| 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 Kingdom of Saudi Arabia), (the “Company”), was formed pursuant to Royal Decree No. 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 11 July 2007). The Company operates through its five 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, Saudi ArabiaThe 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 savings, motor, engineering, property and other general insurance lines.On 31 July 2003, corresponding to 2 Jumada Thani 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 1 January 2016, the Company 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. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2 BASIS OF PREPARATION(a) Basis of presentation and measurement These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).The financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of unit linked investments, available-for-sale investments and recording of employees’ end of service obligations at present value. The Company’s 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, right-of-use assets, deferred tax assets, property and equipment, statutory deposit, accrued income on statutory deposit, lease liabilities and end-of-service obligations. 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. The Company presents its statement of financial position in order of liquidity. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and presents the financial statements accordingly (Note 30). 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 statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 30 of the financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations and is not required by IFRS. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the 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. Inter-operation balances, transactions and unrealised 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.(b) Functional and presentational currencyThe functional and presentational currency of the Company is Saudi Riyals (SR). The financial statements values are presented in Saudi Riyals, unless otherwise indicated.(c) Fiscal yearThe Company follows a fiscal year ending 31 December.(d) Critical accounting judgments, estimates and assumptionsThe preparation of the financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Although these estimates and judgments are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. Estimates and judgments are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Following are the accounting judgments and estimates that are critical in preparation of these financial statements:The Company has reviewed the key sources of estimation uncertainties disclosed in the 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.In response to the spread of the COVID-19 in the Kingdom of Saudi Arabia where the Company operates and its resulting disruptions to the social and economic activities in those markets over the last two years, management continues to proactively assess its impacts on its operations. In particular, the Company is closely monitoring the current surge in cases due to the outbreak of a new variant - Omicron. The preventive measures taken by the Company during the year 2021 and 2020 are still in effect including the creation of ongoing crisis management teams and processes, to ensure the health and safety of its employees, customers and the wider community as well as to ensure the continuity of its operations. Employee health continues to be a key area of focus with programs being implemented to assist with increasing awareness, identification, support and monitoring of employee health. A majority of the employees of the Company have been fully vaccinated for at least two doses of vaccine and the management is working on a plan to encourage booster shots in line with the government initiatives related to COVID-19.The management of the Company believes that any potential lockdown measures being reintroduced will not materially affect the underlying demand for the Company’s insurance products and forecast.Based on these factors, management believes that the COVID-19 pandemic has had no material effect on the Company’s reported financial results for the year ended December 31, 2021 including the significant accounting judgements and estimates. The Company continues to monitor the surge of the new variant closely although at this time management is not aware of any factors that are expected to change the impact of the pandemic on the Company’s operations during 2022 or beyond.Medical technical reservesDuring 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 experienced a surge in claims which was in line with the expectations of the Company’s management. 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 months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this circular.i) The ultimate liability arising from claims made under insurance contractsThe estimation of the ultimate liability arising from claims made under insurance contracts is the Company’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that the Company will ultimately pay for such claims. Estimates are made at the end of the reporting period both for the expected ultimate cost of claim reported and for the expected ultimate costs of claims incurred but not reported (“IBNR”). Liabilities for unpaid reported claims are estimated using the input of assessments for individual cases reported to the Company. At the end of each reporting period, prior year claims estimates are reassessed for adequacy and changes are made to the provision.The provision of IBNR is an estimation of claims which are expected to be reported subsequent to the date of statement of financial position, for which the insured event has occurred prior to the date of statement of financial position. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using the past claims settlement trends to predict future claims settlement trends. A range of methods such as Chain Ladder Method, Bornhuetter-Ferguson Method and Expected Loss Ratio Method are used by the actuaries to determine these provisions. Underlying these methods are a number of explicit or implicit assumptions relating to the expected settlement amount and settlement patterns of claims.Claims requiring court or arbitration decisions are estimated individually. Independent loss adjusters normally estimate property, engineering and large claims. Management reviews its provisions for claims incurred, and claims incurred but not reported, on a quarterly basis. The Company uses the service of an independent actuary in the valuation of IBNR as well as Premium Deficiency Reserve and other technical reserves.ii) Impairment of available for sale investments The Company determines that available-for-sale financial assets are impaired when there has been a significant or prolonged decline in the fair value below its cost. This determination of what is significant or prolonged requires judgment. A period of 12 months or longer is considered to be prolonged and a decline of 30% from original cost is considered significant as per Company policy for equity instruments and mutual funds. In making this judgment, the Company evaluates among other factors, the normal volatility in the financial health of the investee, industry and sector performance, changes in technology, and operational and financing cash flows. The Company reviews its bond and sukuk investments classified as available for sale at each reporting date to assess whether they are impaired. In the case of bond and sukuk investment classified as available-for-sale, the Company assesses individually whether there is objective evidence of impairment based on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the statement of income.iii) Impairment of receivablesA provision for impairment of receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments are considered indicators that the receivable is impaired.iv) Fair value of financial assetsFair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics.The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases the fair values are estimated from observable data in respect of similar financial instruments or using models. Where market observable inputs are not available, they are estimated based on appropriate assumptions. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed by qualified personnel independent of those that sourced them. All models are certified before they are used, and models are calibrated to ensure that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data; however, areas such as credit risk (both own credit risk and counterparty risk), volatilities and correlations require management to make estimates. | 2 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | 3 SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in the preparation of these financial statements are consistent with those used in the preparation of the financial statements for the year ended December 31, 2020, except for the adoption of the following:New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Company The Company has adopted the following amendments, interpretations and revisions to existing standards, which were issued by the IASB and are applicable from January 1, 2021:Standard / Amendments DescriptionAmendments to IFRS 7, IFRS 9, IAS 39, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2Amendments to IFRS 16 Covid-19 related Rent Concessions ExtensionThe adoption of the above amendments to standards and interpretations did not have any significant impact on these financial statements. Standards issued but not yet effective:Standards issued but not yet effective up to the date of issuance of the Company’s financial statements are listed below. The listing is of standards and interpretations issued, which the Company reasonably expects to be applicable at a future date. The Company intends to adopt these standards when they become effective.Standard/Interpretation Description Effective from periods beginning on or after the following dateIFRS 9 Financial Instruments January 1, 2023IFRS 17 Insurance Contracts January 1, 2023Amendments to IAS 1 Classification of Liabilities as Current or Non-current January 1, 2023 Amendments to IAS 16 Property, Plant and Equipment: Proceeds before intended use January 1, 2022 Amendments to IFRS 3 Reference to the Conceptual Framework January 1, 2022Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract January 1, 20223 SIGNIFICANT ACCOUNTING POLICIES (continued)Standards issued but not yet effective: (continued)Annual Improvements to IFRS Improvements relating to:- IFRS 9 Financial Instruments- IFRS 16 Leases- IFRS 1 First-time Adoption of IFRS- IAS 41 Agriculture January 1, 2022 Amendments to IAS 1 and IFRSPractice Statement 2 Disclosure of Accounting Policies January 1, 2023Amendments to IAS 8 Definition of Accounting Estimates January 1, 2023Amendments to IAS12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction January 1, 2023There are no other relevant IFRS or IFRS interpretations that are not yet effective that would be expected to have a material impact on the Company’s financial statements except for IFRS 9 and IFRS 17 as explained below.In addition to the above-mentioned standards, the following standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s 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 International Financial Reporting Standards, which have been published and are mandatory for compliance for the Company with effect from future dates.IFRS 17 Insurance ContractsOverviewThis standard has been published in May 2017. It establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance contracts.The new standard applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts. It requires to separate the following components from insurance contracts:i. embedded derivatives, if they meet certain specified criteria;ii. distinct investment components; andiii. any promise to transfer distinct goods or non-insurance services.These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). MeasurementIn contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following different measurement models:The General Measurement Model (GMM) is based on the following “building blocks”:a) the fulfilment cash flows (FCF), which comprise: probability-weighted estimates of future cash flows, an adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with those future cash flows, and a risk adjustment for non-financial risk;b) the Contractual Service Margin (CSM) - The CSM represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception; any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. 3 SIGNIFICANT ACCOUNTING POLICIES (continued) IFRS 17 Insurance Contracts (continued)At the end of each subsequent reporting period, the carrying amount of a group of insurance contracts is remeasured to be the sum of: the liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date; and the liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date.The CSM is adjusted subsequently for changes in cash flows related to future services. Since the CSM cannot be negative, so changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss.The effect of changes in discount rates will be reported in either profit or loss or other comprehensive income, determined by an accounting policy choice. The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, the CSM is also adjusted for in addition to adjustment under GMM, the CSM is also adjusted for; i. the entity’s share of the fair value of underlying items, ii. the effect of changes in the time value of money and in financial risks not relating to the underlying items.In addition, a simplified Premium Allocation Approach (PAA) is permitted for the measurement of the liability for remaining coverage if it provides a measurement that is not materially different from the General Measurement Model for the group of contracts or if the coverage period for each contract in the group is one year or less. With the PAA, the liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The General Measurement Model remains applicable for the measurement of the liability for incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid/received in one year or less from the date the claims are incurred. Effective dateThe IASB issued an Exposure Draft Amendments to IFRS 17 proposing certain amendments to IFRS 17 during June 2019 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4 is currently January 1, 2023. Under the current exposure draft, it is proposed to amend the IFRS 17 effective date to reporting periods beginning on or after January 1, 2022. This is a deferral of 1 year compared to the previous date of January 1, 2021. Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intends to apply the Standard on its effective date. 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. 3 SIGNIFICANT ACCOUNTING POLICIES (continued) IFRS 17 Insurance Contracts (continued)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.The Company has started with their implementation process and have set up a proper team, supervised by a steering committee. A dry run was conducted on the financial statements for the year 2020 as required by SAMA’s phase 4 requirement based on certain operational simpilicity. The results of IFRS 17 dry run were submitted to SAMA on during 2021. The Company is now in the process of completing SAMA’s Phase 4 second dry run. 3 SIGNIFICANT ACCOUNTING POLICIES (continued)IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts)This standard was published on July 24, 2014 and has replaced IAS 39. The new standard addresses the following items related to financial instruments:a) Classification and measurement:IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized cost if both: i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows andii. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (“SPPI”).The financial asset is measured at fair value through other comprehensive income and realized gains or losses would be recycled through profit or loss upon sale, if both conditions are met: i. the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and for sale and ii. the contractual terms of cash flows are SPPI,Assets not meeting either of these categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss.Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss.b) Impairment: The impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.c) Hedge accounting:IFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model. The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39.This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project.Effective dateThe published effective date of IFRS 9 was 1 January 2018. However, amendments to IFRS 4 – Insurance Contracts: Applying IFRS 9 – Financial Instruments with IFRS 4 – Insurance Contracts, published on 12 September 2016, changes the existing IFRS 4 to allow entities issuing insurance contracts within the scope of IFRS 4 to mitigate certain effects of applying IFRS 9 before the IASB’s new insurance contract standard (IFRS 17 – Insurance Contracts) becomes effective. The amendments introduce two alternative options:1. apply a temporary exemption from implementing IFRS 9 until the earlier ofa. the effective date of a new insurance contract standard; orb. annual reporting periods beginning on or after 1 January 2023. The IASB is proposing to extend the 3 SIGNIFICANT ACCOUNTING POLICIES (continued)IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts) (continued)effective date of IFRS 17 and the IFRS 9 temporary exemption in IFRS 4 to 1 January 2022. Additional disclosures related to financial assets are required during the deferral period. This option is only available to entities whose activities are predominately connected with insurance and have not applied IFRS 9 previously; or2. adopt IFRS 9 but, for designated financial assets, remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contract standard is implemented. During the interim period, additional disclosures are required.The Company has performed a detailed assessment beginning 1 January 2018: (1) The carrying amount of the Company’s liabilities arising from contracts within the scope of IFRS 4 (including deposit components or embedded derivatives unbundled from insurance contracts) were compared to the total carrying amount of all its liabilities; and (2) the total carrying amount of the company’s liabilities connected with insurance were compared to the total carrying amount of all its liabilities. Based on these assessments the Company determined that it is eligible for the temporary exemption. Consequently, the Company has decided to defer the implementation of IFRS 9 until the effective date of the new insurance contracts standard. Disclosures related to financial assets required during the deferral period are included in the Company’s financial statements.Impact assessmentAs at December 31, 2021, the Company has total financial assets amounting to SR 1,423 million. Currently, financial assets held at amortized cost consist of cash and cash equivalents and certain other receivables amounting to SR 363 million (2020: SR 469 million). Fair value of unit linked investments held at fair value through statement of income as at December 31, 2021 is SR 506 million (2020: SR 524 million). Other financial assets consist of available for sale investments amounting to SR 553 million (2020: SR 404 million). The Company expect to use the FVOCI classification of these financial assets based on the business model of the Company for debt securities and strategic nature of equity investments. However, the Company is yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test as required by IFRS 9. Investment in funds classified under available for sale investments will be at FVSI under IFRS 9. As at December 31, 2021 these debt securities within available for sale category are measured at fair value of SR 563 million with changes in fair value during the year of SR (9.9) million. Credit risk exposure, concentration of credit risk and credit quality of these financial assets are mentioned in note 27. The Company financial assets have low credit risk as at 31 December 2021 and 2020. The above is based on high-level impact assessment of IFRS 9. This preliminary assessment is based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being made available to the Company in the future. Overall, the Company expects some effect of applying the impairment requirements of IFRS 9. However, the impact of the same is not expected to be significant. At present it is not possible to provide reasonable estimate of the effects of application of this new standard as the Company is yet to perform a detailed reviewThe significant accounting policies used in preparing these financial statements are set out below: Income TaxThe income tax expense or credit for the year is the tax payable on the current year’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.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 year in which such assessments are made. The income tax expense or credit for the year is the tax payable on the current year’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 taxDeferred 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 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 ZATCA. Zakat expense is charged to the statement of income. Zakat is not accounted for as income tax and as such no deferred tax is calculated relating to zakat. | 3 |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalentsCash and cash equivalents comprise cash in hand and balances with banks including deposits with less than three months maturity from the date of acquisition. | 3 |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Premiums receivablePremiums receivable are stated at gross written premiums receivable from insurance contracts, less an allowance for any uncollectible amounts. Premiums and reinsurance balances receivable are recognised when due and measured on initial recognition at the fair value of the consideration receivable. Subsequent to initial recognition, receivables are measured at amortized cost using the effective interest method, less provision for impairment. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the statement of income.An allowance for impairment of receivables is established when there is objective evidence that the carrying amount will not be recoverable. Receivable balances are derecognised when the Company no longer controls the contractual rights that comprise the receivable balance, which is normally the case when the receivable balance is sold, or all the cash flows attributable to the balance are passed through to an independent third party. Receivables disclosed in notes 6 and 7 falls under the scope of IFRS 4 “Insurance contracts”. | 3 |
| Description of accounting policy for deferred policy acquisition costs [text block] | Deferred policy acquisition costs (DAC)Commissions and other costs directly related to the acquisition and renewal of insurance contracts are deferred and amortized over the terms of the insurance contracts to which they relate, similar to premiums earned. All other acquisition costs are recognized as an expense when incurred. Amortization is recorded in the “Policy acquisition costs” in the statement of income.Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period and are treated as a change in accounting estimate.An impairment review is performed at each reporting date or more frequently when an indication of impairment arises. If the assumptions relating to future profitability of these policies are not realized, the amortization of these costs could be accelerated and this may also require additional impairment write-offs in the statement of income. Deferred policy acquisition costs are also considered in the liability adequacy test at each reporting date.Deferred policy acquisition costs are derecognised when the related contracts are either settled or disposed of. | 3 |
| Description of accounting policy for property and equipment [text block] | Property and equipmentProperty and equipment are stated at cost less accumulated depreciation and any impairment losses. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of income during the financial period in which they are incurred. Land is not depreciated. The cost of other items of property and equipment is depreciated on the straight line method to allocate the cost over estimated useful lives, as follows: - Computer and office equipment 4 years - Motor vehicles 4 years - Furniture and fittings 4 to 7 years - Leasehold improvements 5 years The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each reporting date and adjusted prospectively, if appropriate. The carrying values of these assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amounts, the assets are written down to their recoverable amount. An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of income when the asset is derecognised. | 3 |
| Description of accounting policy for liability adequacy test [text block] | Liability adequacy testAt each statement of financial position date, liability adequacy tests are performed to ensure the adequacy of the insurance contracts liabilities net of related deferred policy acquisition costs. In performing these tests management uses current best estimates of future contractual cash flows and claims handling and administration expenses. Any deficiency in the carrying amounts is immediately charged to the statement of income by establishing a provision for losses arising from liability adequacy tests accordingly. | 3 |
| Description of accounting policy for settlement and trade date accounting [text block] | Trade date accountingAll regular way purchases and sales of financial assets are recognised / derecognised on the trade date (i.e. the date that the Company commits to purchase or sell the assets). Regular way purchases or sales are purchases or sales of financial assets that require settlement of assets within the time frame generally established by regulation or convention in the market place. | 3 |
| Description of accounting policy for statutory reserve [text block] | Statutory reserve In accordance with the Company’s by-laws, the Company shall allocate 20% of its net income from shareholders operations each year to the statutory reserve until it has built up a reserve equal to the share capital. The reserve is not available for distribution. | 3 |
| Description of accounting policy for employees end of service benefits [text block] | End-of-service obligationsThe calculation of the employees’ end of service benefit is performed annually by a qualified actuary using the projected unit credit method in accordance with the requirements of IAS 19 "Employee Benefits". All past service costs are recognized as an expense immediately in the statement of income. Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses are recognized in other comprehensive income. The Company determines the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability at that date, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefits payments. Net Interest expense and other expenses related to the defined benefit plans are recognized in the statement of income.Short term employee benefitsShort-term employee benefits, include leave pay and airfare, are current liabilities included in accrued expenses, measured at the undiscounted amount that the entity expects to pay as a result of the unused entitlement.Retirement benefitsThe Company pays retirement contributions for its Saudi Arabian employees to the General Organization for Social Insurance. This represents a defined contribution plan. The payments made are expensed as incurred. | 3 |
| Description of accounting policy for zakat [text block] | Zakat and income taxIn accordance with the regulations of the Zakat, Tax and Customs Authority ("ZATCA"), the Company is subject to zakat attributable to the Saudi shareholders and to income tax attributable to the foreign shareholders. Zakat is computed on the Saudi shareholders’ share of equity or net income using the basis defined under the Zakat regulations. Income taxes are computed on the foreign shareholders share of net adjusted income for the year. Zakat and income tax is accrued on a quarterly basis and recorded in the statement of income. Additional amounts payable, if any, at the finalization of final assessments are accounted for when such amounts are determined.The Company withholds taxes on certain transactions with non-resident parties, including dividend payments to foreign shareholders, in the Kingdom of Saudi Arabia as required under Saudi Arabian Income Tax Law. Withholding taxes paid on behalf of non-resident parties, which are not recoverable from such parties, are expensed. | 3 |
