| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | ORGANIZATION AND PRINCIPAL ACTIVITIESThe Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (the “Company”) is a Saudi Joint StockCompany registered in the Kingdom of Saudi Arabia under Commercial Registration No. 1010231925 dated 8 Rabi Thani1428H (corresponding to 26 April 2007). The registered address of the Company's head office is as follows:The objectives of the Company are to transact in cooperative insurance and reinsurance business and related activities in theKingdom of Saudi Arabia. Its principal lines of business include medical, motor and other general insurance. The Companywas listed on the Saudi Arabian Stock Exchange (Tadawul) on 28 Rabi Al-Awal 1428H (corresponding to 16 April 2007). | |
| Disclosure of basis of preparation of financial statements [text block] | 2As required by Saudi Arabian insurance regulations, the Company maintains separate accounts for Insurance Operations andShareholders’ Operations and presents the interim condensed financial statements accordingly (refer note 23). The physicalcustody of all assets related to the Insurance Operations and Shareholders’ Operations are held by the Company. Revenuesand expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of otherrevenue and expenses from joint operations is as determined by the management and Board of Directors.The functional and presentational currency of the Company is Saudi Arabian Riyals. The interim condensed financialinformation is presented in Saudi Riyal rounded to nearest thousand (SAR’000) unless otherwise stated.Functional and presentation currencyBasis of presentationThe interim condensed financial information has been prepared on a historical cost basis except for the measurement at fairvalue of available for sale investments and investment in associates which is accounted for under equity method.Statement of complianceThe interim condensed financial information of the Company has been prepared in accordance with ‘International FinancialReporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued bythe Saudi Organization for Certified Public Accountants (SOCPA) and the Regulations for Companies in the Kingdom ofSaudi Arabia.The financial statements of the Company as at and for the period and year ended 31 March 2019 and 31 December 2018,respectively, were prepared in compliance with the IAS 34 and the International Financial Reporting Standards (“IFRS”)respectively, as modified by SAMA for the accounting of zakat and income tax (relating to the application of IAS 12 –“Income Taxes” and IFRIC 21 – “Levies” so far as these relate to zakat and income tax).On 17 July 2019, SAMA instructed the insurance companies in the Kingdom of Saudi Arabia to account for the zakat andincome taxes in the statement of income. This aligns with the IFRS and its interpretations as issued by the InternationalAccounting Standards Board (“IASB”) and as endorsed in the Kingdom of Saudi Arabia and with the other standards andpronouncements that are issued by the Saudi Organization for Certified Public Accountants (“SOCPA”) (collectively referredto as “IFRS as endorsed in KSA”).Accordingly, beginning period ended June 30, 2019 the Company has changed its accounting treatment for zakat and incometax by retrospectively adjusting the impact in line with International Accounting Standard 8 Accounting Policies, Changes inAccounting Estimates and Errors as disclosed in note 17(e) to the interim condensed financial statements.BASIS OF PREPARATIONTHE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYORGANIZATION AND PRINCIPAL ACTIVITIESThe Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (the “Company”) is a Saudi Joint StockCompany registered in the Kingdom of Saudi Arabia under Commercial Registration No. 1010231925 dated 8 Rabi Thani1428H (corresponding to 26 April 2007). The registered address of the Company's head office is as follows:The objectives of the Company are to transact in cooperative insurance and reinsurance business and related activities in theKingdom of Saudi Arabia. Its principal lines of business include medical, motor and other general insurance. The Companywas listed on the Saudi Arabian Stock Exchange (Tadawul) on 28 Rabi Al-Awal 1428H (corresponding to 16 April 2007).Medgulf InsuranceFuturo TowerKing Saud RoadP.O. Box 2302Riyadh 11451, Saudi ArabiaFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)9(A SAUDI JOINT STOCK COMPANY)2 | |
| Disclosure of accounting framework used in preparation of financial statements [text block] | 3The insurance operations' surplus for the three month period ended 31 March 2020 amounted to SAR 6,922 thousand (31March 2019: surplus of SAR 6,012 thousand). Accordingly, 90% of the insurance operations' surplus amounting to SAR6,230 thousand was transferred to shareholders’ operations for the period, leaving a surplus payable to policyholders ofSAR 692 thousand (31 March 2019: SAR 5,411 thousand was transferred to shareholders’ operations for the period,leaving a surplus payable to policyholders of SAR 601 thousand ).In preparing the Company-level financial statements in compliance with IFRS, the balances and transactions of theinsurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances,transactions and unrealised gains or losses, if any, are eliminated in full during amalgamation. The accounting policiesadopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similarcircumstances.SURPLUS