| [100010] Filing information | [200100] Independent auditors report | [300100] Statement of financial position, order of liquidity | |||
| [300200] Statement of insurance/ takaful operations, nature of expense | [300300] Statement of shareholders operations, nature of expense | [300400] Statement of other comprehensive income, before tax, insurance operations | |||
| [300500] Statement of other comprehensive income, before tax, shareholders operations | [300600] Statement of cash flows, indirect method, insurance operations | [300700] Statement of cash flows, indirect method, shareholders operations | |||
| [300800] Statement of changes in equity | [400100] Notes forming part of accounts |
| [100010] Filing information |
| English [member] | ||
|---|---|---|
| Start Date | 2021-01-01 | 2020-01-01 |
| End Date | 2021-03-31 | 2020-03-31 |
| Filing information [line items] | ||
| Disclosure of entity information [abstract] | ||
| Name of reporting entity | The Mediterranean and Gulf Insurance and Reinsurance Co. | |
| Company symbol code| ISIN code | 8030 | SA000A0MJ2H8 | |
| Sector| Industry group | Financials | Insurance | |
| Disclosure of document information [abstract] | ||
| Whether entity wants to report opening statement of financial position | No | |
| Period covered by financial statements | Quarter 1 | |
| Reporting period start date | 2021-01-01 | 2020-01-01 |
| Reporting period end date | 2021-03-31 | 2020-03-31 |
| Description of nature of financial statements | Standalone | |
| Status of financial statements | Reviewed | |
| Description of presentation currency | Saudi Arabia, Riyals | |
| Level of rounding used in financial statements | Thousands | |
| [200100] Independent auditors report |
| Primary auditor [member] | Second primary auditor [member] | |
|---|---|---|
| English [member] | English [member] | |
| Start Date | 2021-01-01 | 2021-01-01 |
| End Date | 2021-03-31 | 2021-03-31 |
| Auditors information [line items] | ||
| Details of auditors signing report [abstract] | ||
| Name of auditor signing report | Abdullah M. AlAzem | Suleiman A. Al-Kharashi |
| Registration number of auditor | 335 | 91 |
| Details of audit firm [abstract] | ||
| Name of audit firm | Al Azem, Al Sudairy, Al Shaikh & Partners | AlKharashi & Co. Certified Accountants And Auditors |
| Registration number of audit firm | 335 | 91 |
| Address of audit firm | Riyadh | Riyadh |
| English [member] | |
|---|---|
| Start Date | 2021-01-01 |
| End Date | 2021-03-31 |
| Auditors report [line items] | |
| Disclosures of auditors report [text block] | Emphasis of matter paragraph |
| Contents of auditors report [abstract] | |
| Nature of auditors opinion | Emphasis of matter paragraph |
| Auditors opinion | Based on our review, nothing has come to our attention that causes us to believe that the accompanying interimcondensed financial information is not prepared, in all material respects, in accordance with IAS 34 as endorsedin the Kingdom of Saudi Arabia. |
| Basis of opinion | We conducted our review in accordance with International Standard on Review Engagements 2410, “Review ofinterim financial information performed by the independent auditor of the entity”, as endorsed in the Kingdom ofSaudi Arabia. A review of interim financial information consists of making inquiries, primarily of personsresponsible for financial and accounting matters, and applying analytical and other review procedures. A reviewis substantially less in scope than an audit conducted in accordance with International Standards on Auditing thatare endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that wewould become aware of all significant matters that might be identified in an audit. Accordingly, we do not expressan audit opinion. |
| Material uncertainty related to going concern | We draw attention to note 2 to the accompanying interim condensed financial information. The Company did notmeet the solvency margin requirements as at 31 March 2021. The deficiency in solvency margin indicate that amaterial uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.However, the accompanying interim condensed financial information are prepared using the going-concernassumption based on management’s assessment on Company’s ability to continue as a going-concern. Ourconclusion is not modified with respect to this matter. |
