| 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 ACTIVITIES The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company (the “Company”) is a Saudi Joint Stock Company registered in the Kingdom of Saudi Arabia under Commercial Registration No. 1010231925 dated 8 Rabi Thani 1428H (corresponding to 26 April 2007). The registered address of the Company's head office is as follows: Medgulf InsuranceFuturo TowerKing Saud RoadP.O. Box 2302Riyadh 11451, Saudi Arabia The objectives of the Company are to transact in cooperative insurance and reinsurance business and related activities in the Kingdom of Saudi Arabia. Its principal lines of business include medical, motor and other general insurance. The Company was 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] | 2 BASIS OF PREPARATION Basis of presentation The interim condensed financial information has been prepared on a historical cost basis except for the measurement at fair value of available for sale investments and investment in associates which is accounted for under equity method. Statement of compliance The interim condensed financial information of the Company has been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants (SOCPA) and the Regulations for Companies in the Kingdom of Saudi Arabia. On 17 July 2019, SAMA instructed the insurance companies in the Kingdom of Saudi Arabia to account for the zakat and income taxes in the statement of income. This aligns with the IFRS and its interpretations as issued by the International Accounting Standards Board (“IASB”) and as endorsed in the Kingdom of Saudi Arabia and with the other standards and pronouncements that are issued by the Saudi Organization for Certified Public Accountants (“SOCPA”) (collectively referred to as “IFRS as endorsed in KSA”). As required by Saudi Arabian insurance regulations, the Company maintains separate accounts for Insurance Operations and Shareholders’ Operations and presents the interim condensed financial statements accordingly (refer note 23). The physical custody of all assets related to the Insurance Operations and Shareholders’ Operations are held by the Company. Revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of other revenue and expenses from joint operations is as determined by the management and Board of Directors. Functional and presentation currency The functional and presentational currency of the Company is Saudi Arabian Riyals. The interim condensed financial information is presented in Saudi Riyal rounded to nearest thousand (SAR’000) unless otherwise stated. | |
| Disclosure of new standards and amendments in standards [text block] | 4 STANDARDS AND AMENDMENTS ISSUED Standards issued but not yet effective IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts) In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach. In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2022.The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied. The Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9. IFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after 1 January 2023, and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' and IFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the income statement and the balance sheet. The Company has decided not to early adopt this new standard. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments in associates and joint ventures [text block] | INVESTMENT IN AN ASSOCIATE Investment in an associate comprises of an equity investment in Al-Waseel for Electronic Transportation amounting to SAR 9,926 thousand (a 25% equity interest) (2019: SAR 9,393), in an unquoted company (the “associate”), registered in the Kingdom of Saudi Arabia. At the beginning of the period / yearDividend received from investment in an associateIncome from investment in an associateAt the end of period / year | |
