| 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] | 1. GeneralAllianz Saudi Fransi Cooperative Insurance Company (a Joint Stock Company incorporated in the Kingdom of Saudi Arabia), the “Company”, was formed pursuant to Royal Decree number 60/M dated 18 Ramadan 1427H (corresponding to 11 October 2006). The Company operates under Commercial Registration number 1010235601 dated 26 Jumada Thani 1428H corresponding to 12 July 2007. The Company operates through its eight branches in the Kingdom of Saudi Arabia. The registered address of the Company's head office is as follows:Allianz Saudi Fransi Cooperative Insurance CompanyAl Safwa Commercial Building, Khurais RoadP.O. Box 3540Riyadh 11481, Kingdom of Saudi Arabia.The Company’s ultimate parent is Allianz SE, a European financial services company headquartered in Munich, Germany.The purpose of the Company is to transact cooperative insurance operations and all related activities. Its principal lines of business include Medical, Protection and saving, Motor, Engineering, Property and Other general insurance.On 31 July 2003, corresponding to 2 Jumada II 1424H, the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). During March 2008, the Saudi Arabian Monetary Authority (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia.On 1 January 2016, the Company’s management approved the distribution of the surplus from insurance operations in accordance with the Implementing Regulations issued by SAMA, whereby the shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full.Seasonality of operationsThe Company operates in an industry where significant seasonal or cyclical variations in operating income are experienced during the financial year. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | . Basis of preparation(a) Basis of presentationThe interim condensed financial statements of the Company as at and for the period ended 31 March 2020 has been prepared in accordance with International Accounting Standard 34 – “Interim Financial Reporting” (“IAS 34”) that is endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Certified Public Accountants (“SOCPA”).The financial statements of the Company as at and for the period and year ended 31 March 2019 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 issued the instruction 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”). 2. Basis of preparation (continued)(a) Basis of presentation (continued)Accordingly, the Company changed its accounting treatment for zakat and income tax by retrospectively adjusting the impact in line with International Accounting Standard 8, Accounting Policies, Changes in Accounting Estimates and Errors (as disclosed in note 3 and the effects of this change are disclosed in note 15 to the interim condensed financial statements).The interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available-for-sale investments, financial assets at fair value through statement of income (unit linked investments) and recording of end of service benefits at present value under actuarial method. The Company’s interim statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: available for sale investments, property and equipment, statutory deposit, accrued income on statutory deposit , end-of-service obligations , deffered tax assets , right of use assets and long term portion of lease liabilities. All other financial statement line items would generally be classified as current.The Company’s management has made an assessment of its ability to continue as a going concern and is satisfied that it will be able to continue as a going concern in the foreseeable future. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and prepares the financial statements accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the interim condensed financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations. Until 31 December 2017, this information was shown in the main statements. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations. In preparing the Company’s financial statements in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders operations are uniform for similar transactions and events in similar circumstances.The inclusion of separate information of the insurance operations with the financial statements of the Company in the interim statement of financial position, the statements of income, comprehensive income and cash flows as well as certain relevant notes to the financial statements represents additional supplementary information as required by the implementing regulations (Note 18).The interim condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements as at and for the year ended December 31, 2019. These interim condensed financial statements are expressed in Saudi Arabian Riyals (SR). 2. Basis of preparation (continued)(b) Critical accounting judgments, estimates and assumptionsThe preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.In preparing these interim condensed financial statements, the significant judgments made by the management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2019. Further, the Company has considered the following: On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews. In response to the spread of the Covid-19 virus in the GCC and other territories where the Company operates and its consequential disruption to the social and economic activities in those markets, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure: - the health and safety of its employees and the wider community where it is operating- the continuity of its business throughout the Kingdom is protected and kept intact. Also refer subsequent event Note 20 in relation to SAMA Circular 189 issued on 8 May 2020 in response to the Covid-19 pandemic.Medical technical reservesNotwithstanding these challenges, the Company’s management believes that the technical reserves for medical line of business remain largely unaffected as the insurance industry is facilitated by the Saudi Arabian Government initiative of bearing all costs associated with Covid-19 pandemic, which include testing and treatment cost. Moreover, there is a general decrease in trend in medical claims which are of routine nature. Based on these factors, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the three months period ended 31 March 2020. The Company’s management continues to monitor the situation closely.Financial assetsThe Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired. These include factors such as, significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities classified under available-for-sale, the Company has performed an assessment to determine whether there is a significant decline in the fair value of financial assets below their cost. Based on these assessments, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the three months period ended 31 March 2020. The Company’s management continues to monitor the situation closely. | 2 |
