| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | SUPPLEMENTARY INFORMATION 18.1 Interim condensed statement of financial position Insurance Operations Shareholders' Operations Total 31 March 31 December 31 March 31 December 31 March 31 December 2021 2020 2021 2020 2021 2020 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) SR (000)ASSETS Cash and cash equivalents 224,353 203,466 255,259 356,604 479,612 560,070 Murabaha deposits 115,284 165,284 100,000 - 215,284 165,284 Investment held to maturity 10,000 10,000 7,494 - 17,494 10,000 Premiums and reinsurers' receivable - net 289,180 200,224 - - 289,180 200,224 Reinsurers' share of unearned premiums 30,377 17,051 - - 30,377 17,051 Reinsurers' share of outstanding claims 88,110 94,625 - - 88,110 94,625 Reinsurers' share of claims incurred but not reported 18,483 20,530 - - 18,483 20,530 Deferred policy acquisition costs 32,506 20,117 - - 32,506 20,117 Deferred excess of loss premiums 396 - - - 396 - Available-for-sale investments 52,695 53,976 62,084 62,582 114,779 116,558 Prepayments and other assets 27,595 26,339 197 450 27,792 26,789 Property and equipment 2,624 2,101 - - 2,624 2,101 Statutory deposit - - 75,000 75,000 75,000 75,000 Accrued commission income from statutory deposit - - 9,811 9,695 9,811 9,695 891,603 813,713 509,845 504,331 1,401,448 1,318,044 Due from insurance operations - - (9,410) (4,769) (9,410) (4,769)TOTAL ASSETS 891,603 813,713 500,435 499,562 1,392,038 1,313,275 18 SUPPLEMENTARY INFORMATION (continued) 18.1 Interim condensed statement of financial position (continued) Insurance Operations Shareholders' Operations Total 31 March 31 December 31 March 31 December 31 March 31 December 2021 2020 2021 2020 2021 2020 (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) SR (000)LIABILITIES Policyholders claims payable 85,622 54,955 - - 85,622 54,955 Accrued and other liabilities 63,347 67,480 538 1,437 63,885 68,917 Reinsurance balances payable 32,087 6,840 - - 32,087 6,840 Unearned premiums 432,476 330,974 - - 432,476 330,974 Unearned reinsurance commission 6,935 4,001 - - 6,935 4,001 Outstanding claims 52,698 94,353 - - 52,698 94,353 Claims incurred but not reported 182,232 197,889 - - 182,232 197,889 Additional premium reserve 27,354 39,637 - - 27,354 39,637 Other technical reserves 3,375 3,664 - - 3,375 3,664 Accrued reinsurance balance - 2,409 - - - 2,409 Due to related parties 15 1 - - 15 1 Employees' end-of-service benefits 19,000 18,209 - - 19,000 18,209 Accumulated surplus 3,468 5,666 - - 3,468 5,666 Provision for zakat - - 23,618 20,374 23,618 20,374 Accrued commission income payable to SAMA - - 9,811 9,695 9,811 9,695 908,609 826,078 33,967 31,506 942,576 857,584 Due to shareholders' operations (9,410) (4,769) - - (9,410) (4,769)TOTAL LIABILITIES 899,199 821,309 33,967 31,506 933,166 852,815 EQUITY Share capital - - 500,000 500,000 500,000 500,000 Statutory reserve - - 2,131 2,131 2,131 2,131 Accumulated losses - - (37,288) (34,748) (37,288) (34,748)Fair value reserve for available-for-sale investments - - 1,625 673 1,625 673 Re-measurement reserve of end-of-service benefits (7,596) (7,596) - - (7,596) (7,596)TOTAL EQUITY (7,596) (7,596) 466,468 468,056 458,872 460,460 TOTAL LIABILITIES AND EQUITY 891,603 813,713 500,435 499,562 1,392,038 1,313,275 27 18 SUPPLEMENTARY INFORMATION (continued) 18.2 Interim condensed statement of income (continued) Three-months period ended 31 March (Unaudited) Insurance Operations Shareholders' Operations Total 2021 2020 2021 2020 2021 2020 SR (000)REVENUES Gross premiums written 290,330 253,798 - - 290,330 253,798 Reinsurance premiums ceded - Local (1,992) (2,475) - - (1,992) (2,475) - International (includes premium ceded through local broker) (24,244) (35,038) - - (24,244) (35,038) (26,236) (37,513) - - (26,236) (37,513)Excess of loss expenses (5,227) (2,978) - - (5,227) (2,978)Net premiums written 258,867 213,307 - - 258,867 213,307 Movement in unearned premiums, net (88,176) (29,154) - - (88,176) (29,154)Net premiums earned 170,691 184,153 - - 170,691 184,153 Reinsurance commissions 2,597 3,554 - - 2,597 3,554 Other underwriting income 432 187 - - 432 187 NET REVENUES 173,720 187,894 - - 173,720 187,894 UNDERWRITING COSTS AND EXPENSES Gross claims paid (199,221) (151,652) - - (199,221) (151,652)Reinsurers' share of claims paid 5,357 4,472 - - 5,357 4,472 - - Net claims paid (193,864) (147,180) - - (193,864) (147,180)Movement in outstanding claims, net 35,141 8,692 - - 35,141 8,692 Movement in claims incurred but not