| Description of accounting policy for impairment and uncollectibiity of financial assets [text block] | Derecognition of financial assetsDerecognition of a financial asset occurs only when the seller has transferred the asset’s risks and rewards (either substantially or partially) or control of the contractual rights have been transferred from the seller to the buyer. The evaluation of the transfer of risks and rewards should precede an evaluation of the transfer of control for all types of transaction. The positions of both the buyer and the seller should be considered but the seller’s position is seen as more relevant. An entity may achieve partial derecognition whereby it recognises the components that have been retained, or new assets or liabilities such as those that arise from issuing a guarantee.If the entity determines that it has neither retained nor transferred substantially all of an asset’s risks and rewards and that it has retained control, the entity should continue to recognise the asset to the extent of its continuing involvement.Impairment of financial assetsThe Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include:- Significant financial difficulty of the issuer or debtor;- A breach of contract, such as a default or delinquency in payments;- It becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganization; - The disappearance of an active market for that financial asset because of financial difficulties; or- Observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the Company, including: adverse changes in the payment status of issuers or debtors in the Company; or national or local economic conditions at the country of the issuers that correlate with defaults on the assets.If there is objective evidence that an impairment loss on a financial asset exists, the impairment is determined as follows:- For assets carried at fair value, impairment is the significant or prolonged decline in the fair value of the financial asset.- For assets carried at amortized cost, impairment is based on estimated future cash flows that are discounted at the original effective commission rate.For available-for-sale financial assets, the Company assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.In the case of debt instruments classified as available for sale, the Company assesses individually whether there is an objective evidence of impairment. Objective evidence may include indications that the borrower is experiencing significant financial difficulty, default or delinquency in special commission income or principal payments, the probability that it will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in economic conditions that correlate with defaults. The Company also considers the factors such as market’s assessment of creditworthiness as reflected in the bond yields, rating agencies’ assessment of creditworthiness, country’s ability to access the capital markets for new debt issuance and probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt forgiveness. The amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of income.For equity investments held as available-for-sale, a significant or prolonged decline in fair value below its cost represents objective evidence of impairment. The impairment loss cannot be reversed through statement of income as long as the asset continues to be recognised i.e. any increase in fair value after impairment has been recorded can only be recognised in other comprehensive income. On derecognition, any cumulative gain or loss previously recognised in other comprehensive income is included in the statement of income. The determination of what is ‘significant’ or ‘prolonged’ requires judgement. A period of 12 months or longer is considered to be prolonged and a decline of 30% from original cost is considered significant as per Company policy. In making this judgement, the Company evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost. | 3 |
| Description of accounting policy for fair value measurement [text block] | Fair valuesThe fair value of financial assets are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flow using commission for items with similar terms and risk characteristics. For financial assets where there is no active market, fair value is determined by reference to the market value of a similar financial assets or where the fair values cannot be derived from active market, they are determined using a variety of valuation techniques. The inputs of this models is taken from observable market where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. | 3 |
| Description of accounting policy for reinsurance/ retakaful activities [text block] | Reinsurance Reinsurance is distributed between treaty, facultative and excess of loss reinsurance contracts. Contracts entered into by the Company with reinsurers under which the Company is compensated for losses on one or more contracts issued by the Company and that meet the classification requirements for insurance contracts are classified as reinsurance contracts held. Contracts that do not meet these classification requirements are classified as financial assets. Insurance contracts entered into by the Company under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts. An asset or liability is recorded in the statement of financial position representing payments due from reinsurers, the share of losses recoverable from reinsurers and premiums due to reinsurers. Amounts receivable from reinsurance is estimated in a manner consistent with the claim liability associated with the insured parties. Reinsurance assets or liabilities are derecognised when the contractual rights are extinguished or expire or when the contract is transferred to another party. An impairment review is performed at each reporting date or more frequently when an indication of impairment arises during the reporting year. Impairment occurs when objective evidence exists that the Company may not recover outstanding amounts under the terms of the contract and when the impact on the amounts that the Company will receive from the reinsurer can be measured reliably. The impairment loss is recorded in the statement of income as incurred. Ceded reinsurance arrangements do not relieve the Company from its obligations to policyholders. Premiums and claims on assumed reinsurance are recognised as income and expenses in the same manner as they would be if the reinsurance were considered direct business, taking into account the product classification of the reinsured business. | 3 |
| Description of accounting policy for investment income [text block] | Investment income Investment income on debt instruments classified under available for sale investments and deposits are accounted for on an effective interest basis. | 3 |
| Description of accounting policy for claims/ benefits [text block] | Claims Claims consist of amounts payable to policyholders and third parties and related loss adjustment expenses, net of salvage and other recoveries.Gross outstanding claims comprise the gross estimated cost of claims incurred but not settled at the statement of financial position date together with related claims handling costs, whether reported by the insured or not. Provisions for reported claims not paid as of the statement of financial position date are made on the basis of individual case estimates. In addition, a provision based on management’s judgment and the Company’s prior experience is maintained for the cost of settling claims incurred but not reported including related claims handling costs at the statement of financial position date. The outstanding claims are shown on a gross basis and the related share of the reinsurers is shown separately. Further, the Company does not discount its liability for unpaid claims as substantially all claims are expected to be paid within one year of the statement of financial position date. | 3 |
| Description of accounting policy for impairment of non-financial assets [text block] | Impairment of non-financial assetsAssets that have an indefinite useful life are not subject to depreciation and are tested annually for impairment. Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). | 3 |
| Description of accounting policy for other revenue recognition [text block] | Revenue recognition Premiums and commissions are taken into income over the terms of the policies to which they relate on a pro-rata basis. Retained premiums and commission income, which relate to unexpired risks beyond the end of the financial period, are reported as unearned and deferred based on the following methods: Last three months premium at a reporting date is considered as unearned in respect of marine cargo; Pre-defined calculation for engineering class of business for risks undertaken that extend beyond a single year. In accordance with this calculation, lower premiums are earned in the first year which gradually increase towards the end of the tenure of the policy; and Actual number of days for other lines of business. Unearned premiums and commissions represent the portion of premiums and commissions relating to the unexpired period of coverage. The change in the provision for unearned premium and unearned commission is taken to the statement of income in the same order that revenue is recognised over the period of risk.Deposits (premium) related to unit linked contracts are credited to policyholder account balances. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded under “Fee income from unit linked investments” in the period in which services are provided. | 3 |
| Description of accounting policy for expenses [text block] | Expense recognitionExpenses are recognized in statement of income when decrease in future economic benefit related to a decrease in an asset or an increase in a liability has arisen that can be measured reliably. Expenses are recognized on the basis of a direct association between the costs incurred and the earning of specific items of income; on the basis of systematic and rational allocation procedures when economic benefits are expected to arise over the accounting period. Expenses are presented using the nature of expense method. | 3 |
| Description of accounting policy for insurance/ takaful surplus/ deficit [text block] | Surplus distribution payableTen-percent (10%) of the net surplus from insurance operations shall be distributed to the policyholders directly, or in the form of reduction in premiums for the next year. The remaining ninety-percent (90%) of the net surplus shall be transferred to the shareholders. As per surplus distribution policy issed by SAMA in 2015, the Company is allowed to write back unclaimed surplus distribution payable to the income statement. | 3 |
| Description of accounting policy for segment reporting [text block] | Segmental reportingAn operating segment is a component of the Company that is engaged in business activities from which it may earn revenues and incur expenses and which is subject to risk and rewards that are different from those of other segments. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operatingAn operating segment is a component of the Company that is engaged in business activities from which it may earn revenues and incur expenses and which is subject to risk and rewards that are different from those of other segments. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the chief executive officer that makes strategic decisions. The Company is organised into business units based on their products and services and has five reportable operating segments as follows: Motor insurance provides coverage against loss or damage to the motor vehicles caused by accident, fire or theft along with the coverage of third party liability as well; Health care (medical) products provide medical cover to policyholders; Property and casualty which include the following: - Engineering insurance provides coverage for builders’ risks, construction, mechanical, electrical, electronic, and machinery breakdown, and any other insurance included under this class of insurance;- Property insurance provides cover against accidental physical loss or damage to the property due to any cause including fire and allied perils and consequential losses associated with the perils insured;- Other general insurance segment comprises of marine, credit, fidelity guarantee insurance and liability; Protection and saving segment includes a variety of savings products designed to meet the needs of individuals as well as corporate institutions. Shareholders’ segment - reporting shareholder operations of the Company. Income earned from investments is the only revenue generating activity. Certain direct operating expenses and other overhead expenses are allocated to this segment on an appropriate basis. The surplus or loss from the insurance operations is allocated to this segment on an appropriate basis.No inter-segment transactions occurred during the year, if any transaction were to occur, transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment income, expense and results will then include those transfers between business segments which will then be eliminated at the level of financial statements of the Company. As the Company carries out its activities entirely in the Kingdom of Saudi Arabia, reporting is provided by business segment only. | 3 |
| Description of accounting policy for accounting of leases [text block] | Accounting for leasesOn initial recognition at the inception of the contract, the Company shall assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration. Control is identified if most of the benefits are flowing to the Company and the Company can direct the usage of such assets.Right of use assetThe Company applies cost model and measures the right of use asset at cost:a) Less any accumulated depreciation and any accumulated impairment losses; and b) Adjusted for any re-measurement of the lease liability for lease modifications. Generally, the right of use asset would equate the lease liability. However, if there are additional costs such as site preparation, non-refundable deposits, application money, other expenses related to transactions etc. these need to be added to the right of use asset value.Lease liabilityOn initial recognition, the lease liability is the present value of all remaining payments to the lessor. After the commencement date, the Company measures the lease liability by: 1. Increasing the carrying amount to reflect the interest on the lease liability; 2. Reducing the carrying amount to reflect the lease payments made; and 3. Re-measuring the carrying amount to reflect any re-assessment or any lease modification. | 3 |
| Description of accounting policy for foreign currencies [text block] | Foreign currenciesTransactions in foreign currencies are recorded in Saudi Riyals at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the statement of financial position date. All differences are taken to the statement of income. Non monetary items that are measured in terms of historical cost in a foreign currency are translated using the spot exchange rates as at the date of recognition. Non monetary items measured at fair value in a foreign currency are translated using the spot exchange rates at the date when the fair value was determined. As the Company’s foreign currency transactions are primarily in US dollars, foreign exchange gains and losses are not significant as Saudi Riyals is pegged to US dollars. | 3 |