| Responsibilities of management and those charged with governance for financial statements | Management is responsible for the preparation and presentation of this interim condensedfinancial information in accordance with International Accounting Standard 34 - "Interim Financial Reporting"(IAS 34) as endorsed in the Kingdom of Saudi Arabia. |
| Auditors responsibilities for audit of financial statements | Our responsibility is to express a conclusion on this interimcondensed financial information based on our review. |
| Date of signing audit report by auditor | 2021-05-05 |
| [300100] Statement of financial position, order of liquidity |
| Start Date | 2021-01-01 | 2020-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|---|
| End Date | 2021-03-31 | 2020-12-31 | 2020-03-31 | |
| Statement of financial position [abstract] | ||||
| Assets [abstract] | ||||
| Insurance/ takaful operations assets [abstract] | ||||
| Property and equipment, net, insurance/ takaful operations assets | 23,558 | 23,642 | 24,035 | |
| Due from related parties, insurance/ takaful operations assets | 1,994 | 1,994 | 1,944 | |
| Deferred policy acquisition costs | 70,322 | 60,156 | 75,391 | |
| Reinsurers/ retakaful share of unearned premiums/ contributions | 330,251 | 220,301 | 693,025 | |
| Prepayments and other assets, insurance/ takaful operations assets | 378,982 | 226,738 | 415,287 | |
| Due from shareholders operations | 600,465 | 527,888 | 575,372 | |
| Premiums/ insurance receivables/takaful contributions receivable, net | 1,101,195 | 866,983 | 717,259 | |
| Reinsurers/ retakaful share of outstanding claims/ benefits, net | 735,302 | 736,004 | 644,344 | |
| Time (Murabaha) deposits, insurance/ takaful operations assets | 150,000 | 255,988 | ||
| Available-for-sale investments, insurance/ takaful operations assets | 10,573 | 10,502 | 10,251 | |
| Cash and cash equivalents, insurance/ takaful operations assets | 341,427 | 272,589 | 488,277 | |
| Other assets, insurance/ takaful operations assets | 89,007 | 95,129 | 107,398 | |
| Total insurance/ takaful operations assets | 3,833,076 | 3,041,926 | 4,008,571 | |
| Shareholders assets [abstract] | ||||
| Property and equipment, net, shareholders assets | 30,000 | 30,000 | 30,000 | |
| Investments in joint ventures and associates, shareholders assets | 9,734 | 9,734 | 9,393 | |
| Goodwill | 480,000 | 480,000 | 480,000 | |
| Statutory deposit | 120,000 | 120,000 | 120,000 | |
| Time (Murabaha) deposits, shareholders assets | 18,477 | 18,477 | 83,245 | |
| Accrued investment income | 27,557 | 26,626 | 23,864 | |
| Available-for-sale investments, shareholders assets | 713,231 | 580,414 | 473,782 | |
| Due from insurance/ takaful operations assets | -600,465 | -527,888 | -575,372 | |
| Cash and cash equivalents, shareholders assets | 10,185 | 66,076 | 77,918 | |
| Other assets, shareholders assets | 8,596 | 3,104 | 15,799 | |
| Total shareholders assets | 817,315 | 806,543 | 738,629 | |
| Total assets | 4,650,391 | 3,848,469 | 4,747,200 | |
| Liabilities and equity [abstract] | ||||
| Insurance/ takaful operations liabilities and surplus (deficit) [abstract] | ||||
| Insurance/ takaful operations liabilities [abstract] | ||||
| Gross unearned premiums/ contributions | 1,466,301 | 1,023,041 | 1,564,964 | |
| Premiums/ contributions received in advance | 30,762 | 31,456 | 11,676 | |
| Unearned commission income | 45,659 | 32,914 | 128,947 | |
| Employees end of service benefits, insurance/ takaful operations liabilities | 21,006 | 24,405 | 18,569 | |
| Surplus distribution payable | 85,479 | 89,393 | 113,253 | |
| Due to related parties, insurance/ takaful operations liabilities | 443 | 751 | 0 | |
| Reinsurers/ retakaful balance payable | 287,004 | 165,531 | 541,377 | |
| Gross outstanding claims/ benefits including IBNR payable | 1,403,144 | 1,299,713 | 1,387,013 | |
| Other technical reserves | 29,119 | 27,294 | 13,402 | |
| Accrued commission payable | 137,606 | 144,715 | 105,489 | |
| Accrued expenses payable, insurance/ takaful operations liabilities | 318,136 | 191,120 | 106,270 | |
| Other liabilities, insurance/ takaful operations | 13,349 | 16,596 | 22,519 | |
| Total insurance/ takaful operations liabilities | 3,838,008 | 3,046,929 | 4,013,479 | |
| Total insurance/ takaful operations liabilities and surplus (deficit) | 3,838,008 | 3,046,929 | 4,013,479 | |
| Shareholders liabilities and equity [abstract] | ||||
| Shareholders liabilities [abstract] | ||||