reported, net 13,610 (5,773) - - 13,610 (5,773)Movement in additional premium reserve 12,283 4,026 - - 12,283 4,026 Movement in other technical reserves 289 (270) - - 289 (270)Net claims incurred (132,541) (140,505) - - (132,541) (140,505)Policy acquisition costs (13,522) (19,051) - - (13,522) (19,051)Other underwriting expense (9,877) (9,005) - - (9,877) (9,005)TOTAL UNDERWRITING COSTS AND EXPENSES (155,940) (168,561) - - (155,940) (168,561) NET UNDERWRITING INCOME 17,780 19,333 - - 17,780 19,333 18 SUPPLEMENTARY INFORMATION (continued) 18.2 Interim condensed statement of income (continued) Three-months period ended 31 March (Unaudited) Insurance Operations Shareholders' Operations Total 2021 2020 2021 2020 2021 2020 SR (000)Net underwriting income carried forward 17,780 19,333 - - 17,780 19,333 OTHER INCOME/(EXPENSES), NET Reversal of provision for doubtful debts 1,568 5,057 - - 1,568 5,057 Salaries and staff related costs (19,420) (18,032) - - (19,420) (18,032)Other general and administrative expenses (7,683) (9,121) (272) (223) (7,955) (9,344)Investment income 3,412 3,231 3,121 3,225 6,533 6,456 Other income 2,198 633 - - 2,198 633 TOTAL OTHER INCOME/(EXPENSES), NET (19,925) (18,232) 2,849 3,002 (17,076) (15,230)Total income/(loss) for the period (2,145) 1,101 2,849 3,002 704 4,103 Surplus attributed to insurance operations - (110) - - - (110)Net income/(loss) attributable to shareholders before zakat (2,145) 991 2,849 3,002 704 3,993 Zakat charge for the period - - (3,244) (3,300) (3,244) (3,300)Net income/(loss) attributable to shareholders' operations (2,145) 991 (395) (298) (2,540) 693 18 SUPPLEMENTARY INFORMATION (continued) 18.3 Interim condensed statement of comprehensive income Three-months period ended 31 March (Unaudited) Insurance Operations Shareholders' Operations Total 2021 2020 2021 2020 2021 2020 SR (000) Total income for the period - 110 (2,540) 693 (2,540) 803 Other comprehensive income / (loss) : Items that may be reclassified to statement of insurance operations' surplus in subsequent periods: - Change in fair value of available-for-sale investments, net - - 952 388 952 388 -Amounts transferred to statement of income, net - - - - - Total comprehensive income for the period - 110 (1,588) 1,081 (1,588) 1,191 Total comprehensive income attributable to insurance operations - - - - - - Total comprehensive income attributable to shareholders - 110 (1,588) 1,081 (1,588) 1,191 18 SUPPLEMENTARY INFORMATION (continued) 18.4 Interim condensed statement of cash flows (continued) Three-months period ended 31 March (Unaudited) Insurance Operations Shareholders' Operations Total 2021 2020 2021 2020 2021 2020 SR (000)CASH FLOWS FROM OPERATING ACTIVITIES Total income/(loss) for the period before zakat - 110 704 3,993 704 4,103 Adjustments for non-cash items: Depreciation of property and equipment 405 452 - - 405 452 (Reversal of impairment)/impairment on available for sale investments - - - - - - Provision for employees' end-of-service benefits 1,432 900 - - 1,432 900 Provision for doubtful debts (1,568) (5,057) - - (1,568) (5,057) Changes in operating assets and liabilities: Premiums and reinsurers' receivable (87,388) (50,656) - - (87,388) (50,656)Reinsurers' share of unearned premiums (13,326) (22,222) - - (13,326) (22,222)Reinsurers' share of outstanding claims 6,515 (6,716) - - 6,515 (6,716)Reinsurers' share of claims incurred but not reported 2,047 (387) - - 2,047 (387)Deferred policy acquisition costs (12,389) (615) - - (12,389) (615)Deferred excess of loss premiums (2,805) (3,020) - - (2,805) (3,020)Prepayments and other assets (1,256) (2,994) 253 (2,666) (1,003) (5,660)Policyholders claims payable 30,667 (3,327) - - 30,667 (3,327)Accrued and other liabilities (4,133) 11,426 (899) - (5,032) 11,426 Reinsurance balances payable 25,247 34,370 - - 25,247 34,370 Unearned premiums 101,502 51,376 - - 101,502 51,376 Unearned reinsurance commission 2,934 5,274 - - 2,934 5,274 Outstanding claims (41,655) (1,975) - - (41,655) (1,975)Claims incurred but not reported (15,657) 6,160 - - (15,657) 6,160 Additional premium reserve (12,283) (4,026) - - (12,283) (4,026)Other technical reserves (289) 270 - - (289) 270 Accumulated surplus (2,198) (632) - - (2,198) (632)Due to related parties 14 - - - 14 - Cash generated from/(used in) operations (24,184) 8,711 58 1,327 (24,126) 10,038 31 18 SUPPLEMENTARY INFORMATION (continued) 18.4 Interim condensed statement of cash flows (continued) Three-months period ended 31 March (Unaudited) Insurance Operations