	0	1,052	316
Total other comprehensive income (loss), that will be reclassified to profit or loss	664.0892	0	1,052	316
Total other comprehensive income (loss)	664.0892	0	1,052	316
Total comprehensive income (loss) for period	2,088.0892	-14,461	3,169	-10,446
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	2,088.0892	-14,461	3,169	-10,446
Total comprehensive income (loss), attributable to non-saudi shareholders of company	0	0	0	0
Total comprehensive income (loss), attributable to non-controlling interests	0	0	0	0

Start Date	2020-01-01	2019-01-01
End Date	2020-06-30	2019-06-30
Statement of cash flows, indirect method [abstract]
Statement of cash flows, insurance/ takaful operations [abstract]
Cash flows from (used in) operating activities, insurance/ takaful operations [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	599	0
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	875	934
Adjustments for employees end of service benefits	2,146	1,655
Adjustments for allowance for doubtful receivables	3,428	23,574
Adjustments for impairment (reversal of impairment) charges for available-for-sale investments	0	115
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	6,449	26,278
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	-62,929	-180,616
Adjustments for decrease (increase) in prepayments and other assets	-1,360	-802
Adjustments for increase (decrease) in outstanding claims including IBNR	1,328	-26,955
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	27,716	30,625
Adjustments for increase (decrease) in accrued expenses and other liabilities	-4,602	57,785
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	3,103	3,917
Adjustments for decrease (increase) in deferred policy acquisition costs	3,950	-14,098
Adjustments for decrease (increase) in deferred excess of loss expense	496	839
Adjustments for decrease (increase) in unearned commission income	2,786	4,479
Adjustments for movement in gross unearned premiums/ contributions	64,261	114,430
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	-13,631	-17,589
Adjustment for changes in other technical reserves	38,136	-1,719
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	-110	-1,065
Total changes in operating assets and liabilities	59,144	-30,769
Net cash flows from (used in) insurance/ takaful operations	66,192	-4,491
Other inflows (outflows) of cash classified as operating activities, insurance/ takaful operations cash flow	-1,265
Net cash flows from (used in) operating activities, insurance/ takaful operations	64,927	-4,491
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Time (Murabaha) deposits, insurance/ takaful operations cash flow	-55,000	349
Purchase of property and equipment, insurance/ takaful operations cash flow	155	906
Net cash flows from (used in) investing activities, insurance/ takaful operations	-55,155	-557
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Adjustments for decrease (increase) in due from shareholders operations	-23,047	-5,409
Due to related party, insurance/ takaful operations cash flow	0	164
Net cash flows from (used in) financing activities, insurance/ takaful operations	-23,047	-5,573
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-13,275	-10,621
Net increase (decrease) in cash and cash equivalents	-13,275	-10,621
Cash and cash equivalents at beginning of period	98,970	66,352
Cash and cash equivalents at end of period	85,695	55,731

Start Date	2020-01-01	2019-01-01
End Date	2020-06-30	2019-06-30
Statement of cash flows, indirect method [abstract]
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Net profit (loss) for period [abstract]
Income (loss) from continuing operations before zakat and income tax	8,717	-4,162
Profit (loss) from discontinued operations before zakat and income tax	0	0
Net profit (loss) for period (before zakat expenses and income tax)	8,717	-4,162
Adjustments to reconcile profit (loss) [abstract]
Adjustments for impairment (reversal of impairment) charges for investments, shareholders cash flow	0	-808
Total adjustments to reconcile profit (loss)	0	-808
Changes in operating assets and liabilities [abstract]
Adjustments for increase (decrease) in accrued expenses and other liabilities, shareholders cash flow	0	2
Adjustments for increase (decrease) in due to insurance/ takaful operations	23,047	5,409
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	-4,061	11
Total changes in operating assets and liabilities	18,986	5,422
Net cash flows from (used in) operations	27,703	452
Zakat expenses	0	10,829
Net cash flows from (used in) operating activities	27,703	-10,377
Cash flows from (used in) investing activities [abstract]
Purchase of available-for-sale investments	38,072	0
Purchase of term deposits investments	21,106	0
Net cash flows from (used in) investing activities	-59,178	0
Cash flows from (used in) financing activities [abstract]
Due to reinsurance/ retakaful operations	0	0
Payment of transaction costs	0	0
Payment of due to others	0	0
Net cash flows from (used in) financing activities	0	0
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	-31,475	-10,377
Net increase (decrease) in cash and cash equivalents	-31,475	-10,377
Cash and cash equivalents at beginning of period	71,300	47,791
Cash and cash equivalents at end of period	39,825	37,414