| Disclosure of new standards and amendments in standards [text block] | 3. Significant accounting policiesThe accounting policies, estimates and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2019.3. Significant accounting policies (continued)Standards issued but not yet effectiveThe following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s interim condensed financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Further, the Company has chosen not to early adopt the amendments and revisions to the IFRS, which have been published and are mandatory for compliance for the Company with effect from future dates.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 2021.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 ContractsIFRS 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 statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. Change in accounting policy in relation to accounting for zakat and income taxAs mentioned in note 2(a), the basis of preparation has been changed for the period ended 31 March 2019 as a result of the issuance of latest instructions from SAMA dated 17 July 2019. Previously, zakat and income tax were recognized in the statement of changes in equity as per the SAMA circular no 381000074519 dated 11 April 2017. With the latest instructions issued by SAMA dated 17 July 2019, the zakat and income tax has been recognized in the statement of income. The Company has accounted for this change in the accounting for zakat and income tax retrospectively and the effects of the above changes are disclosed in note 15 to the interim condensed financial statements. The change has resulted in reduction of reported income of the Company for the three months period ended 31 March 2019 by SR 2.3 million. The change has had no impact on the interim statement of cash flows for the period ended 31 March 2019.Income TaxThe income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.3. Significant accounting policies (continued)Income Tax (continued)The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the country where the company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.Adjustments arising from the final income tax assessments are recorded in the period in which such assessments are made. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable tax rate adjusted for the changes in deferred tax assets and liabilities attributable to the temporary differences and to the unused tax losses. IFRIC Interpretation 23 Uncertainty over Income Tax Treatment The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: Whether an entity considers uncertain tax treatments separately The assumptions an entity makes about the examination of tax treatments by taxation authorities How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates How an entity considers changes in facts and circumstances An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. Deferred income tax:Deferred income tax is recognised using the liability method on temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for the taxation purposes. The amount of deferred tax recognised is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and the tax credits can be utilized. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realized. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.Current and deferred tax is recognised in the interim statement of income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity.ZakatThe Company is subject to Zakat in accordance with the regulations of the General Authority of Zakat and Tax (“GAZT”). Zakat expense is charged to the interim statement of income. Zakat is not accounted for as income tax and as such no deferred tax is calculated relating to zakat | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of reinsurers/ retakaful share of unearned premium/ contributions, net [text block] | Movement in unearned premiumsMovement in unearned premiums comprise of the following: Three months period ended March 31, 2020(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 408,698,330 (152,377,585) 256,320,745 Premium written during the period 205,625,130 *(76,508,070) 129,117,060 Premium earned during the period (252,338,710) 90,122,275 (162,216,435)Balance as at the end of the period 361,984,750 (138,763,380) 223,221,370 *This amount includes SR 70,994,338 for reinsurance premium ceded abroad, SR 725,753 for reinsurance premium ceded locally and SR 4,787,979 for excess of loss expenses. Three months period ended March 31, 2019(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 390,422,335 (148,911,143) 241,511,192Premium written during the period 358,921,969 *(70,202,078) 288,719,891 Premium earned during the period (227,040,177) 72,509,231 (154,530,946)Balance as at the end of the period 522,304,127 (146,603,990) 375,700,137*This amount includes SR 67,171,659 for reinsurance premium ceded abroad, SR 1,683,396 for reinsurance premium ceded locally and SR 1,347,023 for excess of loss expenses. 10. Technical reserves (continued)10.2 Movement in unearned premiums (continued) Year ended December 31, 2019(Audited) Gross Reinsurance NetBalance as at the beginning of the year 390,422,335 (148,911,143) 241,511,192 Premium written during the year 1,011,666,001 *(312,609,731) 699,056,270 Premium earned during the year (993,390,006) 309,143,289 (684,246,717)Balance as at the end of the year 408,698,330 (152,377,585) 256,320,745*This amount includes SR 302,757,400 for reinsurance premium ceded abroad, SR 5,811,262 for reinsurance premium ceded locally and SR 4,041,069 for excess of loss expenses. | 10.2 |
| Disclosure of investments in available-for-sale investments [text block] | Available for sale investments8.1. Investments are classified as followsInsurance operations: Domestic International Total March 31, 2020(Unaudited)SR December 31, 2019(Audited)SR March 31, 2020(Unaudited)SR December 31, 2019(Audited)SR March 31, 2020(Unaudited)SR December 31, 2019(Audited)SRDebt instruments 124,319,514 128,180,982 4,862,813 5,143,123 129,182,327 133,324,105 Equities and mutual funds 7,121,823 7,991,984 - - 7,121,823 7,991,984 131,441,337 136,172,966 4,862,813 5,143,123 136,304,150 141,316,089 Shareholders’ operations: Domestic International Total March 31, 2020(Unaudited)SR December 31, 2019(Audited)SR March 31, 2020(Unaudited)SR December 31, 2019(Audited)SR March 31, 2020(Unaudited)SR December 31, 2019(Audited)SRDebt instruments 205,841,489 211,718,827 23,687,118 23,792,384 229,528,607 235,511,211 Equities and mutual funds 3,223,078 3,223,078 4,905,442 5,429,122 8,128,520 8,652,200 209,064,567 214,941,905 28,592,560 29,221,506 237,657,127 244,163,411 Total Domestic International Total March 31, 2020(Unaudited)SR December 31, 2019(Audited)SR March 31, 2020(Unaudited)SR December 31, 2019(Audited)SR March 31, 2020(Unaudited)SR December 31, 2019(Audited)SRDebt instrument 330,161,003 339,899,809 28,549,931 28,935,507 358,710,934 368,835,316 Equities and mutual funds 10,344,901 11,215,062 4,905,442 5,429,122 15,250,343 16,644,184 340,505,904 351,114,871 33,455,373 34,364,629 373,961,277 385,479,500 8.2. Movement in available for sale investment balance is as followsInsurance operations: Quoted securities Unquoted securities Total SRAs at 1 January 2019 100,623,986 14,582,533 115,206,519Purchases 22,491,134 - 22,491,134Disposals/maturity - (5,000,000) (5,000,000)Amortization (251,970) (12,645) (264,615)Unrealized gain on fair value 8,021,169 861,882 8,883,051 Transfer from unquoted to quoted 10,431,770 (10,431,770) -As at 31 December 2019 141,316,089 - 141,316,089 As of 1 January 2020 141,316,089 - 141,316,089 Amortization (64,204) - (64,204)Unrealized loss on fair value (4,947,735) - (4,947,735)As at 31 March 2020 136,304,150 - 136,304,150 The cumulative