| 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 October 11, 2006). The Company operates under Commercial Registration number 1010235601 dated 26 Jumada Thani 1428H corresponding to 12 July 2007. The Company operates through its six 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 July 31, 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 Central Bank (“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 January 1, 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] | 2. Basis of preparation(a) Basis of presentationThe interim condensed financial statements of the Company as at and for the period ended 30 September 2021 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 Chartered and Professional Accountants (“SOCPA”).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. 2. Basis of preparation (continued)(a) Basis of presentation (continued)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. 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 income or losses of the respective operations. In preparing the Company’s financial statements in compliance with International Financial Reporting Standards (IFRS) as endorsed in Kingdom of Saudi arabia , 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, 2020. These interim condensed financial statements are expressed in Saudi Arabian Riyals (SR).(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 this interim condensed financial information, 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 December 31, 2020. The Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic. Management will continue to assess the situation, and reflect any required changes in future reporting periods.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. 2. Basis of preparation (continued)(b) Critical accounting judgments, estimates and assumptions (continued)In response to the spread of the Covid-19 virus in the Country 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.The Coronavirus pandemic continues to disrupt global markets as many geographies are beginning to experience a second / third wave of infections despite having previously controlled the outbreak through aggressive precautionary measures such as imposing restrictions on travel, lockdowns and strict social distancing rules. The Government of Kingdom of Saudi Arabia "The Government" however has managed to successfully control the outbreak to date, owing primarily to the effective measures taken by the Government. The Government has approved number of vaccines for mass immunizations. The drive is in full swing and it is expected that majority of the population will be vaccinated in near future.The major impact of Covid-19 pandemic is seen in medical and motor line of business as explained below. As with any estimate, the projections and likelihoods of occurrence are underpinned by significant judgment and rapidly evolving situation and uncertainties surrounding the duration and severity of the pandemic, and therefore, the actual outcomes may be different to those projected. The impact of such uncertain economic environment is judgmental, and the Company will continue to reassess its position and the related impact on a regular basis.Medical technical reservesBased on the management’s assessment, the management believes that the Government’s decision to assume the medical treatment costs for both Saudi citizens and expatriates has helped in reducing any unfavourable impact. During the lockdown, the Company saw a decline in medical reported claims (majorly elective and non-chronic treatment claims) which resulted in a drop in claims experience. However, subsequent to the lifting of lockdown since June 21, 2020, the Company is experiencing a surge in claims which is in line with the expectations of the Company’s management. The Company’s management has duly considered the impact of surge in claims in the current estimate of future contractual cashflows of the insurance contracts in force as at September 30, 2021 for its liability adequacy test. It is expected that most of the deferred services have been availed as at the valuation date and therefore the Company has not set aside any additional provision for further deferral of medical claims.CCHI issued a Circular 895, dated December 17, 2020 regarding the procedure, protocols, and prices relating to the enforcement of Article 11. Following the procedures, Government facilities will now be available to bill insurance companies for the claims incurred for some elements of their insured population. As instructed by CCHI , the new protocols and procedures will cover all new and renewing policies incepting from January 1, 2021. Moreover, this will also cover all emergency cases for all enforce policies as of January 1, 2021.Motor technical reservesIn response to the Covid-19 pandemic, SAMA issued a circular 189 (the “circular”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the circular instructed insurance companies to extend the period of validity of all existing retail motor insurance policies by further two month as well as providing a two-month additional coverage for all new retail motor policies written within one month of this circular.The Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and concluded, that the Company considers the extension of two month in exiting motor policies as new policy and record a premium deficiency reserve based on the expected claims for the extended 2 month period.2. Basis of preparation (continued)(b) Critical accounting judgments, estimates and assumptions (continued) Motor technical reserves (continued)For new policies written as per above circular, the premium is earned over the period of coverage i.e 14 month as per the Company accounting policy. There is no significant impact of two month extension in earned premium as of 30 September, 2021 as most policies have expired in the period. The Company has performed a liability adequacy test using current estimates of future cash flows under its insurance contracts at segmented level for motor line of business and based on the test performed no provision of premium deficiency reserve is required as at 30 September 2021.Financial assetsTo cater for any potential impacts, the Covid-19 pandemic may have had on the financial assets of the Company, the Company has performed an assessment in accordance with its accounting policy, to determine whether there is an objective evidence that a financial asset or a group of financial assets has been impaired. For debt financial assets, 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 or prolonged 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-month and nine-month periods ended 30 September 2021. 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, 2020.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 3. Significant accounting policies (continued)Standards issued but not yet effective (continued)IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts) (continued)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 2023.