Shareholders' Operations Total Note 2021 2019 2021 2019 2021 2019 SR (000)Due from insurance operations - - 4,641 27,647 4,641 27,647 Due to shareholders’ operations (4,641) (27,647) - - (4,641) (27,647)Zakat paid - - - - - - Employees' end-of-service benefits paid (641) (109) - - (641) (109)Net cash from (used in) operating activities (29,466) (19,045) 4,699 28,974 (24,767) 9,929 CASH FLOWS FROM INVESTING ACTIVITIES Decrease/(increase) in Murabaha deposits 50,000 (40,000) (100,000) (20,206) (50,000) (60,206)Additions of property and equipment (928) (89) - - (928) (89)Additions to investment held to maturity - - (7,494) - (7,494) - Additions to available-for-sale investments 8 (54) - - (1,302) (54) (1,302)Disposal of available for sale investments 8 1,335 - 1,450 - 2,785 - Net cash (used in)/from investing activities 50,353 (40,089) (106,044) (21,508) (55,691) (61,597) Net change in cash and cash equivalents 20,887 (59,134) (101,345) 7,466 (80,458) (51,668)Cash and cash equivalents at the beginning of the period 4 203,466 98,970 356,604 71,300 560,070 170,270 Cash and cash equivalents at the end of the period 4 224,353 39,836 255,259 78,766 479,612 118,602 Supplemental non-cash information: Change in fair value of available-for-sale investments - - 952 388 952 388 Commission income on statutory deposit - - 116 683 116 683 Transfer of investment from policyholder to shareholder 1,219 - (1,219) - - - | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1- Organization and principal activitiesMalath 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 (KSA). | |
| 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 31 March 2021 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 Saudi Central Bank ("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 2020.2 BASIS OF PREPARATION (continued) (b) Functional and presentation currency These interim condensed financial statements have been presented in Saudi Riyals (SR), which is also the functional currency of the Company. All financial information has been rounded off to the nearest thousand, unless otherwise stated.(c) Critical accounting judgments, estimates and assumptions The preparation of the interim condensed financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Following are the accounting judgments and estimates that are critical in preparation of these interim condensed financial statements: i) The ultimate liability arising from claims made under insurance contracts The 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 claim estimates are reassessed for adequacy and changes are made to the provision. The provision for IBNR is an estimation of claims which are expected to be reported subsequent to the date of interim condensed statement of financial position, for which the insured event has occurred prior to the date of interim condensed 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. The actuary has also used a segmentation approach including analyzing cost per member per year for medical line of business. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims. ii) Impairment of available-for-sale investments The Company determines that investments are impaired when there has been a significant or prolonged decline in the fair values of the financial assets below its cost. The determination of what is ‘significant’ or ‘prolonged’ requires judgement. 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 judgement, the Company evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost. 10 2 BASIS OF PREPARATION (continued) (c) Critical accounting judgments, estimates and assumptions (continued) iii) Impairment of receivables A 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 instruments Fair 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. v) Deferred policy acquisition costs Certain acquisition costs related to sale of policies are recorded as deferred acquisition costs and are amortized over the related period of policy coverage. If the assumptions relating to future profitability of these policies are not realized, the amortization of these costs could be accelerated and this may also require additional impairment. vi) Premium deficiency reserve Estimation of the premium deficiency reserve is highly sensitive to a number of assumptions as to the future events and conditions. It is based on an expected loss ratio for the unexpired portion of the risks for written policies. To arrive at the estimate of the expected loss ratio, the actuary looks at the claims and premiums relationship which is expected to be realized in the future. | |