unrealized loss in fair value of available for sale investments including deferred tax impact as mentioned in Notes 9 and 15 as at 31 March 2020 amounts to SR 1,004,642 (31 December 2019: gain of SR 3,943,093).8. Available for sale investments (continued)8.2. Movement in available for sale investment balance is as followsShareholders’ operations: Quoted securities Unquoted securities Total SRAs at 1 January 2019 130,639,760 85,532,745 216,172,505Purchases 30,652,614 - 30,652,614Disposals/maturity (1,687,500) (17,000,000) (18,687,500)Amortization (329,390) (14,356) (343,746)Unrealized gain on fair value 10,475,364 5,894,174 16,369,538 Transfer from unquoted to quoted 35,979,800 (35,979,800) -As at 31 December 2019 205,730,648 38,432,763 244,163,411 As of 1 January 2020 205,730,648 38,432,763 244,163,411 Amortization (102,463) - (102,463) Unrealized loss on fair value (5,878,197) (525,624) (6,403,821)As at 31 March 2020 199,749,988 37,907,139 237,657,127 The cumulative unrealized gain in fair value of available for sale investments including deferred tax impact as mentioned in Notes 9 and 15 as at 31 March 2020 amounts to SR 3,056,927 (31 December 2019: gain of SR 8,255,508 ). | 8 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | . Reinsurers’ balance receivable, netSR March 31, 2020(Unaudited) December 31, 2019(Audited) Receivables from reinsurers 78,525,725 75,563,011 Provision for doubtful reinsurers receivables (5,593,752) (5,027,110)Reinsurers receivable, net 72,931,973 70,535,901 | 6 |
| Disclosure of prepayments and other assets [text block] | Right-of-use assetsThe following table presents the right-of-use assets for the Company:SR March 31, 2020(Unaudited) December 31, 2019(Audited) Balance at the beginning of the period 6,776,228 9,849,530Amortization (781,344) (3,073,302)Balance at the end of the period 5,994,884 6,776,228 | 7 |
| Disclosure of other receivables, net [text block] | Premiums receivable, netPremiums receivable comprise amounts due from the following:SR March 31, 2020(Unaudited) December 31, 2019(Audited) Policyholders 152,986,897 169,764,645Brokers and agents 331,846,245 288,920,109 Related parties (Note 14) 15,836,377 16,988,438 500,669,519 475,673,192Provision for doubtful receivable (54,520,273) (55,086,915) Premiums receivable, net 446,149,246 420,586,277 | 5 |
| Disclosure of cash and cash equivalents [text block] | Cash and cash equivalentsCash and cash equivalents included in the interim statement of cash flows comprise the following: Insurance operationsSR March 31, 2020(Unaudited) December 31, 2019(Audited)Bank balances and cash 75,319,828 67,046,426Deposits maturing within 3 months from the acquisition date - 20,000,000 75,319,828 87,046,426 Shareholders’ operations March 30, 2020(Unaudited) December 31, 2019(Audited)Bank balances and cash 29,690,307 61,819,191Total cash and cash equivalents 105,010,135 148,865,617 | 4 |
| Disclosure of gross outstanding claims/ benefits [text block] | 10.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:SR March 31, 2020(Unaudited) December 31, 2019(Audited)Gross outstanding claims 561,081,826 569,506,181 Less: Realizable value of salvage and subrogation (40,937,840) (36,439,428) 520,143,986 533,066,753Claims incurred but not reported 112,154,183 87,780,442Premium deficiency reserves 9,556,567 11,731,333 Additional premium reserves 2,342,481 1,369,320 Unit linked liabilities 514,503,109 535,415,117 1,158,700,326 1,169,362,965Less: - Reinsurers’ share of outstanding claims (433,721,240) (432,328,207)- Reinsurers’ share of claims incurred but not reported (58,955,957) (43,298,714) (492,677,197) (475,626,921)Net outstanding claims and reserves 666,023,129 693,736,044 | 10.1 |
| Disclosure of zakat [text block] | Zakat and income taxA summary of the Company’s share capital and percentages of ownership are as follows: March 31, 2020 December 31, 2019 SR % SR %Saudi and GCC Shareholders 93,820,000 46.91% 93,820,000 46.91%Non-Saudi Shareholders 106,180,000 53.09% 106,180,000 53.09% 200,000,000 100% 200,000,000 100% As at 31 March 2020 and 31 December 2019, the authorized, issued and fully paid-in share capital of the Company consists of 20 million shares of SR 10 each. The Company’s zakat and income tax calculations and corresponding accruals and payments of zakat and income tax are based on the above ownership percentages in accordance with the relevant provisions of the Saudi Arabian zakat and income tax regulations.Change in accounting treatment in relation to zakat and income taxThe change in the accounting treatment for zakat and income tax (as explained in note 3) has the following impact on the line items of the interim statements of income, statement of financial position and changes in equity. For the three months period ended March 31, 2019: SRFinancial statement impacted Account As previously stated for three months ended March 31, 2019 Effect of restatement As restated as at and for three months ended March 31, 2019Interim statement of income Zakat charge for the period - (1,090,253) (1,090,253)Interim statement of income Income tax charge for the period, net - (1,259,462) (1,259,462)Interim statement of income Basic and diluted earning per share 0.56 (0.12) 0.44Interim statement of changes in equity Net income for the period attributable to the shareholders 11,220,749 (2,349,715) 8,871,034Interim statement of changes in equity Zakat charge for the period (1,090,253) 1,090,253 -Interim statement of changes in equity Income tax charge for the period (1,310,023) 1,310,023 -Interim statement of changes in equity Deferred tax relating to change in fair value - (983,034) (983,034)Interim statement of comprehensive income Deferred tax relating to change in fair value - (983,034) (983,034)As at 1 January 2019: SRFinancial statement impacted Account As previously stated as at January 01, 2019 Effect of restatement As restated as at January 01, 2019 Statement of changes in equity Impact of adopting IAS 12 - 9,350,189 9,350,18915. Zakat and income tax (continued)The zakat and income tax provision as at the period / year end is as follows:SR March 31, 2020(Unaudited) December 31, 2019(Audited) Provision for zakat 26,287,160 24,451,612Provision for income tax 3,058,640 3,980,577 29,345,800 28,432,189 The zakat and income tax charge for the three months period is as follows:SR March 31, 2020 (Unaudited) March 31, 2019 (Unaudited) Zakat for the three months period 913,611 1,090,253Income tax for the three months period - Current tax - 1,310,023- Deferred tax (236,643) (50,561) 676,968 2,349,715 Status of assessmentsThe Company has filed zakat and income tax declarations for the years ended 31 December 2008 to 31 December 2018, the final zakat and tax assessments for the years 2008 to 2013 has been issued by GAZT and the assessments for the years 2014 to 2018 are still outstanding. The Company has filed appeals against the General Authority for Zakat and Tax (“GAZT”) assessments of additional zakat arising from disallowance of long-term investments and the statutory deposits from zakat base for the years 2010 to 2013. In result of the final assessments for the years 2008 to 2013 GAZT has requested additional zakat and income tax amounting to SR 18.9 million. The Company has accounted for the additional zakat and income tax provision in the financial statements, however has not paid the same. The finalisation of the assessment is not expected to have material impact on the financial statements. The Company is in the process of filing zakat and income tax returns for the year ended 31 December 2019 with GAZT. | 15 |