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 January 1, 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. TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures. ImpactThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. The Company has undertaken a Gap Analysis and the key gaps and their impact are as follows: Impact Area Summary of ImpactFinancial Impact The Company will need to change the practice of revenue recognition at the level of aggregation – IFRS 17 requires to recognize losses immediately, whereas the gain (refer to contractual service margin – CSM) will be earned over the coverage period of the direct insurance contracts. This may have high financial impact.The extent and sign of the financial impact also depends on the current assumptions, methodologies and practices being followed by the Company in technical reserves calculation. The new components of Insurance Finance Income and Expenses will have a greater impact, in particular to the following areas:- liability for incurred claims for which discounting will be required- accretion of interest on the CSM where the general model will be applied. Solvency capital may also have an impact subject to the local regulations.Data Impact The IFRS 17 requires the Company to decide on the level of aggregation based on the following three criteria:1. Portfolio;2. Profitability; and 3. Issuance YearThis will increase the required granularity level of the data. Hence, new data fields will be required going forward and have significant impact on the data.IT Systems Impact Generally, the Company will have to modify their existing systems in order to capture the new data fields and process the new accounting entries, The Company may also have to update their existing reporting process and systems, in addition to the data storage requirements.Process Impact The financial reporting would change significantly under IFRS 17, with significant increase in the number of disclosures required by the standard. The accounting processes and chart of accounts would need to be updated as per the IFRS 17 standard. Actuarial models and assumptions need to be aligned with the IFRS 17 requirements.Impact on RI Arrangements Generally, the Company will have to review their existing reinsurance arrangements to better align with the IFRS 17 requirements with their existing processes. However, it may be possible that contracts issued by the Company may have different measurement models as compared to the contracts held by the Company.Impact on Policies & Control Frameworks The Company will need to update their existing policies and controls frameworks in all those areas which will have an impact due to the IFRS 17 adoption. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of reinsurers/ retakaful share of unearned premium/ contributions, net [text block] | 10.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Three month period ended September 30, 2021(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 394,900,920 (201,885,965) 193,014,955 Premium written during the period 112,338,747 (28,712,068) 83,626,679 Premium earned during the period (174,366,692) 71,221,436 (103,145,256) Balance as at the end of the period 332,872,975 (159,376,597) 173,496,378 *This amount includes SR 24,376,318 for reinsurance premium ceded abroad, SR 164,529 for reinsurance premium ceded locally and SR 4,171,221 for excess of loss expenses. Nine months period ended September 30, 2021(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the year 266,364,432 (103,362,771) 163,001,661Premium written during the period 587,427,972 (273,391,962) 314,036,010Premium earned during the period (520,919,429) 217,378,136 (303,541,293)Balance as at the end of the period 332,872,975 (159,376,597) 173,496,378*This amount includes SR 255,692,801 for reinsurance premium ceded abroad, SR 1,014,278 for reinsurance premium ceded locally and SR 16,684,883 for excess of loss expenses.10. Technical reserves (continued)10.2 Movement in unearned premiums (continued) Three months period ended Septmber 30, 2020(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 374,827,370 (161,572,101) 213,255,269Premium written during the period 113,803,412 *(38,176,798) 75,626,614Premium earned during the period (184,260,365) 68,049,159 (116,211,206)Balance as at the end of the period 304,370,417 (131,699,740) 172,670,677 *This amount includes SR 33,176,898 for reinsurance premium ceded abroad, SR 211,921 for reinsurance premium ceded locally and SR 4,787,979 for excess of loss expenses. Nine months period ended September 30, 2020(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the year 408,698,330 (152,377,585) 256,320,745Premium written during the period 531,838,456 *(215,125,605) 316,712,851Premium earned during the period (636,166,369) 235,803,450 (400,362,919)Balance as at the end of the period 304,370,417 (131,699,740) 172,670,677*This amount includes SR 199,481,049 for reinsurance premium ceded abroad, SR 1,280,621 for reinsurance premium ceded locally and SR 14,363,935 for excess of loss expenses. Year ended December 31, 2020(Audited)SR Gross Reinsurance NetBalance as at the beginning of the year 408,698,330 (152,377,585) 256,320,745Premium written during the year 674,731,117 *(250,026,185) 424,704,932Premium earned during the year (817,065,015) 299,040,999 (518,024,016)Balance as at the end of the year 266,364,432 (103,362,771) 163,001,661*This amount includes SR 233,697,568 for reinsurance premium ceded abroad, SR 1,844,048 for reinsurance premium ceded locally and SR 14,484,569 for excess of loss expenses. | 10.2 |
| Disclosure of investments in available-for-sale investments [text block] | 8. Available for sale investments8.1. Investments are classified as followsInsurance operations: Domestic International Total September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SR September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SR September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SRBonds and sukuks 130,973,152 133,514,401 5,190,803 5,253,495 136,163,955 138,767,896Equities and mutual funds 7,909,347 7,941,541 - - 7,909,347 7,941,541 138,882,499 141,455,942 5,190,803 5,253,495 144,073,302 146,709,437Shareholders’ operations: Domestic International Total September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SR September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SR September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SRBonds and sukuks 374,939,352 235,930,780 12,756,373 12,832,218 387,695,725 248,762,998Equities and mutual funds 3,223,078 3,223,078 5,724,234 5,786,078 8,947,312 9,009,156 378,162,430 239,153,858 18,480,607 18,618,296 396,643,037 257,772,154Total: Domestic International Total September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SR September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SR September 30, 2021 (Unaudited)SR December 31, 2020(Audited)SRBonds and sukuks 505,912,504 369,445,181 17,947,176 18,085,713 523,859,680 387,530,894Equities and mutual funds 11,132,425 11,164,619 5,724,234 5,786,078 16,856,659 16,950,697 517,044,929 380,609,800 23,671,410 23,871,791 540,716,339 404,481,5918.2. Movement in available for sale investment balance is as followsInsurance operations: Quoted securities Unquoted securities Total SRAs at January 1, 2020 141,316,089 - 141,316,089 Amortisation (256,123) - (256,123)Unrealised gain on fair value 5,649,471 - 5,649,471 As at December 31, 2020 146,709,437 - 146,709,437 As of January 1, 2021 146,709,437 - 146,709,437Amortisation (190,879) - (190,879)Unrealised loss on fair value (2,445,256) - (2,445,256)As at September 30, 2021 144,073,302 - 144,073,302 The cumulative unrealised gain in fair value of available for sale investments including deferred tax impact as mentioned in Notes 9 and 15 as at September 30, 2021 amounts to SR 7,147,308 (December 31, 2020: gain of SR 9,592,564 ).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 January 1, 2020 205,730,648 38,432,763 244,163,411Purchases - 30,000,000 30,000,000Disposals/maturity (11,250,000) (15,000,000) (26,250,000)Amortisation (390,690) - (390,690)Unrealised gain on fair value 7,877,367 2,372,066 10,249,433As at December 31, 2020 201,967,325 55,804,829 257,772,154 As of January 1, 2021 201,967,325 55,804,829 257,772,154Purchases 49,500,000 93,000,000 142,500,000Amortisation (221,640) - (221,640)Unrealised loss on fair value (3,759,405) 351,928 (3,407,477)As at September 30, 2021 247,486,280 149,156,757 396,643,037 The cumulative unrealised gain in fair value of available for sale investments including deferred tax impact as mentioned in Notes 9 and 15 as at September 30, 2021 amounts to SR 14,030,965 (December 31, 2020: gain of SR 16,816,891). | 8 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 6. Reinsurers’ balance receivable, netSR September 30, 2021 (Unaudited) December 31, 2020(Audited) Receivables from reinsurers 80,749,681 79,054,779 Provision for doubtful reinsurers’ receivables (5,387,741) (5,025,735)Reinsurers’ balance receivable, net 75,361,940 74,029,044 | 6 |