DISTRIBUTIONThe Company is required to distribute 10% of the net surplus from insurance operations to policyholders and theremaining 90% to be allocated to the shareholders of the Company in accordance with the Insurance Law andImplementation Regulations issued by the Saudi Arabian Monetary Authority (“SAMA”). In case of losses, losses areabsorbed by shareholders.THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYBASIS OF PREPARATION (Continued)Due to the continuous decline in the financial performance of the Company, the Company did not meet the solvencymargin requirements as at 31 December 2017 and consequently SAMA issued a letter number 391000054425 dated 29January 2018, preventing the Company from writing any new policies and renewing the existing policies. SAMA, in itsaforesaid letter, also instructed the Company to increase its share capital before 30 July 2018 to address the issue of itsdeteriorating solvency margin. The Company’s Board of Directors in their meeting held on 6 February 2018,recommended a right issue amounting to SAR 400 million in order to improve the solvency margin and the Company’sfuture business activities. Such right issue was subjected to approval of the regulatory authorities and general assembly ofthe Company. SAMA issued a letter dated 15 April 2018 allowing the Company to write new policies and renewing theexisting policies starting from 17 April 2018 subject to certain conditions. The aforesaid conditions amongst othersinclude, the Company’s commitment to increase its share capital before 31 October 2018. In addition SAMA instructedthe Company to take necessary steps for continuous recovery of Company’s receivables, implementation of bestgovernance practices by the Board of Directors and the executive management and submit weekly progress report on themeasures taken by the management in this regard and intimated that in case of non-compliance of the above, SAMA willtake necessary actions as required by the law.Management has performed an assessment of its going concern assumption under different scenarios. Based on theunderlying cash flow projections under such scenarios, management believes that the Company will be able to continuethe business and meet its obligations as and when they fall due over the next 12 months. As a result, the interim condensedfinancial statements have been prepared on a going concern basis. Management`s assessment is based on number ofestimates and assumptions including significant recoveries from major policyholders, reinsurers and related parties andother cost saving measures.Going concernOn 17 October 2018 the Company successfully raised capital of SAR 400 million through issuance of right shares.However, the Company is yet to meet its solvency margin requirement.The interim condensed statement of financial position, statements of income, comprehensive income and cash flows of theinsurance operations and shareholders’ operations which are presented in note 23 of the interim condensed financialinformation have been provided as supplementary financial information to comply with the requirements of the guidelinesissued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets,liabilities, income and expenses of the insurance operations and the shareholders’ operations. Accordingly, the statementsof financial position, statements of income, comprehensive income and cash flows prepared for the insurance operationsand shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensivegains or losses of the respective operations.FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)Accumulated losses reported as at December 31, 2019 were SAR 256.48 million. Board resolved at 18 December 2019 toreduce statutory reserve amounting to SAR 120 million against the accumulated losses which has also been approved inAnnual General Assembly meeting held on 3 June 2020. | |
| Disclosure of new standards and amendments in standards [text block] | In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accountingconsequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standardfor insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlayapproach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 untilthe earlier of the effective date of a new insurance contract standard or 2022.The overlay approach allows an entity toremove from profit or loss the effects of some of the accounting mismatches that may occur before the new insuranceThe Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impactof the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account theinteraction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of theadoption of IFRS 9.IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2023, and will supersedeIFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' andIFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement anddisclosure of insurance and reinsurance that will affect both the income statement and the balance sheet. The Companyhas decided not to early adopt this new standard.Standards issued but not yet effectiveTHE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY(A SAUDI JOINT STOCK COMPANY)STANDARDS AND AMENDMENTS ISSUEDIFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts)In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments:Recognition and Measurement. The standard incorporates new classification and measurements requirements forfinancial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss modelof IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at eitheramortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flowcharacteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities exceptfor those designated at fair value through profit or loss whereby that part of the fair value changes attributable to owncredit is to be recognised in other comprehensive income instead of the income statement. The hedge accountingrequirements are more closely aligned with risk management practices and follow | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Description of accounting policy for statutory reserve [text block] | 17 ZAKAT AND INCOME TAXAt the beginning of the period 13,188 27,184Charge - current period 3,523 14,091Charge - prior period - -Payments during the period - (28,087)At the end of the period 16,711 13,188Opening deferred tax asset 11,962 13,923Origination or reversal of temporary differences (489) (1,961)Closing deferred tax asset 11,473 11,962SAR '00031 March202031 December2019The movement in the provision for zakat and income tax for the period / year was as follows:SAR '00031 March202031 December2019c) Status of zakat and tax assessmentsThe Company has filed its zakat and income tax declarations for the year from 16 April 2007 to 31 December 2018 with theGeneral Authority of Zakat and Income Tax (GAZT). Further, the Company has filed two appeal for zakat, income tax andwithholding tax for assessment years 2008 to 2012 and another one for assessment year 2013 to 2016. The management hasmade appropriate provisions in this financial statement based on the advice of the Company’s zakat and tax consultant.During the year ended 31 December 2019, the company has reach an agreement with GAZT regarding the two appeal for zakat,income tax and withholding tax for assessment years 2008 to 2012 and 2013 to 2016 and agreed on the amount to be paid of SR115,555 thousand. The company has booked a provision of SR 131,346 thousand as per the zakat and tax consultant, thus, theamount of SR 15,791 thousand, which represent the difference between the provision amount and the agreed amount, wastransfer to other income. During the year ended 31 December 2019, the company has successfully paid the full amount agreed.d) Deferred taxThe deferred tax arises on temporary differences on end of service benfits, impairment allowances and unrecognised losses etc.The deferred tax movement for the period is as follows;The provision for zakat and income tax for the period is 3,523 thousand (31 March 2019: SR 3,053 thousand).b) Movement in the provision for zakat and income tax during the period / yearTHE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020a) Income tax charge for the period / yearThere was no income tax in the period ended March 31, 2020 and year ended December 31, 2019 due to net adjusted losses For the three month period ended 31 March 2019:NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYe) Change in the accounting treatment for zakat and income taxThe change in the accounting treatment for zakat and income tax (as explained in note 2) has the following impact on the lineitems of the interim statements of income, comprehensive income and changes in shareholders’ equity. There is no impact on theinterim statement of financial position as at Mar 31 2020 and interim statement of cash flows for the period then ended.ZAKAT AND INCOME TAX (Continued) | |
| Description of accounting policy for zakat [text block] | ACCRUED COMMISSION ON STATUTORY DEPOSITThe interest on statutory deposit which is maintained in accordance with the Law on Supervision of Cooperative InsuranceCompanies in the Kingdom of Saudi Arabia amounts to SAR 23,864 thousand (31 December 2019: SAR 23,864 thousand).This commission cannot be withdrawn without the consent of Saudi Arabian Monetary Authority (“SAMA”). | |
| Description of accounting policy for time (murabaha) deposit [text block] | 6March 31, 2020 December 31, 2019321,165 88,607167,112 88,752488,277 177,35983,280 80,321571,557 257,680March 31, 2020 December 31, 201959,570 33,53618,348 -77,918 33,536649,475 291,216566,195 210,895 | |
| Description of accounting policy for statutory deposit [text block] | 12March 31,2020December 31,201910,251 10,181- -10,251 10,181March 31,2020December 31,201910,181 25,000- 10,000- (25,000)70 18110,251 10,181At the end of periodDividend received from investment in an associateNet change in fair valuesAt the beginning of the periodSAR’000The cumulative change in fair values of available for sale investments for shareholders’ operations amounting to SAR 70thousand (31 December 2019: SAR 181) is presented within shareholders’ equity in the statement of financial position.The movements during the period in available for sale investments for insurance’s operations were as follows:Purchase during the periodSold during the periodSAR’000Type of Investments-Sukuks-Mutual Fund*The realised gain is transferred to statement of income under special commission income.THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)INVESTMENT IN AN ASSOCIATEFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020SAR’000The available for sale investments comprise of mutual funds, bonds, sukuk and equities issued by corporate and financialinstitutions in the Kingdom of Saudi Arabia.AVAILABLE FOR SALE INVESTMENTSInvestments are classified as set out below:a) Insurance Operations - Available for sale investmentsAt