| Disclosure of new standards and amendments in standards [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 2020, except for the adoption of new standards effective as of 1 January 2021. 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 interpretationsThere are no new standards issued, however, certain amendments to standards and interpretations which are effective from 1 January 2021 and were listed in the Company's annual financial statements of 31 December 2020, but they do not have any impact on the interim condensed financial statements of the Company. b) Standards issued but not yet effectiveThe 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 FROMPERIODS BEGINNING ON OR AFTER THEFOLLOWING DATEIFRS 16 (amendment) Amendments to IFRS 16 1-Jun-21 IFRS 9 Financial Instruments (refer below) 1-Jan-20 IFRS 17 Insurance Contracts (refer below) 1-Jan-23 11 3 SIGNIFICANT ACCOUNTING POLICIES (continued) a. Amendments to IFRS 16 - COVID-19 Related Rent Concessions The amendment permits lessees, as a practical expedient, not to assess whether particular rent concessions occurring as a direct consequences of the COVID-19 pandemic are lease modifications and instead to account for those rent concessions as if they are not lease modifications. b. IFRS 9 - Financial Instruments The implementation of IFRS 9 is expected to result in a significant portion of financial assets currently classified as available-for-sale being re-classified as at fair value through profit or loss or fair value through other comprehensive income (OCI). Credit allowances for financial assets carried at amortized cost and debt securities measured at fair value, with changes in fair value recognized in OCI, are expected to increase due to the introduction of the expected credit loss methodology. The Company is using the exemptions available to insurers to defer the implementation of IFRS 9 until implementation of IFRS 17. The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements will, to a large extent, have to take into account the interaction with the IFRS 17 "Insurance contracts". At present the Company has not fully assessed the effects of adoption of IFRS 9. c. IFRS 17 - Insurance Contracts Overview This standard has been published in May, 2017. It establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts. The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features, provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts: i- embedded derivatives, if they meet certain specified criteria; ii- distinct investment components; and iii- any promise to transfer distinct goods or non-insurance services. Effective date The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4 is currently for reporting periods beginning on or after January 1, 2023. This is a deferral of 2 year compared to the previous date of January 1, 2021. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intends to apply the Standard on its effective date. Transition Retrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach. Impact The Company has completed operational and financial gap analysis and currently is in design phase of IFRS 17 implementation which requires developing and designing new processes and procedures for the business including any system developments required under IFRS 17 and detailed assessment of business requirements. Following are the main areas under design phase and status of the progress made so far by the Company: 12 3 SIGNIFICANT ACCOUNTING POLICIES (continued) b. IFRS 17 - Insurance Contracts (continued) Major areas of design phase Summary of progress Governance and control framework The Company has put in place a comprehensive IFRS 17 governance program which includes establishing oversight steering committee for monitoring the progress of implementation and assigning roles and responsibilities to various stakeholders. Operational area The Company is in progress of designing operational aspects of the design phase which includes establishing comprehensive data policy and data dictionary. Also the Company is finalizing architectural designs for various sub-systems. The Company has progressed through assessment of business requirements and currently working on vendor selection while finalizing various process needed for transition and assessment of new resources needed. Technical and financial area The Company has completed various policy papers encompassing various technical and financial matters after concluding on policy decisions required under the IFRS 17 standard. The policy decisions are taken after due deliberations among various stakeholders. Currently majority of policy papers have been approved by the Company's IFRS 17 project steering committee. Assurance plan The Company is working along with its other stakeholders to finalize the assurance plan for transitional and post-implementation periods. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Description of accounting policy for cash and cash equivalents [text block] | 4 CASH AND CASH EQUIVALENTS 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000)Insurance operations Cash in banks 22,285 203,447 Cash on hand 9 19 Short term Murabaha deposits 202,059 - 224,353 203,466 Shareholders' operations Cash in banks 78,807 356,604Short term Murabaha deposits 176,452 - 255,259 356,604Total cash and cash equivalents 479,612 560,070 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 3.01% per annum as at 31 March 2021 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. | |
| Description of accounting policy for 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: 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000) Policyholders 293,365 213,593Reinsurers 3,582 2,330Insurance companies 22,296 10,229Agents and brokers 4,897 10,600 324,140 236,752Less: Provision for doubtful receivables - insurance (34,564) (36,274)Provision for doubtful receivables - reinsurers (396) (254) (34,960) (36,528) 289,180 200,224 The movement in the provision for doubtful receivables is as follows: 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000) Balance at the beginning of the period/year 36,528 33,374 Provision / (reversals) made during the period/year (1,568) 3,154 Balance at the end of the period/year 34,960 36,528 | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 4 CASH AND CASH EQUIVALENTS 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000)Insurance operations Cash in banks 22,285 203,447 Cash on hand 9 19 Short term Murabaha deposits 202,059 - 224,353 203,466 Shareholders' operations Cash in banks 78,807 356,604Short term Murabaha deposits 176,452 - 255,259 356,604Total cash and cash equivalents 479,612 560,070 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 3.01% per annum as at 31 March 2021 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 investments in available-for-sale investments [text block] | 8 AVAILABLE-FOR-SALE INVESTMENTS 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000)Insurance operations Unquoted Funds 52,695 53,976 Shareholders’ operations Quoted Equity shares 10,494 9,543 Unquoted Funds 47,790 49,239 Equity shares 3,800 3,800 62,084 62,582 Total available for sale investments (note 14) 114,779 116,558 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: 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000)Insurance operations Balance at beginning of the period/year 53,976 3,372 Addition during the period/year 1,273 50,604 Transfer to shareholder investment during the period/year (1,219) - Disposals during the period/year (1,335) - Balance at end of the period/year 52,695 53,976 Shareholders' operations Balance at beginning of the period/year 62,582 32,815 Addition during the period/year - 114,732 Transfer from policyholder investment during the period/year 1,219 Disposals during the period/year (2,669) (85,242)Reversal of impairment during the period/year - 238 Realized gain during the period/year - (11,523)Re-measurement gain during the period/year 952 11,562 Balance at end of the period/year 62,084 62,582 | |
| Disclosure of zakat [text block] | 9 PROVISION FOR ZAKAT a) Zakat payable The movement in zakat payable during the period/year was as follows: 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000) Balance at beginning of the period/year 20,374 32,220 Charge for the period/year 3,244 15,125 Reversal of zakat provision during the period/year - (7,635)Payments during the period/year - (19,336)Balance at end of the period/year 23,618 20,374 b) Status of assessments The Company has filed the Zakat return for the year ended December 31, 2020 before the deadline of April 30, 2021. c) Status of appeals The years from 2007 to 2010: The General Authority of Zakat and Tax (“GAZT”) raised its assessments for those years claiming additional zakat liability of Saudi Riyals 8.7 million and withholding tax liability of Saudi Riyals 12.2 million in addition to the related delay penalties of 1% for each 30 