| Disclosure of investments in available-for-sale investments [text block] | 12 AVAILABLE FOR SALE INVESTMENTS Investments are classified as set out below: a) Insurance Operations - Available for sale investments SAR’000 SAR’000 June 30, 2020 December 31, 2019 (Unaudited) (Audited) Type of Investments -Mutual Fund 10,362 10,181 10,362 10,181 The available for sale investments comprise of mutual funds, bonds, sukuk and equities issued by corporate and financial institutions in the Kingdom of Saudi Arabia. The cumulative change in fair values of available for sale investments for insurance operations amounting to SAR 181 thousand (31 December 2019: SAR 181) is presented within shareholders’ equity in the interim condensed statement of financial position. The movements during the period in available for sale investments for insurance’s operations were as follows: June 30, 2020 December 31, 2019 (Unaudited) (Audited) At the beginning of the period / year 10,181 25,000 Purchase during the period / year - 10,000 Sold during the period / year - (25,000) Net change in fair values 181 181 At the end of the period / year 10,362 10,181 12 AVAILABLE FOR SALE INVESTMENTS (Continued) b) Shareholders’ Operations - Available for sale investments SAR’000 June 30,2020 December 31, 2019 (Unaudited) (Audited) Type of Investments -Equity 148,279 136,990 -Mutual Fund 130,904 80,983 -Sukuks 253,771 251,291 532,954 469,264 The available for sale investments comprise of mutual funds, bonds, sukuk and equities issued by corporate and financial institutions in the Kingdom of Saudi Arabia. The cumulative change in fair values of available for sale investments for shareholders’ operations amounting to SAR (5,736) thousand (31 December 2019: SAR 21,922 thousand) is presented within shareholders’ equity in the interim condensed statement of financial position. The movements during the period in available for sale investments for shareholders’ operations were as follows: SAR’000 June 30,2020 December 31, 2019 (Unaudited) (Audited) At the beginning of the period 469,264 49,151 Purchase during the period 81,211 436,606 Sold during the period (11,785) (38,415) Net change in fair values (5,736) 21,922 At the end of the period 532,954 469,264 12 AVAILABLE FOR SALE INVESTMENTS (Continued) iii. Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or the most advantageous) market between market participants at the measurement date under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique. The fair values of recognised financial instruments are not significantly different from the carrying values included in the financial statement. The estimated fair values of financial instruments are based on quoted market prices, when available. The fair values of these investments are disclosed below. For financial instruments that are recognised at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period. The unlisted security of SAR 1.92 million (31 December 2019: SAR 1.92 million) held as part of Company’s shareholder operations, were stated at cost in the absence of active markets or other means of reliably measuring their fair value. During the period ended 30 June 2020, there were no transfers between Level 1 and Level 2 fair value measurements, and no 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 hierarchy cumulatively for insurance and shareholders operations: Determination of fair value and fair value hierarchy The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments: Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date; Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; and Level 3: valuation techniques for which any significant input is not based on observable market data. 1. Insurance operations – Fair Value SAR’000s Level 1 Level 2 Level 3 Total June 30, 2020 (Unaudited) Available for sale investments - Mutual Fund 10,362 - - 10,362 Total available for sale investments 10,362 - - 10,362 12 AVAILABLE FOR SALE INVESTMENTS (Continued) iii. Fair value (Continued) 1. Insurance operations – Fair Value (Continued) SAR’000s Level 1 Level 2 Level 3 Total December 31, 2019 (Audited) Available for sale investments - Mutual Fund 10,181 - - 10,181 Total available for sale investments 10,181 - - 10,181 SAR’000s Level 1 Level 2 Level 3 Total 2. Shareholders’ operations – Fair Value SAR’000s Level 1 Level 2 Level 3 Total June 30, 2020 (Unaudited) Available for sale investments - Mutual Fund 130,904 - - 130,904 - Sukuk - 253,771 - 253,771 - Equities 146,356 - 1,923 148,279 Total available for sale investments 277,260 253,771 1,923 532,954 SAR’000s Level 1 Level 2 Level 3 Total December 31, 2019 (Audited) Available for sale investments - Mutual Fund 80,983 - - 80,983 - Sukuk - 251,291 - 251,291 - Equities 135,067 - 1,923 136,990 Total available for sale investments 216,050 251,291 1,923 469,264 | |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 8 PREMIUM AND REINSURERS' RECEIVABLE, NET Receivables comprise amounts due from the following: SAR’000 June 30, 2020 December 31, 2019 (Unaudited) (Audited) Policyholders 562,570 407,434 Brokers and agents 291,476 348,888 Premiums receivables 854,046 756,322 Less: Allowance for doubtful debts (264,608) (272,495) 589,438 483,827 Reinsurers’ receivable 259,432 307,208 Less: Allowance for doubtful debts (226,707) (218,820) 32,725 88,388 Premium and reinsurers’ receivable – net 622,163 572,215 As disclosed in note 9.c, the Company, together with CRC carried out an exercise to separate the Company’s transactions and balances with the respective reinsurers and brokers from those of other related parties. This exercise is completed and Saudi Riyals 59.4 million have been identified as receivable from related party. However, the company has booked full provision for this balance and disclosed under due from other related parties in note 9. As at June 30, 2020, the movement in the provision for doubtful debts of premium receivables was as follows: Movement in provision for doubtful debts: SAR’000 June 30, 2020 December 31, 2019 (Unaudited) (Audited) Balance, January 1 491,315 528,642 Provision for the period / year - (37,327) Balance at end of period / year 491,315 491,315 | |
| Disclosure of cash and cash equivalents [text block] | 6 CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the interim condensed statement of cash flows comprise the following: SAR’000 Insurance operations June 30, 2020 December 31, 2019 (Unaudited) (Audited) Cash and bank balances 110,213 88,607 Deposits maturing within 3 months from the acquisition date 281,814 88,752 Cash and cash equivalent in the statement of cash flows 392,027 177,359 Deposit against letter of guarantee 80,588 80,321 472,615 257,680 SAR’000 Shareholders’ operations June 30, 2020 December 31, 2019 (Unaudited) (Audited) Cash and bank balances 5,472 33,536 Deposits maturing within 3 months from the acquisition date 73,374 - 78,846 33,536 Cash and bank balances 551,461 291,216 Cash and cash equivalents in the statement of cash flow 470,873 210,895 Cash at banks and short-term deposits are placed with counterparties who have credit ratings equivalent to A+ to BBB ratings under 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 in Kingdom of Saudi Arabia and earned special commission income at an average rate of 1.15% per annum (2019: 2.29% per annum). The 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 in favor of the Company’s customers and service providers (also see note 21). Such deposits against letters of guarantee cannot be withdrawn before the expiration of guarantee (are restricted in nature). | |
| Disclosure of due to related parties [text block] | 9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES 9.a The following are the details of major related party transactions during the period and their balances at the end of the period: Related parties Nature of transaction Transactions for the six month period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000 Due from / to related parties Medgulf BSC - Head office account (major shareholder) -Balance due from at period end - - 2,453 2,453 -Allowance for doubtful debts - - (2,390) (2,390) -Net Balance due from at period / year end - - 63 63 Medivisa KSA (affiliate) -Insurance premium for employees of fellow subsidiary - 2,916 - - -Third party administration fees - 27,914 - - -Claim incurred - 77 - - -Payment received - - - -premium refundable - 138 - - -Payment on third party administration fees - 30,502 - - -Balance due from / (due to) at period / year end - - 1,931 (17,080) Waseel ASP ltd (Associate) -Claims management fee 2,835 - - - -Balance due from / (due to) at period / year end - - (198) - Total due from related party 1,994 63 Total due to related party (198) (17,080) Other related parties transactions and balances – due from / (due to) The Saudi Investment Bank, (Founding shareholder) -Current account and time deposits (1,378) (29,127) 2,559 3,937 -Statutory deposit (refer note 9.a (i)) 1,807 2,365 145,671 143,864 -Gross written premiums - 519 - - -Premiums (refundable) - - - (413) -Claims incurred / adjustment 3 92 - - -Outstanding Claims - - - (1,432)9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued) Related parties Nature of transaction Transactions for the six month period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000 Other related parties transactions and balances – due from / (due to) Medivisa KSA (affiliate) -Medical Claim Jordan / Balance - 107 - - -Medical claim Lebanon / balance (654) (345) (654) - -Medical claim Egypt / balance (81) 28 (81) - Al Istithmar Capital (subsidiary of SIB-founding shareholder) -Discretionary portfolio arrangement (refer 9.a (ii)) - - - - -Current account 693 1,170 693 - -Premiums refundable - - - - Abunayyan trading Co (Under common directorship) -Gross written premiums (42) - - - -Premiums receivable - - - 703 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - - 703 -Claims incurred 2,580 - - - KSB Pumps Arabia (Under common directorship) -Gross written premiums (1) - - - -Premiums receivable - - 1 906 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - 1 906 -Claims incurred 256 - - - Toray membrane middle east (Under common directorship) -Gross written premiums 47 - - - -Premiums receivable - - - 680 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - - 680 -Claims incurred 178 - - - 9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued) Related parties Nature of transaction Transactions for the six month period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000 Other related parties transactions and balances – due from / (due to) Bayan Credit Bureau (Under common directorship) -Gross written premiums 46 32 - - -Premiums receivable - - - 10 -Claims incurred 224 (213) - - Medgulf BSC (major shareholder) -Claim recoveries - - - - -Reinsurance recovery (refer 9.a(iii)) - - 5,962 5,962 -Allowance for doubtful debts - - (4,471) (4,471) -Net balance due from at period / year end - - 1,491 1,491 Addison Bradley Overseas / Addison Bradley & Co. (affiliate) -Balance receivable at period / year end - - 3,856 3,856 -Allowance for doubtful debts - - (3,856) (3,856) -Net balance due from at period / year end - - - - Citiscape (Under common directorship) -Gross written premiums 164 - - - -Premiums receivable - - 120 1,399 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - 120 1,399 -Claims incurred 300 - - - Middle east agriculture (Under common directorship) -Gross written premiums - - - - -Premiums receivable - - 6 650 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - 6 650 -Claims incurred 199 - - - 9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued) Related parties Nature of transaction Transactions for the six month period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000 Other related parties transactions and balances – due from / (due to) Eletronic and electric industry (Under common directorship) -Gross written premiums (23) - - - -Premiums receivable - - 1 1,070 -Claims incurred 567 - - Addison Bradley International / Medgulf Lebanon (affiliate) -Reinsurance recovery - - - - -Balance receivable at period / year end (Refer 9.c) - - 59,498 30,265 -Allowance for doubtful debts - - (59,498) (30,242) -Net balance due from at period / year end - - - 23 Arabian qudra (Under common directorship) -Gross written premiums (18) - - - -Premiums receivable - - - 457 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - - 457 -Claims incurred 257 - - - Saudi meter company (Under common directorship) -Gross written premiums 16 - - - -Premiums receivable - - 14 121 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - 14 121 -Claims incurred 50 - - - Saudi Tumpane Co.(Under common directorship) -Gross written premiums 70 - - - -Premiums receivable - - 57 3,129 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - 57 3,129 -Claims incurred 1,055 - - - 9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued) Related parties Nature of transaction Transactions for the six month period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000 Other related parties transactions and balances – due from / (due to) Abunayyan electrical (Under common directorship) -Gross written premiums 10 - - - -Premiums receivable - - - 266 -Allowance for doubtful debts - - - -Net balance due from at period / year end - - - 266 -Claims incurred 114 - - - Industrial instrumentation and control system(Under common directorship) -Gross written premiums 31 - - - -Premiums receivable - - - 631 -Allowance for doubtful debts - - - (15) -Net balance due from at period / year end - - - 616 -Claims incurred 131 - - - Saline water conversion corporation(Under common directorship) -Gross written premiums - 2,609 - - -Premiums receivable - - 107 107 -Allowance for doubtful debts - - (27) - -Net balance due from at period / year end - - 80 107 -Claims incurred 33,846 3,687 - - Raad Al Barakati (Under common directorship) -Gross written premiums 3 3 - - -Claims incurred - 13 - - Amal Bin Shiha (Under common directorship) -Gross written premiums - - - - Tumpane jubar (Under common directorship) -Gross written premiums 7 - - - -Premiums receivable - - 5 1,013 -Allowance for