| Disclosure of prepayments and other assets [text block] | 7. Right-of-use assets and Lease liabilities7.1. Right-of-use assetsThe following table presents the right-of-use assets for the Company:SR September 30, 2021(Unaudited) December 31, 2020(Audited) Balance at the beginning of the period/year 3,730,142 6,776,228Amortization (2,160,642) (3,046,086) Balance at the end of the period/year 1,569,500 3,730,1427.2. Lease liabilitiesThe following table represents the movement of lease liabilities for the Company:SR September 30, 2021(Unaudited) December 31, 2020(Audited) Opening balance 3,362,331 5,784,231Finance costs 335,061 472,439Lease rental payments (2,811,785) (2,894,339) Balance at the end of the period/year 885,607 3,362,331 | 7 |
| Disclosure of other receivables, net [text block] | 5. Premiums receivable, netPremiums receivable comprise amounts due from the following:SR September 30, 2021 (Unaudited) December 31, 2020(Audited) Policyholders 95,777,913 145,169,592 Brokers and agents 284,987,576 273,712,382 Other shareholders (Note 14) 71,576,416 43,329,697 452,341,905 462,211,671 Provision for doubtful receivable (61,712,179) (57,822,881) Premiums receivable, net 390,629,726 404,388,790 | 5 |
| Disclosure of cash and cash equivalents [text block] | 4. Cash and cash equivalentsCash and cash equivalents included in the interim statement of cash flows comprise the following: Insurance operationsSR September 30, 2021(Unaudited) December 31, 2020(Audited)Bank balances and cash 38,676,918 7,605,027 Deposits maturing within 3 month from the acquisition date - 180,034,531 38,676,918 187,639,558 Shareholders’ operations September 30, 2021 (Unaudited) December 31, 2020(Audited)Bank balances and cash 78,293,942 137,406,667 Deposits maturing within 3 month from the acquisition date 50,000,000 - 128,293,942 137,406,667Total cash and cash equivalents 166,970,860 325,046,225 | 4 |
| Disclosure of gross outstanding claims/ benefits [text block] | 10. Technical reserves10.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:SR September 30, 2021(Unaudited) December 31, 2020(Audited)Gross outstanding claims 581,577,840 598,723,172 Less: Realizable value of salvage and subrogation (15,837,664) (24,489,604) 565,740,176 574,233,568 Claims incurred but not reported 116,357,787 123,799,018 Premium deficiency reserves 6,999,963 9,039,013 Additional premium reserves 3,301,657 1,385,708 Unit linked liabilities 507,437,442 518,114,351 1,199,837,025 1,226,571,658 Less: - Reinsurers’ share of outstanding claims (502,456,531) (501,314,767) - Reinsurers’ share of claims incurred but not reported (53,922,054) (57,566,257) (556,378,585) (558,881,024)Net outstanding claims and reserves 643,458,440 667,690,634 | 10.1 |
| Disclosure of zakat [text block] | 15. Zakat and income taxA summary of the Company’s share capital and percentages of ownership are as follows: September 30, 2021 December 31, 2020 SR % SR %Non-Saudi Shareholders 318,540,000 53.09% 318,540,000 53.09%Saudi and GCC Shareholders 281,460,000 46.91% 281,460,000 46.91% 600,000,000 100% 600,000,000 100% As at 30 September 2021, the authorized, issued and fully paid-in share capital of the Company consists of 60 million shares of SR 10 each and as at December 31, 2020 the authorized, issued and fully paid-in share capital of the Company consists of 60 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.The zakat and income tax provision as at the period / year end is as follows:SR September 30, 2021(Unaudited) December 31, 2020(Audited) Provision for zakat 12,336,071 10,718,945Provision for income tax 4,520,365 3,980,577 16,856,436 14,699,522The zakat and income tax charge for the nine-month period is as follows:SR September 30, 2021 (Unaudited) September 30, 2020 (Unaudited) Zakat for the nine month period 6,407,682 4,381,259Income tax for the nine month period - Current tax 540,516 -- Deferred tax 249,302 (664,553) 7,197,500 3,716,706The zakat and income tax charge for the three-month period is as follows:SR September 30, 2021 (Unaudited) September 30, 2020 (Unaudited) Zakat for the three month period 2,102,465 2,222,552Income tax for the three month period - Current tax (183,348) -- Deferred tax 339,824 (174,476) 2,258,941 2,048,07615. Zakat and income tax (continued)Status of assessmentsThe Company has filed the zakat and income tax declarations for all the years up to December 31, 2020. The Company finalized its zakat and tax position for all the years up to December 31, 2014. The final tax and zakat assessment for the years 2015 to 2018 has been issued by the ZATCA in the three month period ened December 31, 2020 which resulted in additional zakat and tax liability of SR 13.7 million arising mainly from the non-deduction of long-term investments from the zakat base. The Company has filed an appeal against this assessment. The Company has accounted for this additional zakat and income tax liability in the provision in the financial statements. The company received preliminary zakat and income tax assessment for the years 2019 and 2020 which resulted in additional zakat and tax liability of SR 1.1 million. The finalization of the assessment is not expected to have material impact on the financial statements.Prepaid expenses and other assets include payment made by the Company in relation to VAT assessment raised by Zakat, Tax and Customs Authority ("ZATCA'') for 2018 and 2019 financial years amounting to Saudi Riyals SR 31 million. The payments were made to ZATCA to avoid penalties. However, the Company has submitted objections to the ZATCA assessment. The ZATCA has patially accepted the objection and the company has filed an appeal for the remaining amount of SR 27.8 million to the General Secretariat of the Tax Committees (“GSTC”). The case was heard in July 2021 in which the GSTC ruled in favor of the ZATCA. Following review of the final judgement / reasoning for the GSTC’s decision,the company decided to appeal the case to GSTC Level 2, the appeal was submitted on 10 October 2021. The Company's management believes that there is strong basis that the decision of the appeal would be in the favor of the Company. | 15 |