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2020-04-01

End Date

2020-06-30

Notes forming part of accounts [line items]

Disclosure of notes and other explanatory information [text block]

1	ORGANIZATION AND PRINCIPAL ACTIVITIES

Malath Cooperative Insurance Company (the “Company”) is a Saudi Joint Stock Company established in Riyadh, Kingdom of Saudi Arabia by Royal Decree Number M/60 and incorporated on 21 Rabi Al-Awal 1428H corresponding to 9 April 2007 under Commercial Registration No. 1010231787. The Company’s head office is situated at Mohammad Bin Abdelaziz Street, P.O. Box 99763, Riyadh 11625, and Kingdom of Saudi Arabia.




The objectives of the Company are to engage in providing insurance and related services in accordance with its by-laws and the applicable regulations in the Kingdom of Saudi Arabia.


2	BASIS OF PREPARATION

(a)	Basis of presentation and measurement
These interim condensed financial information (interim condensed financial statements) of the Company as at and for the period ended 30 June 2020 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS 34”), as endorsed in the Kingdom of Saudi Arabia by Saudi Organization for Certified Public Accountants (SOCPA).




These interim condensed financial statements are prepared under the going concern concept and the historical cost convention, except for the measurement at fair value of available-for-sale investments and employees' end of service benefits measured at present value of future obligations using projected unit credit 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: Available-for-sale investments, Property and equipment, Statutory deposit, Accrued income on statutory deposit, Employees' end-of-service benefits and Accrued commission income payable to SAMA. All other financial statement line items balances would generally be classified as current. The Company presents its interim condensed statement of financial position in order of liquidity. As required by the Law on Supervision of Co-operative Insurance Companies, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the interim condensed 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 condensed statement of financial position, interim condensed statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the interim condensed 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 as endorsed in KSA. 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, interim condensed statements of income, interim condensed statement of comprehensive income and interim condensed statement of 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.










In preparing the Company-level interim condensed financial statements in compliance with IFRSs as endorsed in KSA, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances and transactions 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 statements does not include all of the information required for full annual financial statements and should be read in conjunction with the audited annual financial statements as at and for the year ended 31 December 2019.

Disclosure of general information about reporting entity [abstract]

Disclosure of general information about reporting entity [text block]

1	ORGANIZATION AND PRINCIPAL ACTIVITIES

Malath Cooperative Insurance Company (the “Company”) is a Saudi Joint Stock Company established in Riyadh, Kingdom of Saudi Arabia by Royal Decree Number M/60 and incorporated on 21 Rabi Al-Awal 1428H corresponding to 9 April 2007 under Commercial Registration No. 1010231787. The Company’s head office is situated at Mohammad Bin Abdelaziz Street, P.O. Box 99763, Riyadh 11625, and Kingdom of Saudi Arabia.




The objectives of the Company are to engage in providing insurance and related services in accordance with its by-laws and the applicable regulations in the Kingdom of Saudi Arabia.

Disclosure of basis of preparation of financial statements [text block]

2	BASIS OF PREPARATION

(a)	Basis of presentation and measurement
These interim condensed financial information (interim condensed financial statements) of the Company as at and for the period ended 30 June 2020 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (“IAS 34”), as endorsed in the Kingdom of Saudi Arabia by Saudi Organization for Certified Public Accountants (SOCPA).




These interim condensed financial statements are prepared under the going concern concept and the historical cost convention, except for the measurement at fair value of available-for-sale investments and employees' end of service benefits measured at present value of future obligations using projected unit credit 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: Available-for-sale investments, Property and equipment, Statutory deposit, Accrued income on statutory deposit, Employees' end-of-service benefits and Accrued commission income payable to SAMA. All other financial statement line items balances would generally be classified as current. The Company presents its interim condensed statement of financial position in order of liquidity. As required by the Law on Supervision of Co-operative Insurance Companies, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the interim condensed 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 condensed statement of financial position, interim condensed statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the interim condensed 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 as endorsed in KSA. 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, interim condensed statements of income, interim condensed statement of comprehensive income and interim condensed statement of 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.










In preparing the Company-level interim condensed financial statements in compliance with IFRSs as endorsed in KSA, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Inter-operation balances and transactions 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 statements does not include all of the information required for full annual financial statements and should be read in conjunction with the audited annual financial statements as at and for the year ended 31 December 2019.