| Description of accounting policy for financial assets [text block] | Available for sale investmentsAvailable for sale investments (“AFS”) include equity and debt securities. Equity investments classified as AFS are those which are neither classified as held for trading nor designated at fair value through income statement. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in the market conditions. Such investments are initially recorded at fair value including transaction costs directly attributable to the acquisition of the investment. After initial measurement, AFS financial investments are subsequently measured at fair value. Unrealised gains or losses arising from changes in fair value of investments are shown in the statement of comprehensive income. Realised gains or losses on sale of these investments and commission income are reported in the statement of income. Dividend, commission income and foreign currency gain/loss are recognized in the statements of income as part of net investment income/loss.Any significant or prolonged decline in fair value of available-for-sale investments is adjusted for and reported in the statement of income, as impairment charges. Fair values of available-for-sale investments are based on quoted prices for marketable securities or estimated fair values. The fair value of commission-bearing items is estimated based on discounted cash flows using commission for items with similar terms and risk characteristics.For unquoted investments, fair value is determined by reference to the market value of a similar investment or where the fair values cannot be derived from active markets, they are determined using a variety of valuation techniques. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values.ReclassificationThe Company evaluates whether the ability and intention to sell its AFS financial assets in the near term is still appropriate. When, in rare circumstances, the Company is unable to trade these financial assets due to inactive markets, the Company may elect to reclassify these financial assets if management has the ability and intention to hold the assets for the foreseeable future or until maturity. Reclassification to loans and receivables is permitted when the financial asset meets the definition of loans and receivables and management has the intention and ability to hold these assets for the foreseeable future or until maturity. The reclassification to held to maturity (HTM) is permitted only when the entity has the ability and intention to hold the financial asset until maturity. For a financial asset reclassified out of the available-for-sale category, the fair value at the date of reclassification becomes its new amortised cost and any previous gain or loss on that asset that has been recognised in equity is amortised to profit or loss over the remaining life of the investment using the Effective Interest Rate “EIR”. Any difference between the new amortised cost and the maturity amount is also amortised over the remaining life of the asset using the EIR. If the asset is subsequently determined to be impaired, then the amount recorded in equity is reclassified to the statement of income. During 2021 and 2020, there was no reclassifications among the financial asset categories. | 3 |
| Description of accounting policy for financial liabilities [text block] | OffsettingFinancial assets and financial liabilities are offset and the net amount reported in the statement of financial position only when there is an enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liability simultaneously. Income and expense are not offset in the statements of income unless required or permitted by any accounting standard or interpretation. | 3 |
| Description of accounting policy for statutory deposit [text block] | Statutory depositThe statutory deposit shall be ten percent (10%) of the paid up capital. The Company has placed the statutory deposit amount in a bank designated by SAMA. SAMA shall be entitled to the earnings on statutory deposit which is payable by the Company to SAMA and appearing as ‘Accrued income payable to SAMA’. | 3 |
| Description of other accounting policies relevant to understanding of financial statements [text block] | Provisions, accrued expenses and other liabilitiesProvisions are recognised when the Company has an obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Accrued expenses and other liabilities are recognized for amounts to be paid in the future for services, whether billed by the supplier or not.Additional premium reservesAdditional premium reserves are booked by the Company on the basis of unexpired risk reserve for engineering business. Insurance and investment contractsThe Company issues insurance contracts that transfer insurance risk. Insurance contracts are those contracts where the insurer accepts significant insurance risk from the policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. As a general guideline, the Company defines significant insurance risk as the possibility of having to pay benefits on the occurrence of an insured event that are at least 10% more than the benefits payable if the insured event did not occur.Investment contracts are those contracts that do not transfer significant insurance risk. The Company’s unit linked products have been classified as investment contracts. These represent portfolios maintained to meet the specific investment objectives of policyholders who bear the credit, market and liquidity risks related to the investments. The Company’s insurance and investment contracts do not contain any discretionary participatory features.Unearned commission income Commission receivable on outwards reinsurance contracts are deferred and amortised over the terms of the insurance contracts to which they relate. Amortisation is recorded on the same basis as premium in the statement of income.Dividend income Dividend is recognised in the statement of income only when:- the entity's right to receive payment of the dividend is established; - it is probable that the economic benefits associated with the dividend will flow to the entity; and - the amount of the dividend can be measured reliably.Salvage and subrogation reimbursementSome insurance contracts permit the Company to sell (usually damaged) assets acquired in settling a claim (for example, salvage). The Company may also have the right to pursue third parties for payment of some or all costs (for example, subrogation).Estimates of salvage recoveries are included as an allowance in the measurement of the outstanding claims liability. The allowance is the amount that can reasonably be recovered from the disposal of property. Subrogation reimbursements are also considered as an allowance in the measurement of the outstanding claims liability. The allowance is the assessment of the amount that can be recovered from the action against the liable third party.Cash flow statementThe Company’s main cash flows are from insurance operations which are classified as cash flow from operating activities. Cash flows generated from investing and financing activities are classified accordingly. | 3 |
| Description of accounting policy for investment contracts liabilities [text block] | Unit linked investments and liabilitiesUnit linked investments are assets backing liabilities arising from contracts, where the liabilities are contractually linked to the fair value of the financial assets within the policyholders unit linked funds and are classified as 'held for trading' assets and are designated at fair value through statement of income. Investments classified as trading are acquired principally for the purpose of selling or repurchasing in short term and are recorded in the statement of financial position at fair value. Any change in fair value is recognised in statement of incomeAn investment may be designated at fair value through statement of income by the management, at initial recognition, if it satisfies the criteria laid down by IAS 39 except for the equity instruments that do not have a quoted price in an active market and whose fair values cannot be reliably measured. Transaction costs, if any, are not added to the fair value measurement at initial recognition of fair value through statement of income investments. Dividend income (if any) on financial assets held as fair value through statement of income is presented under ‘Investment income’ in the statement of income.The Company has unit linked liabilities at FVSI. These pertains to individual life insurance contracts which insures human life events such as death over a long period of time. Insurance premiums are recognised directly as liabilities. These liabilities are increased/decreased by change in the unit prices as in the case of unit-linked contracts and decreased by plan holder charges and surrender and maturities. The unit linked liabilities are determined as the value of the units deemed allocated at the valuation date. Additional technical provisions have been established for the value of risk related to the life insurance contracts. These additional provisions are calculated using stochastic techniques and are not a significant portion of the overall unit linked liabilities. | 3 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of property and equipment [text block] | 12 PROPERTY AND EQUIPMENT, NET Computer and office equipmentSR MotorvehiclesSR Furniture and fittingsSR Leasehold improvementsSR Total2021SR Total2020SRCost: At the beginning of the year 18,808,257 1,418,093 10,424,716 1,580,509 32,231,575 27,611,195 Additions during the year 1,342,073 217,764 404,404 341,060 2,305,301 4,765,982 Disposals during the year (359,039) (197,800) (103,775) - (660,614) (145,602) At the end of the year 19,791,291 1,438,057 10,725,345 1,921,569 33,876,262 32,231,575 Accumulated depreciation: At the beginning of the year 13,125,336 1,046,241 7,800,732 731,680 22,703,989 19,592,415 Charge for the year (Note 22) 2,213,041 195,240 1,112,826 343,122 3,864,229 3,257,176 Disposals during the year (359,039) (197,800) (103,775) - (660,614) (145,602) At the end of the year 14,979,338 1,043,681 8,809,783 1,074,802 25,907,604 22,703,989 Net book value at 31 December 2021 4,811,953 394,376 1,915,562 846,767 7,968,658 Net book value at 31 December 2020 5,682,921 371,852 2,623,984 848,829 9,527,586 | 12 |
| Disclosure of investments in available-for-sale investments [text block] | 10 AVAILABLE FOR SALE INVESTMENTSa) Investments are classified as follows:Insurance operations: Domestic International Total 2021 SR 2020SR 2021 SR 2020SR 2021 SR 2020SRDebt instruments 129,672,955 133,514,401 5,151,656 5,253,495 134,824,611 138,767,896 Equities and mutual funds 7,819,802 7,941,541 - - 7,819,802 7,941,541 137,492,757 141,455,942 5,151,656 5,253,495 142,644,413 146,709,437 Shareholders’ operations: Domestic International Total 2021 SR 2020SR 2021 SR 2020SR 2021 SR 2020SRDebt instruments 393,037,289 235,930,780 8,367,921 12,832,218 401,405,210 248,762,998 Equities and mutual funds 3,223,078 3,223,078 5,678,630 5,786,078 8,901,708 9,009,156 396,260,367 239,153,858 14,046,551 18,618,296 410,306,918 257,772,154 Total Domestic International Total 2021 SR 2020SR 2021 SR 2020SR 2021 SR 2020SRDebt instrument 522,710,244 369,445,181 13,519,577 18,085,713 536,229,821 387,530,894 Equities and mutual funds 11,042,880 11,164,619 5,678,630 5,786,078 16,721,510 16,950,697 533,753,124 380,609,800 19,198,207 23,871,791 552,951,331 404,481,591 Available for sale investments includes amount of SR 800,000 with related party (2020: SR 800,000) (Note 23).b) Movement in available for sale investment balance is as follows:Insurance operations: Quoted securities Unquoted securities Total SRAs of 1 January 2020 141,316,089 - 141,316,089 Amortization (256,123) - (256,123) Unrealized gain on fair value 5,649,471 - 5,649,471 As at 31 December 2020 146,709,437 - 146,709,437 As of 1 January 2021 146,709,437 - 146,709,437 Amortization (254,285) - (254,285)Unrealized loss on fair value(3,810,739) - (3,810,739)As at 31 December 2021 142,644,413 - 142,644,413The cumulative unrealised gain in fair value of available for sale investments amounts to SR 5,781,825 (31 December 2020: SR 9,592,564). The quoted securities includes mutual funds listed on Tadawul for NAV disclosure purposes amounting to SR 4,644,235 (31 December 2020: SR 4,836,936).Shareholders’ operations: Quoted securities Unquoted securities Total SRAs of 1 January 2020 205,730,648 38,432,763 244,163,411 Purchases - 30,000,000 30,000,000 Disposals/maturity (11,250,000) (15,000,000) (26,250,000)Amortization (390,690) - (390,690)Unrealized gain on fair value 7,877,367 2,372,066 10,249,433 As at 31 December 2020 201,967,325 55,804,829 257,772,154 As of 1 January 2021 201,967,325 55,804,829 257,772,154 Purchases 49,500,000 123,000,000 172,500,000Disposals/maturity (13,575,000) - (13,575,000)Amortization (288,887) - (288,887)Unrealized loss on fair value(7,320,229) 1,218,880 (6,101,349)As at 31 December 2021 230,283,209 180,023,709 410,306,918The cumulative unrealised gain in fair value of available for sale investments amounts to SR 13,782,253 (31 December 2020: SR 19,884,950). The quoted securities includes mutual funds amounting to SR 5,678,630 (31 December 2020: SR 5,786,078). | 10 |