the end of the periodInvestment in an associate comprises of an equity investment in Al-Waseel for Electronic Transportation amounting to SAR9,393 thousand (a 25% equity interest) (2019: SAR 9,393), in an unquoted company (the “associate”), registered in theKingdom of Saudi Arabia.At the beginning of the periodIncome from investment in an associate25(A SAUDI JOINT STOCK COMPANY)12March 31,2020December 31,2019143,042 136,99081,118 80,983249,622 251,291473,782 469,264March 31,2020December 31,2019469,264 49,15122,844 436,606- (38,415)(18,326) 21,922473,782 469,264The available for sale investments comprise of mutual funds, bonds, sukuk and equities issued by corporate and financialinstitutions in the Kingdom of Saudi Arabia.The cumulative change in fair values of available for sale investments for shareholders’ operations amounting to SAR(18,326) thousand (31 December 2019: SAR 21,922 thousand) is presented within shareholders’ equity in the interimcondensed statement of financial position.The movements during the period in available for sale investments for shareholders’ operations were as follows:At the beginning of the periodPurchase during the periodSAR’000Net change in fair valuesAt the end of the periodSold during the periodSAR’000THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020b) Shareholders’ Operations - Available for sale investmentsAVAILABLE FOR SALE INVESTMENTS (Continued)Type of Investments-Equity-Sukuks-Mutual Fund26(A SAUDI JOINT STOCK COMPANY)121. Insurance operations – Fair ValueLevel 1 Level 2 Level 3 TotalMarch 31, 2020Available for sale investments- Mutual Fund 10,251 - - 10,251Total available for sale investments 10,251 - - 10,251Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which allsignificant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data.SAR’000sThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:The unlisted security of SAR 1.92 million (31 December 2019: SAR 1.92 million) held as part of Company’s shareholderoperations, were stated at cost in the absence of active markets or other means of reliably measuring their fair value.During the period ended 31 March 2020, there were no transfers between Level 1 and Level 2 fair value measurements, andno transfers into or out of level 3 fair value measurements.The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchycumulatively for insurance and shareholders operations:Determination of fair value and fair value hierarchyLevel 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurementdate;iii. Fair valueFor financial instruments that are recognised at fair value on a recurring basis, the Company determines whether transfershave occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that issignificant to the fair value measurement as a whole) at the end of each reporting period.THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020AVAILABLE FOR SALE INVESTMENTS (Continued)Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in theprincipal (or the most advantageous) market between market participants at the measurement date under current marketconditions regardless of whether that price is directly observable or estimated using another valuation technique. The fairvalues of recognised financial instruments are not significantly different from the carrying values included in the financialstatement. The estimated fair values of financial instruments are based on quoted market prices, when available. The fairvalues of these investments are disclosed below.27(A SAUDI JOINT STOCK COMPANY)121. Insurance operations – Fair Value (Continued)Level 1 Level 2 Level 3 TotalDecember 31, 2019Available for sale investments- Mutual Fund 10,181 - - 10,181Total available for sale investments 10,181 - - 10,181Level 1 Level 2 Level 3 Total2. Shareholders’ operations – Fair ValueLevel 1 Level 2 Level 3 TotalMarch 31, 2020Available for sale investments- Mutual Fund 81,118 - - 81,118- Sukuk - 249,622 - 249,622- Equities - 141,119 1,923 143,042Total available for sale investments 81,118 390,741 1,923 473,782Level 1 Level 2 Level 3 TotalDecember 31, 2019Available for sale investments- Mutual Fund 80,983 - - 80,983- Sukuk - 251,291 - 251,291- Equities - 135,067 1,923 136,990Total available for sale investments 80,983 386,358 1,923 469,264 | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments in associates and joint ventures [text block] | 10 TECHNICAL RESERVESa)GrossRe-insuranceshareNet GrossRe-insuranceshareNetOutstanding claims 779,159 (416,855) 362,304 466,610 (334,829) 131,781Claims incurred but not reported 607,854 (227,489) 380,365 751,200 (222,617) 528,5831,387,013 (644,344) 742,669 1,217,810 (557,446) 660,364b)March 31,2020December31, 201911,676 20,52913,402 14,894Other reserves at end of the period 25,078 35,423c)GrossReinsuranceNet985,437 (290,619) 694,8181,260,218 (672,312) 587,906(680,691) 1,655,956 975,2651,564,964 693,025 2,257,989Gross Re-insurance Net1,236,849 (282,901) 953,9482,421,277 (628,510) 1,792,767(2,672,689) 620,792 (2,051,897)985,437 (290,619) 694,818Unearned PremiumsThe movements during the period for unearned premiums are as follows:Other Technical ReservesSAR’000Premium deficiency reserveOthersSAR’000 SAR’000THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)Outstanding Claims and IBNRMarch 31, 2020 December 31, 2019Premium earned during the yearBalance at the end of the yearBalance at the beginning of the periodPremium written during the periodPremium earned during the periodBalance at the end of the periodFor the year ended December 31, 2019For the period ended March 31, 2020SAR’000Balance at the beginning of the yearPremium written during the yearSAR’000 | |