Disclosure of summary of significant accounting policies [abstract]

Disclosure of summary of significant accounting policies, general comment [text block]

3	SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted in the preparation of these interim condensed financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 31 December 2019, except for the adoption of new standards effective as of 1 January 2020. The Company has not early adopted any standard (interpretation) or amendments that has been issued but which are not yet effective.




a)	Amendment to standards and interpretations
There are no new standards issued, however, certain amendments to standards and interpretations which are effective from 1 January 2020 and were listed in the Company's annual financial statements of 31 December 2019, but they do not have any impact on the interim condensed financial statements of the Company.



b)	Standards issued but not yet effective
The Company has chosen not to early adopt the amendments and revisions to the IFRSs, which have been published and are mandatory for compliance for the Company with effect from future dates.


STANDARD/ INTERPRETATION/ AMENDMENTS		DESCRIPTION	EFFECTIVE FROM PERIODS BEGINNING ON OR AFTER THE FOLLOWING DATE
IFRS 9		Financial Instruments (refer below)		1-Jan-19
IFRS 17		Insurance Contracts (refer below)		1-Jan-23

Description of accounting policy for time (murabaha) deposit [text block]

5	MURABAHA DEPOSITS

		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)
Insurance operations
Short term Murabaha deposits		415,000	360,000


Shareholders' operations
Short term Murabaha deposits		301,106	280,000
Total Murabaha deposits		716,106	640,000

Murabaha deposits have an original maturity of more than three months from the date of acquisition and are subject to an average commission rate of 2.9% per annum as at 30 June 2020 (31 December 2019: 3.24% per annum).



The carrying amounts disclosed above are not materially different from their fair values at the date of the interim condensed statement of financial position.

Disclosure of notes forming part of accounts [abstract]

Disclosure of investments in available-for-sale investments [text block]

8	AVAILABLE-FOR-SALE INVESTMENTS
		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)
Insurance operations
Unquoted
Funds		3,372	3,372

Shareholders’ operations
Quoted
Equity shares		18,792	9,380

Unquoted
Funds		51,224	21,512
Equity shares		1,923	1,923
		71,939	32,815
Total available for sale investments (note 14)		75,311	36,187

The fair values of the unquoted mutual funds computed above are based on the latest reported net assets as at the reporting date. Unquoted equity shares in shareholders' operations include investment in Najm Company for Insurance Services which is carried at cost due to absence of active market or other means of reliably measuring its fair value. An impairment review is performed at each reporting date.



Movement in the investments balance is as follows:
		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)
Insurance operations
Balance at beginning of the period/year		3,372	3,322
Reversal of impairment of investments during the period/year		-	50
Balance at end of the period/year		3,372	3,372

Shareholders' operations
Balance at beginning of the period/year		32,815	32,299
Addition during the period/year		38,072	8,516
Disposals during the period/year		-	(10,000)
Reversal of impairment during the period/year		-	1,135
Re-measurement gain during the period/year		1,052	865
Balance at end of the period/year		71,939	32,815

Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block]

6	PREMIUMS AND REINSURERS' RECEIVABLE - NET
Receivables comprise amounts due from the following:
		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)

Policyholders		247,970	205,100
Reinsurers		7,609	349
Insurance companies		17,061	4,729
Agents and brokers		7,497	7,030
		280,137	217,208
Less:
Provision for doubtful receivables - insurance		(36,569)	(33,151)
Provision for doubtful receivables - reinsurers		(233)	(223)
		(36,802)	(33,374)
		243,335	183,834
The movement in the provision for doubtful receivables is as follows:
		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)

Beginning balance		33,374	34,449
Provision / (reversals) made during the period/year, net		3,428	(1,075)
Ending balance		36,802	33,374

Disclosure of due from related parties [text block]

16	RELATED PARTY TRANSACTIONS AND BALANCES

Related 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 mutually agreed and are approved by the Company’s management.





The following are the details of the major related party transactions during the period and the related balances:

		Six-months period ended 30 June
		2020	2019
		(Unaudited)	(Unaudited)
		SR (000)


Remuneration paid to Board of Directors		3,210	1,750

Board of Directors’ and committees meeting fees		165	114

Balances due from / (to) related parties comprise the following:

		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)


Claims payable to companies owned by BOD members		(2)	(2)

Disclosure of cash and cash equivalents [text block]

4	CASH AND CASH EQUIVALENTS

		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)
Insurance operations
Cash in banks		75,681	48,960
Cash on hand		14	10
Short term Murabaha deposits		10,000	50,000
		85,695	98,970

Shareholders' operations
Cash in banks		39,825	71,300
Total cash and cash equivalents		125,520	170,270

Short term Murabaha deposits have original maturity of less than three months from the date of acquisition and are subject to an average commission rate of 3.17% per annum as at 30 June 2020 (31 December 2019: 1.73% per annum).