| Disclosure of investments at fair value through statement of income [text block] | 9 FINANCIAL ASSETS AT FAIR VALUE THROUGH STATEMENT OF INCOME (UNIT LINKED INVESTMENTS)The fair values for unit linked investments as at 31 December are: 2021SR 2020SR Local funds 493,814,654510,854,914 Foreign funds 21,413,27013,204,907 515,227,924524,059,821 Portfolios of the funds are as follows: 2021SR 2020SR Al Badr Fund Saudi Riyal 206,921,848 214,939,829 Al Ghad/Al Anjal Low Risk Fund 174,382,119194,040,409 Al Saffa Equity Fund 85,685,343 65,645,593 Al Ghad/Al Anjal Murabaha Fund 21,244,11424,620,046 Al Badr Fund US Dollar 14,958,749 14,759,726 Al Danah GCC Equity Fund 6,663,857 5,260,620 Saudi Istithmar Fund 3,546,574 2,855,998 Money Market Fund Saudi Riyal 1,825,320 1,937,600 515,227,924524,059,821 Unit linked assets are related to investments in unit linked funds. The Company has established unit linked liabilities which, excluding some timing differences and reserves, match exactly with the policyholder’s unit linked assets.The fair value of unit linked investments are measured based on the net assets value provided by fund manager. As the values of these investments are available from the market, the Company uses Level 2 hierarchy for determining and disclosing the fair value of above unit linked investments and for private equity fund the Company uses Level 3 hierarchy for determining and disclosing the fair value. | 9 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 7 REINSURERS’ BALANCESa) Reinsurers’ balances receivable, net 2021SR 2020SR Receivables from reinsurers 89,167,148 79,054,779 Provision for doubtful reinsurers’ receivables (5,387,741) (5,025,735) Reinsurers receivable, net 83,779,407 74,029,044 The movement in the allowance for doubtful reinsurers’ receivable is as follows: 2021SR 2020SR Balance at the beginning of the year 5,025,735 5,027,110 (Reversal) / provided during the year 362,006 (1,375) Balance at the end of the year 5,387,741 5,025,735 Reinsurance receivables are with counterparties with sound credit ratings under Standard and Poor's and Moody’s ratings methodology. In addition, receivables are monitored on an ongoing basis in order to reduce the Company’s exposure to bad debts.The five largest reinsurers accounts for 51.6% (31 December 2020: 37%) of the reinsurance receivable as at 31 December 2021.b) Reinsurers’ balances payable 2021SR 2020SR Reinsurance balances due to other parties 205,760,783137,307,363 Reinsurance balances due to related parties (Note 23) 40,305,65464,908,679 Total reinsurers’ balances payable 246,066,437 202,216,042 | 7 |
| Disclosure of prepayments and other assets [text block] | 5 PREPAID EXPENSES AND OTHER ASSETS 2021SR 2020SR Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Third party administrator receivables 133,960,696 - 133,960,696 60,559,859 - 60,559,859 Advance to agents and brokers 13,182,168 - 13,182,168 10,446,720 - 10,446,720 Receivable for unit linked investments 6,550,631 - 6,550,631 5,212,573 - 5,212,573 Accrued investment income 1,919,833 3,516,223 5,436,056 4,891,886 11,208,061 16,099,947Receivable from Manafeth 2,194,942 - 2,194,942 1,317,412 - 1,317,412 Advances to employees 1,365,736 - 1,365,736 1,181,580 - 1,181,580 Prepaid rent 80,082 - 80,082 324,720 - 324,720VAT receivable (Note 19d) 27,788,197 - 27,788,197 45,921,084 - 45,921,084 Other assets 11,650,706 - 11,650,706 3,026,881 - 3,026,881 198,692,991 3,516,223 202,209,214 132,882,715 11,208,061 144,090,776 8 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES 8.1. Right-of-use assetsThe following table presents the right-of-use assets for the Company: 2021SR 2020SR Balance at the beginning of the year 3,730,142 6,776,228Amortization (2,885,949) (3,046,086)Balance at the end of the year 844,193 3,730,142 8 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (continued)8.2. Lease LiabilitiesThe following table represents the movement of lease liabilities for the Company: 2021SR 2020SR Opening balance 3,362,331 5,784,231Finance costs 447,261 472,439Lease rental payments (2,811,788) (2,894,339)Balance at the end of the year 997,804 3,362,331 2021SR 2020SR Current 534,954 2,140,235Non current 462,850 1,222,096Balance at the end of the year 997,804 3,362,331 | 5 & 8 |
| Disclosure of other receivables, net [text block] | 6 PREMIUMS RECEIVABLE, NET 2021 SR 2020 SR Policyholders 73,469,967145,169,592Brokers and agents 275,753,682273,712,382Other shareholders (Note 23) 58,819,31043,329,697 408,042,959 462,211,671 Provision for doubtful receivables (61,712,179) (57,822,881) Premiums receivable, net 346,330,780 404,388,790 6 PREMIUMS RECEIVABLE, NET (continued)The ageing analysis of premiums receivable balances is set out below: Past due but not impaired Past due and impaired Total31 December 2021 Less than 90 days 90 to 180 days More than 180 days Amount in SR Premiums receivable from insurance contracts 129,365,76273,688,530 79,088,122 282,142,414Provision for doubtful receivables (11,053,280) (50,658,899) (61,712,179)Premiums receivable from past due insurance contracts, net 129,365,76262,635,250 28,429,223 220,430,235Neither past due nor impaired 25,882,363Premiums receivables under fronting arrangements* 100,018,182Premiums receivable, net 346,330,780 Past due but not impaired Past due and impaired Total31 December 2020 Less than 90 days 90 to 180 days More than 180 days Amount in SR Premiums receivable from insurance contracts 220,128,247 28,797,631 119,326,539 368,252,417Provision for doubtful receivables - (4,319,645) (53,503,236) (57,822,881) Premiums receivable from past due insurance contracts, net 220,128,247 24,477,986 65,823,303 310,429,536Neither past due nor impaired 10,933,829Premiums receivables under fronting arrangements* 83,025,425Premiums receivable, net 404,388,790*Premiums receivable under fronting arrangements are insurance contracts under which the Company passes all the risks including the clients’ credit risk to other insurance/reinsurance companies. Such arrangements are made between global clients and entities of Allianz Group under which Allianz Saudi Fransi provides the insurance service for the entity located in the Kingdom of Saudi Arabia. The Company classifies balances as “past due and impaired” on a case by case basis and an impairment adjustment is recorded in the statement of income. Unimpaired premiums receivable are expected, on the basis of past experience, to be fully recoverable. It is not the practice of the Company to obtain collateral over premiums receivable, and vast majority of such balances are therefore unsecured. The credit quality of these financial assets that are neither past due nor impaired can be assessed by reference to policyholders with appropriate and strong credit history, with minimal account defaults and where the receivables are fully recovered in the past.Corporate premium receivables are with counterparties with a sound credit profile. The five largest customers accounts for 27.5% (31 December 2020: 14%) of the premiums receivable as at 31 December 2021.The movement in the allowance for doubtful receivables is as follows: 2021SR 2020SR Balance at the beginning of the year 57,822,881 55,086,915 Provided during the year 3,889,298 3,307,429 Write-offs - (571,463) Balance at the end of the year 61,712,179 57,822,881 | 6 |
| Disclosure of cash and cash equivalents [text block] | 4 CASH AND CASH EQUIVALENTS 2021SR 2020SR Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Bank balances and cash 40,032,921 70,946,724 110,979,645 7,605,027 137,406,667 145,011,694 Deposits maturing within 3 months from the acquisition date - 49,999,999 49,999,999 - 180,034,531 180,034,531 40,032,921 120,946,723 160,979,644 7,605,027 317,441,198 325,046,225 Deposits are maintained with financial institutions and have a maturity of three months or less from the date of acquisition. These deposits earn commission at an average rate of 2.35% per annum as at 31 December 2021 (2020: 0.8% per annum).Bank balances and deposits are placed with counterparties with sound credit ratings under Standard and Poor's and Moody’s ratings methodology. Bank balances and deposits includes SR 154 million maintained with Banque Saudi Fransi (a shareholder) (2020: SR 310 million) (Note 23). | 4 |
| Disclosure of statutory deposit [text block] | 13 STATUTORY DEPOSITIn compliance with the Insurance Implementing Regulations of SAMA, the Company deposited 10% of its paid up capital, amounting to SR 60 million (31 December 2020 is SR 60 million) in a bank designated by SAMA (Note 20). The accrued income on the deposit as at 31 December 2021 is SR 1,579,858 (31 December 2020: SR 1,572,445 ) and has been disclosed in assets as “Accrued income on statutory deposit” and the corresponding commission is shown in liabilities as “Accrued income payable to SAMA”. This deposit cannot be withdrawn without SAMA’s consent. The statutory deposit is maintained with Banque Saudi Fransi, a shareholder of the Company and rated “BBB+” by Standard and Poor's and Moody’s ratings methodology. | 13 |
| Disclosure of employees' end of service benefits [text block] | 18 EMPLOYEES’ END OF SERVICE OBLIGATIONSa) The movement in provision for employees’ end of service obligations for the years ended 31 December are as follows: 2021SR 2020SR Defined benefit obligation at the beginning of the year 19,019,582 16,847,898Provided during the year: Current service cost 3,382,8993,723,039Interest cost 357,149 398,988Curtailment / settlement Gain / Loss (1,242,605) - 2,497,4434,122,027Paid during the year (2,691,329) (2,181,001)Actuarial reserve for employee benefits 205,126 230,658 Defined benefit obligation at the end of the year 19,030,82219,019,582 b) Principal actuarial assumptions: The following range of significant actuarial assumptions was used by the Company for the valuation of post-employment benefit liability: 2021 2020Discount rate used for valuation 2.10%2.06%Salary increase rate 2.10%3.06%Duration (years) 5.165.12c) Sensitivity analysisThe impact of changes in sensitivities on present value of defined benefit obligation is as follows: 2021SR 2020SRValuation discount rate - Increase by 1% 905,937 908,125- Decrease by 1% 1,010,567 1,014,993 Future salary growth - Increase by 1% 1,095,893 1,090,111 - Decrease by 1% 1,001,182 995,081Mortality rate - Increase by 1 year 1,518 3,059 - Decrease by 1 year 1,514 3,048Withdrawal rate - Increase by 10% 225,781 345,611- Decrease by 10% 249,222 392,426 | 18 |
| Disclosure of unearned commission income [text block] | 17 UNEARNED REINSURANCE COMMISSION 2021SR 2020SR Balance at the beginning of the year 2,829,659 7,347,773Commission received during the year 3,387,057 5,294,510Commission earned during the year (4,868,942) (9,812,624) Balance at the end of the year 1,347,774 2,829,659 | 17 |
| Disclosure of accrued expenses and other liabilities [text block] | 15 ACCRUED AND OTHER LIABILITIES 2021SR 2020SR Insurance operations Shareholders’’ operations Total Insurance operations Shareholders’’ operations Total Payables to policyholders 44,509,233 - 44,509,233 64,508,147 - 64,508,147 Accrued third party administrator fees 10,719,305 - 10,719,305 51,125,043 - 51,125,043 Commission payable 30,120,500 - 30,120,500 26,909,859 - 26,909,859 Accrued bonus 3,506,610- 3,506,6106,599,624 - 6,599,624 Inspection and supervision fees 1,877,366 - 1,877,366 1,136,124 - 1,136,124 Others 11,561,5951,324,61912,886,21412,806,495 2,347,493 15,153,988 102,294,6091,324,619 103,619,228163,085,292 2,347,493 165,432,785 | 15 |
| Disclosure of zakat [text block] | 19 ZAKAT AND INCOME TAXA summary of the Company’s share capital and percentages of ownership are as follows: 2021 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%Total 600,000,000 100% 600,000,000 100%The Company’s zakat and income tax calculations and corresponding accruals and payments of zakat and income tax are based on the mentioned ownership percentages in accordance with the relevant provisions of the Saudi Arabian zakat and income tax regulations.The provision for zakat and income tax as at year end is as follows: 2021SR 2020SR Provision for zakat 14,794,20210,718,945Provision for income tax 6,326,5303,980,577 21,120,73214,699,522 19 ZAKAT AND INCOME TAX (continued)The zakat and income tax charge for year is as follows: SR 2021SR 2020SR Zakat charge - Current year 8,682,198 4,617,823 - Prior year 626,993 5,649,918 9,309,191 10,267,741Income tax for the year - Current tax 2,346,681- - Deferred tax (789,976)(552,513) 1,556,705(552,513) 10,865,8969,715,228 a) ZakatThe current year’s provision is based on the following: 2021SR 2020SR Opening share capital 600,000,000200,000,000Reserves and opening provisions 217,502,217 290,432,016Closing value of long term assets (88,359,449) (99,713,544) 729,142,768390,718,472Zakatable income for the year 11,144,319(10,202,949) Zakat base 740,287,087 380,515,523 Total Saudi share of zakat base 347,287,920 179,955,066 Zakat due on Saudi shareholding 8,682,198 4,617,823 The differences between the income as per financial statements and the zakatable income are mainly due to provisions which are not allowed in the calculation of zakatable income. b) Income taxThe current year’s provision is based on the following: 2021SR 2020SR Net income / (Loss) for the year before attribution 16,485,325(17,632,405)Add: Inadmissible expenses 10,612,97610,686,632Less: Admissible expenses (4,996,256)(5,085,870) Adjusted income 22,102,045(12,031,643) Non-Saudi shareholders 11,733,400 (6,387,599)Adjustments - (3,950) Adjusted income attributed to non-Saudi shareholders 11,733,400 (6,391,549) Provision for income tax (20%) 2,346,681- 19 ZAKAT AND INCOME TAX (continued)c) Movement in zakat and income tax payable is as follows: 2021SR 2020SR Balance at the beginning of the year 14,699,522 28,432,189Provided during the year – zakat 9,309,19110,267,741Provided during the year – income tax 2,346,681-Payment made during the year – zakat (5,233,934) (19,792,038)Payment made during the year – income tax (728)(4,208,370) Balance at the end of the year 21,120,73214,699,522 d) Status of assessments The 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 and also for for the years 2019 and 2020.The final tax and zakat assessment for the years 2015 to 2018 has been issued by the ZATCA during the year ended 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 with the Tax Committees for Resolution of Income Tax Violations and Disputes (Level 1) against the ZATCA’s revised assessment. The Company has accounted for this additional zakat and income tax liability in the provision in the financial statements. The company received final zakat and income tax assessment for the years 2019 and 2020 which resulted in additional zakat and tax liability of SR 1.1 million which has been settled and the assessments are finalized.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, which 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.The Company is in the process of filing zakat and tax returns for the year ended 31 December 2021 with the ZATCA. | 19 |
| Disclosure of deferred tax [text block] | 11. DEFERRED TAX ASSETS, NETSR December 31, 2021 December 31, 2020 Deferred tax assets, net 7,668,495 5,825,970Movement in deferred tax asset balance is as follows: December 31, 2021 December 31, 2020At the beginning of the year 5,825,970 6,961,507Deferred tax income - statement of income (note 19) 789,976552,513Deferred tax income/(expense) - statement of comprehensive income 1,052,549(1,688,050)At the end of the year 7,668,4955,825,970This deferred tax arises on employees’ end of service obligations, provision against premium receivable, provision against reinsurance receivable, unabsorbed tax losses, fair value reserve on investments and property and equipment. | 11 |