| Disclosure of deferred tax [text block] | 9. Deferred tax assets, netSR September 30, 2021(Unaudited) December 31, 2020(Audited) Deferred tax assets, net 6,198,219 5,825,970Movement in deferred tax asset balance is as follows: September 30, 2021(Unaudited) December 31, 2020(Audited)At the beginning of the period/year 5,825,970 6,961,507Deferred tax (expense) / income - statement of income (note 15) (249,302) 552,513Deferred tax income /(expense) - statement of comprehensive income 621,551 (1,688,050) At the end of the period/year 6,198,219 5,825,970This 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] | 16. Share capital and earnings / (loss) per share16.1 Share capitalThe authorised and issued share capital of the Company is SR 600 million divided into 60 million shares of SR 10 each (December 31, 2020: SR 600 million divided into 60 million shares of SR 10 each). The founding shareholders of the Company have subscribed and paid for 39 million shares with a nominal value of SR 10 each, which represents 65% of the shares of the Company's capital and the remaining 21 million shares with a nominal value of SR 10 each have been subscribed by general public.Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax. September 30, 2021 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 11.10 Million 111 MillionAllianz France International 9.75 Million 97.5 MillionAllianz Mena Holding Bermuda 9.75 Million 97.5 MillionBanque Saudi Fransi 8.40 Million 84 MillionPublic 21.00 Million 210 Million 60 Million 600 Million16. Share capital and earnings / (loss) per share (continued)16.1 Share capital (continued) December 31, 2020 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 11.10 Million 111 MillionAllianz France International 9.75 Million 97.5 MillionAllianz Mena Holding Bermuda 9.75 Million 97.5 MillionBanque Saudi Fransi 8.40 Million 84 MillionPublic 21.00 Million 210 Million 60 Million 600 Million | 16.1 |
| Disclosure of earnings per share [text block] | 16.2 Earning / (Loss) per shareEarnings / (loss) per share has been calculated by dividing the income / (loss ) for the period by the weighted average number of shares outstanding at the reported date. The weighted average number of shares have been retrospectively adjusted for all the prior periods to reflect the bonus element of the right issue as required by IAS 33 “Earning per share”. The weighted average number of ordinary share for prior period is computed using an adjustment factor of 1.75 which a ratio of theoretical ex-right price of 15.98 and the closing price per share of SR 27.95 before the right issue. For the nine-month period ended September 30, 2021 September 30, 2020 Income / (loss) for the period 269,523 (18,597,501)Weighted average number of shares 60,000,000 43,194,173Earnings / (loss) per share 0.004 (0.431) For the three-month period ended September 30, 2021 September 30, 2020 Loss for the period (3,321,638) (12,350,655)Weighted average number of shares 60,000,000 59,455,955 Loss per share (0.055) (0.208) | 16.2 |
| Disclosure of related party transactions [text block] | 14. 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 nine months period ended Balance as at September 30,2021 September 30,2020 September 30, 2021 December 31, 2020 SR SR SR SR Entities controlled, jointly controlled or significantly influenced by related parties Major shareholders - Insurance premium ceded 164,497,937 127,879,598 - -- Reinsurers’ share of claims paid 156,221,709 52,425,309 - -- Commission income 3,532,381 3,947,055 - -- Third party administrator expenses 506,669 6,316,384 - -- Accrued third party administrator - - 4,858,693 6,054,885- Reinsurance balance payable, net - - 90,994,341 64,908,679- Investments in equity of Saudi NextCare - - 800,000 800,000 - Other Shareholders (other than related party) - Insurance premium written 70,967,463 63,005,436 - -- Claims paid 43,985,892 22,430,173 - -- Commission expense 2,789,140 1,195,288 - -- Premium receivable - - 71,576,416 43,329,697- Outstanding claims - - 18,236,528 26,371,943- Cash and cash equivalents - - 143,836,592 309,910,589Unit linked investments managed by shareholders (including receivable for unit linked investments) - - 528,871,893 524,059,821Related 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:September 30, 2021 BOD members Top executives SR SRSalaries and compensation - 4,869,424Allowances 261,000 40,500Annual remuneration 785,000 85,000End of service obligations - 162,712 1,046,000 5,157,63614. Transactions and balances with related parties and other shareholders (continued)September 30, 2020 BOD members Top executives SR SRSalaries and compensation - 7,169,397Allowances 261,000 13,500Annual remuneration 765,000 90,000End of service obligations - 320,156 1,026,000 7,593,053 | 14 |
| Disclosure of entity's operating segments [text block] | 13. 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, 2020.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 September 30, 2021 and December 31, 2020, its total revenues, expenses, and net income for the three months and nine months period 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 September 30, 2021 (Unaudited) Assets Premiums receivable, gross 92,160,577 142,800,445 190,216,919 27,163,964 452,341,905 - 452,341,905Provision for doubtful debts - - - - (61,712,179) - (61,712,179)Reinsurers’ share of outstanding claims 5,201,005 19,631,209 462,284,246 15,340,071 502,456,531 - 502,456,531Reinsurers’ share of claims incurred but not reported 113,373 11,745,680 31,310,256 10,752,745 53,922,054 - 53,922,054Reinsurers’ share of unearned premiums 19,283 41,982,889 86,423,391 30,951,034 159,376,597 - 159,376,597Deferred policy acquisition costs 7,466,633 3,433,965 3,363,824 (1,245,799) 13,018,623 - 13,018,623Financial assets at fair value through statement of income (unit linked investments) - - - 528,871,893 528,871,893 - 528,871,893Unallocated assets Other assets - - - - 313,854,470 720,322,971 1,034,177,441Total assets 2,682,452,865 Liabilities and Equity Outstanding claims 27,109,805 33,181,487 483,688,725 21,760,159 565,740,176 - 565,740,176Claims incurred but not reported 40,304,638 23,583,106 36,804,106 15,665,937 116,357,787 - 116,357,787Premium deficiency reserve - 3,427,634 - 3,572,328 6,999,962 - 6,999,962 Additional premium reserves - 710,334 2,239,418 351,905 3,301,657 - 3,301,657 Unearned premium 80,660,332 82,230,758 126,236,370 43,745,515 332,872,975 - 332,872,975Unearned reinsurance commission 1,437 - 2,036,456 16,056 2,053,949 - 2,053,949Unit linked liabilities - - - 507,437,442 507,437,442 - 507,437,442Unallocated liabilities 416,620,808 21,291,508 437,912,316Equity 10,745,138 699,031,463 709,776,601Total liabilities and equity 2,682,452,865 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 nine months period ended September 30, 2021 (Unaudited) Gross written premiums – retail 37,863,199 - 725,882 37,895,372 76,484,453 - 76,484,453 Gross written premiums – corporate 38,882,737 137,446,995 160,723,525 84,539,940 421,593,197 - 421,593,197 Gross written premiums – very small entities 2,595,489 5,752 7,624,463 189,321 10,415,025 - 10,415,025 Gross written premiums – small entities 16,870,414 2,932 10,075,263 652,743 27,601,352 - 27,601,352 Gross written premiums – medium entities 25,790,247 2,726 24,012,035 1,528,937 51,333,945 - 51,333,945 Reinsurance premiums ceded 6,001 (71,128,750) (138,227,787) (47,356,543) (256,707,079) - (256,707,079)Excess of loss expenses (1,938,139) - (14,746,744) - (16,684,883) - (16,684,883)Fee income from unit linked investments - - - 1,018,392 1,018,392 - 1,018,392Net written premiums 120,069,948 66,329,655 50,186,637 78,468,162 315,054,402 - 315,054,402Changes in unearned premiums, net 3,159,910 (3,332,598) (3,422,137) (6,899,892) (10,494,717) - (10,494,717)Net premiums earned 123,229,858 62,997,057 46,764,500 71,568,270 304,559,685 - 304,559,685Reinsurance commissions 339 - 3,656,426 257,262 3,914,027 - 3,914,027Net claims and other benefits paid (98,773,996) (44,452,447) (3,897,645) (101,087,517) (248,211,605) - (248,211,605)Changes in outstanding claims, net 22,077,081 (4,076,175) (6,745,317) (1,620,433) 9,635,156 - 9,635,156Changes in premium deficiency reserve 1,189,887 2,421,811 - (1,572,648) 2,039,050 - 2,039,050Changes in additional premium reserve - (710,334) (853,710) (351,905) (1,915,949) - (1,915,949)Changes in claims incurred but not reported, net (3,532,183) 6,446,508 624,948 257,755 3,797,028 - 3,797,028Change in unit linked liabilities - - - 10,676,909 10,676,909 - 10,676,909Unrealised gain on unit linked investments - - - 31,863,485 31,863,485 - 31,863,485Policy