The carrying amounts disclosed above are not materially different from their fair values at the date of the interim condensed statement of financial position.

Disclosure of zakat [text block]

9	PROVISION FOR ZAKAT
a)	Zakat payable
The movement in zakat payable during the period/year was as follows:
		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)

Balance at beginning of the period/year		32,220	29,866
Charge for the period/year		6,600	13,183
Payments during the period/year		-	(10,829)
Balance at end of the period/year		38,820	32,220
b)	Status of assessments

The Company had filed the Zakat return for the years 2016 to 2018 and received a temporary Zakat certificate. No assessments have been received from GAZT to date in respect of these years. For the year 2019, the Company has filed the Zakat return before extended deadline of July 31, 2020.



c)	Status of appeals

Zakat years 2007 to 2010: The Company had filed an appeal against the final assessment of GAZT and submitted a letter of guarantee to GAZT for zakat and withholding income tax amounting to SR 31.81 million (Note 15). During the year 2017, the primary appeal committee issued a report in which certain arguments of the Company were rejected. The Company appealed against this report in Higher Appeal Committee dated 18/10/1438 H, where the decision is pending.





Zakat years 2011 to 2015: The Company has also filed an appeal to the primary appeal committee against the final assessment of Zakat issued by GAZT for the amount of SR 8 million and the decision is pending.

Disclosure of classes of share capital [text block]

10	SHARE CAPITAL
As at 30 June 2020 and 31 December 2019, the issued and paid up share capital of the Company amounts to SR 500 million, divided into 50 million ordinary shares of SR 10 each.

Disclosure of statutory reserve [text block]

12	STATUTORY RESERVE
In accordance with the Company’s By-Laws 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 statutory reserve until it equals the value of share capital and such transfer is only made at year end. The statutory reserve is not available for distribution to shareholders until liquidation of the Company.

Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block]

7	TECHNICAL RESERVES

a)	Outstanding claims and reserves
		30 June	31 December
		2020	2019
		(Unaudited)	(Audited)
		SR (000)

Outstanding claims		144,425	140,569
Claims incurred but not reported at end of the period/year		175,366	177,894
Additional premium reserves		55,217	17,314
Other technical reserves		3,838	3,605
		378,846	339,382

Reinsurers' share of outstanding claims		(120,580)	(122,227)
Reinsurers' share of claims incurred but not reported		(24,020)	(25,476)
		(144,600)	(147,703)
Net outstanding claims and reserves		234,246	191,679

Disclosure of earnings per share [text block]

11	BASIC AND DILUTED EARNINGS PER SHARE

Basic and diluted earnings per share for the period have been calculated by dividing the total net income for the period by the weighted average number of shares in issue throughout the period.

The basic and diluted earning per share are as follows:
		Six-months period ended 30 June
		2020	2019
		(Unaudited)	(Unaudited)

Basic and diluted earnings per share (Saudi Riyals)		0.04	(0.22)
Weighted average number of shares throughout the period (thousands)		50,000	50,000

Disclosure of entity's operating segments [text block]

17	SEGMENT INFORMATION
Consistent with the Company's internal reporting process, operating segments have been approved by management in respect of the Company's activities, assets and liabilities as stated below. Segment results do not include income from investments, income from Murabaha deposits, other income, general and administrative expenses, and provision for doubtful debts.




Segment results do not include commission on short-term Murabaha deposits. Segment assets do not include insurance operations’ cash and cash equivalents, Murabaha deposits, available for sale investments, premium and reinsurers' receivable net, prepayments and other assets and property and equipment. Accordingly, they are included in unallocated assets. Segment liabilities do not include reinsurance balances payable, policyholders claims payable, accrued and other liabilities, accumulated surplus and due to related parties. Accordingly, they are included in unallocated liabilities.





These unallocated assets and liabilities (including the related charges for provision for doubtful debts on premiums and reinsurers’ receivable and depreciation on the property and equipment) are not reported to Chief Executive Officer under related segments and are monitored on a centralized basis.

Disclosure of capital management [text block]

CAPITAL MANAGEMENT

Objectives are set by the Company to maintain healthy capital ratios in order to support its business objectives and maximize shareholders’ value.

The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares.