| Disclosure of investments in available-for-sale investments [text block] | March 31,2020December 31,2019613,138 407,434334,231 348,888947,369 756,322(272,495) (272,495)674,874 483,827261,205 307,208(218,820) (218,820)42,385 88,388717,259 572,215March 31,2020December 31,2019491,315 528,642- (37,327)491,315 491,315NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)As disclosed in note 9.c, the Company, together with CRC is carrying out an exercise to separate the Company’s transactions andbalances with the respective reinsurers and brokers from those of other related parties. This exercise is still on-going and oncompletion certain parties included above in reinsurance balances receivable amounting to Saudi Riyals 113.8 million may beidentified as receivable from related parties and therefore may need to be disclosed under due from related parties in note 9.As at March 31, 2020, the movement in the provision for doubtful debts of premium receivables was as follows:SAR’000FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020SAR’000THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYBalance, December 31PREMIUM AND REINSURERS' RECEIVABLE, NETReceivables comprise amounts due from the following:PolicyholdersBrokers and agentsPremiums receivablesLess: Allowance for doubtful debtsReinsurers’ receivableLess: Allowance for doubtful debtsMovement in provision for doubtful debts:Balance, January 1Premium and reinsurers’ receivable – netProvision for the period16 | |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 7Deposit against letter of guaranteeSAR’000SAR’000Cash at banks and short-term deposits are placed with counterparties who have credit ratings equivalent to A+ to BBB ratingsunder Standard and Poor's, Fitch and Moody’s ratings methodology.Deposits maturing within 3 months from the acquisition date are placed with local and licensed foreign banks’ branches inKingdom of Saudi Arabia and earned special commission income at an average rate of 1.72% per annum (2019: 2.29% perannum).Insurance operationsCash and bank balancesDeposits maturing within 3 months from the acquisition dateCash and cash equivalent in the statement of cash flowsShareholders’ operationsTHE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYCash and cash equivalents included in the interim condensed statement of cash flows comprise the following:CASH AND CASH EQUIVALENTSNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020Short term deposits are placed with local and licensed foreign banks’ branches in Kingdom of Saudi Arabia with a maturity ofmore than three months from the date of original acquisition and earned special commission income at an average rate of2.43% per annum (2019: 2.43% per annum).For the period ended 31 March 2020 the carrying amounts of the short term deposits reasonably approximate the fair value atthe statement of financial position date.SHORT TERM DEPOSITSShort term deposits are placed with counterparties that have credit ratings equivalent to BBB+ to BBB ratings under Standardand Poor's, Fitch and Moody’s ratings methodology.Cash and bank balancesDeposits maturing within 3 months from the acquisition dateCash and cash equivalents in the statement of cash flowThe carrying amounts disclosed above reasonably approximate the fair value at the statement of financial position date.Deposits against letters of guarantee comprise amounts placed with a local bank against issuance of payment guarantees infavor of the Company’s customers and service providers (also see note 21). Such deposits against letters of guarantee cannot bewithdrawn before the expiration of guarantee (are restricted in nature). | |
| Disclosure of cash and cash equivalents [text block] | Impact of Covid-19 on the medical technical reserves and financial assets (Continued)Financial assetsCredit risk management- Foods- Airlines- Freight companies- Hotels, etc.The Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic todetermine whether there is objective evidence that a financial asset or group of financial assets are impaired. Theseinclude 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 equitiesclassified under available-for-sale, the company has performed an assessment to determine whether there is a significantdecline in the fair value of financial assets below their cost. Based on these assessments, the Company’s managementbelieves that the Covid-19 pandemic has had no material effects on Company’s reported results for the three month periodended 31 March 2020. The Company’s management continues to monitor the situation closely.The Company has strengthened its credit risk management policies to address the fast changing and evolving risks posedby the current circumstances. These include review of credit concentrations at granular economic sector, region,counterparty level and take appropriate action where required. Based on the review, the Company has identified thefollowing sectors being impacted significantly by the Covid-19 pandemic and lower oil prices:THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS (Continued)14 | |
| Disclosure of classes of share capital [text block] | 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’sactivities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders orissue shares.The company is not in compliance with the solvency margin required by SAMA (refer note 2 - going concern). | |