| Disclosure of deferred tax [text block] | Deferred tax assets, netSR March 31, 2020(Unaudited) December 31, 2019(Audited) Deferred tax assets, net 8,403,390 6,961,507 Deferred tax movement March 31, 2020(Unaudited) 31 December 2019(Audited)At the beginning of the period (note 15) 6,961,507 9,350,189Deferred tax income - statement of income 236,643 292,487Deferred tax (expense) / income - statement of comprehensive income 1,205,240 (2,681,169)At the end of the period 8,403,390 6,961,507 This deferred tax arises on end of service obligations, provision against premium receivable, provision against reinsurance receivable, unabsorbed tax losses, fair value reserve on investments and property and equipment. | 9 |
| Disclosure of classes of share capital [text block] | Share capitalThe authorised and issued share capital of the Company is SR 200 million divided into 20 million shares of SR 10 each (31 December 2019: SR 200 million divided into 20 million shares of SR 10 each). The founding shareholders of the Company have subscribed and paid for 13 million shares with a nominal value of SR 10 each, which represents 65% of the shares of the Company's capital and the remaining 7 million shares with a nominal value of SR 10 each have been subscribed by general public.On 25th October 2017, Allianz Europe BV (a 100% subsidiary of Allianz SE) entered in a legally binding agreement with Banque Saudi Fransi (BSF) to purchase from BSF 57% of its shareholding in the Company, representing 18.5% of the share capital of the Company. This agreement received SAMA’s no-objection and was completed by Allianz Europe BV on 29 March 2018. Accordingly, the Group holds 51.0% of the share capital of Allianz Saudi Fransi Cooperative Insurance Company (Allianz Europe BV holds 18.5%, Allianz France International holds 16.25% and Allianz Mena Holding Bermuda holds 16.25%) and BSF holds 14.0% of the share capital.Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax.16. Share capital (continued) March 31, 2020 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 3.70 Million 37 MillionAllianz France International 3.25 Million 32.5 MillionAllianz Mena Holding Bermuda 3.25 Million 32.5 MillionBanque Saudi Fransi 2.80 Million 28 MillionPublic 7.00 Million 70 Million 20 Million 200 Million December 31, 2019 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 3.70 Million 37 MillionAllianz France International 3.25 Million 32.5 MillionAllianz Mena Holding Bermuda 3.25 Million 32.5 MillionBanque Saudi Fransi 2.80 Million 28 MillionPublic 7.00 Million 70 Million 20 Million 200 MillionThe Board of Directors in its meeting on 4 June 2018 recommended to increase the Company’s share capital through rights issue with a total value of SR 400,000,000, subject to the approval of the regulatory authorities and the Extraordinary General Assembly. The Company has received SAMA non-objection through letter number 89/18551 dated 22/03/1440H corresponding to 30 November 2018 on the Company's proposed capital increase from SR 200,000,000 to SR 600,000,000 through rights issue. The Company has received the approval from the Capital Market Authority (“CMA”) on 9/7/1441H corresponding to 4 March 2020. | 16 |
| Disclosure of related party transactions [text block] | Transactions and balances with related parties and other shareholdersRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Transactions for the three months period ended Balance as at March 31,2020 March 31,2019 March 31, 2020 December 31, 2019 SR SR SR SR Entities controlled, jointly controlled or significantly influenced by related parties Major shareholders - Insurance premium ceded 52,805,482 43,677,260 - Reinsurers’ share of claims paid 23,099,669 16,547,795 - Commission income 1,511,693 2,591,693 - Third party administrator expenses 822,647 2,778,311 - Accrued third party administrator 4,408,718 6,436,659- Reinsurance balance payable, net 100,725,399 84,824,961- Investments in equity of Saudi NextCare 800,000 800,000 - Other Shareholders (other than related party - Insurance premium written 6,334,794 107,312,883 - Claims paid 8,110,723 10,823,923 - Commission expense 360,762 593,425 - Premium receivable, net 15,836,377 16,988,438- Outstanding claims 34,327,303 33,834,830- Cash and cash equivalents 97,969,903 104,403,157 Unit linked investments managed by shareholders (including receivable for unit linked investments) 516,712,914 545,163,723Related parties include Allianz SNA, Allianz Mena Holding Bermuda, Allianz Risk Transfer A.G. Dubai, Allianz France, Allianz Global Corporate and Specialty AG, Allianz World Wide Care, Allianz Global risks U.S Insurance, Allianz Belgium, Euler Hermes, Allianz SE Zurich, Allianz Insurance Hong Kong, Allianz Global Risks Netherland, Allianz Insurance Singapore, Allianz Insurance New Zealand and Saudi NextCare, Other shareholders include Banque Saudi Fransi and its Group Companies which are not the related parties.Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly and comprise top management executives including the Chief Executive Officer, and the Chief Financial Officer of the Company. The compensation of key management personnel during the period is as follows:March 31, 2020 BOD members Top executives SR SRSalaries and compensation - 2,780,256 Allowances 87,000 4,500Annual remuneration 255,000 30,000End of service obligations - 182,029 342,000 2,996,78414. Transactions and balances with related parties and other shareholders (continued)March 31, 2019 BOD members Top executives SR SRSalaries and compensation - 2,233,245Allowances 253,500 -Annual remuneration 924,000 -End of service obligations - 157,996 1,177,500 2,391,241 | 14 |
| Disclosure of entity's operating segments [text block] | Operating Segments Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess their performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the interim statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2019.Segment assets do not include cash and cash equivalents, prepaid expenses , right of use assets and other assets, available for sale investments, reinsurance balances, property and equipment, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include accrued and other liabilities, surplus distribution payable, reinsurers’ balances payable, premium deficiency reserve, additional premium reserve, end-of-service obligations, zakat and income tax and accrued income payable to SAMA. Accordingly, they are included in unallocated liabilities.The unallocated assets and unallocated liabilities are reported to chief operating decision maker on the cumulative basis and not reported under the related segments.