| Disclosure of classes of share capital [text block] | 20 SHARE CAPITAL The 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. The Company has increased its share capital through right issue from SR 200 million to SR 600 million during the year 2020.Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax. 2021 No. 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 2020 No. 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 | 20 |
| Disclosure of general and administrative expense [text block] | 22 GENERAL AND ADMINISTRATIVE EXPENSES 2021SR 2020SR Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Employees’ costs 69,835,366434,96870,270,33489,142,028 660,730 89,802,758 Consultation fees 15,617,798 - 15,617,79812,648,563 - 12,648,563 Repairs and maintenance 5,909,013 - 5,909,0136,203,342 - 6,203,342 Employees’ end of service obligations (Note 18) 2,497,443 2,497,4434,122,027 - 4,122,027Rent 3,452,496 - 3,452,496 3,954,512 - 3,954,512 Insurance expenses 3,375,172 - 3,375,172 3,328,056 - 3,328,056 Depreciation (Note 12) 3,864,229 - 3,864,2293,257,176 - 3,257,176 Postage and telephone 4,676,404 - 4,676,404 3,068,067 - 3,068,067 Board expenses - 1,858,461 1,858,461 1,432,670 358,168 1,790,838 Travel and transportation 679,047 - 679,047 1,033,894 - 1,033,894 Advertisement and promotion 375,520 - 375,520 616,961 - 616,961 Others 4,251,708- 4,251,7086,513,162 - 6,513,162 114,534,1962,293,429 116,827,625 135,320,458 1,018,898 136,339,356 | 22 |
| Disclosure of technical reserve for insurance/takaful/reinsurance/retakaful operations [text block] | 14 TECHNICAL RESERVES 14.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following: 2021SR 2020SR Gross outstanding claims 522,926,925 598,723,172 Less: Realizable value of salvage and subrogation (12,887,506) (24,489,604) 510,039,419 574,233,568 Claims incurred but not reported 108,652,961 123,799,018 Premium deficiency reserve 5,960,779 9,039,013 Additional premium reserves 4,411,285 1,385,708 Unit linked liabilities 509,896,334 518,114,351 1,138,960,778 1,226,571,658 Less: - Reinsurers’ share of outstanding claims (441,962,088) (501,314,767) - Reinsurers’ share of claims incurred but not reported (52,137,423) (57,566,257) (494,099,511) (558,881,024)Net outstanding claims and reserves 644,861,267 667,690,634 14.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: 2021SR Gross Reinsurance NetBalance as at the beginning of the year 266,364,432 (103,362,771) 163,001,661Premium written during the year 763,115,103 *(311,134,647) 451,980,456Premium earned during the year (701,985,969) 285,559,943 (416,426,026)Balance as at the end of the year 327,493,566 (128,937,475) 198,556,091*This amount includes SR 293,165,763 for reinsurance premium ceded abroad, SR 1,169,813 for reinsurance premium ceded locally and SR 16,799,071 for excess of loss expenses.Movement in unearned premiums comprise of the following: 2020SR 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.14.3 Movement in deferred policy acquisition costs 2021SR 2020SRBalance as at the beginning of the year 12,903,209 26,919,550 Incurred during the year 45,513,409 41,055,258 Amortized during the year (37,667,016) (55,071,599)Balance as at the end of the year 20,749,602 12,903,209 | 14 |
| Disclosure of earnings per share [text block] | 26 BASIC AND DILUTED EARNINGS PER SHAREEarnings / (loss) per share has been calculated by dividing the earnings / (net loss ) for the year by the weighted average number of shares outstanding at the reported date. The weighted average number of shares for the year 2020 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 SR 15.98 and the closing price per share of SR 27.95 before the right issue.20212020 Income / (loss) for the year5,619,429(27,347,633) Weighted average number of shares 60,000,000 32,336,621 Earnings / (loss) for the year0.09(0.85) There are no dilutive potential shares during 2021 and 2020. | 26 |
| Disclosure of related party transactions [text block] | 23 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 year and the related balances: Transactions during the year Balance as at 2021 2020 2021 2020 SR SR SR SR Entities controlled, jointly controlled or significantly influenced by related parties - Insurance premium ceded 171,715,823 151,395,116 - Reinsurers’ share of claims paid 208,084,548 78,582,493 - Commission income 3,934,473 4,475,535 - Third party administrator expenses 4,912,243 7,628,890 - Reinsurers’ share of outstanding claims (Treaty) 16,433,467 28,774,542- Accrued third party administrator 4,220,282 6,054,885- Reinsurance balance payable, net (Note 7) 40,305,654 64,908,679- Investments in equity of Saudi NextCare (Note 10) 800,000 800,000 Other shareholders - Insurance premium written 75,781,561 68,646,390 - Claims paid 51,330,237 38,544,132 - Commission expense 3,136,249 2,433,401 - Premium receivable (Note 6) 58,819,310 43,329,697- Outstanding claims 22,051,895 26,371,943- Cash and cash equivalents (Note 4) 154,408,140 309,910,589- Unit linked investments managed by shareholders (Note 9) 515,227,924524,059,821Related parties include Allianz SNA, Allianz Mena Holding Bermuda, Allianz Risk Transfer A.G. Dubai, Allianz France, Allianz Global Corporate and Speciality 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, Dataquest, and Saudi NextCare. The company has vatious reinsurance treaties and faculitative arragenements with related prties. Reinsurers’ share of outstanding claims mainly relates to treaties and faculitiatie arrangement with related parties.Other shareholders include Banque Saudi Fransi and its Group Companies.The following table shows the annual salaries, remuneration and allowances obtained by the Board members and top executives for the year ended:2021 BOD members Top executives SR SRSalaries and compensation - 5,783,270Allowances 546,000 54,000Annual remuneration 2,732,000 200,000Employees’ end of service obligations - 220,151 3,278,000 6,257,421 2020 Salaries and compensation - 8,856,018 Allowances 348,000 18,000Annual remuneration - -Employees’ end of service obligations - 260,833 348,000 9,134,851Also refer notes 4, 6, 7, and 10 for balances with related parties and other shareholders. | 23 |
| Disclosure of entity's operating segments [text block] | 29 SEGMENT INFORMATIONOperating 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 its 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 income statement. 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 31 December 2020. Segment assets do not include cash and cash equivalents, prepaid expenses 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 31 December 2021 and 31 December 2020, its total revenues, expenses, and net income for the year 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 29 SEGMENT INFORMATION (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 31 December 2021 Assets Premiums receivable, gross 117,867,610 155,801,302 122,456,519 11,917,528 408,042,959 - 408,042,959 Provision for doubtful debts (61,712,179) - (61,712,179) Reinsurers’ share of outstanding claims 2,245,361 22,366,067 400,264,029 17,086,631 441,962,088 - 441,962,088Reinsurers’ share of claims incurred but not reported 74,936 9,612,928 28,187,224 14,262,335 52,137,423 - 52,137,423 Reinsurers’ share of unearned premiums 44,782,756 63,734,509 20,420,210 128,937,475 - 128,937,475Deferred policy acquisition costs 10,643,656 4,868,612 6,237,912 (1,000,578) 20,749,602 - 20,749,602Financial assets at fair value through statement of income (unit linked investments) 515,227,924515,227,924- 515,227,924Unallocated assets 351,837,096726,143,7041,077,980,800Total assets 2,583,326,092 Liabilities and Equity Outstanding claims 29,613,026 38,966,804 418,599,165 22,860,424 510,039,419 - 510,039,419Claims incurred but not reported 32,723,271 20,443,101 36,548,059 18,938,530 108,652,961 - 108,652,961Unearned premium 104,817,559 93,803,085 100,235,288 28,637,634 327,493,566 - 327,493,566Unearned reinsurance commission 1,334,717 13,057 1,347,774 - 1,347,774Unit linked liabilities 509,896,334509,896,334- 509,896,334Unallocated liabilities 390,577,80524,025,209414,603,014Equity 9,174,529702,118,495711,293,024Total liabilities and equity 2,583,326,092 29 SEGMENT INFORMATION (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the year ended 31 December 2021 Gross written premiums – retail 55,318,655- 1,696,777 50,146,167 107,161,599- 107,161,599Gross written premiums – corporate 72,610,336 199,111,491 175,090,597 91,392,035 538,204,459 - 538,204,459Gross written premiums – very small entities 4,436,176 5,752 10,431,869 188,414 15,062,212 - 15,062,212Gross written premiums – small entities 22,874,995 2,932 13,114,397 768,864 36,761,188 - 36,761,188Gross written premiums – medium entities 34,095,881 2,726 29,987,792 1,839,247 65,925,645 - 65,925,645Reinsurance premiums ceded 6,001 (99,041,262) (147,529,596) (47,770,719) (294,335,576) - (294,335,576) Excess of loss expenses (1,955,835) - (14,843,236) - (16,799,071) - (16,799,071) Fee income from unit linked investments - - - 1,374,634 1,374,634 - 1,374,634 Net written premiums 187,386,209 100,081,639 67,948,600 97,938,642 453,355,090 - 453,355,090 Changes in unearned premiums, net (21,016,602) (12,105,058) (109,936) (2,322,834) (35,554,430) - (35,554,430) Net premiums earned 166,369,607 87,976,581 67,838,664 95,615,808 417,800,660 - 417,800,660 Reinsurance commissions 1,776 - 4,603,292 263,874 4,868,942 - 4,868,942 Net claims and other benefits paid (132,365,273) (63,022,477) (7,052,744) (128,965,787) (331,406,281) - (331,406,281) Changes in outstanding claims, net 16,618,214 (7,126,633) (3,675,973) (974,138) 4,841,470 - 4,841,470 Changes in premium deficiency reserve 1,031,657 2,104,938 - (58,361) 3,078,234 - 3,078,234 Changes in additional premium reserve (1,943,190) (762,704) (319,683) (3,025,577) - (3,025,577) Changes in claims incurred but not reported, net 4,010,746 7,453,762 (2,242,036) 494,751 9,717,223 - 9,717,223 Change in unit linked liabilities - - - 8,218,0178,218,017- 8,218,017Unrealized loss on unit linked investments - - - 45,308,19345,308,193- 45,308,193Policy acquisition costs (16,499,399) (8,135,522) (11,767,756) (1,264,339) (37,667,016) - (37,667,016) Inspection and supervision fees (6,081,066) - (6,081,066) Net underwriting income 39,167,32817,307,459 46,940,743 18,318,335115,652,799- 115,652,799Unallocated items Provision for doubtful debts (4,251,304) - (4,251,304) General and administrative expenses (114,534,196) (2,293,429) (116,827,625) Investment income 4,055,682 10,983,327 15,039,009 Other income 7,738,605 - 7,738,605 Net income for the year before attribution and zakat and income tax 17,351,484 29 SEGMENT INFORMATION (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 31 December 2020 Assets Premiums receivable, gross 196,418,315 110,635,785 128,561,411 26,596,160 462,211,671 - 462,211,671 Provision 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 - 501,314,767 Reinsurers’ share of claims incurred but not reported (5,559) 25,203,659 21,807,392 10,560,765 57,566,257 - 57,566,257 Reinsurers’ share of unearned premiums 210,709 41,277,120 48,395,981 13,478,961 103,362,771 - 103,362,771 Deferred policy acquisition costs 7,450,865 3,821,722 3,590,495 (1,959,873) 12,903,209 - 12,903,209 Financial assets at fair value through statement of income (unit linked investments) - - - 524,059,821 524,059,821 - 524,059,821 Unallocated 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 - 574,233,568 Claims incurred but not reported 36,653,523 43,487,589 27,926,194 15,731,712 123,799,018 - 123,799,018 Unearned premium 84,011,668 78,192,392 84,786,822 19,373,550 266,364,432 - 266,364,432 Unearned reinsurance commission 1,776 - 2,815,221 12,662 2,829,659 - 2,829,659 Unit linked liabilities - - - 518,114,351 518,114,351 - 518,114,351 Unallocated liabilities - - - - 413,200,646 18,619,460 431,820,106Equity - - - - 13,190,394 701,547,866 714,738,260Total liabilities and equity 2,631,899,394 29 SEGMENT INFORMATION (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the year ended 31 December 2020 Gross written premiums – retail 40,468,783 - 35,331,077 56,805,513 132,605,373 - 132,605,373 Gross written premiums – corporate 81,541,315 173,944,515 96,851,491 66,935,163 419,272,485 - 419,272,485 Gross written premiums – very small entities 3,900,678 160,799 1,554,969 372,624 5,989,071 - 5,989,071 Gross written premiums – small entities 22,317,982 906,857 22,435,136 264,571 45,924,546 - 45,924,546 Gross written premiums – medium entities 33,628,317 1,279,806 34,526,490 1,505,031 70,939,643 - 70,939,643 Reinsurance premiums ceded (282,880) (94,902,475) (109,455,119) (30,901,142) (235,541,616) - (235,541,616)Excess of loss expenses (3,187,533) - (11,297,036) - (14,484,569) - (14,484,569)Fee income from unit linked investments - - - 1,242,769 1,242,769 - 1,242,769 Net written premiums 178,386,662 81,390,500 69,947,008 96,223,531 425,947,701 - 425,947,701Changes in unearned premiums, net 110,659,835 1,926,247 (17,790,800) (1,476,198) 93,319,084 - 93,319,084 Net premiums earned 289,046,497 83,316,747 52,156,208 94,747,333 519,266,785 - 519,266,785 Reinsurance commissions 32,789 4,690 9,162,917 612,228 9,812,624 - 9,812,624 Net claims and other benefits paid (237,986,250) (50,117,866) (6,304,519) (109,237,309) (403,645,944) - (403,645,944)Changes in outstanding claims, net 31,761,634 1,075,613 (3,381,127) (1,636,375) 27,819,745 - 27,819,745 Changes in premium deficiency reserve 6,474,422 (2,448,198) - (1,333,904) 2,692,320 - 2,692,320 Changes in additional premium reserve - - (16,388) - (16,388) - (16,388)Changes in claims incurred but not reported, net (4,642,310) (10,366,149) (3,596,353) (3,146,221) (21,751,033) - (21,751,033)Change in unit linked liabilities - - - 17,300,766 17,300,766 - 17,300,766 Unrealized loss on unit linked investments - - - 14,182,293 14,182,293 - 14,182,293 Policy acquisition costs (24,132,663) (9,815,484) (17,282,713) (3,840,739) (55,071,599) - (55,071,599)Inspection and supervision fees - - - - (5,136,631) - (5,136,631)Net underwriting income 60,554,119 11,649,353 30,738,025 7,648,072 105,452,938 - 105,452,938 Unallocated items Provision for doubtful debts - - - - (3,306,054)- (3,306,054)General and administrative expenses - - - - (135,320,458) (1,018,898) (136,339,356)Investment income - - - - 3,958,402 7,483,712 11,442,114 Other income - - - - 5,117,953 - 5,117,953 Net loss for the year before attribution and zakat and income tax (17,632,405) | 29 |