| Zakat payable | 14,767 | 12,767 | 16,711 | |
| Accrued expenses payable, shareholders liabilities | 30,255 | 29,076 | 24,877 | |
| Total shareholders liabilities | 45,022 | 41,843 | 41,588 | |
| Shareholders equity [abstract] | ||||
| Equity attributable to owners of parent [abstract] | ||||
| Share capital | 800,000 | 800,000 | 800,000 | |
| Statutory reserve | 26,135 | 26,135 | 146,135 | |
| Fair value reserve on investments, shareholders equity | 39,495 | 38,636 | 3,405 | |
| Retained earnings (accumulated losses) | -92,764 | -99,569 | -252,248 | |
| Other reserves | -5,505 | -5,505 | -5,159 | |
| Total equity attributable to equity holders of company | 767,361 | 759,697 | 692,133 | |
| Total shareholders liabilities and equity | 812,383 | 801,540 | 733,721 | |
| Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity | 4,650,391 | 3,848,469 | 4,747,200 |
| [300200] Statement of insurance/ takaful operations, nature of expense |
| Start Date | 2021-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|
| End Date | 2021-03-31 | 2020-03-31 | |
| Statement of insurance/ takaful operations [abstract] | |||
| Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract] | |||
| Income from insurance/ takaful operations [abstract] | |||
| Net premiums/ contributions earned [abstract] | |||
| Net premiums/ contributions written [abstract] | |||
| Gross premiums/ contributions written | 1,028,915 | 1,260,218 | |
| Excess of loss expense | 15,260 | 14,303 | |
| Reinsurance/ retakaful premiums ceded | 222,571 | 672,312 | |
| Net premiums/ contributions written | 791,084 | 573,603 | |
| Changes in unearned premiums/ contributions | 333,310 | 177,120 | |
| Net premiums/ contributions earned | 457,774 | 396,483 | |
| Reinsurance/ retakaful commissions | 18,325 | 42,276 | |
| Total income from insurance/ takaful operations | 476,099 | 438,759 | |
| Cost and expenses [abstract] | |||
| Net claims/ benefits incurred [abstract] | |||
| Net claims/ benefits paid [abstract] | |||
| Gross claims/ benefits paid | 419,883 | 324,555 | |
| Reinsurance/ retakaful share of gross claims/ benefits paid | 143,267 | 81,625 | |
| Net claims/ benefits paid | 276,616 | 242,930 | |
| Changes in outstanding claims/ benefits including IBNR | 81,427 | 230,523 | |
| Changes in other technical reserves | 22,706 | -148,219 | |
| Net claims/ benefits incurred | 380,749 | 325,234 | |
| Policy acquisition costs | 16,342 | 21,998 | |
| General and administrative expenses, insurance/ takaful operations | 73,812 | 97,431 | |
| Other underwriting income | 408 | 660 | |
| Realised gain (loss) on held-to-maturity investments | 192 | 1,821 | |
| Other cost and expenses | 1,131 | -10,345 | |
| Total cost and expenses | 471,434 | 431,837 | |
| Surplus (deficit) for period from insurance/ takaful operations | 4,665 | 6,922 | |
| Shareholders appropriation from insurance/ takaful operations surplus (deficit) | 4,199 | 6,230 | |
| Net result for period from insurance/ takaful operations after shareholders appropriation | 466 | 692 | |
| Policyholders share of accumulated surplus, at end of period | 466 | 692 |
| [300300] Statement of shareholders operations, nature of expense |
| Start Date | 2021-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|
| End Date | 2021-03-31 | 2020-03-31 | |
| Statement of shareholders operations [abstract] | |||
| Profit (loss) [abstract] | |||
| Income (loss) from continuing operations [abstract] | |||
| Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations | 4,199 | 6,230 | |
| Revenue [abstract] | |||
| Investment income | 4,099 | 3,341 | |
| Dividend income | 1,849 | ||
| Total revenue | 5,948 | 3,341 | |
| Expenses [abstract] | |||
| General and administrative expenses, shareholders operations | 1,093 | 1,325 | |
| Total expenses | 1,093 | 1,325 | |
| Income (loss) from continuing operations before zakat and income tax | 9,054 | 8,246 | |
| Zakat expenses on continuing operations for period | 2,249 | 4,012 | |
| Profit (loss) from continuing operations | 6,805 | 4,234 | |
| Profit (loss) for the period | 6,805 | 4,234 | |
| Profit (loss), attributable to [abstract] | |||
| Profit (loss), attributable to saudi shareholders of company | 5,103.75 | 3,175.5 | |
| Profit (loss), attributable to non-saudi shareholders of company | 1,701.25 | 1,058.5 | |
| Earnings per share [abstract] | |||
| Basic earnings (loss) per share [abstract] | |||