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities as at March 31, 2020 and December 31, 2019, its total revenues, expenses, and net income for the three months then ended, are as follows:Motor : Motor Medical : MedicalProperty and casualty : Fire, burglary, money, construction, liability and marineProtection and saving : Group retirement and individual protection and saving 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 31 March 2020 (Unaudited) Assets Premiums receivable, gross 207,080,359 123,823,968 145,389,816 24,375,376 500,669,519 - 500,669,519 Provision for doubtful debts (54,520,273) - (54,520,273)Reinsurers’ share of outstanding claims 5,132,750 16,533,230 405,527,750 6,527,510 433,721,240 - 433,721,240 Reinsurers’ share of claims incurred but not reported (48,178) 12,168,883 42,357,101 4,478,151 58,955,957 - 58,955,957 Reinsurers’ share of unearned premiums 183,376 47,391,599 84,322,757 6,865,648 138,763,380 - 138,763,380 Deferred policy acquisition costs 13,143,282 6,108,521 7,462,848 (2,090,782) 24,623,869 - 24,623,869 Financial assets at fair value through statement of income (unit linked investments) - - - 516,712,914 516,712,914 - 516,712,914 Unallocated assets 324,020,105 337,335,508 661,355,613 Total assets 2,280,282,219 Liabilities and Equity Outstanding claims 67,930,592 26,939,081 415,609,607 9,664,706 520,143,986 - 520,143,986 Claims incurred but not reported 39,534,246 21,237,986 45,433,634 5,948,317 112,154,183 - 112,154,183 Unearned premium 145,804,799 89,963,252 116,182,674 10,034,025 361,984,750 - 361,984,750 Unearned reinsurance commission 11,929 - 5,578,058 286,989 5,876,976 - 5,876,976 Unit linked liabilities - - - 514,503,109 514,503,109 - 514,503,109 Unallocated liabilities 425,459,861 31,446,513 456,906,374 Equity 2,823,846 305,888,995 308,712,841 Total liabilities and equity 2,280,282,219 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the three months period ended 31 March 2020 (Unaudited) Gross written premiums – retail 7,322,951 - 256,853 24,235,888 31,815,692 - 31,815,692 Gross written premiums – corporate 50,590,816 55,760,265 62,910,460 3,355,062 172,616,603 - 172,616,603 Gross written premiums – very small entities - 17,423 - - 17,423 - 17,423Gross written premiums – small entities - 559,301 - - 559,301 - 559,301Gross written premiums – medium entities - 616,111 - - 616,111 - 616,111Reinsurance premiums ceded (30,721) (30,162,979) (37,241,355) (4,285,036) (71,720,091) - (71,720,091)Excess of loss expenses (1,067,770) - (3,720,209) - (4,787,979) - (4,787,979)Fee income from unit linked investments - - - 298,340 298,340 - 298,340 Net written premiums 56,815,277 26,790,121 22,205,749 23,604,253 129,415,400 - 129,415,400 Changes in unearned premiums, net 48,839,370 (3,730,134) (13,259,875) 1,250,014 33,099,375 - 33,099,375 Net premiums earned 105,654,651 23,059,986 8,945,872 24,854,266 162,514,775 - 162,514,775 Reinsurance commissions 6,245 - 2,777,683 325,121 3,109,049 - 3,109,049 Net claims and other benefits paid (102,115,256) (13,013,533) (1,269,342) (26,720,291) (143,118,422) - (143,118,422)Changes in outstanding claims, net 12,949,672 143,866 1,196,177 26,085 14,315,800 - 14,315,800 Changes in premium deficiency reserve 835,228 788,614 - 550,924 2,174,766 - 2,174,766 Changes in additional premium reserve - - (973,161) - (973,161) - (973,161)Changes in claims incurred but not reported, net (7,565,653) (1,151,321) (554,083) 554,559 (8,716,498) - (8,716,498)Change in unit linked liabilities - - - 20,912,008 20,912,008 - 20,912,008 Unrealized loss on unit linked investments - - - (11,768,830) (11,768,830) - (11,768,830)Policy acquisition costs (9,073,414) (2,810,387) (3,725,217) (2,305,638) (17,914,656) - (17,914,656)Inspection and supervision fees (1,597,657) - (1,597,657)Net underwriting income 18,937,174 - 18,937,174 Provision for doubtful debts - - - General and administrative expenses (36,681,451) (253,165) (36,934,616)Investment income 1,020,923 1,857,239 2,878,162 Other income 149,017 - 149,017 Net loss for the period before attribution and zakat and income tax (14,970,263) 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 31 December 2019 (Audited) Assets Premiums receivable, gross 283,683,135 104,490,425 62,145,925 25,353,707 475,673,192 - 475,673,192 Provision for doubtful debts (55,086,915) - (55,086,915)Reinsurers’ share of outstanding claims 5,745,932 16,649,433 404,394,245 5,538,597 432,328,207 - 432,328,207 Reinsurers’ share of claims incurred but not reported (69,598) 7,921,410 31,056,299 4,390,603 43,298,714 - 43,298,714 Reinsurers’ share of unearned premiums 225,976 43,484,703 98,990,010 9,676,896 152,377,585 - 152,377,585 Deferred policy acquisition costs 16,732,264 4,574,957 6,167,728 (555,399) 26,919,550 - 26,919,550 Financial assets at fair value through statement of income (unit linked investments) - - - 538,113,858 538,113,858 - 538,113,858 Unallocated assets 363,516,850 357,096,182 720,613,032Total assets 2,334,237,223 Liabilities and Equity Outstanding claims 81,493,446 27,199,150 415,672,279 8,701,878 533,066,753 - 533,066,753 Claims incurred but not reported 31,947,173 15,839,192 33,578,749 6,415,328 87,780,442 - 87,780,442 Unearned premium 194,686,769 82,326,222 117,590,052 14,095,287 408,698,330 - 408,698,330 Unearned reinsurance commission 16,177 - 6,833,437 498,159 7,347,773 - 7,347,773 Unit linked liabilities - - - 535,415,117 535,415,117 - 535,415,117 Unallocated liabilities 397,061,045 30,361,375 427,422,420Equity 7,771,581 326,734,807 334,506,388Total liabilities and equity 2,334,237,22313. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the three months period ended 31 March 2019 (Unaudited) Gross written premiums – retail 10,719,642 - 440,372 23,704,426 34,864,440 - 34,864,440 Gross written premiums – corporate 221,360,222 44,503,797 55,168,245 2,618,130 323,650,394 - 323,650,394 Gross written premiums – very small entities - 12,589 - - 12,589 - 12,589Gross written premiums – small entities - 325,110 - - 325,110 - 325,110Gross written premiums – medium entities - 69,436 - - 69,436 - 69,436Reinsurance premiums ceded - (26,174,924) (40,641,607) (2,038,524) (68,855,055) - (68,855,055)Excess of loss expenses (1,133,686) - (213,337) - (1,347,023) - (1,347,023)Fee income from unit linked investments - - - 289,730 289,730 - 289,730 Net written premiums 230,946,178 18,736,008 14,753,673 24,573,762 289,009,621 - 289,009,621Changes in unearned premiums, net (128,904,187) (5,024,463) (1,143,650) 883,355 (134,188,945) - (134,188,945)Net premiums earned 102,041,991 13,711,545 13,610,023 25,457,117 154,820,676 - 154,820,676Reinsurance commissions 5,261 - 3,333,658 129,885 3,468,804 - 3,468,804Net claims and other benefits paid (80,143,092) (11,768,356) (2,264,802) (34,586,346) (128,762,596) - (128,762,596)Changes in outstanding claims, net (2,648,198) 611,418 1,213,481 181,004 (642,295) - (642,295)Changes in premium deficiency reserve - (400,422) - (344,117) (744,539) - (744,539)Changes in additional premium reserve - - (138,311) - (138,311) - (138,311)Changes in claims incurred but not reported, net 11,626,564 (81,372) 619,959 272,097 12,437,248 - 12,437,248 Unrealized loss on unit linked investments - - - 7,134,819 7,134,819 - 7,134,819 Change in unit linked liabilities - - - 7,690,849 7,690,849 - 7,690,849Policy acquisition costs (9,169,503) (2,473,753) (3,970,259) (581,385) (16,194,900) - (16,194,900)Inspection and supervision fees (2,317,185) - (2,317,185)Net underwriting income 36,752,570 - 36,752,570Provision for doubtful debts 642,106 - 642,106General and administrative expenses (28,168,664) (212,620) (28,381,284)Investment income 937,228 1,747,240 2,684,468 Other income 599,126 - 599,126 Net income for the period before attribution and zakat and income tax 12,296,986 | 13 |