| Disclosure of retained earnings (accumulated losses) [text block] | The Company held an ordinary general assembly meeting on 22 December 2008 and approved the purchase of the insurance portfolioand the related net assets and liabilities of the Saudi Arabian Operations of the Mediterranean and Gulf Insurance and ReinsuranceCompany (MEDGULF) B.S.C (closed) (“Portfolio”) effective 1 January 2009. The acquisition resulted in goodwill of SR 480 million.During the year end December 31, 2019 the management carried out impairment testing by using Value-In-Use (VIU) assessment forthe goodwill impairment based on a detailed five year business plan, in addition to the ‘Share Price’ and ‘Market’ approach on thetrading activity of the Company’s stock. This assessment was carried-out by a consultant appointed by the Company. As per themanagement’s assessment, there is no indication of impairment. | |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 9Related partiesNature oftransactionMarch 31, March 31, March 31, December 31,2020 2019 2020 2019-Balance due from atperiod end- - 2,453 2,453-Allowance fordoubtful debts- - (2,390) (2,390)-Net Balance duefrom at period end- - 63 63-Insurance premiumfor employees offellow subsidiary- 2,712 - --Third partyadministration fees- 22,406 - --Claim incurred - 16 - --Payment received - - --premium refundable- 73 - --Payment on thirdparty administrationfees- 17,500 - --Balance due from /(due to) at period end - - 1,931 (17,080)Total due from related party 1,994 6 3Total due to related party - (17,080)Other related parties transactions and balances – due from / (due to)-Current account andtime deposits- 32,259 - 3,937-Statutory deposit(refer note 9.a (i))- - 143,864 143,864-Gross writtenpremiums- 414 - --Premiums(refundable)- - - (413)-Claims incurred /adjustment(3) - - --Outstanding Claims- - - (1,432)The SaudiInvestment Bank,(Foundingshareholder)Medgulf BSC -Head officeaccount (majorshareholder)SAR’0009.a The following are the details of major related party transactions during the period and their balances at theend of the period:TRANSACTIONS AND BALANCES WITH RELATED PARTIESDue from / to related partiesMedivisa KSA(affiliate)THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020Transactions for the three monthperiod endedBalance receivable / (payable)as at17(A SAUDI JOINT STOCK COMPANY)9Related partiesNature oftransactionMarch 31, March 31, March 31, December 31,2020 2019 2020 2019-Medical ClaimJordan / Balance(570) 107 - 570-Medical claimLebanon / balance(455) (345) 654 1,109-Medical claimEgypt / balance(79) - 81 160-Discretionaryportfolioarrangement (refer9.a (ii))- - - --Current account 2,832 1,912 4,037 1,205-Premiumsrefundable- - - (38)-Gross writtenpremiums(16) - - --Premiumsreceivable- - 686 703-Allowance fordoubtful debts- - (84) --Net balance duefrom at period end- - 602 703-Claims incurred 737 - - --Gross writtenpremiums(1) - - --Premiumsreceivable- - 272 906-Allowance fordoubtful debts- - (8) --Net balance duefrom at period end- - 264 906-Claims incurred 104 - - --Gross writtenpremiums41 - - --Premiumsreceivable- - 544 680-Allowance fordoubtful debts- - (18) --Net balance duefrom at period end- - 526 680-Claims incurred 41 - - -Toray membranemiddle east (Undercommondirectorship)KSB PumpsArabia (Undercommondirectorship)SAR’000THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020Transactions for the three monthperiod endedBalance receivable / (payable)as atTRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)Other related parties transactions and balances – due from / (due to)Medivisa KSA(affiliate)Abunayyan tradingCo (Undercommondirectorship)Al IstithmarCapital (subsidiaryof SIB-foundingshareholder)NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)18(A SAUDI JOINT STOCK COMPANY)9Related partiesNature oftransactionMarch 31, March 31, March 31, December 31,2020 2019 2020 2019-Gross writtenpremiums51 26 - --Premiumsreceivable- - 64 10-Claims incurred 85 120 - --Claim recoveries- - - --Reinsurancerecovery (refer9.a(iii))- - 5,962 5,962-Allowance fordoubtful debts- - (4,471) (4,471)-Net balance duefrom at period end- - 1,491 1,491-Balancereceivable atperiod end- - 3,856 3,856-Allowance fordoubtful debts- - (3,856) (3,856)-Net balance duefrom at period end- - - --Gross writtenpremiums158 - - --Premiumsreceivable- - 1,020 1,399-Allowance fordoubtful debts- - (40) --Net balance duefrom at period end- - 980 1,399-Claims incurred 112 - - --Gross writtenpremiums(2) - - --Premiumsreceivable- - 198 650-Allowance fordoubtful debts- - (6) --Net balance duefrom at period end- - 192 650-Claims incurred 85 - - -Citiscape (Undercommondirectorship)Addison BradleyOverseas / AddisonBradley & Co.