The Company manages its capital to ensure that it is able to continue as going concern and comply with the regulators’ capital requirements of the markets in which the Company operates. The capital structure of the Company consists of equity attributable to equity holders comprising paid share capital and reserves.

As per guidelines laid out by SAMA in Article 66 of the Implementing Insurance Regulations detailing the solvency margin requirements, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations:

Minimum Capital Requirement of SR 100 million

Premium Solvency Margin

Claims Solvency Margin

In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements during the reported financial period.

Disclosure of commitments and contingencies, general [text block]

COMMITMENTS AND CONTINGENCIES

a. Legal proceedings and regulations

The Company operates in the insurance industry and is subject to legal proceedings in the normal course of business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have a material effect on its results and financial position for the current reporting period.

b. Contingent liabilities

The Company’s contingent liabilities are as follows:

30 June

31 December

2020

2019

(Unaudited)

(Audited)

SR (000)

Letters of guarantee

41,141

48,027

Above letters of guarantee include SR 31.81 million for zakat and withholding income tax submitted to GAZT (note 9)

Disclosure of fair value of financial assets and liabilities [text block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:

Level 1: Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities.

Level 2: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable), and

Level 3: Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable).

The fair values of all other financial assets and liabilities which are carried at cost, are not significantly different from the carrying values included in these financial statements, since the current market commission rates for similar financial instruments are not significantly different from the contracted rates, and on account of the short duration of the assets and liabilities.

Disclosure of board of director's approval of the financial statements [text block]

APPROVAL OF INTERIM CONDENSED FINANCIAL STATEMENTS

The interim condensed financial statements were approved by the Board of Directors on Dhul Hijjah 26, 1441 H (corresponding to August 16, 2020).

Disclosure of other notes relevant to understanding of financial statements [text block]

IMPACT OF COVID-19 OUTBREAK

On 11 March 2020, the World Health Organization (“WHO”) declared the Coronavirus (“COVID-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews.

In response to the spread of the Covid-19 virus in the GCC where the Company operates and its consequential disruption to the social and economic activities in those markets, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure:

the health and safety of its employees and the wider community where it is operating

the continuity of its business throughout the Kingdom is protected and kept intact.

The major impact of Covid-19 pandemic is seen in motor line of business as explained below. As with any estimate, the projections and likelihoods of occurrence are underpinned by significant judgment and rapidly evolving situation and uncertainties surrounding the duration and severity of the pandemic, and therefore, the actual outcomes may be different to those projected. The impact of such uncertain economic environment is judgmental, and the Company will continue to reassess its position and the related impact on a regular basis.

Motor technical reserves

In response to the Covid-19 pandemic, SAMA issued a circular 189 (the “circular”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the circular instructed insurance companies to extend the period of validity of all existing retail motor insurance policies by further two months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this circular.

The Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and concluded, that the Company considers the extension of two months in exiting motor policies as new policy and record a premium deficiency reserve based on the expected claims for the extended 2 months period.

For new policies written as per above circular, the premium is earned over the period of coverage i.e. 14 month as per the Company accounting policy. There is no significant impact of two month extension in earned premium as of June 30, 2020 as no material amounts of premium have been written during the one month period.

The Company has performed a liability adequacy test using current estimates of future cash flows under its insurance contracts at segmented level for motor line of business and recorded an additional premium deficiency reserve amounting to SR 42.1 million as at 30 June, 2020.

Financial assets

To cater for any potential impacts, the Covid-19 pandemic may have had on the financial assets of the Company, the Company has performed an assessment in accordance with its accounting policy, to determine whether there is an objective evidence that a financial asset or a group of financial assets has been impaired. For debt financial assets, these include factors such as, significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities classified under available-for-sale, the Company has performed an assessment to determine whether there is a significant or prolonged decline in the fair value of financial assets below their cost.

Based on these assessments, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the three and six-month periods ended 30 June 2020. The Company’s management continues to monitor the situation closely.

19-20

[100010] Filing information	[200100] Independent auditors report	[300100] Statement of financial position, order of liquidity
[300200] Statement of insurance/ takaful operations, nature of expense	[300300] Statement of shareholders operations, nature of expense	[300400] Statement of other comprehensive income, before tax, insurance operations
[300500] Statement of other comprehensive income, before tax, shareholders operations	[300600] Statement of cash flows, indirect method, insurance operations	[300700] Statement of cash flows, indirect method, shareholders operations
[300800] Statement of changes in equity	[400100] Notes forming part of accounts