doubtful debts - - - - -Net balance due from at period / year end - - 5 1,013 -Claims incurred 292 - - - 9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued) Related parties Nature of transaction Transactions for six month period ended Balance receivable / (payable) as at June 30, June 30, June 30, December 31, 2020 2019 2020 2019 (Unaudited) (Unaudited) (Unaudited) (Audited) SAR’000 Other related parties transactions and balances – due from / (due to) Addison Bradley Arabia-KSA (affiliate) -Payment received during the period - - - - -Reinsurance recoveries (Refer 9.a (iv) 279 15 - - -Net balance due from at period / year end - - 16,546 16,267 -Allowance for doubtful debts - - (12,397) (12,191) -Net balance due from at period / year end - - 4,149 4,076 Addison Bradley Arabia Holding LLC (UAE) (affiliate) -Balance due from at period / year end - - 1,472 1,472 -Allowance for doubtful debts - - (1,472) (1,472) -Net balance due from at period / year end (Refer 9.a (v)) - - - - Saudi Fransi Capital (Under common directorship) -Investment portfolio 256,323 391,323 135,000 -Claims incurred - (1,009) - - 9.a(i) Statutory deposit is placed with the Saudi Investment Bank, at the commission rate of 2.4% per annum. 9.a(ii) Discretionary portfolio management agreement (DPM) was signed on 11 February 2011 and includes a mix of equity and debt investments. 9. a (iii) This represent overpayment of premium ceded to Medgulf Bahrain for reinsurance placement. 9. a (iv) This represent reinsurance claims recoverable from Addison Bradley International. Most of the reinsurance claim recoveries in respect of run-off treaties for the underwriting years up to 2014 have been collected 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 reinsurer which related party needs to recover. 9 TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Continued) 9.b Compensation of key management personnel The following table shows the annual salaries, remuneration and allowances pertaining to the Board members and top executives for the six month period ended June 30, 2020 and 2019: Six month period ended June 30, 2020 (Unaudited) BOD members (Non-Executive) Top Executives including the CEO and CFO SAR 000' Salaries and compensation - 4,920 Allowances 156 - Annual remuneration 1,790 - End of service indemnities - 255 1,946 5,175 Six month period ended June 30, 2019 (Unaudited) BOD members (Non-Executive) Top Executives including the CEO and CFO SAR 000' Salaries and compensation - 4,260 Allowances 207 - Annual remuneration 1,784 - End of service indemnities - 209 1,991 4,469 9.c All reinsurance treaties up to the underwriting year 2014 were managed by the Medgulf Group Corporate Reinsurance Center (“CRC”), a related party, who dealt with the Company’s transactions, along with those of other related parties, on a consolidated basis with the reinsurers and brokers. All transactions with reinsurers and brokers were routed through CRC and the settlement of balances with these reinsurers and brokers were also made by CRC. The Company, together with CRC carried out an exercise to separate the Company’s transactions and balances with the respective reinsurers and brokers from those of other related parties. This exercise is completed and Saudi Riyals 59.4 million have been identified as receivable from related party. However, the company has booked full provision for this balance. | |
| Disclosure of zakat [text block] | 17 ZAKAT AND INCOME TAX a) Income tax charge for the period / year There was no income tax in the period ended June 30, 2020 and year ended December 31, 2019 due to net adjusted losses incurred. All changes during the period represents zakat. b) Movement in the provision for zakat and income tax during the period / year The movement in the provision for zakat and income tax for the period / year was as follows: SAR '000 30 June2020 31 December2019 (Unaudited) (Audited) At the beginning of the period / year 13,188 27,184 Charge - current period / year 7,046 14,091 Charge - prior period / year - - Payments during the period / year - (28,087) At the end of the period / year 20,234 13,188 The provision for zakat and income tax for the period is 7,046 thousand (30 June 2019: SR 5,292 thousand). c) Status of zakat and tax assessments The Company has filed its zakat and income tax declarations for the year from 16 April 2007 to 31 December 2018 with the General Authority of Zakat and Income Tax (GAZT). Further, the Company has filed two appeal for zakat, income tax and