(affiliate)Middle eastagriculture (Undercommondirectorship)THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020Transactions for three monthperiod endedBalance receivable / (payable)as atMedgulf BSC(majorshareholder)TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)SAR’000Other related parties transactions and balances – due from / (due to)Bayan CreditBureau (Undercommondirectorship)NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)19(A SAUDI JOINT STOCK COMPANY)9Related partiesNature oftransactionMarch 31, March 31, March 31, December 31,2020 2019 2020 2019-Gross writtenpremiums(24) - - --Premiumsreceivable- - 236 1,070-Claims incurred 158 - --Reinsurancerecovery- - - --Balancereceivable atperiod end- - 30,265 30,265-Allowance fordoubtful debts- - (30,260) (30,242)-Net balance duefrom at period end- - 5 23-Gross writtenpremiums(11) - - --Premiumsreceivable- - 233 457-Allowance fordoubtful debts- - (2) --Net balance duefrom at period end- - 231 457-Claims incurred 89 - - --Gross writtenpremiums14 - - --Premiumsreceivable- - 55 121-Allowance fordoubtful debts- - (2) --Net balance duefrom at period end- - 53 121-Claims incurred 6 - - --Gross writtenpremiums56 - - --Premiumsreceivable- - 1,730 3,129-Allowance fordoubtful debts- - (20) --Net balance duefrom at period end- - 1,710 3,129-Claims incurred 326 - - -THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020Addison BradleyInternational /Medgulf Lebanon(affiliate)SAR’000Other related parties transactions and balances – due from / (due to)Eletronic andelectric industry(Under commondirectorship)TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)Arabian qudra(Under commondirectorship)Saudi metercompany (Undercommondirectorship)Saudi TumpaneCo.(Undercommondirectorship)Transactions for three monthperiod endedBalance receivable / (payable)as at20(A SAUDI JOINT STOCK COMPANY)9Related partiesNature oftransactionMarch 31, March 31, March 31, December 31,2020 2019 2020 2019-Gross writtenpremiums10 - - --Premiumsreceivable- - 166 266-Allowance fordoubtful debts- - (7)-Net balance duefrom at period end- - 159 266-Claims incurred 29 - - --Gross writtenpremiums31 - - --Premiumsreceivable- - 337 631-Allowance fordoubtful debts- - (14) (15)-Net balance duefrom at period end- - 323 616-Claims incurred 35 - - --Gross writtenpremiums- 2,609 - --Premiumsreceivable- - 107 107-Allowance fordoubtful debts- - (16) --Net balance duefrom at period end- - 91 107-Claims incurred 17,130 3,687 - --Gross writtenpremiums3 - - --Claims incurred - 1 - --Gross writtenpremiums- - - --Gross writtenpremiums8 - - --Premiumsreceivable- - 310 1,013-Allowance fordoubtful debts- - (17) --Net balance duefrom at period end- - 293 1,013-Claims incurred 46 - - -Tumpane jubar(Under commondirectorship)Amal Bin Shiha(Under commondirectorship)THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020Transactions for three monthperiod endedBalance receivable / (payable)as atIndustrialinstrumentation andcontrolsystem(Undercommondirectorship)Saline waterconversioncorporation(Undercommondirectorship)Raad Al Barakati(Under commondirectorship)SAR’000Other related parties transactions and balances – due from / (due to)Abunayyanelectrical (Undercommondirectorship)TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)21(A SAUDI JOINT STOCK COMPANY)9Related partiesNature oftransactionMarch 31, March 31, March 31, December 31,2020 2019 2020 2019-Payment receivedduring the period- - - --Reinsurancerecoveries (Refer9.a (iv)274 15 - --Net balance duefrom at period end- - 16,541 16,267-Allowance fordoubtful debts- - (12,406) (12,191)-Net balance duefrom at period end- - 4,135 4,076-Balance due fromat period end- - 1,472 1,472-Allowance fordoubtful debts- - (1,472) (1,472)-Net balance duefrom at period end(Refer 9.a (v))- - - --Investmentportfolio244,434 379,434 135,0009.a(i) Statutory deposit is placed with the Saudi Investment Bank, at the commission rate of 2.4% per annum.9. a (iii) This represent overpayment of premium ceded to Medgulf Bahrain for reinsurance placement.9.a(ii) Discretionary portfolio management agreement (DPM) was signed on 11 February 2011 and includes amix of equity and debt investments.9. a (iv) This represent reinsurance claims recoverable from Addison Bradley International. Most of thereinsurance claim recoveries in respect of run-off treaties for the underwriting years up to 2014 have beencollected by the related party either directly or through a broker (refer note 9.c).9. a (v) Reinsurance placement was made by the said related party. There is a claim recovery from the reinsurerwhich related party needs to recover.SAR’000Other related parties transactions and balances – due from / (due to)Addison BradleyArabia-KSA(affiliate)Addison BradleyArabia HoldingLLC (UAE)(affiliate)Saudi FransiCapital (Undercommondirectorship)Transactions for three monthperiod endedBalance receivable / (payable)as atTHE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYFOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)2299.b Compensation of key management personnelThree month period ended March 31, 2020BOD members(Non-Executive)Top Executivesincluding theCEO and CFOSalaries and compensation - 2,460Allowances 74 -Annual remuneration 895 -End of service indemnities - 34969 2,494Three month period ended March 31, 2019BOD members(Non-Executive)Top Executivesincluding theCEO and CFOSalaries and compensation - 2,130Allowances 105 -Annual remuneration 975 -End of service indemnities - 1051,080 2,235TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued)9.c All reinsurance treaties up to the underwriting year 2014 were managed by the Medgulf Group Corporate ReinsuranceCenter (“CRC”), a related party, who dealt with the Company’s transactions, along with those of other related parties, on aconsolidated basis with the reinsurers and brokers. All transactions with reinsurers and brokers were routed through CRC and thesettlement of balances with these reinsurers and brokers were also made by CRC. The Company, together with CRC is carryingout an exercise to separate the Company’s transactions