acquisition costs (11,996,649) (5,819,954) (11,735,509) (1,061,017) (30,613,129) - (30,613,129)Net underwriting income – before allocation of inspection and other fee 32,194,337 16,806,466 27,813,693 8,930,161 85,744,657 - 85,744,657Unallocated Provision for doubtful debts (4,251,304) - (4,251,304)Inspection and supervision fees (4,311,724) - (4,311,724)General and administrative expenses (85,180,660) (629,764) (85,810,424)Investment income 3,022,037 7,859,247 10,881,284Other income 5,240,927 - 5,240,927Net income for the period before attribution and zakat and income tax 7,493,416 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 30 September 2021 (Unaudited) Gross written premiums – retail 16,683,204 - 263,222 12,148,523 29,094,949 - 29,094,949Gross written premiums – corporate 10,422,653 24,289,692 21,184,809 9,024,738 64,921,892 - 64,921,892 Gross written premiums – very small entities 872,641 - 461,998 11,012 1,345,651 - 1,345,651Gross written premiums – small entities 3,435,459 - 1,427,535 142,102 5,005,096 - 5,005,096Gross written premiums – medium entities 6,156,285 - 5,778,648 36,226 11,971,159 - 11,971,159Reinsurance premiums ceded 6,001 (11,962,865) (10,878,314) (1,705,669) (24,540,847) - (24,540,847)Excess of loss expenses (476,993) - (3,694,228) - (4,171,221) - (4,171,221)Fee income from unit linked investments - - - 355,048 355,048 - 355,048 Net written premiums 37,099,250 12,326,827 14,543,670 20,011,980 83,981,727 - 83,981,727 Changes in unearned premiums, net 3,327,494 8,571,948 3,760,371 3,858,763 19,518,576 - 19,518,576Net premiums earned 40,426,744 20,898,775 18,304,041 23,870,743 103,500,303 - 103,500,303 Reinsurance commissions 339 - 1,039,421 1,803 1,041,563 - 1,041,563 Net claims and other benefits paid (33,212,442) (15,853,675) (1,217,603) (29,817,301) (80,101,021) - (80,101,021)Changes in outstanding claims, net 4,531,526 (469,633) (4,963,335) 47,190 (854,252) - (854,252)Changes in premium deficiency reserve 760,680 1,763,732 - 75,016 2,599,428 - 2,599,428Changes in additional premium reserve - 277,374 (274,817) (26,140) (23,583) - (23,583)Changes in claims incurred but not reported, net 399,215 182,501 908,303 978,631 2,468,650 - 2,468,650 Change in unit linked liabilities - - - (2,014,292) (2,014,292) - (2,014,292)Unrealised gain on unit linked investments - - - 11,419,125 11,419,125 - 11,419,125 Policy acquisition costs (4,281,145) (1,793,020) (4,042,375) (158,548) (10,275,088) - (10,275,088)Net underwriting income – before allocation of inspection and other fee 8,624,917 5,006,054 9,753,635 4,376,227 27,760,833 - 27,760,833Unallocated Provision for doubtful debts - - - Inspection and supervision fees (2,294,069) - (2,294,069)General and administrative expenses (30,796,654) (204,341) (31,000,995)Investment income 1,033,519 3,030,636 4,064,155 Other income (24,732) - (24,732)Net loss for the period before attribution and zakat and income tax (1,494,808) 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 December 31, 2020 (Audited) Assets Premiums receivable, gross 196,418,315 110,635,785 128,561,411 26,596,160 462,211,671 - 462,211,671Provision for doubtful debts - - - - (57,822,881) - (57,822,881)Reinsurers’ share of outstanding claims 5,110,052 14,770,842 471,585,853 9,848,020 501,314,767 - 501,314,767Reinsurers’ share of claims incurred but not reported (5,559) 25,203,659 21,807,392 10,560,765 57,566,257 - 57,566,257Reinsurers’ share of unearned premiums 210,709 41,277,120 48,395,981 13,478,961 103,362,771 - 103,362,771Deferred policy acquisition costs 7,450,865 3,821,722 3,590,495 (1,959,873) 12,903,209 - 12,903,209Financial assets at fair value through statement of income (unit linked investments) - - - 524,059,821 524,059,821 - 524,059,821Unallocated assets Other assets - - - - 308,136,453 720,167,326 1,028,303,779Total assets 2,631,899,394 Liabilities and Equity Outstanding claims 49,095,932 24,244,947 486,245,014 14,647,675 574,233,568 - 574,233,568Claims incurred but not reported 36,653,523 43,487,589 27,926,194 15,731,712 123,799,018 - 123,799,018Premium deficiency reserve 1,189,888 5,849,444 - 1,999,680 9,039,013 - 9,039,013Additional premium reserves - - 1,385,708 - 1,385,708 - 1,385,708Unearned premium 84,011,668 78,192,392 84,786,822 19,373,550 266,364,432 - 266,364,432Unearned reinsurance commission 1,776 - 2,815,221 12,662 2,829,659 - 2,829,659Unit linked liabilities - - - 518,114,351 518,114,351 - 518,114,351Unallocated liabilities 402,775,925 18,619,460 421,395,385Equity 13,190,394 701,547,866 714,738,260Total liabilities and equity 2,631,899,39413. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the nine months period ended 30 September 2020 (Unaudited) Gross written premiums – retail 17,100,441 - 266,182 99,645,884 117,012,507 - 117,012,507Gross written premiums – corporate 69,659,608 138,618,468 111,792,036 4,067,884 324,137,996 - 324,137,996Gross written premiums – very small entities 2,616,894 157,700 634,868 97,463 3,506,925 - 3,506,925Gross written premiums – small entities 15,641,297 874,520 17,943,758 266,870 34,726,445 - 34,726,445Gross written premiums – medium entities 24,551,077 1,419,116 25,298,746 1,185,644 52,454,583 - 52,454,583Reinsurance premiums ceded (30,720) (76,742,245) (93,607,626) (30,381,079) (200,761,670) - (200,761,670)Excess of loss expenses (3,131,414) - (11,232,521) - (14,363,935) - (14,363,935)Fee income from unit linked investments - - - 910,785 910,785 - 910,785Net written premiums 126,407,183 64,327,559 51,095,443 75,793,451 317,623,636 - 317,623,636Changes in unearned premiums, net 106,292,068 (611,758) (17,514,340) (4,515,902) 83,650,068 - 83,650,068Net premiums earned 232,699,252 63,715,801 33,581,101 71,277,550 401,273,704 - 401,273,704Reinsurance commissions 16,398 - 7,035,232 602,328 7,653,958 - 7,653,958Net claims and other benefits paid (187,667,554) (40,169,922) (3,408,196) (79,973,290) (311,218,962) - (311,218,962)Changes in outstanding claims, net 35,292,779 433,785 (6,294,930) (2,264,307) 27,167,327 - 27,167,327Changes in premium deficiency reserve 13,202 (2,153,519) (386,938) (923,278) (3,450,533) - (3,450,533)Changes in additional premium reserve - - (2,269,555) - (2,269,555) - (2,269,555)Changes in claims incurred but not reported, net (12,286,054) (5,480,905) (1,879,207) (1,129,510) (20,775,676) - (20,775,676)Change in unit linked liabilities - - - 14,916,241 14,916,241 - 14,916,241Unrealised loss on unit linked investments - - - 8,505,425 8,505,425 - 8,505,425Policy acquisition costs (19,811,903) (7,838,880) (11,410,387) (3,900,077) (42,961,247) - (42,961,247)Net underwriting income – before allocation of inspection and other fee 48,256,120 8,506,360 14,967,120 7,111,082 78,840,682 78,840,682Unallocated Provision for doubtful debts (2,304,908) - (2,304,908)Inspection and supervision fees (4,069,890) - (4,069,890)General and administrative expenses (99,662,869) (794,177) (100,457,046)Investment income 2,925,287 5,688,404 8,613,691Other income 4,496,676 - 4,496,676Net loss for the period before attribution and zakat and income tax (14,880,795) 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 30 September 2020 (Unaudited) Gross written premiums – retail 4,032,248 - 3,745 19,522,140 23,558,133 - 23,558,133Gross written premiums – corporate 13,342,975 33,595,802 23,547,549 621,157 71,107,483 - 71,107,483Gross written premiums – very small entities 839,087 (33,528) 152,412 - 957,971 - 957,971Gross written premiums – small entities 3,958,681 (67,614) 3,585,513 (692) 7,475,888 - 7,475,888Gross written premiums – medium entities 4,757,757 276,275 5,562,692 107,213 10,703,937 - 10,703,937Reinsurance premiums ceded - (17,923,939) (15,109,147) (355,733) (33,388,819) - (33,388,819)Excess of loss expenses (1,003,061) - (3,784,918) - (4,787,979) - (4,787,979)Fee income from unit linked investments 316,270 316,270 - 316,270Net written premiums 25,927,687 15,846,996 13,957,846 20,210,355 75,942,884 - 75,942,884Changes in unearned premiums, net 35,317,968 2,938,045 (457,136) 2,785,715 40,584,592 - 40,584,592Net premiums earned 61,245,656 18,785,041 13,500,709 22,996,070 116,527,476 - 116,527,476Reinsurance commissions 5,104 (546,670) (16,607) 13,084 (545,089) - (545,089)Net claims and other benefits paid (47,600,734) (16,444,462) (1,074,003) (29,823,999) (94,943,198) - (94,943,198)Changes in outstanding claims, net 6,554,768 258,875 (1,727,027) (1,836,137) 3,250,479 - 3,250,479Changes in premium deficiency reserve 5,635,529 (2,631,092) (72,677) (857,919) 2,073,841 - 2,073,841Changes in additional premium reserve - - (723,767) - (723,767) - (723,767)Changes in claims incurred but not reported, net 1,849,706 (3,231,414) 136,294 91,218 (1,154,196) - (1,154,196)Change in unit linked liabilities - - - (3,935,113) (3,935,113) - (3,935,113)Unrealised gain on unit linked investments - - - 10,677,945 10,677,945 - 10,677,945Policy acquisition costs (5,141,419) (2,216,635) (3,948,825) (237,124) (11,544,003) - (11,544,003)Net underwriting income – before allocation of inspection and other fee 22,548,610 (6,026,357) 6,074,097 (2,911,975) 19,684,375 19,684,375Unallocated Provision for doubtful debts (882,524) - (882,524)Inspection and supervision fees (906,726) - (906,726)General and administrative expenses (31,269,879) (256,119) (31,525,998)Investment income 883,231 1,999,811 2,883,042Other income 445,252 - 445,252Net loss for the period before attribution and zakat and income tax (10,302,579) | 13 |
| Disclosure of capital management [text block] | 17. 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 17. Risk Management (continued)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 The Company has fully complied with the externally imposed capital requirements during the reported financial period.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. Liquidity 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] | 11. Contingencies and commitments a) The Company’s commitments and contingencies are as follows:SR September 30, 2021(Unaudited) December 31, 2020(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 September 30, 2021. There was no significant change in the status of legal proceedings as disclosed at December 31, 2020. | 11 |
| Disclosure of fair value of financial assets and liabilities [text block] | 12. 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 value12.1 Insurance operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total September 30, 2021 Unit linked investments 528,871,893 - 528,871,893 - 528,871,893Available for sale investments measured at fair value Bonds and sukuks 136,163,955 136,163,955 - - 136,163,955Mutual funds 4,716,039 - 4,716,039 - 4,716,039Equities 3,193,308 3,193,308 - 3,193,308Unit linked liabilities (507,437,442) - (507,437,442) - (507,437,442) 165,507,753 139,357,263 26,150,490 - 165,507,753 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total December 31, 2020 Unit linked investments 524,059,821 - 524,059,821 - 524,059,821Available for sale investments measured at fair value Bonds and Sukuks 138,767,896 138,767,896 - - 138,767,896Mutual Funds 4,836,936 - 4,836,936 - 4,836,936Equities 3,104,605 3,104,605 - - 3,104,605Unit linked liabilities (518,114,351) - (518,114,351) - (518,114,351) 152,654,907 141,872,501 10,782,406 - 152,654,90712. Fair values of financial instruments (continued)12.2 Shareholders’ operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total September 30, 2021 Available for sale investments measured at fair value Bonds and sukuks 387,695,725 241,762,046 - 145,933,679 387,695,725Mutual funds 5,724,234 - 5,724,234 - 5,724,234Equities 3,223,078 - - 3,223,078 3,223,078 396,643,037 241,762,046 5,724,234 149,156,757 396,643,037 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total December 31, 2020 Available for sale investments measured at fair value Bonds and Sukuk 248,762,998 196,181,247 - 52,581,751 248,762,998Mutual Funds 5,786,078 - 5,786,078 - 5,786,078Equities 3,223,078 - - 3,223,078 3,223,078 257,772,154 196,181,247 5,786,078 55,804,829 257,772,154b. 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 September 30, 2021(Unaudited) December 31, 2020(Audited) Balance at the beginning of the period/year - -Amortisation - -Unrealised (loss) / gain on fair value of available for sale investments - -Balance at the end of the period/year - -12. Fair values of financial instruments (continued)b. Measurement of fair values (continued) Shareholder operationsSR September 30, 2021(Unaudited) December 31, 2020(Audited) Balance at the beginning of the period/year 55,804,829 38,432,763Purchases 93,000,000 30,000,000Disposals/maturity - (15,000,000) Amortisation - -Unrealised gain on fair value of available for sale investments 351,928 2,372,066Balance at the end of the period/year 149,156,757 55,804,829 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 1,106,004 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 1,106,004. | 12 |
| Disclosure of board of director's approval of the financial statements [text block] | 19. Approval of the interim condensed financial statementsThe interim condensed financial statements have been approved by the Company’s Board of Directors on November 03, 2021 (corresponding to 28 Rabi-Alawwal 1443H). | 19 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 18. Supplementary informationa) Interim statements of financial position SR September 30, 2021 December 31, 2020 Insurance operations Share-holders’ operations Total Insurance operations Share-holders’ operations TotalASSETS Cash and cash equivalents 38,676,918 128,293,942 166,970,860 187,639,558 137,406,667 325,046,225Prepaid expenses and other assets 154,095,217 19,108,275 173,203,492 132,882,715 11,208,061 144,090,776Premiums receivable, net 390,629,726 - 390,629,726 404,388,790 - 404,388,790Reinsurers’ balance receivable, net 75,361,940 - 75,361,940 74,029,044 - 74,029,044Reinsurers’ share of outstanding claims 502,456,531 - 502,456,531 501,314,767 - 501,314,767Reinsurers’ share of claims incurred but not reported 53,922,054 - 53,922,054 57,566,257 - 57,566,257Reinsurers’ share of unearned premiums 159,376,597 - 159,376,597 103,362,771 - 103,362,771Deferred policy acquisition costs 13,018,623 - 13,018,623 12,903,209 - 12,903,209Right-of-use assets 1,569,500 - 1,569,500 3,730,142 - 3,730,142Financial assets at fair value through statement of income (unit linked investments) 528,871,893 - 528,871,893 524,059,821 - 524,059,821Available for sale investments 144,073,302 396,643,037 540,716,339 146,709,437 257,772,154 404,481,591Deferred tax assets, net 6,198,219 6,198,219 - 5,825,970 5,825,970Property and equipment 8,580,935 8,580,935 9,527,586 - 9,527,586Statutory deposit - 60,000,000 60,000,000 - 60,000,000 60,000,000Accrued income on statutory deposit - 1,576,156 1,576,156 - 1,572,445 1,572,445Due to/from insurance operation/shareholders operation* (108,503,342) 108,503,342 - (246,382,029) 246,382,029 -TOTAL ASSETS 1,962,129,894 720,322,971 2,682,452,865 1,911,732,068 720,167,326 2,631,899,394 LIABILITIES Accrued and other liabilities 140,400,541 2,858,916 143,259,457 163,085,292 2,347,493 165,432,785Surplus distribution payable 11,186,799 - 11,186,799 15,092,678 - 15,092,678Reinsurers' balances payable 250,897,466 - 250,897,466 202,216,042 - 202,216,042Unearned premiums 332,872,975 - 332,872,975 266,364,432 - 266,364,432Unearned reinsurance commission 2,053,949 - 2,053,949 2,829,659 - 2,829,659Outstanding claims 565,740,176 - 565,740,176 574,233,568 - 574,233,568Claims incurred