| Disclosure of capital management [text block] | Risk ManagementCapital Management\Objectives are set by the Company to maintain stable capital ratios in order to support its business objectives and maximise shareholders’ value. The Company manages its capital requirements by assessing shortfalls between reported and required capital levels on a regular basis. Adjustments to current capital levels are made in light of changes in market conditions and risk characteristics of the Company’s activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue shares. The operations of the Company are subject to local regulatory requirements within the jurisdiction where it is incorporated. Such regulations not only prescribe approval and monitoring of activities but also impose certain restrictive provisions e.g. capital adequacy to minimize the risk of default and insolvency on the part of the insurance companies and to enable them to meet unforeseen liabilities as these arise. The Company maintains its capital as per guidelines laid out by SAMA in Article 66 table 3 and 4 of the Implementing Insurance Regulations detailing the solvency margin required to be maintained. According to the said Article, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations: - Minimum Capital Requirement of SR 200 million - Premium Solvency Margin - Claims Solvency Margin 17. Risk Management (continued)Capital Management (continued)The Company’s management, through various scenario analysis as required by the regulator, has assessed the potential of the Covid-19 pandemic by performing stress testing for various variables like: gross premium growth, increase in employee cost, YTD loss ratio, outstanding premium provisions etc. and the related impact on the revenue, profitability, loss ratio and solvency ratio. The Company’s management has concluded that based on the stress testing performed the solvency margin of the Company has not been reduced below the minimum required margins. As with any forecasts, the projections and likelihoods of occurrence are underpinned by significant judgements and uncertainties and, therefore, the actual outcomes may be different to those projected. As the situation is fluid and rapidly evolving, the Company will continue to reassess its position and the related impact on a regular basis.The Company has fully complied with the externally imposed capital requirements during the reported financial year.Credit risk managementThe Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by 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 the following sectors being impacted significantly by the Covid-19 pandemic and lower oil prices: Foods Airlines Freight companies Hotels Retail Construction Entertainment TourismLiquidity risk managementThe Company is aware of the need to keep a close focus on liquidity management during this period and has enhanced its monitoring of current liquidity needs as well as the pandemic in its entirety. The Company regularly reviews and updates the liquidity forecast based on the individual liquidity balance as well as the continued development of external economic factors. | 17 |
| Disclosure of commitments and contingencies, general [text block] | Contingencies and commitments a) The Company’s commitments and contingencies are as follows:SR March 31, 2020(Unaudited) December 31, 2019(Audited)Letters of guarantee 15,940,000 15,940,000b) 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 interim financial position and results as at and for the period ended March 31, 2020 . There was no change in the status of legal proceedings as disclosed at 31 December 2019. | 11 |
| Disclosure of fair value of financial assets and liabilities [text block] | . Fair values of financial instrumentsFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantages accessible market for the asset or liabilityThe fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed financial statements.Determination of fair value and fair value hierarchyThe 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; andLevel 3: valuation techniques for which any significant input is not based on observable market data.a. Carrying amounts and fair valueThe following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy for financial instruments measured at fair value. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation to fair value12. Fair values of financial instruments (continued)12.1 Insurance operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 March 2020 Unit linked investments 516,712,914 516,712,914 516,712,914 Available for sale investments measured at fair value Bonds and sukuks 129,182,327 129,182,327 - - 129,182,327 Mutual funds 4,447,428 4,447,428 - - 4,447,428 Equities 2,674,395 2,674,395 - - 2,674,395 Unit linked liabilities (514,503,109) (514,503,109) - - (514,503,109) 138,513,955 138,513,955 - - 138,513,955 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2019 Unit linked investments 538,113,858 538,113,858 - - 538,113,858 Available for sale investments measured at fair value Bonds and Sukuks 133,324,105 133,324,105 - - 133,324,105 Mutual Funds 4,865,203 4,865,203 - - 4,865,203 Equities 3,126,781 3,126,781 - - 3,126,781 Unit linked liabilities (535,415,117) (535,415,117) - - (535,415,117) 144,014,830 144,014,830 - - 144,014,83012.2 Shareholders’ operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 March 2020 Available for sale investments measured at fair value Bonds and sukuks 229,528,607 194,844,546 - 34,684,061 229,528,607 Mutual funds 4,905,442 4,905,442 - - 4,905,442 Equities 3,223,078 - - 3,223,078 3,223,078 237,657,127 199,749,988 - 37,907,139 237,657,127 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2019 Available for sale investments measured at fair value Bonds and Sukuk 235,511,211 200,301,526 - 35,209,685 235,511,211 Mutual Funds 5,429,122 5,429,122 - - 5,429,122 Equities 3,223,078 - - 3,223,078 3,223,078 244,163,411 205,730,648 - 38,432,763 244,163,411 12. Fair values of financial instruments (continued)During the period ended 31 March 2020 there was no a transfer between level 3 to level 1 related to bonds and sukuks that were quoted during the year. There were transfers between Level 1 and Level 3 fair value measurements during the year ended 31 December 2019 (please refer note 8).b. Measurement of fair values i. Valuation technique and significant unobservable inputsThe Discounted Cash Flow Model (DCF) has been used to determine the fair value of debt securities and sukuks of shareholders’ operations under level 3. This model considers the present value of net cash flows to be generated from the debt securities and sukuks discounted at the market yield of treasury bills having similar terms and adjusted for the effect of non-marketability of the debt securities and sukuks which includes Saudi sovereign curve yield and risk premium prevailing in the Saudi market. Equities amount to SR 3,223,078 represent investment in unquoted securities which are carried at cost. The fair value are not evidenced by a quoted price in an active market for an identical asset or based on a valuation technique that uses only data from observable markets.The following table shows a reconciliation from the beginning balances to the ending balances for the fair value measurement in level 3 of the fair value hierarchy: Insurance operationsSR March 31, 2020(Unaudited) December 31, 2019(Audited) Balance at the beginning of the period/year - 14,582,533Disposals/maturity - (5,000,000)Amortization - (12,645) Unrealized gain on fair value of available for sale investments - 861,882Transfer from level 3 to level 1 - (10,431,770)Balance at the end of the period/year - - Shareholder operationsSR March 31, 2020(Unaudited) December 31, 2019(Audited) Balance at the beginning of the period/year 38,432,763 85,532,745Disposals/maturity - (17,000,000)Amortization - (14,356)Unrealized (loss)/gain on fair value of available for sale investments (525,624) 5,894,174 Transfer from level 3 to level 1 - (35,979,800)Balance at the end of the period/year 37,907,139 38,432,763 Sensitivity AnalysisThe sensitivity to a 1% increase in the risk adjusted discount rate with all other variables constant on the fair value of the level 3 available for sale investments is SR 16,026 and sensitivity to 1% decrease in the risk adjusted discount rate with all other variables constant on the fair value of the level 3 available for sale investments is SR 16,026. | 12 |