and balances with the respective reinsurers and brokers from those ofother related parties. This exercise is still on-going and on completion certain parties included in the policyholders’ andreinsurance balances receivable under note 8 amounting to Saudi Riyals 113.8 million may be identified as receivable fromrelated parties and therefore may need to be disclosed under due from related parties. The underlying transactions with suchrelated parties will then also require disclosure under related party transactions.THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANY(A SAUDI JOINT STOCK COMPANY)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020The following table shows the annual salaries, remuneration and allowances pertaining to the Board members and topexecutives for the three month period ended March 31, 2020 and 2019:NOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)SAR 000'SAR 000' | |
| Disclosure of related party transactions [text block] | Investment in an associate comprises of an equity investment in Al-Waseel for Electronic Transportation amounting to SAR9,393 thousand (a 25% equity interest) (2019: SAR 9,393), in an unquoted company (the “associate”), registered in theKingdom of Saudi Arabia. | |
| Disclosure of entity's operating segments [text block] | In accordance with the Law on Supervision of Cooperative Insurance Companies in the Kingdom of Saudi Arabia. The Company isrequired to maintain a statutory deposit at 10%. Further, SAMA has increased the statutory deposit by 5%, and accordingly, theCompany has transferred the same to arrive at 15% statutory deposit. This statutory deposit cannot be withdrawn without the consent ofSAMA. During the year ended 2017, the Company in its extraordinary general meeting held on 22 September 2017 reduced the sharecapital from Saudi Riyals 1 billion to Saudi Riyals 400 million. Thereafter, during the year 2018, the company increased its paid capitalto SR 800 million by right issue shares. After the aforementioned amendments to the capital, the statutory deposit is currentlymaintained at 15% of the new paid up capital, SR 800 million, amounting to SR 120 million. The Statutory deposit is placed at thecommission rate of 2.4% per anum ( 2019 : 2.4%). | |
| Disclosure of capital management [text block] | In accordance with its By-laws, the Company shall allocate 20% of its net income each year to the statutory reserve until it has built upa reserve equal to the share capital. The reserve is not available for distribution. Since there was accumulated deficit for the periodended 31 March 2020 and year ended 31 December 2019, no transfer was made to statutory reserve. | |
| Disclosure of commitments and contingencies, general [text block] | Financial assets and liabilities include cash and cash equivalents, time deposits, investments, receivables, payables, andcertain other assets and liabilities. The fair values of the financial assets and liabilities are not materially different from theircarrying values with the exception of unquoted financial instruments which are carried at cost. | |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 0.05 0.04SAR '000Weighted average number of ordinary sharesThe authorized and paid up share capital of the Company was SAR 1,000 million divided into 100 million shares of SAR 10each. The founding shareholders of the Company has subscribed and paid for 75 million shares (SAR 750 million) with anominal value of SAR 10 each, which represented 75% of the shares of the Company and the remaining 25 million shares (SR250 million) with a nominal value of SAR 10 each which represent 25% of the shares of the Company, was subscribed by thegeneral public. The Share capital represented foreign shareholders by 45.5% and Saudi shareholders by 54.5% as at end of year2016. The Company in its extra ordinary general meeting held on 22 September 2017 approved the reduction of share capitalfrom Saudi Riyals 1 billion to Saudi Riyals 400 million by reducing the number of shares from 100 million to 40 million sharesof SR 10 each to comply with the requirements of the Regulations for Companies. This resulted in accumulated losses to declinebelow one half of Company’s share capital. The reduction of capital was approved by the regulatory authorities. During 2017, theCompany incurred transaction cost of SR 691 thousand in respect of reduction in share capital, which has been charged directlyto the Statement of changes in Shareholders' Equity.THE MEDITERRANEAN & GULF COOPERATIVE INSURANCE AND REINSURANCE COMPANYNOTES TO THE INTERIM CONDENSED FINANCIAL INFORMATION (UNAUDITED)FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2020a) Share capitalDuring the year ended 31 December 2018, the Company’s Board of Directors in their meeting held on 6 February 2018,recommended a right issue amounting to SAR 400 million. Such right issue had been approved by the regulatory authorities andgeneral assembly of the Company and the current paid up capital of the company is SR 800 million. The Company incurredtransaction cost of SR 9,677 thousand in respect to the increase in share capital, which has been charged directly to the Statementof changes in Shareholders' Equity.b) Earnings per shareEarnings per share has been calculated by dividing the net earnings for the period by the weighted average number of sharesoutstanding as of the reporting date.Net income for the periodSHARE CAPITAL AND EARNINGS PER SHARE | |