but not reported 116,357,787 - 116,357,787 123,799,018 - 123,799,018Lease liabilities 885,607 - 885,607 3,362,331 - 3,362,331Premium deficiency reserve 6,999,963 - 6,999,963 9,039,013 - 9,039,013Additional premium reserves 3,301,657 - 3,301,657 1,385,708 - 1,385,708Unit linked liabilities 507,437,442 - 507,437,442 518,114,351 - 518,114,351End-of-service obligations 13,250,394 - 13,250,394 19,019,582 - 19,019,582Zakat and income tax - 16,856,436 16,856,436 - 14,699,522 14,699,522Accrued income payable to SAMA - 1,576,156 1,576,156 - 1,572,445 1,572,445TOTAL LIABILITIES 1,951,384,756 21,291,508 1,972,676,264 1,898,541,674 18,619,460 1,917,161,134 EQUITY Share capital - 600,000,000 600,000,000 - 600,000,000 600,000,000Share premium - 16,310,624 16,310,624 - 16,310,624 16,310,624Statutory reserve - 20,743,607 20,743,607 - 20,743,607 20,743,607Retained earnings - 47,946,267 47,946,267 - 47,676,744 47,676,744Actuarial reserve for end-of–service obligations 3,597,830 3,597,830 3,597,830 - 3,597,830Fair value reserve on investments 7,147,308 14,030,965 21,178,273 9,592,564 16,816,891 26,409,455TOTAL EQUITY 10,745,138 699,031,463 709,776,601 13,190,394 701,547,866 714,738,260 TOTAL LIABILITIES AND EQUITY 1,962,129,894 720,322,971 2,682,452,865 1,911,732,068 720,167,326 2,631,899,394 * This item is not included in the interim statement of financial position.18. Supplementary information (continued)b) Interim statement of income SR For the nine-month period ended September 30, 2021 September 30, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total REVENUES Gross premiums written 587,427,972 - 587,427,972 531,838,456 - 531,838,456 Reinsurance premiums ceded abroad (255,692,801) - (255,692,801) (199,481,049) - (199,481,049)Reinsurance premiums ceded locally (1,014,278) - (1,014,278) (1,280,621) - (1,280,621)Excess of loss expenses (16,684,883) - (16,684,883) (14,363,935) - (14,363,935)Fee income from unit linked investments 1,018,392 - 1,018,392 910,785 - 910,785 Net premiums written 315,054,402 - 315,054,402 317,623,636 - 317,623,636 Changes in unearned premiums (66,508,543) - (66,508,543) 104,327,913 - 104,327,913 Changes in reinsurers’ share of unearned Premiums 56,013,826 - 56,013,826 (20,677,845) - (20,677,845)Net premiums earned 304,559,685 - 304,559,685 401,273,704 - 401,273,704 Reinsurance commissions 3,914,027 - 3,914,027 7,653,958 - 7,653,958 NET REVENUES 308,473,712 - 308,473,712 408,927,662 - 408,927,662 UNDERWRITING COSTS AND EXPENSES Gross claims paid (316,989,263) - (316,989,263) (327,436,687) - (327,436,687)Surrenders and maturities (133,362,490) - (133,362,490) (83,837,923) - (83,837,923)Expenses incurred related to claims (10,692,089) - (10,692,089) (16,899,013) - (16,899,013)Reinsurers’ share of claims paid 212,832,237 - 212,832,237 116,954,661 - 116,954,661 Net claims and other benefits paid (248,211,605) - (248,211,605) (311,218,962) - (311,218,962)Changes in outstanding claims 8,493,392 - 8,493,392 53,029,398 - 53,029,398 Changes in reinsurers’ share of outstanding claims 1,141,764 - 1,141,764 (25,862,071) - (25,862,071)Change in premium deficiency reserves 2,039,050 - 2,039,050 (3,450,533) - (3,450,533)Changes in additional premium reserves -1,915,949 - -1,915,949 (2,269,555) - (2,269,555)Changes in claims incurred but not Reported 7,441,231 - 7,441,231 (26,021,815) - (26,021,815)Changes in reinsurers’ share of claim incurred but not reported (3,644,203) - (3,644,203) 5,246,139 - 5,246,139 Net claims and other benefits incurred (234,656,320) - (234,656,320) (310,547,399) - (310,547,399)Changes in unit linked liabilities 10,676,909 - 10,676,909 14,916,241 - 14,916,241 Unrealised gain on unit linked investments 31,863,485 - 31,863,485 8,505,425 - 8,505,425 Policy acquisition costs (30,613,129) - (30,613,129) (42,961,247) - (42,961,247)Inspection and supervision fees (4,311,724) - (4,311,724) (4,069,890) - (4,069,890)TOTAL UNDERWRITING COSTS AND EXPENSES (227,040,779) - (227,040,779) (334,156,870) - (334,156,870)NET UNDERWRITING INCOME 81,432,933 - 81,432,933 74,770,792 - 74,770,792 OTHER (EXPENSES) / INCOME Provision for doubtful debts (4,251,304) - (4,251,304) (2,304,908) - (2,304,908)General and administrative expenses (85,180,660) (629,764) (85,810,424) (99,662,869) (794,177) (100,457,046)Investment income 3,022,037 7,859,247 10,881,284 2,925,287 5,688,404 8,613,691 Other income 5,240,927 - 5,240,927 4,496,676 - 4,496,676 TOTAL OTHER (EXPENSES) / INCOME (81,169,000) 7,229,483 (73,939,517) (94,545,814) 4,894,227 (89,651,587)Net income / (loss) for the period before attribution and zakat and income tax 263,933 7,229,483 7,493,416 (19,775,022) 4,894,227 (14,880,795)Net surplus / (deficit) transferred to shareholders’ operations (237,540) 237,540 - 19,775,022 (19,775,022) - Net income / (loss) for the period after shareholders’ appropriations 26,393 7,467,023 7,493,416 - (14,880,795) (14,880,795)Zakat charge for the period - (6,407,682) (6,407,682) - (4,381,259) (4,381,259)Income tax (charge) / credit for the period, net - (789,818) (789,818) - 664,553 664,553 Net income / (loss) after zakat and income tax 26,393 269,523 295,916 - (18,597,501) (18,597,501)18. Supplementary information (continued)b) Interim statement of income SR For the three-month period ended September 30, 2021 September 30, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total REVENUES Gross premiums written 112,338,747 - 112,338,747 113,803,412 - 113,803,412 Reinsurance premiums ceded abroad (24,376,318) - (24,376,318) (33,176,898) - (33,176,898)Reinsurance premiums ceded locally (164,529) - (164,529) (211,921) - (211,921)Excess of loss expenses (4,171,221) - (4,171,221) (4,787,979) - (4,787,979)Fee income from unit linked investments 355,048 - 355,048 316,270 - 316,270 Net premiums written 83,981,727 - 83,981,727 75,942,884 - 75,942,884 Changes in unearned premiums 62,027,944 - 62,027,944 70,456,953 - 70,456,953 Changes in reinsurers’ share of unearned Premiums (42,509,368) - (42,509,368) (29,872,361) - (29,872,361)Net premiums earned 103,500,303 - 103,500,303 116,527,476 - 116,527,476 Reinsurance commissions 1,041,563 - 1,041,563 (545,089) - (545,089)NET REVENUES 104,541,866 - 104,541,866 115,982,387 - 115,982,387 UNDERWRITING COSTS AND EXPENSES Gross claims paid (105,775,793) - (105,775,793) (122,862,597) - (122,862,597)Surrenders and maturities (47,341,158) - (47,341,158) (22,233,334) - (22,233,334)Expenses incurred related to claims (4,452,854) - (4,452,854) (5,043,545) - (5,043,545)Reinsurers’ share of claims paid 77,468,784 - 77,468,784 55,196,278 - 55,196,278 Net claims and other benefits paid (80,101,021) - (80,101,021) (94,943,198) - (94,943,198)Changes in outstanding claims (524,554) - (524,554) 35,415,333 - 35,415,333 Changes in reinsurers’ share of outstanding claims (329,698) - (329,698) (32,164,854) - (32,164,854)Change in premium deficiency reserves 2,599,428 - 2,599,428 2,073,841 - 2,073,841 Changes in additional premium reserves (23,583) - (23,583) (723,767) - (723,767)Changes in claims incurred but not Reported 1,949,425 - 1,949,425 3,447,217 - 3,447,217 Changes in reinsurers’ share of claim incurred but not reported 519,225 - 519,225 (4,601,413) - (4,601,413)Net claims and other benefits incurred (75,910,778) - (75,910,778) (91,496,841) - (91,496,841)Changes in unit linked liabilities (2,014,292) - (2,014,292) (3,935,113) - (3,935,113)Unrealised gain on unit linked investments 11,419,125 - 11,419,125 10,677,945 - 10,677,945 Policy acquisition costs (10,275,088) - (10,275,088) (11,544,003) - (11,544,003)Inspection and supervision fees (2,294,069) - (2,294,069) (906,726) - (906,726)TOTAL UNDERWRITING COSTS AND EXPENSES (79,075,102) - (79,075,102) (97,204,738) - (97,204,738)NET UNDERWRITING INCOME 25,466,764 - 