| Basic earnings (loss) per share from discontinued operations | 0.09 | 0.05 | |
| Total basic earnings (loss) per share | 0.09 | 0.05 | |
| Weighted average number of equity shares outstanding | 80000 | 80000 |
| [300400] Statement of other comprehensive income, before tax, insurance operations |
| Start Date | 2021-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|
| End Date | 2021-03-31 | 2020-03-31 | |
| Statement of other comprehensive income, before tax [abstract] | |||
| Net result for period from insurance/ takaful operations after shareholders appropriation | 466 | 692 | |
| Total comprehensive income (loss) for period | 466 | 692 |
| [300500] Statement of other comprehensive income, before tax, shareholders operations |
| Start Date | 2021-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|
| End Date | 2021-03-31 | 2020-03-31 | |
| Statement of other comprehensive income, before tax [abstract] | |||
| Statement of comprehensive income [abstract] | |||
| Profit (loss) for the period | 6,805 | 4,234 | |
| Other comprehensive income [abstract] | |||
| Components of other comprehensive income that will be reclassified to profit or loss [abstract] | |||
| Available-for-sale financial assets [abstract] | |||
| Gains (losses) on remeasuring available-for-sale financial assets | 859 | -18,256 | |
| Total other comprehensive income (loss), available-for-sale financial assets | 859 | -18,256 | |
| Total other comprehensive income (loss), that will be reclassified to profit or loss | 859 | -18,256 | |
| Total other comprehensive income (loss) | 859 | -18,256 | |
| Total comprehensive income (loss) for period | 7,664 | -14,022 | |
| Total comprehensive income (loss) attributable to [abstract] | |||
| Total comprehensive income (loss), attributable to saudi shareholders of company | 5,748 | -10,516.5 | |
| Total comprehensive income (loss), attributable to non-saudi shareholders of company | 1,916 | -3,505.5 |
| [300600] Statement of cash flows, indirect method, insurance operations |
| Start Date | 2021-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|
| End Date | 2021-03-31 | 2020-03-31 | |
| Statement of cash flows, indirect method [abstract] | |||
| Statement of cash flows, insurance/ takaful operations [abstract] | |||
| Cash flows from (used in) operating activities, insurance/ takaful operations [abstract] | |||
| Net result for period from insurance/ takaful operations after shareholders appropriation | 466 | 692 | |
| Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation | |||
| Adjustments for depreciation, insurance/ takaful operations cash flow | 2,292 | 2,279 | |
| Adjustments for employees end of service benefits | -1,315 | -8,648 | |
| Adjustments for allowance for doubtful receivables | 4,000 | 7,000 | |
| Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation | 4,977 | 631 | |
| Changes in operating assets and liabilities [abstract] | |||
| Adjustments for decrease (increase) in premium receivables, net | -238,212 | -145,044 | |
| Adjustments for decrease (increase) in prepayments and other assets | -152,244 | -171,716 | |
| Adjustments for increase (decrease) in outstanding claims including IBNR | 103,431 | 169,203 | |
| Adjustments for increase (decrease) in reinsurers/ retakaful balance payable | 121,473 | 433,889 | |
| Adjustments for increase (decrease) in accrued expenses and other liabilities | 123,769 | 44,418 | |
| Adjustments for increase (decrease) in accrued commission income | -7,109 | -32,255 | |
| Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net | 702 | -86,898 | |
| Adjustments for decrease (increase) in deferred policy acquisition costs | -10,166 | -8,195 | |
| Adjustments for decrease (increase) in advances and other receivables | -308 | -19,011 | |
| Adjustments for decrease (increase) in unearned commission income | 12,745 | 97,786 | |
| Adjustments for movement in gross unearned premiums/ contributions | 443,260 | 579,527 | |
| Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions | -109,950 | -402,406 | |
| Adjustment for changes in other technical reserves | 1,825 | -1,492 | |
| Adjustment for changes in other reserves | -694 | -8,853 | |
| Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow | 6,122 | -1,173 | |
| Total changes in operating assets and liabilities | 294,644 | 447,780 | |
| Net cash flows from (used in) insurance/ takaful operations | 300,087 | 449,103 | |