delay days calculated from the due date till settling such due amounts. The Company has filed an appeal against such additional liabilities to GAZT then the case has been transferred to the Preliminary Appeal Committee ("PAC") which has rejected the major items therefore the Company has submitted a letter of guarantee to GAZT for zakat, withholding tax and related delay penalties amounting to Saudi Riyals 31.81 million and appealed the PAC ruling to the Higher Appeal Committee ("HAC") which has been replaced by the new tax committees under General Secretary of Tax Committees ("GSTC") Then the company has submitted a request to the settlement committee at GAZT and reached to a settlement agreement for those years to settle an amount of Saudi Riyals 3.3 million for zakat and Saudi Riyals 12.2 million for withholding tax. The company has settled such agreed amounts on 17 December 2020. The years from 2011 to 2015: The GAZT raised its assessments for those years claiming additional zakat liability of Saudi Riyals 8 million and withholding tax liability of Saudi Riyals 10.2 million in addition to the related delay penalties of 1% for each 30 delay days calculated from the due date till settling such due amounts. The Company has filed an appeal against such additional liabilities to GAZT then the case has been transferred to the Preliminary Appeal Committee ("PAC") which has been replaced by the new tax committees under General Secretary of Tax Committees ("GSTC"). Then the company has submitted a request to the settlement committee at GAZT and reached to a settlement agreement for those years to settle an amount of Saudi Riyals 4.1 million for zakat and Saudi Riyals 10.2 million for withholding tax. The company has settled such agreed amounts on 17 December 2020. 17 9 PROVISION FOR ZAKAT (continued) c) Status of appeals (continued) The years from 2016 to 2018: On December 27, 2020, the GAZT raised its assessments for those years claiming additional zakat liability of Saudi Riyals 3.3 million, then the company has appealed against such assessment within the legally prescribed period, which is still under review by GAZT. The year 2019: The Company has filed the Zakat return for the year ended December 31, 2019 before the extended deadline of July 29, 2020. | |
| Disclosure of classes of share capital [text block] | 10 SHARE CAPITAL As at 31 March 2021 and 31 December 2020, 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 other income from operations [text block] | 19 INHERENT DEFECT INSURANCE RESULTS On July 02, 2020, the Company announced on Tadawul that it has signed an agreement on July 02, 2020 with participating insurance companies for Inherent Defects Insurance ("IDI") product, based on the Saudi Central Bank's (SAMA) approval authorizing Malath as the leading company, to manage the IDI program on behalf of the participating insurance companies, selling the product and providing its insurance coverage by creating a joint insurance portfolios. Malath Cooperative Insurance Company will exclusively manage the portfolio during the period of validity of the IDI agreement. During the three months preiod ended March 31, 2021, the Company has recorded its share in operations of IDI. Due to immateriality of balances of the product, recorded during the period, the Company has not classified IDI as seperate segment and has reported its results under property and casualty segment. | |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 7 TECHNICAL RESERVES a) Outstanding claims and reserves 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000) Outstanding claims 52,698 94,353 Claims incurred but not reported at end of the period/year 182,232 197,889 Additional premium reserves 27,354 39,637 Other technical reserves 3,375 3,664 265,659 335,543 Reinsurers' share of outstanding claims (88,110) (94,625)Reinsurers' share of claims incurred but not reported (18,483) (20,530) (106,593) (115,155)Net outstanding claims and reserves 159,066 220,388 b) Unearned premiums 31 March 2021 (Unaudited) Gross Reinsurers' share Net SR (000) Unearned premiums at beginning of the period 330,974 (17,051) 313,923 Premiums written during the period 290,330 (31,463) 258,867 Premiums earned during the period (188,828) 18,137 (170,691)Unearned premiums at end of the period 432,476 (30,377) 402,099 31 December 2020 (Audited) Gross RI' share Net SR (000) Unearned premiums at beginning of the year 348,546 (17,538) 331,008 Premiums written during the year 781,568 (78,660) 702,908 