25,466,764 18,777,649 - 18,777,649 OTHER (EXPENSES) / INCOME Provision for doubtful debts - - - (882,524) - (882,524)General and administrative expenses (30,796,654) (204,341) (31,000,995) (31,269,879) (256,119) (31,525,998)Investment income 1,033,519 3,030,636 4,064,155 883,231 1,999,811 2,883,042 Other income (24,732) - (24,732) 445,252 - 445,252 TOTAL OTHER EXPENSES (29,787,867) 2,826,295 (26,961,572) (30,823,920) 1,743,692 (29,080,228)Net (loss) / income for the period before attribution and zakat and income tax (4,321,103) 2,826,295 (1,494,808) (12,046,271) 1,743,692 (10,302,579) Net deficit transferred to shareholders’ operations 3,888,992 (3,888,992) - 12,046,271 (12,046,271) -Net loss for the period after shareholders’ appropriations (432,111) (1,062,697) (1,494,808) - (10,302,579) (10,302,579)Zakat charge for the period - (2,102,465) (2,102,465) - (2,222,552) (2,222,552)Income tax (charge) / credit for the period, net - (156,476) (156,476) - 174,476 174,476Net loss after zakat and income tax (432,111) (3,321,638) (3,353,749) - (12,350,655) (12,350,655)18. Supplementary information (continued) c) Interim statement of comprehensive income SR For the nine-month period ended September 30, 2021 September 30, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net income / (loss) for the period after zakat and income tax 26,393 269,523 295,916 - (18,597,501) (18,597,501)Other comprehensive income / (loss) Items that are or may be recycled to statements of income in subsequent periods Available for sale investments: - Net change in fair value (2,445,256) (3,407,477) (5,852,733) 4,405,596 6,751,893 11,157,489 - Deferred tax relating to change in fair value 259,622 361,929 621,551 4,311,991 (716,876) 3,595,115 Total comprehensive (loss) / income for the period (2,159,241) (2,776,025) (4,935,266) 8,717,587 (12,562,484) (3,844,897)Reconciliation: Less: Net income attributable to insurance operations (26,393) -Total comprehensive loss for the period attributable to the shareholders (4,961,659) (3,844,897) SR For the three-month period ended September 30, 2021 September 30, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net loss for the period after zakat and income tax (432,111) (3,321,638) (3,753,749) - (12,350,655) (12,350,655)Other comprehensive income / (loss) Items that are or may be recycled to statements of income in subsequent periods Available for sale investments: - Net change in fair value (809,425) 170,719 (638,706) 1,194,753 2,234,428 3,429,181 - Deferred tax relating to change in fair value 85,940 (18,126) 67,814 601,788 (237,698) 364,090 Total comprehensive (loss) / income for the period (1,155,596) (3,169,045) (4,324,641) 1,796,541 (10,353,925) (8,557,384)Reconciliation: Add: Net loss attributable to insurance operations 432,111 -Total comprehensive loss for the period attributable to the shareholders (3,892,530) (8,557,384)18. Supplementary information (continued)d) Interim statement of cash flows SR For the nine-month period ended September 30, 2021 September 30, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM OPERATING ACTIVITIES Net income / (loss) for the period before attribution and zakat and income tax 26,393 7,467,023 7,493,416 - (14,880,795) (14,880,795)Adjustments for non-cash items and other items: Depreciation of property and equipment 2,867,424 - 2,867,424 2,112,659 - 2,112,659 Amortisation of Right-of-use assets 2,160,642 - 2,160,642 2,344,032 - 2,344,032 Amortisation of investments premium 412,519 - 412,519 192,187 301,897 494,084 Provision of doubtful reinsurance receivables 362,006 - 362,006 (127,202) - (127,202) Gain on sale of property and equipment (55,341) - (55,341) - - - Provision for doubtful receivables and write-offs 3,889,298 - 3,889,298 1,860,647 - 1,860,647 (Reversal) / provision for end-of-service obligations (3,540,512) - (3,540,512) 3,595,982 - 3,595,982 Unrealised gain on unit linked investments (31,863,485) - (31,863,485) (8,505,425) - (8,505,425)Finance cost on lease liabilities 335,061 - 335,061 357,705 - 357,705 Shareholders’ appropriation from insurance operations’ surplus* 237,540 (237,540) - (19,775,022) 19,775,022 - (25,168,455) 7,229,483 (17,938,972) (17,944,437) 5,196,124 (12,748,313)Changes in operating assets and liabilities: Reinsurers’ balance receivable (1,694,902) - (1,694,902) (13,591,740) - (13,591,740)Premium receivable 9,869,766 - 9,869,766 (24,630,927) - (24,630,927)Reinsurers’ share of unearned premiums (56,013,826) - (56,013,826) 20,677,845 - 20,677,845 Reinsurers’ share of outstanding claims (1,141,764) - (1,141,764) 25,862,071 - 25,862,071 Reinsurers’ share of claims incurred but not reported 3,644,203 - 3,644,203 (5,246,139) - (5,246,139)Deferred policy acquisition costs (115,414) - (115,414) 11,189,994 - 11,189,994 Unit linked investments 27,051,413 - 27,051,413 6,516,405 - 6,516,405 Prepaid expenses and other assets (21,212,502) (7,900,214) (29,112,716) (34,035,041) (6,424,589) (40,459,630)Accrued and other liabilities (22,684,751) 511,423 (22,173,328) 9,164,500 13,928 9,178,428Reinsurers' balances payable 48,681,424 - 48,681,424 27,472,476 - 27,472,476 Unearned premiums 66,508,543 - 66,508,543 (104,327,913) - (104,327,913)Unearned reinsurance commission (775,710) - (775,710) (3,544,607) - (3,544,607)Unit linked liabilities (10,676,909) - (10,676,909) (14,916,241) - (14,916,241)Outstanding claims (8,493,392) - (8,493,392) (53,029,398) - (53,029,398)Claims incurred but not reported (7,441,231) - (7,441,231) 26,021,815 - 26,021,815 Premium deficiency reserves (2,039,050) - (2,039,050) 3,450,533 - 3,450,533 Additional premium reserves 1,915,949 - 1,915,949 2,269,555 - 2,269,555 213,392 (159,308) 54,084 (138,641,249) (1,214,537) (139,855,786) End-of-service obligations paid (2,228,676) (2,228,676) (164,076) - (164,076)Surplus paid to policyholders / reclassified from surplus distribution (3,932,272) - (3,932,272) (480,616) - (480,616)Zakat and income tax paid - (4,791,284) (4,791,284) - (19,697,352) (19,697,352)Net cash used in operating activities (5,947,556) (4,950,592) (10,898,148) (139,285,941) (20,911,889) (160,197,830) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of available for sale investments - (142,500,000) (142,500,000) - (20,000,000) (20,000,000)Proceeds from sale of property and equipment 55,340 - 55,340 - - - Payment for purchase of property and equipment (1,920,772) - (1,920,772) (2,412,030) - (2,412,030)Net cash used in investing activities (1,865,432) (142,500,000) (144,365,432) (2,412,030) (20,000,000) (22,412,030)CASH FLOWS FROM FINANCING ACTIVITY Due from / to (insurance operations / shareholder operations)* (138,116,227) 138,116,227 - 258,724,566 (258,724,566) - Increase in statutory deposit - - - - (40,000,000) (40,000,000)Transaction cost related to increase in share capital - - - - (6,400,691) (6,400,691)Increase in share capital - - - - 400,000,000 400,000,000 Lease rental paid (2,811,785) - (2,811,785) (2,361,787) - (2,361,787)Net cash (used in) / generated from financing activity (140,928,012) 138,116,227 (2,811,785) 256,362,779 94,874,743 351,237,522 Net change in cash and cash equivalents (148,741,000) (9,334,365) (158,075,366) 114,664,808 53,962,854 168,627,662 Cash and cash equivalents at the beginning of the period 187,639,558 137,406,667 325,046,225 87,046,426 61,819,191 148,865,617 Cash and cash equivalents at the end of the Period 38,898,558 128,072,302 166,970,860 201,711,234 115,782,045 317,493,279 NON-CASH INFORMATION: Change in fair value of available for sale Investment 2,445,256 3,407,477 5,852,733 (4,405,596) (6,751,893) (11,157,489)Deferred income tax (259,622) (361,929)(621,551) (4,311,991) 716,876 (3,595,115) * These items are not included in the interim statement of cash flows | 18 |