| Other inflows (outflows) of cash classified as operating activities, insurance/ takaful operations cash flow | -6,464 | -234 | |
| Net cash flows from (used in) operating activities, insurance/ takaful operations | 293,623 | 448,869 | |
| Cash flows from (used in) investing activities, insurance/ takaful operations [abstract] | |||
| Time (Murabaha) deposits, insurance/ takaful operations cash flow | -150,000 | -164,153 | |
| Purchase of property and equipment, insurance/ takaful operations cash flow | 2,208 | 5,425 | |
| Net cash flows from (used in) investing activities, insurance/ takaful operations | -152,208 | -169,578 | |
| Cash flows from (used in) financing activities, insurance/ takaful operations [abstract] | |||
| Adjustments for increase (decrease) in due to shareholders operations | -72,577 | 31,627 | |
| Net cash flows from (used in) financing activities, insurance/ takaful operations | -72,577 | 31,627 | |
| Increase (decrease) in cash and cash equivalents before effect of exchange rate changes | 68,838 | 310,918 | |
| Net increase (decrease) in cash and cash equivalents | 68,838 | 310,918 | |
| Cash and cash equivalents at beginning of period | 272,589 | 177,359 | |
| Cash and cash equivalents at end of period | 341,427 | 488,277 |
| [300700] Statement of cash flows, indirect method, shareholders operations |
| Start Date | 2021-01-01 | 2020-01-01 | Note No. |
|---|---|---|---|
| End Date | 2021-03-31 | 2020-03-31 | |
| Statement of cash flows, indirect method [abstract] | |||
| Statement of cash flows [abstract] | |||
| Cash flows from (used in) operating activities [abstract] | |||
| Net profit (loss) for period [abstract] | |||
| Income (loss) from continuing operations before zakat and income tax | 9,054 | 8,246 | |
| Net profit (loss) for period (before zakat expenses and income tax) | 9,054 | 8,246 | |
| Adjustments to reconcile profit (loss) [abstract] | |||
| Other adjustments for non-cash items | -1 | -141 | |
| Total adjustments to reconcile profit (loss) | -1 | -141 | |
| Changes in operating assets and liabilities [abstract] | |||
| Adjustments for decrease (increase) in prepayments and other assets, shareholders assets | -5,492 | -1,056 | |
| Total changes in operating assets and liabilities | -5,492 | -1,056 | |
| Net cash flows from (used in) operations | 3,561 | 7,049 | |
| Net cash flows from (used in) operating activities | 3,561 | 7,049 | |
| Cash flows from (used in) investing activities [abstract] | |||
| Purchase of available-for-sale investments | 132,029 | 22,845 | |
| Proceeds form Murabaha/ time deposits matured during the period | 91,804 | ||
| Net cash flows from (used in) investing activities | -132,029 | 68,959 | |
| Cash flows from (used in) financing activities [abstract] | |||
| Due to reinsurance/ retakaful operations | -72,577 | 31,627 | |
| Net cash flows from (used in) financing activities | 72,577 | -31,627 | |
| Increase (decrease) in cash and cash equivalents before effect of exchange rate changes | -55,891 | 44,381 | |
| Net increase (decrease) in cash and cash equivalents | -55,891 | 44,381 | |
| Cash and cash equivalents at beginning of period | 66,076 | 33,537 | |
| Cash and cash equivalents at end of period | 10,185 | 77,918 |
| [300800] Statement of changes in equity |
| Share capital [member] | Share premium [member] | Statutory reserve [member] | General reserve [member] | Fair value reserve on investments, shareholders equity [member] | Retained earnings (accumulated losses) [member] | Treasury shares [member] | Other reserves [member] | Reserve of disposal group held for distribution/ sale [member] | Share based payments reserve [member] | Other equity interest [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total equity [member] | Note No. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Start Date | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | 2021-01-01 | 2020-01-01 | |
| End Date | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | 2021-03-31 | 2020-03-31 | |
| Statement of changes in equity [line items] | |||||||||||||||||||||||||||||
| Equity balance at beginning of period (before adjustments) | 800,000 | 800,000 | 26,135 | 146,135 | 38,636 | 21,661 | -99,569 | -256,482 | -5,505 | -5,159 | 759,697 | 706,155 | |||||||||||||||||
| Equity balance at beginning of period (after adjustments) | 800,000 | 800,000 | 26,135 | 146,135 | 38,636 | 21,661 | -99,569 | -256,482 | -5,505 | -5,159 | 759,697 | 706,155 | |||||||||||||||||