| Disclosure of comparative figures [text block] | 19. Comparative figuresCertain prior period figures have been reclassified to conform to current period presentation. | 19 |
| Disclosure of board of director's approval of the financial statements [text block] | Approval of the interim condensed financial statementsThe interim condensed financial statements have been approved by the Company’s Board of Directors on 07 June 2020 (corresponding to 15 Shawwal 1441H). | 21 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | Supplementary informationa) Interim statements of financial position SR 31 March 2020 31 December 2019 Insurance operations Share-holders’ operations Total Insurance operations Share-holders’ operations TotalASSETS Cash and cash equivalents 75,319,828 29,690,307 105,010,135 87,046,426 61,819,191 148,865,617Prepaid expenses and other assets 60,480,208 4,828,045 65,308,253 69,793,539 2,696,665 72,490,204Premiums receivable, net 446,149,246 - 446,149,246 420,586,277 - 420,586,277Reinsurers’ balance receivable, net 72,931,973 - 72,931,973 70,535,901 - 70,535,901Reinsurers’ share of outstanding claims 433,721,240 - 433,721,240 432,328,207 - 432,328,207Reinsurers’ share of claims incurred but not reported 58,955,957 - 58,955,957 43,298,714 - 43,298,714Reinsurers’ share of unearned premiums 138,763,380 - 138,763,380 152,377,585 - 152,377,585 Deferred policy acquisition costs 24,623,869 - 24,623,869 26,919,550 - 26,919,550 Right-of-use assets 5,994,884 - 5,994,884 6,776,228 - 6,776,228 Financial assets at fair value through statement of income (unit linked investments) 516,712,914 - 516,712,914 538,113,858 - 538,113,858 Available for sale investments 136,304,150 237,657,127 373,961,277 141,316,089 244,163,411 385,479,500 Deferred tax assets, net - 8,403,390 8,403,390 - 6,961,507 6,961,507Property and equipment 8,179,579 - 8,179,579 8,018,780 - 8,018,780 Statutory deposit - 20,000,000 20,000,000 - 20,000,000 20,000,000 Accrued income on statutory deposit - 1,566,122 1,566,122 - 1,485,295 1,485,295 Due to/from insurance operation/shareholders operation* (35,190,517) 35,190,517 - (19,970,113) 19,970,113 - TOTAL ASSETS 1,942,946,711 337,335,508 2,280,282,219 1,977,141,041 357,096,182 2,334,237,223 LIABILITIES Accrued and other liabilities 167,512,109 534,591 168,046,700 150,041,674 443,891 150,485,565Surplus distribution payable 15,523,051 - 15,523,051 15,687,466 - 15,687,466 Reinsurers' balances payable 209,544,948 - 209,544,948 195,599,123 - 195,599,123 Unearned premiums 361,984,750 - 361,984,750 408,698,330 - 408,698,330 Unearned reinsurance commission 5,876,976 - 5,876,976 7,347,773 - 7,347,773 Outstanding claims 520,143,986 - 520,143,986 533,066,753 - 533,066,753Claims incurred but not reported 112,154,183 - 112,154,183 87,780,442 - 87,780,442Lease liabilities 3,541,679 - 3,541,679 5,784,231 - 5,784,231 Premium deficiency reserve 9,556,567 - 9,556,567 11,731,333 - 11,731,333 Additional premium reserves 2,342,481 - 2,342,481 1,369,320 - 1,369,320 Unit linked liabilities 514,503,109 - 514,503,109 535,415,117 - 535,415,117 End-of-service obligations 17,439,026 - 17,439,026 16,847,898 - 16,847,898Zakat and income tax - 29,345,800 29,345,800 - 28,432,189 28,432,189Accrued income payable to SAMA - 1,566,122 1,566,122 - 1,485,295 1,485,295 TOTAL LIABILITIES 1,940,122,865 31,446,513 1,971,569,378 1,969,369,460 30,361,375 1,999,730,835 EQUITY Share capital - 200,000,000 200,000,000 - 200,000,000 200,000,000 Share premium - 22,711,315 22,711,315 - 22,711,315 22,711,315 Statutory reserve - 20,743,607 20,743,607 - 20,743,607 20,743,607Retained earnings - 59,377,146 59,377,146 - 75,024,377 75,024,377Actuarial reserve for end-of–service obligations 3,828,488 - 3,828,488 3,828,488 - 3,828,488Fair value reserve on investments (1,004,642) 3,056,927 2,052,285 3,943,093 8,255,508 12,198,601TOTAL EQUITY 2,823,846 305,888,995 308,712,841 7,771,581 326,734,807 334,506,388 TOTAL LIABILITIES AND EQUITY 1,942,946,711 337,335,508 2,280,282,219 1,977,141,041 357,096,182 2,334,237,223 * This item is not included in the interim statement of financial position.b) Interim statement of income SR For the three months period ended March 31, 2020 March 31, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total REVENUES Gross premiums written 205,625,130 - 205,625,130 358,921,969 - 358,921,969 Reinsurance premiums ceded abroad (70,994,338) - (70,994,338) (67,171,659) - (67,171,659)Reinsurance premiums ceded locally (725,753) - (725,753) (1,683,396) - (1,683,396)Excess of loss expenses (4,787,979) - (4,787,979) (1,347,023) - (1,347,023)Fee income from unit linked investments 298,340 - 298,340 289,730 - 289,730 Net premiums written 129,415,400 - 129,415,400 289,009,621 - 289,009,621Changes in unearned premiums 46,713,580 - 46,713,580 (131,881,792) - (131,881,792)Changes in reinsurers’ share of unearned premiums (13,614,205) - (13,614,205) (2,307,153) - (2,307,153)Net premiums earned 162,514,775 - 162,514,775 154,820,676 - 154,820,676Reinsurance commissions 3,109,049 - 3,109,049 3,468,804 - 3,468,804NET REVENUES 165,623,824 - 165,623,824 158,289,480 - 158,289,480UNDERWRITING COSTS AND EXPENSES Gross claims paid (145,536,589) - (145,536,589) (130,569,499) - (130,569,499)Surrenders and maturities (25,242,232) - (25,242,232) (29,225,404) - (29,225,404)Expenses incurred related to claims (8,670,117) - (8,670,117) (7,489,410) - (7,489,410)Reinsurers’ share of claims paid 36,330,516 - 36,330,516 38,521,717 - 38,521,717 Net claims and other benefits paid (143,118,422) - (143,118,422) (128,762,596) - (128,762,596)Changes in outstanding claims 12,922,767 - 12,922,767 (97,805,605) - (97,805,605)Changes in reinsurers’ share of outstanding claims 1,393,033 - 1,393,033 97,163,310 - 97,163,310 Change in premium deficiency reserves 2,174,766 - 2,174,766 (744,539) - (744,539)Changes in additional premium reserves (973,161) - (973,161) (138,311) - (138,311)Changes in claims incurred but not reported (24,373,741) - (24,373,741) (336,719) - (336,719)Changes in reinsurers’ share of claim incurred but not reported 15,657,243 - 15,657,243 12,773,967 - 12,773,967 Net claims and other benefits incurred (136,317,515) - (136,317,515) (117,850,493) - (117,850,493)Changes in unit linked liabilities 20,912,008 - 20,912,008 7,690,849 - 7,690,849 Unrealized (loss) / gain on unit linked investments (11,768,830) - (11,768,830) 7,134,819 - 7,134,819Policy acquisition