withholding tax for assessment years 2008 to 2012 and another one for assessment year 2013 to 2016. The management has made 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 SR 115,555 thousand. The company has booked a provision of SR 131,346 thousand as per the zakat and tax consultant, thus, the amount of SR 15,791 thousand, which represent the difference between the provision amount and the agreed amount, was transfer to other income. During the year ended 31 December 2019, the company has successfully paid the full amount agreed. d) Deferred tax The 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; SAR '000 30 June2020 31 December 2019 (Unaudited) (Audited) Opening deferred tax asset 11,962 13,923 Origination or reversal of temporary differences (980) (1,961) Closing deferred tax asset 10,982 11,962 | |
| Disclosure of earnings per share [text block] | b) Earnings per share Earnings per share has been calculated by dividing the net earnings for the period by the weighted average number of shares outstanding as of the reporting date. For the three month period ended SAR '000 30 June 2020 30 June 2019 (Unaudited) (Unaudited) Net income for the period 22,986 838 Weighted average number of ordinary shares 80,000 80,000 Earnings per share 0.29 0.01 For the six month period ended SAR '000 30 June 2020 30 June 2019 (Unaudited) (Unaudited) Net income for the period 27,220 3,791 Weighted average number of ordinary shares 80,000 80,000 Earnings per share 0.34 0.05 December 31, 2019 (Audited) Re-insurance share Net Gross Re-insurance share Net SAR’000 (400,427) 217,396 466,610 (334,829) 131,781 (239,255) 395,031 751,200 (222,617) 528,583 (639,682) 612,427 1,217,810 (557,446) 660,364 June 30, 2020 December 31, 2019 (Unaudited) (Audited) SAR’000 47,591 20,529 13,590 14,894 61,181 35,423 For the period ended June 30, 2020 (Unaudited) Gross Re-insurance Net 985,437 (290,619) 694,818 1,511,913 (740,012) 771,901 (1,323,167) 1,555,386 232,219 1,174,183 524,755 1,698,938 For the year ended December 31, 2019 (Audited) Gross Re-insurance Net 1,236,849 (282,901) 953,948 2,421,277 (628,510) 1,792,767 (2,672,689) 620,792 (2,051,897) 985,437 (290,619) 694,818 b) Earnings per share Earnings per share has been calculated by dividing the net earnings for the period by the weighted average number of shares outstanding as of the reporting date. For the three month period ended SAR '000 30 June 2020 30 June 2019 (Unaudited) (Unaudited) Net income for the period 22,986 838 Weighted average number of ordinary shares 80,000 80,000 Earnings per share 0.29 0.01 For the six month period ended SAR '000 30 June 2020 30 June 2019 (Unaudited) (Unaudited) Net income for the period 27,220 3,791 Weighted average number of ordinary shares 80,000 80,000 Earnings per share 0.34 0.05 December 31, 2019 (Audited) Re-insurance share Net Gross Re-insurance share Net SAR’000 (400,427) 217,396 466,610 (334,829) 131,781 (239,255) 395,031 751,200 (222,617) 528,583 (639,682) 612,427 1,217,810 (557,446) 660,364 June 30, 2020 December 31, 2019 (Unaudited) (Audited) SAR’000 47,591 20,529 13,590 14,894 61,181 35,423 For the period ended June 30, 2020 (Unaudited) Gross Re-insurance Net 985,437 (290,619) 694,818 1,511,913 (740,012) 771,901 (1,323,167) 1,555,386 232,219 1,174,183 524,755 1,698,938 For the year ended December 31, 2019 (Audited) Gross Re-insurance Net 1,236,849 (282,901) 953,948 2,421,277 (628,510) 1,792,767 (2,672,689) 620,792 (2,051,897) 985,437 (290,619) 694,818 | |
| Disclosure of capital management [text block] | 15 CAPITAL MANAGEMENT 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 shares.The Company is not in compliance with the solvency margin required by SAMA (refer note 2 - going concern). | |
| Disclosure of commitments and contingencies, general [text block] | 21 COMMITMENTS AND CONTINGENCIES a) Legal proceedings 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. b) Contingencies and capital commitments As at 30 June 2020, the Company’s banker has issued letters of guarantee of SR 80,588 thousand (31 December 2019: SR 80,321 thousand) to various customers, motor agencies and workshops as per the terms of the agreements with them (also see note 6). The Company had no capital commitments in 2020 (31 December 2019: nil). c) Contingent liability The Company, is subject to a litigation, based on independent legal advice, the Company does not believe that the outcome of these court cases will have a material impact on the Company`s income or financial condition. | |