| Changes in equity [abstract] | |||||||||||||||||||||||||||||
| Comprehensive income [abstract] | |||||||||||||||||||||||||||||
| Net profit (loss) for period | 6,805 | 4,234 | 0 | 6,805 | 4,234 | ||||||||||||||||||||||||
| Other comprehensive income, net of tax | 859 | -18,256 | 0 | 0 | 859 | -18,256 | |||||||||||||||||||||||
| Total comprehensive income (loss) for period | 859 | -18,256 | 6,805 | 4,234 | 0 | 0 | 7,664 | -14,022 | |||||||||||||||||||||
| Total changes in equity | 859 | -18,256 | 6,805 | 4,234 | 0 | 0 | 7,664 | -14,022 | |||||||||||||||||||||
| Equity balance at end of period | 800,000 | 800,000 | 26,135 | 146,135 | 39,495 | 3,405 | -92,764 | -252,248 | -5,505 | -5,159 | 0 | 0 | 767,361 | 692,133 | |||||||||||||||
| [400100] Notes forming part of accounts |
| English [member] | Note No. | |
|---|---|---|
| Start Date | 2021-01-01 | |
| End Date | 2021-03-31 | |
| 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] | 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:The objectives of the Company are to transact in cooperative insurance and reinsurance business and related activities in the Kingdom of SaudiArabia. 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).Medgulf InsuranceFuturo TowerKing Saud RoadP.O. Box 2302Riyadh 11451, Saudi Arabia | |
| Disclosure of basis of preparation of financial statements [text block] | Basis of presentationThe 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. | |
| Disclosure of statement of compliance [text block] | Statement of complianceThe interim condensed financial information of the Company has been prepared in accordance with ‘International Financial Reporting Standards (IFRS) 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. | |
| Disclosure of issued IFRS not yet adopted [text block] | 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 critical accounting judgements, estimates and assumptions, general [text block] | The key assumptions concerning the future and other key sources of estimation uncertainty at the date of interim condensed statement of financial position, that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are discussed below.The ultimate liability arising from claims made under insurance contractsThe estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate and involves a significant degree of judgment. There are several sources of uncertainty that needed to be considered in estimating the liability that the Company will ultimately pay for such claims. The provision for claims incurred but not reported (IBNR) is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The liabilities are based on the best-estimate of ultimate cost of all claims incurred but not settled at a given date, whether reported or not, together with the related claims handling costs. 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.Following are the critical areas of estimation and judgments for medical and motor business for which the Company acquires services of independent actuary to determine such reserves.As a first step towards setting appropriate IBNR reserves for the medical and motor line of businesses, a runoff analysis is prepared to assess how the claims reserves determined at the previous valuation dates compare with actual developments. Results from runoff analysis are taken into consideration while setting reserves for IBNR claims. An analysis is carried out by using the following methods:ChainBornhuetter Ferguson method – this is a technique that combines actual past claims experience and any prior information or expectations that might be available concerning claims, for example expected ultimate loss ratios. Ladder method - this builds up, using historical claims payment patterns, ratios of eventual cumulative claims which have been incurred in a particular year to those which have been paid as at the end of a reporting year.Expected Loss Ratio method – this technique determines the projected amount of claims relative to earned premiums. The method is used where the insurer lacks the appropriate past claim occurrence data because of changes in product offerings, change in claims settlement processes, etc. Claims requiring court or arbitration decisions are estimated individually. Independent loss adjusters normally estimate property claims. Management reviews its provisions for claims