Premiums earned during the year (799,140) 79,147 (719,993)Unearned premiums at end of the year 330,974 (17,051) 313,923 c) Unearned reinsurance commission 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000)Balance at beginning of the period/year 4,001 4,801 Commission received during the period/year 5,531 14,252 Commission earned during the period/year (2,597) (15,052)Balance at end of the period/year 6,935 4,001 d) Deferred policy acquisition costs 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000)Balance at beginning of the period/year 20,117 27,331 Incurred during the period/year 25,911 71,716 Amortized during the period/year (13,522) (78,930)Balance at end of the period/year 32,506 20,117 | |
| Disclosure of earnings per share [text block] | 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: Three-months period ended31 March 2021 2020 (Unaudited) (Unaudited) Basic and diluted earnings per share (Saudi Riyals) (0.05) 0.01 Weighted average number of shares throughout the period (thousands) 50,000 50,000 | |
| Disclosure of related party transactions [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: Three-months period ended31 March 2021 2020 (Unaudited) (Unaudited) SR (000) Remuneration paid to Board of Directors - 1,750Board of Directors’ and Committees meeting fees 105 111 Remuneration and compensation of key management personnel: Three-months period ended31 March 2021 2020 (Unaudited) (Unaudited) SR (000)Salaries and allowances 1,656 1,389End of service indemnities 111 80 1,767 1,469 Balances due from / (to) related parties comprise the following: 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000) Claims payable to companies owned by BOD members (15) (2) | |
| 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.17 SEGMENT INFORMATION (continued) Three-months period ended 31 March 2021 (Unaudited) Property & Protection & Operating segment Medical Motor casualty savings Total SR (000)Revenues Gross premiums written 141,163 119,717 29,450 290,330 -Individuals 185 53,860 76 - 54,121 -Very small enterprises 766 674 33 - 1,473 -Small enterprises 11,789 4,110 155 - 16,054 -Medium enterprises 21,289 5,700 1,479 - 28,468 -Corporates 107,134 55,373 27,707 - 190,214 141,163 119,717 29,450 - 290,330 Reinsurance premiums ceded - Local - - (1,992) - (1,992) - International (56) - (24,188) - (24,244) (56) - (26,180) - (26,236)Excess of loss expenses - Local (90) (400) (48) - (538) - International (160) (3,802) (727) - (4,689) (250) (4,202) (775) - (5,227)Net premiums written 140,857 115,515 2,495 - 258,867 Movement in unearned premiums, net (62,513) (24,523) (1,140) - (88,176)Net premiums earned 78,344 90,992 1,355 - 170,691 Reinsurance commissions - - 2,597 - 2,597 Other underwriting income 130 78 224 - 432 Net revenues 78,474 91,070 4,176 - 173,720 Underwriting costs and expenses Gross claims paid (98,157) (93,866) (7,198) - (199,221)Reinsurers' share of claims paid 1,018 - 4,339 - 5,357 Net claims paid (97,139) (93,866) (2,859) - (193,864)Movement in outstanding claims, net 23,187 10,193 1,761 - 35,141 Movement in IBNR, net 16,573 (3,539) 576 - 13,610 Movement in additional premium reserve 7,183 6,317 (1,217) - 12,283 Movement in other technical reserve 321 (74) 42 - 289 Net claims incurred (49,875) (80,969) (1,697) - (132,541)Policy acquisition costs (5,685) (6,014) (1,823) - (13,522)Other underwriting expense - (9,877) - - (9,877)Total underwriting costs and expenses (55,560) (96,860) (3,520) - (155,940)Net underwriting income 22,914 (5,790) 656 - 17,780 Unallocated revenue 8,731 Unallocated expenses (25,807)Total income for the period 704 22 17 SEGMENT INFORMATION (Continued) Three-months period ended 31 March 2020 (Unaudited) Property & Protection & Operating segment Medical Motor casualty savings Total SR (000) Revenues Gross premiums written -Individuals - 50,596 114 - 50,710 -Very small enterprises 970 324 34 - 1,328 -Small enterprises 6,773 1,691 697 - 9,161 -Medium enterprises 15,665 2,696 5,766 - 24,127 -Corporates 88,727 42,528 37,217 - 168,472 112,135 97,835 43,828 - 253,798 Reinsurance premiums ceded - Local - - (2,475) - (2,475) - International - - (35,038) - (35,038) - - (37,513) - (37,513)Excess of loss expenses - Local (21) (202) (34) - (257) - International (396) (1,816) (509) - (2,721) (417) (2,018) (543) - (2,978) Net premiums written 111,718 95,817 5,772 - 213,307 Movement in unearned premiums, net (43,592) 17,494 (3,056) - (29,154)Net premiums earned 68,126 113,311 2,716 - 184,153 Reinsurance