| Disclosure of capital management [text block] | 21 CAPITAL MANAGEMENTObjectives 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 Company manages its capital to ensure that it is able to continue as going concern and comply with the regulators’ capital requirements of the markets in which the Company operates while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of equity attributable to equity holders comprising paid share capital, reserves and retained earnings. As per guidelines laid out by SAMA in Article 66 of the Implementing Insurance Regulations detailing the solvency margin required to be maintained, 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 MarginThe Company is in compliance with all externally imposed capital requirements with sound solvency margin. The capital structure of the Company as at 31 December 2021 consists of paid-up share capital of SR 600 million, share premium of SR 16.3 million, statutory reserves of SR 21.9 million and retained earnings of SR 52.6 million (31 December 2020: paid-up share capital of SR 600 million, share premium of SR 16.3 million, statutory reserves of SR 20.7 million and retained earnings of SR 47.6 million) in the statement of financial position.The Company has fully complied with the externally imposed capital requirements during the reported financial year. | 21 |
| Disclosure of insurance/ takaful operations surplus and dividends [text block] | 16 SURPLUS DISTRIBUTION PAYABLE 2021SR 2020SR Balance at the beginning of the year 15,092,678 15,687,466Total income attributed to the insurance operations during the year 866,159 -Surplus written back(3,803,941) -Surplus paid to policyholders (338,827) (594,788) Balance at the end of the year 11,816,069 15,092,678 | 16 |
| Disclosure of claims/ benefits development table [text block] | 24 CLAIMS DEVELOPMENT TABLEThe following table reflects the net incurred claims including both the net claims notified and net incurred but not reported claims for each accident year (excluding the surrenders for protection and savings insurance products) at each financial position date together with the cumulative payments to date. The development of insurance liabilities provides a measure of the Company’s ability to estimate the ultimate value of the claims. The Company aims to maintain adequate reserves in respect of its insurance business in order to protect against adverse future claims experience and developments. The IBNR estimate pertains to claims liability for the periods beginning from year 2014 onwards whose claim experience has not been fully developed. Claims triangulation analysis by accident years for the last five years is set out below:a) Claims triangulation analysis – Gross basis2021 SRAccident year 2017and earlier 2018 2019 2020 2021 Total Estimate of ultimate claims cost: At the end of accident year 1,844,626,992 518,152,198 613,236,843 395,253,383 465,649,823 -One year later 1,907,356,615 553,350,660 668,028,306 481,055,460 - -Two years later 1,993,208,679 551,083,993 661,476,546 - - -Three years later 2,030,848,217 548,623,821 - - - -Four years later 2,026,439,752- - - - - Current estimate of cumulative claims 2,026,439,752548,623,821 661,476,546 481,055,460 465,649,823 4,183,245,401Cumulative payments to date (1,804,575,389) (452,387,468) (592,322,568) (421,182,829) (294,084,768) (3,564,553,022) Liability recognised in statement of financial position 221,864,36396,236,353 69,153,978 59,872,631 171,565,055 618,692,380Premium deficiency reserve 5,960,779 Outstanding claims and reserves 624,653,159 2020 SRAccident year 2016and earlier 2017 2018 2019 2020 Total Estimate of ultimate claims cost: At the end of accident year 1,254,503,539 447,138,890 519,340,613 613,236,843 503,691,407 -One year later 1,263,717,403 520,489,517 553,350,660 678,452,101 - -Two years later 1,235,949,147 495,906,914 556,545,302 - - -Three years later 1,338,530,360 487,373,240 - - - -Four years later 1,385,694,599 - - - - - Current estimate of cumulative claims 1,385,694,599 487,373,240 556,545,302 678,452,101 503,691,407 3,611,756,649Cumulative payments to date (1,144,031,958)(478,159,202) (447,168,883) (566,198,751) (278,165,269) (2,913,724,063) Liability recognised in statement of financial position 241,662,6419,214,038 109,376,419 112,253,350 225,526,138698,032,586Premium deficiency reserve 9,039,013 Outstanding claims and reserves 707,071,599 24 CLAIMS DEVELOPMENT TABLE (continued)b) Claims triangulation analysis – Net basis2021 SRAccident year 2017and earlier 2018 2019 2020 2021 Total Estimate of ultimate claims cost: At the end of accident year 1,029,907,458 358,639,509 473,141,255 230,884,575 231,613,952 -One year later 1,018,164,885 338,100,943 440,547,354 263,760,236 - -Two years later 1,005,424,055 323,638,875 433,516,036 - - -Three years later 956,885,917 318,159,464 - - - -Four years later 957,507,251 - - - - - Current estimate of cumulative net claims 957,507,251 318,159,464 433,516,036 263,760,236 231,613,952 2,204,556,939Cumulative payments to date (942,876,111) (314,062,187) (424,820,261) (246,475,919) (151,729,593) (2,079,964,070) Net liability recognised in statement of financial position 14,631,140 4,097,277 8,695,775 17,284,317 79,884,359 124,592,869Premium deficiency reserve 5,960,779 Outstanding claims and reserves 130,553,648 2020 SRAccident year 2016and earlier 2017 2018 2019 2020 Total Estimate of ultimate claims cost: At the end of accident year 684,744,600 371,264,323 358,639,509 473,141,255 279,694,542 -One year later 677,692,537 369,382,073 338,100,943 443,910,362 - -Two years later 673,331,415 359,758,375 325,545,875 - - -Three years later 671,478,235 341,856,403 - - - -Four years later 644,139,872 - - - - - Current estimate of cumulative net claims 644,139,872 341,856,403 325,545,875 443,910,362 279,694,542 2,035,147,054Cumulative payments to date (632,137,728) (336,362,710) (313,015,342) (420,558,177) (193,921,535) (1,895,995,492) Net liability recognised in statement of financial position 12,002,144 5,493,693 12,530,533 23,352,185 85,773,007 139,151,562Premium deficiency reserve 9,039,013 Outstanding claims and reserves 148,190,575 | 24 |
| Disclosure of commitments and contingencies, general [text block] | 28 CONTINGENCIES AND COMMITMENTS a) The Company’s contingencies are as follows: 2021SR 2020SRLetters of guarantee 15,940,000 15,940,000b) Legal proceedings and regulations The Company operates in the insurance industry and is subject to legal proceedings in the normal course of business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have a material effect on its results and financial position. | 28 |
| Disclosure of risk management [abstract] | | |
| Disclosure of insurance/ takaful risk [text block] | b) Insurance riskInsurance risk is the risk that actual claims payable to contract holders in respect of insured events exceed expectations. This could occur because the frequency or amounts of claims are more than expected. Insurance risk is monitored regularly by the Company to make sure the levels are within the projected frequency bands. The Company underwrites mainly medical, motor, fire and burglary, marine, engineering and public liability risks. The insurance risks arising from the above insurance contracts are mainly concentrated in the Kingdom of Saudi Arabia.Frequency and amounts of claimsThe frequency and amounts of claims can be affected by several factors. The Company underwrites medical, motor, fire and burglary, marine, engineering and public liability risks. These classes except for long term engineering policies are regarded as short-term insurance contracts as claims are normally advised and settled within one year of the insured event taking place. This helps to mitigate insurance risk. The purpose of these underwriting and reinsurance strategies is to limit exposure to catastrophes based on the Company’s risk appetite as decided by management. Concentration of insurance risk The Company monitors concentration of insurance risks primarily by class of business. The major concentration lies in motor and medical. The Company monitors concentration of risk by evaluating multiple risks covered in the same geographical location or by same party. For flood or earthquake risk, a complete city is classified as a single location. For fire and property risk a particular building and neighboring buildings, which could be affected by a single claim incident, are considered as a single location. Similarly, for marine risk, multiple risks covered in a single vessel voyage are considered as a single risk while assessing concentration of risk. The Company evaluates the concentration of exposures to individual and cumulative insurance risks and establishes its reinsurance policy to reduce such exposures to levels acceptable to the Company. Since the Company operates in Saudi Arabia only, hence, all the insurance risks relate to policies written in Saudi Arabia.Protection and SavingFor protection and saving, the main risk is the mortality, morbidity (permanent or temporary disability) of the insured and policyholder behavior risk.Mortality riskActual policyholder death experience on life insurance policies is higher than expected.Morbidity riskPolicyholder health-related claims are higher than expected.Policyholder behavior riskPolicyholders’ behavior in discontinuing and reducing contributions or withdrawing benefits prior to the maturity of contracts is worse than expected. Poor persistency rates may lead to fewer policies remaining on the books to defray future fixed expenses and therefore reduce the future positive cash flows from the business written, potentially affecting Company’s ability to recover deferred acquisition expenses.This is managed through an effective and clearly defined underwriting strategy. There are various levels of underwriting carried out, including declaration of good health, medical questionnaire, reports from specialists/consultants and comprehensive medical tests. The Company also conducts financial, lifestyle and occupational underwriting to ascertain the degree of risk carried by the insured and to determine whether or not it could be classified as a standard life. For group protection and saving, the mortality risk is compounded due to the concentration of lives, for example employees in the same workplace. The Company has a clearly defined underwriting strategy. There are various levels of underwriting carried out, including declaration of good health, medical questionnaire, reports from specialists/consultants and comprehensive medical tests. The Company also looks at the nature of activity carried out by the group, group size, mix of lives by geographical regions, cultural background and manual/non-manual worker split.The individual family and group protection and saving portfolio is protected through an efficient reinsurance arrangement in accordance with Allianz Group standards. This protects the Company from adverse mortality/morbidity experience. There is a maximum retention per life under the reinsurance arrangement which protects the Company from single large losses. Multiple claims and concentrations of risk are also covered under the arrangement.General InsuranceMedicalThe Company’s underwriting strategy is designed to ensure that risks are well diversified in terms of type of risks and level of insured benefits. This is largely achieved through diversification across industry sectors and geography, the use of medical screening in order to ensure that pricing takes account of current health conditions and family medical history, regular view of actual claims experience and product pricing, as well as detailed claims handling procedures. The Company further enforces a policy of actively managing and promptly pursuing claims, in order to reduce its exposure to unpredictable future developments that can negatively impact the Company. The Company has reinsurance cover to limit the losses for any individual claim.MotorFor motor contracts, the main risks are claims for death and bodily injury and the replacement or repair of vehicles. The Company only underwrites comprehensive polices for owner/drivers over 21 years of age.The level of court awards for deaths and to injured parties and the replacement costs of motor vehicles are the key factors that influence the level of claims. The Company also has appropriate risk management procedures to control the cost of claims. The Company has reinsurance cover for such damage to limit the losses for any individual claim.Property For property insurance contracts the main risk is fire. The Company only underwrites policies for properties containing fire detection equipment.These contracts are underwritten by reference to the replacement value of the properties and contents insured. The cost of rebuilding properties and obtaining replacement contents and the time taken to restart operations which leads to business interruptions are the main factors that influence the level of claims. The Company has appropriate reinsurance cover for such damage to limit losses for any individual claim. These are covered under proportional and non-proportional treaties.MarineFor marine insurance, the main risks are loss or damage to marine craft and accidents resulting in the total or partial loss of cargoes.The underwriting strategy for the marine class of business is to ensure that policies are well diversified in terms of cargo, vessels and shipping routes covered. The Company has reinsurance cover to limit losses for any individual claim.EngineeringFor engineering insurance, the main risks are loss or damage to the construction/erection works caused by fire, explosion, natural perils like floods, earthquakes, hailstorms, etc. Selection of risks and proper underwriting are the criteria for this line of business. The Company has appropriate reinsurance cover for such risks to limit losses for any individual claim. These are covered under engineering proportional and non-proportional treaties. Public liabilityFor public liability insurance, the main risks are legal liabilities of the insured towards third party deaths, bodily injury or property damage arising out of insured premises, business operations or projects handled by the insured. This insurance policy is underwritten based on the turnover of the Company or the value of the contract, nature / occupation of the premises, nature of contracts handled. The Company has appropriate reinsurance cover to limit the losses for any individual claim. Sensitivity analysis The Company believes that the claim liabilities under insurance contracts outstanding at the reporting date are adequate. However, these amounts are not certain and actual payments may differ from the claims liabilities provided in the financial statements. The insurance claim liabilities are sensitive to the various assumptions. It has not been possible to quantify the sensitivity of specific variable such as legislative changes or uncertainty in the estimation process. A hypothetical 5% change in the claims ratio would impact income annually in aggregate by: Effect on income 2021 2020 SRImpact of change in claim ratio by + / - 5% Motor 8,318,482 14,452,325Engineering 769,804 573,989Medical 4,398,829 4,165,837Property 1,501,386 1,069,288Other general 1,120,744 964,534Protection and saving 4,712,059 4,675,228 20,821,304 25,901,201 Impact of change in average claim cost + / - 5% Motor 5,586,816 10,543,346Engineering 207,007 240,016Medical 3,134,767 2,970,420Property 120,087 182,317Other general 321,444 241,767Protection and saving 6,472,259 5,700,995 15,842,380 19,878,861 | 27 (b) |