incurred, and claims incurred but not reported, on quarterly basis.The Company is exposed to disputes with, and possibility of defaults by, its reinsurers. The Company monitors on a quarterly basis the evolution of disputes with and the strength of its reinsurers.Premium deficiency reserveEstimation of the premium deficiency for medical and motor business 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 realize in the future.Impairment of receivablesThe Company assesses receivables that are individually significant and receivables included in a group of financial assets with similar credit risk characteristics for impairment. Receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment. This assessment of impairment requires judgment. In making this judgment, the Company evaluates credit risk characteristics that consider past-due status being indicative of the ability to pay all amounts due as per contractual terms. During 2017, the Company has revisited its provisioning approach and significantly increased the level of provisioning in respect of insurance and reinsurance receivables due to increase in credit risk associated with the receivables.Goodwill impairmentImpairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Management believes that fair value less cost to sell analysis provides a higher value compared to value in use, and therefore, fair value less cost to sell analyses are used for impairment assessments. Management used a valuation expert to perform fair value less cost to sell analysis through a market based approach to test impairment. The fair value less cost to sell calculation is based on the quoted share price of the Company as of period close and subsequent events that occurred till measurement date. In arriving at the valuation under market approach, the expert also applied certain judgments and factors including analysis of price book value multiples of the comparable companies and comparable transactions. ReinsuranceThe Company accounts for its reinsurance transactions based on their understanding of the contractual terms of the reinsurance treaties. | |
| Disclosure of functional and presentation currency [text block] | 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 going concern [text block] | The Company is yet to meet its solvency margin requirement.The Board resolved at 18 December 2019 to reduce statutory reserve amounting to SAR 120 million against the accumulated losses which had been approved in Annual General Assembly meeting held on 3 June 2020 and adjusted accordingly. Further the Board of directors in their meeting held on 6 October 2020, recommended to reduce share capital by SAR 100 million and to increase share capital by SAR 350 million, the capital reduction was approved by extraordinary general assembly dated 22 April 2021, right issue is subject to the approval of the regulatory authorities and general assembly of the Company.Management has performed an assessment of its going concern assumption under different scenarios. Based on the underlying cash flow projections under such scenarios, management believes that the Company will be able to continue the business and meet its obligations as and when they fall due over the next 12 months. As a result, the financial statements have been prepared on a going concern basis. Management`s assessment is based on number of estimates and assumptions including significant recoveries from major policyholders, reinsurers and related parties and other cost saving measures.SAMA had previously issued a letter number 391000054425 dated 29 January 2018, preventing the Company from writing any new policies and renewing the existing policies since the Company did not meet the vency margin requirements as at 31 December 2017. SAMA, in its aforesaid letter, also instructed the Company to increase its share capital before 30 July 2018 to address the issue of its deteriorating 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’s future business activities. Such right issue was subjected to approval of the regulatory authorities and general assembly of the Company. SAMA later issued a letter dated 15 April 2018 allowing the Company to write new policies and renewing the existing policies starting from 17 April 2018 subject to certain conditions. On 17 October 2018 the Company successfully raised capital of SAR 400 million through issuance of right shares. |