commissions - - 3,554 - 3,554 Other underwriting income 47 132 8 - 187 Net revenues 68,173 113,443 6,278 - 187,894 Underwriting costs and expenses Gross claims paid (42,380) (107,038) (2,234) - (151,652)Reinsurers' share of claims paid 1,346 1,578 1,548 - 4,472 Net claims paid (41,034) (105,460) (686) - (147,180)Movement in outstanding claims, net (8,186) 17,934 (1,056) - 8,692 Movement in IBNR, net 3,204 (8,860) (117) - (5,773)Movement in additional premium reserve (318) 4,441 (97) - 4,026 Movement in other technical reserve (58) (155) (57) - (270)Net claims incurred (46,392) (92,100) (2,013) - (140,505)Policy acquisition costs (4,363) (12,506) (2,182) - (19,051)Other underwriting expense - (9,005) - (9,005)Total underwriting costs and expenses (50,755) (113,611) (4,195) - (168,561) Net underwriting income 17,418 (168) 2,083 - 19,333 Unallocated revenue 7,089 Unallocated expenses (22,319)Total income for the period 4,103 23 17 SEGMENT INFORMATION (continued) As at 31 March 2021 (Unaudited) Property & Protection & Operating segment Medical Motor casualty savings Total SR (000) Assets Reinsurers' share of unearned premiums 253 - 30,124 - 30,377 Reinsurers' share of outstanding claims 838 19,634 67,638 - 88,110 Reinsurers' share of IBNR - - 18,483 - 18,483 Deferred policy acquisition costs 12,695 15,162 4,649 - 32,506 Segment assets 13,786 34,796 120,894 - 169,476 Unallocated assets 1,231,972 Total assets 1,401,448 Liabilities Unearned premiums 178,070 219,499 34,907 - 432,476 Unearned reinsurance commission - - 6,935 - 6,935 Outstanding claims 14,171 (37,090) 75,617 - 52,698 Claims incurred but not reported 21,487 140,998 19,747 - 182,232 Additional premium reserve - 26,039 1,315 - 27,354 Other technical reserves 280 2,912 183 - 3,375 Segment liabilities 214,008 352,358 138,704 - 705,070 Unallocated liabilities 237,506 Total equity 458,872 Total liabilities and equity 1,401,448 24 17 SEGMENT INFORMATION (continued) As at 31 December 2020 (Audited) Property & Protection & Operating segment Medical Motor casualty savings Total SR (000) Assets Reinsurers' share of outstanding claims 1,044 23,897 69,684 - 94,625 Reinsurers' share of IBNR - - 20,530 - 20,530 Reinsurers' share of unearned premiums 289 - 16,762 - 17,051 Deferred policy acquisition costs 7,774 10,288 2,055 - 20,117 Segment assets 9,107 34,185 109,031 - 152,323 Unallocated assets 1,165,721 Total assets 1,318,044 Liabilities Unearned premiums 115,592 194,976 20,406 - 330,974 Unearned reinsurance commission - - 4,001 - 4,001 Outstanding claims 37,564 (22,635) 79,424 - 94,353 Claims incurred but not reported 38,060 137,459 22,370 - 197,889 Additional premium reserve 7,183 32,356 98 - 39,637 Other technical reserves 601 2,838 225 - 3,664 Segment liabilities 199,000 344,994 126,524 - 670,518 Unallocated liabilities and surplus 187,066 Total equity 460,460 Total liabilities and equity 1,318,044 | |
| Disclosure of capital management [text block] | 13 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] | 15 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: 31 March 31 December 2021 2020 (Unaudited) (Audited) SR (000) Letters of guarantee 13,184 48,027 | |
| Disclosure of fair value of financial assets and liabilities [text block] | 14 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. 19 14 FAIR VALUE OF FINANCIAL INSTRUMENTS (continued) The following table summarizes the financial assets recorded at fair value as of 31 March 2021 and 31 December 2020 by level of the fair value hierarchy. There are no transfers among the levels during the period. Also refer to note 8. As at 31 March 2021 (Unaudited) Carrying value Level 1 Level 2 Level 3 Total SR (000)Financial assets: Available-for-sale investments Insurance operations Funds 52,695 - 52,695 - 52,695 Shareholders' operations Equity securities 14,294 10,494 - 3,800 14,294 Funds 47,790 - 47,790 - 47,790 114,779 10,494 100,485 3,800 114,779 As at 31 December 2020 (Audited) Carrying value Level 1 Level 2 Level 3 Total SR (000)Financial assets: Available-for-sale investments Insurance operations Funds 53,976 - 53,976 - 53,976 Shareholders' operations Equity securities 13,343 9,543 - 3,800 13,343 Funds 49,239 - 49,239 - 49,239 116,558 9,543 103,215 3,800 116,558 | |
| Disclosure of board of director's approval of the financial statements [text block] | 20 APPROVAL OF INTERIM CONDENSED FINANCIAL STATEMENTS The interim condensed financial statements were approved by the Board of Directors on Ramadan 27, 1442 H (Corresponding to May 09, 2021). | |