costs (17,914,656) - (17,914,656) (16,194,900) - (16,194,900)Inspection and supervision fees (1,597,657) - (1,597,657) (2,317,185) - (2,317,185)TOTAL UNDERWRITING COSTS AND EXPENSES (146,686,650) - (146,686,650) (121,536,910) - (121,536,910)NET UNDERWRITING INCOME 18,937,174 - 18,937,174 36,752,570 - 36,752,570OTHER (EXPENSES) / INCOME Provision for doubtful debts - - - 642,106 - 642,106General and administrative expenses (36,681,451) (253,165) (36,934,616) (28,168,664) (212,620) (28,381,284)Investment income 1,020,923 1,857,239 2,878,162 937,228 1,747,240 2,684,468 Other income 149,017 - 149,017 599,126 - 599,126 TOTAL OTHER EXPENSES (35,511,511) 1,604,074 (33,907,437) (25,990,204) 1,534,620 (24,455,584)Net (loss) / income for the period before attribution and zakat and income tax (16,574,337) 1,604,074 (14,970,263) 10,762,366 1,534,620 12,296,986 Net (deficit) / surplus transferred to shareholders’ Operation 16,574,337 (16,574,337) - (9,686,129) 9,686,129 - Net (loss) / income for the period after shareholders’ appropriations - (14,970,263) (14,970,263) 1,076,237 11,220,749 12,296,986Zakat charge for the period (913,611) (913,611) (1,090,253) (1,090,253)Income tax credit / (charge) for the period, net 236,643 236,643 (1,259,462) (1,259,462)Net (loss) / income attributable to the shareholders after zakat and income tax - (15,647,231) (15,647,231) 1,076,237 8,871,034 9,947,271 Interim statement of comprehensive income SR For the three months period ended March 31, 2020 March 31, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net (loss) / income for the period after zakat and income tax - (15,647,231) (15,647,231) 1,076,237 8,871,034 9,947,271 Other comprehensive income / (loss) Items that are or may be reclassified to statements of income in subsequent periods Available for sale investments: - Net change in fair value (4,947,735) (6,403,821) (11,351,556) 3,155,011 6,103,692 9,258,703 - Deferred tax relating to change in fair value 525,321 679,919 1,205,240 (334,980) (648,05) (983,034)Total comprehensive (loss) / income for the period (4,422,414) (21,371,133) (25,793,547) 3,896,268 14,326,672 18,222,940Reconciliation: Less: Net income attributable to insurance Operations - (1,076,237)Total comprehensive (loss) / income for the period attributable to the shareholders (25,793,547) 17,146,703d) Interim statement of cash flows SR For the three months period ended March 31, 2020 March 31, 2019 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM OPERATING ACTIVITIES Net (loss) / income for the period before attribution and zakat and income tax - (14,970,263) (14,970,263) 1,076,237 11,220,749 12,296,986 Adjustments for non-cash items and other items: Depreciation of property and equipment 709,741 - 709,741 413,240 - 413,240 Amortization of investments premium 64,204 102,463 166,667 66,661 82,219 148,880 (Reversal) / provision of doubtful reinsurance receivables - - - (382,481) - (382,481) Gain on sale of property and equipment - - - (33,075) - (33,075) Provision for doubtful receivables and write-offs - - - (266,567) - (266,567) Provision for end-of-service obligations 593,007 - 593,007 1,083,757 - 1,083,757 Unrealized loss / (gain) on unit linked investments 11,768,830 - 11,768,830 (7,134,819) - (7,134,819) Shareholders’ appropriation from insurance operations’ surplus* (16,574,337) 16,574,337 - 9,686,129 (9,686,129) - (3,438,555) 1,706,537 (1,732,018) 4,509,082 1,616,839 6,125,921Changes in operating assets and liabilities: Reinsurers’ balance receivable (2,962,714) - (2,962,714) 2,711,179 - 2,711,179 Premium receivable (24,996,327) - (24,996,327) (120,757,462) - (120,757,462)Reinsurers’ share of unearned premiums 13,614,205 - 13,614,205 2,307,153 - 2,307,153 Reinsurers’ share of outstanding claims (1,393,033) - (1,393,033) (97,163,310) - (97,163,310)Reinsurers’ share of claims incurred but not reported (15,657,243) - (15,657,243) (12,773,967) - (12,773,967)Deferred policy acquisition costs 2,295,681 - 2,295,681 (8,127,640) - (8,127,640)Right-of-use assets 781,344 - 781,344 (9,083,518) - (9,083,518)Unit linked investments 9,632,114 - 9,632,114 11,417,331 - 11,417,331 Prepaid expenses and other assets 9,313,331 (2,131,380) 7,181,951 (20,866,664) (1,969,451) (22,836,115)Accrued and other liabilities 17,470,435 90,700 17,561,135 10,975,134 (105,544) 10,869,590Reinsurers' balances payable 13,945,825 - 13,945,825 18,690,307 - 18,690,307 Unearned premiums (46,713,580) - (46,713,580) 131,881,792 - 131,881,792Unearned reinsurance commission (1,470,797) - (1,470,797) (578,792) - (578,792)Lease liabilities (2,242,552) - (2,242,552) 5,829,713 - 5,829,713Unit linked liabilities (20,912,008) - (20,912,008) (7,690,849) - (7,690,849)Outstanding claims (12,922,767) - (12,922,767) 97,805,605 - 97,805,605Claims incurred but not reported 24,373,741 - 24,373,741 336,719 - 336,719 Premium deficiency reserves (2,174,766) - (2,174,766) 744,539 - 744,539 Additional premium reserves 973,161 - 973,161 138,311 - 138,311 (42,484,505) (334,143) (42,818,648) 10,304,663 (458,156) 9,846,507End-of-service obligations paid (1,879) - (1,879) (814,736) - (814,736)Surplus paid to policyholders (164,415) - (164,415) (361,079) - (361,079)Zakat and income tax paid - - - - (792,837) (792,837)Net cash (used in) / generated from operating activities (42,650,799) (334,143) (42,984,942) 9,128,848 (1,250,993) 7,877,855CASH FLOWS FROM INVESTING ACTIVITIES Additions in available for sale investments - - - - - -Proceed from sale of available for sale investments - - - 5,000,000 12,000,000 17,000,000 Proceeds from sale of property and equipment - - - 33,075 - 33,075 Payment for purchase of property and equipment (870,540) - (870,540) (1,010,565) - (1,010,565)Net cash (used in) / generated from investing activities (870,540) - (870,540) 4,022,510 12,000,000 16,022,510 CASH FLOWS FROM FINANCING ACTIVITY Due from / to (insurance operations / shareholder operations)* 31,794,741 (31,794,741) - 35,054,643 (35,054,643) -Net cash used in financing activity 31,794,741 (31,794,741) - 35,054,643 (35,054,643) -Net change in cash and cash equivalents (11,726,598) (32,128,884) (43,855,482) 48,206,001 (24,305,636) 23,900,365 Cash and cash equivalents at the beginning of the period 87,046,426 61,819,191 148,865,617 47,722,503 45,412,035 93,134,538 Cash and cash equivalents at the end of the period 75,319,828 29,690,307 105,010,135 95,928,504 21,106,399 117,034,903 NON-CASH INFORMATION: Change in fair value of available for sale investment 4,947,735 6,403,821 11,351,556 3,155,011 6,103,692 9,258,703Deferred income tax (525,321) (679,919) (1,205,240) 334,980 648,054 983,034* These items are not included in the interim statement of cash flows20. Subsequent eventsIn response to the Covid-19 pandemic, SAMA issued a decree 189 (the “Decree”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Among various other matters relating to the insurance sector, the Decree instructs all the insurance companies to extend the period of validity of all existing retail motor insurance policies by two months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this Decree and allowing insurance companies not to cancel the policy in the event the insured fails to pay the premiums. The management believes that such requirements of the Decree are a non-adjusting event and therefore the interim condensed financial statements have not been adjusted. | 18 & 20 |