| Disclosure of reinsurance/ retakaful risk [text block] | j) Reinsurance riskIn order to minimise its financial exposure to potential losses arising from large claims, the Company enters into agreements with other parties for reinsurance purpose. Such reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. A significant portion of the reinsurance is effected under treaty, facultative and excess-of-loss reinsurance contracts. The Company has foreign currency transactions in respect of its reinsurance activities.Reinsurers are selected using the following parameters and guidelines set by the Company’s Board of Directors and Risk and Underwriting Committee. The criteria may be summarized as follows:a. Minimum acceptable credit rating by recognized rating agencies (e.g. Standard & Poors) that is not lower than BBB or equivalent.b. Reputation of particular reinsurance companies.c. Existing or past business experience with the reinsurers. | 27 (j) |
| Disclosure of currency risk [text block] | h) Currency riskCurrency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Management believes that there is minimal risk of significant losses due to exchange rate fluctuation as the majority of monetary assets and liabilities are in currencies linked to the Saudi Riyal. In addition, as the Company’s foreign currency transactions are primarily in US dollars which is pegged with the Saudi Riyal, foreign exchange gains and losses are not significant and have not been disclosed separately.The currency exposures of available-for-sale investments are set out below:Insurance Operations 2021 2020 SR SRSaudi Arabian Riyals 13,433,967 13,620,005US Dollars 129,210,446 133,089,432 142,644,413 146,709,437Shareholders Operations 2021 2020 SR SRSaudi Arabian Riyals 214,071,178 92,349,756US Dollars 196,235,740 165,422,398 410,306,918 257,772,154 | 27 (h) |
| Disclosure of commission/ special commission rate risk [text block] | g) Special commission rate riskSpecial commission rate risk arises from the possibility that changes in special commission rates will affect future profitability or the fair values of financial instruments. The Company is exposed to special commission rate risk on its bank balances and available for sale - debt securities.The sensitivity of the income is the effect of the assumed changes in the interest rates, with all other variable held constant, on the profit for one year, based on the floating rate financial assets held at 31 December 2021. A hypothetical 100 basis points change in the weighted average special commission rate of the floating rate at 31 December 2021 would impact special commission income by approximately SR 700,000 (2020: SR 400,000 ) annually in aggregate. | 27 (g) |
| Disclosure of market risk [text block] | k) Market riskMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.The Company’s market risk exposure relates to its quoted available for sale investments whose values will fluctuate as a result of changes in market prices. The Company limits market risk by maintaining a diversified portfolio and by monitoring the developments in financial markets. The Company also has unquoted equity instruments carried at cost or indicative selling price, where the impact of changes in equity price will only be reflected when the instrument is sold or deemed to be impaired and then the statement of income will be impacted.A 1% change in the market price of the quoted available for sale investments, with all other variables held constant, would impact equity as set out below: Changein market price Effect on statement of changes in equity SR 2021 +1% 7,390,401 -1% (7,390,401) 2020 +1% 6,829,958 -1% (6,829,958) | 27 (k) |
| Disclosure of credit risk [text block] | f) Credit riskCredit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. For all classes of financial instruments held by the Company, the maximum credit risk exposure to the Company is the carrying value as disclosed in the statement of financial position. The following policies and procedures are in place to mitigate the Company’s exposure to credit risk: To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurance counterparties. Accordingly, as a pre-requisite, the parties with whom reinsurance is affected are required to have a minimum acceptable security rating level affirming their financial strength. The Company only enters into insurance and reinsurance contracts with recognised, creditworthy third parties. It is the Company’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivables from insurance and reinsurance contracts are monitored on an on-going basis in order to reduce the Company’s exposure to bad debts. The Company seeks to limit the credit risk with respect to agents and brokers by setting credit limits for individual agents and brokers and monitoring outstanding receivables. Premiums receivable are mainly receivable from individuals and corporate customers (unrated). The Company seeks to limit the credit risk with respect individuals and corporate customers by setting credit limits and monitoring outstanding receivables. Cash and cash equivalents are maintained with local banks approved by management. Accordingly, as a pre-requisite, the banks with whom cash and cash equivalents are maintained are required to have a minimum acceptable security rating level affirming their financial strength. The Company’s available for sale investments mainly comprise of debt securities and sukuks. The Company does not have an internal grading mechanism for debt securities. The Company limits its credit risk on debt securities by setting out a minimum acceptable security rating level for such investments. The Company’s unit linked investments comprise of mutual funds. The Company does not have an internal grading mechanism for mutual funds. The Company limits its credit risk on mutual funds by setting out a minimum acceptable security rating level for such investments. For unit linked business, the policyholder bears the direct market and credit risk on investment assets in the unit funds and the Company’s exposure to credit risk is limited to the extent of the income arising from asset management charges based on the value of assets in the fund. Statutory deposit is maintain with a local bank. Accordingly, as a pre-requisite, the bank with whom statutory deposit are maintained are required to have a minimum acceptable security rating level affirming their financial strength. The table below shows the maximum exposure to credit risk for the components of the statement of financial position: 2021SR Insurance operations Shareholders’ operations Total Cash and cash equivalents 40,032,921 120,946,723 160,979,644Reinsurers’ balances receivable, net 83,779,407 - 83,779,407Premiums receivable, net 346,330,780 - 346,330,780Reinsurers' share of outstanding claims 441,962,088 - 441,962,088Reinsurers’ share of claims incurred but not reported 52,137,423 - 52,137,423Available for sale investments 142,644,413 410,306,918 552,951,331Statutory deposit - 60,000,000 60,000,000Accrued income on statutory deposit - 1,579,858 1,579,858 1,106,887,032 592,833,499 1,699,720,531 2020SR Insuranceoperations Shareholders’operations Total Cash and cash equivalents 187,639,558 137,406,667 325,046,225 Reinsurers’ balances receivable, net 74,029,044 - 74,029,044 Premiums receivable, net 404,388,790 - 404,388,790 Reinsurance share of outstanding claims 501,314,767 - 501,314,767 Reinsurers’ share of claims incurred but not reported 57,566,257 - 57,566,257 Available for sale investments 146,709,437 257,772,154 404,481,591 Statutory deposit - 60,000,000 60,000,000 Accrued income on statutory deposit - 1,572,445 1,572,445 1,371,647,853 456,751,266 1,828,399,119 Concentration of credit riskConcentration of credit risk exists when changes in economic or industry factors similarly affect groups of counterparties whose aggregate credit exposure is significant in relation to the Company’s total credit exposure. Credit ratings of investmentsFollowing are the credit ratings of available for sale investments:Credit quality Credit Rating Agency Financial Instrument 2020 2019 SR SR A+ S&P/ Moody’s Bonds / Sukuks - 4,401,600A- S&P/ Moody’s Bonds / Sukuks 396,082,998 345,917,956BBB- S&P/ Moody’s Sukuks 110,598,447 37,211,338Unrated N/A Equities/Sukuks/ Mutual funds 46,269,886 16,950,697 552,951,331 404,481,591Further the Company follows a policy regarding selecting reinsurers whose credit rating are A- and higher as per S&P and Fitch ratings. Concentration of credit risk are also mentioned in notes 6 and 7. | 27 (f) |
| Disclosure of liquidity risk [text block] | e) Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in raising funds to meet obligation and commitments associated with financial liabilities when they fall due. The Company has a proper cash management system, where daily cash collection and payments are monitored and reconciled on regular basis. The Company manages this risk by maintaining maturities of financial assets and financial liabilities and investing a major portion of the Company's assets in highly liquid financial assets.Maturity profileThe table below summarises the expected utilisation or settlement of financial assets and liabilities including receivables/payables from insurance related assets and liabilities.Maturity analysis on expected maturity base31 December 2021SR Less than one year More than one year TotalAssets Cash and cash equivalents 160,979,644 - 160,979,644Prepaid expenses and other assets 202,209,214 - 202,209,214Premiums receivable, net 346,330,780 - 346,330,780Reinsurers’ balance receivable, net 83,779,407 - 83,779,407Reinsurers' share of outstanding claims 441,962,088 - 441,962,088Reinsurers’ share of claims incurred but not reported 52,137,423 - 52,137,423Financial assets at fair value through statement of income (unit linked investments) 515,227,924 - 515,227,924Available for sale investments 54,816,532 498,134,799 552,951,331Statutory deposit - 60,000,000 60,000,000Accrued income on statutory deposit - 1,579,858 1,579,858 1,857,443,012 559,714,657 2,417,157,669 31 December 2021SR Less than one year More than one year TotalLiabilities Accrued and other liabilities 103,619,228 - 103,619,228Surplus distribution payable 11,816,069 - 11,816,069Reinsurers' balances payable 246,066,437 - 246,066,437Outstanding claims 510,039,419 - 510,039,419Claims incurred but not reported 108,652,961 - 108,652,961Lease liabilities 534,953 462,850 997,804 Unit linked liabilities 509,896,334 - 509,896,334Accrued income payable to SAMA - 1,579,858 1,579,858 1,490,625,401 2,042,708 1,492,668,110 31 December 2020SR Less than one year More than one Total year Assets Cash and cash equivalents 325,046,225 - 325,046,225 Prepaid expenses and other assets 144,090,776 - 144,090,776 Premiums receivable, net 404,388,790 - 404,388,790 Reinsurers’ balance receivable, net 74,029,044 - 74,029,044 Reinsurers' share of outstanding claims 501,314,767 - 501,314,767 Reinsurers’ share of claims incurred but not reported 57,566,257 - 57,566,257 Financial assets at fair value through statement of income (unit linked investments) 524,059,821 - 524,059,821 Available for sale investments 13,920,600 390,560,991 404,481,591Statutory deposit - 60,000,000 60,000,000 Accrued income on statutory deposit - 1,572,445 1,572,445 2,044,416,280 452,133,436 2,496,549,716 31 December 2020SR Less than one year More than one year TotalLiabilities Accrued and other liabilities 165,432,785 - 165,432,785 Surplus distribution payable 15,092,678 - 15,092,678 Reinsurers' balances payable 202,216,042 - 202,216,042 Outstanding claims 574,233,568 - 574,233,568 Claims incurred but not reported 123,799,018 - 123,799,018 Lease liabilities 2,140,235 1,222,096 3,362,331 Unit linked liabilities 518,114,351 - 518,114,351 Accrued income payable to SAMA - 1,572,445 1,572,445 1,601,028,677 2,794,541 1,603,823,218 The table below summarises the maturity profile of the financial assets and financial liabilities of the Company based on residual maturities. For insurance contract liabilities and reinsurance assets, maturity profiles are determined based on the estimated timing of net cash outflows from the recognised insurance liabilities. Unearned premiums, reinsurance share of unearned premiums and deferred policy acquisition costs have been excluded from the analysis as they are not contractual obligations. Repayments that are subject to notice are treated as if notice were to be given immediately. 31 December 2021SR On demand Up to 1year 2-5 years More than 5 years TotalAssets Cash and cash equivalents 160,979,644 - - - 160,979,644Prepaid expenses and other assets - 202,209,214 - - 202,209,214Premiums receivable, net - 346,330,780 - - 346,330,780Reinsurers’ balance receivable, net - 83,779,407 - - 83,779,407Reinsurers' share of outstanding claims - 441,962,088 - - 441,962,088Reinsurers’ share of claims incurred but not reported - 52,137,423 - - 52,137,423Financial assets at fair value through statement of income (unit linked investments) 515,227,924 - - - 515,227,924Available for sale investments - 54,816,532 361,657,445 136,477,354 552,951,331 Statutory deposit - - - 60,000,000 60,000,000Accrued income on statutory deposit - - - 1,579,858 1,579,858 676,207,568 1,181,235,444 361,657,445 198,057,212 2,417,157,669 Liabilities Accrued and other liabilities - 103,619,228 - - 103,619,228Surplus distribution payable 11,816,069 - - - 11,816,069Reinsurers' balances payable - 246,066,437 - - 246,066,437Claims incurred but not reported - 108,652,961 - - 108,652,961Outstanding claims - 510,039,419 - - 510,039,419Lease liabilities - 997,804 - - 997,804Unit linked liabilities 509,896,334 - - - 509,896,334Accrued income payable to SAMA - - - 1,579,858 1,579,858 521,712,403 969,375,849 - 1,579,858 1,492,668,110 Total liquidity gap 154,495,165 211,859,595 361,657,445 196,477,354 924,489,559 31 December 2020SR On demand Up to 1year 2-5 years More than 5 years TotalAssets Cash and cash equivalents 325,046,225 - - - 325,046,225 Prepaid expenses and other assets - 144,090,776 - - 144,090,776 Premiums receivable, net - 404,388,790 - - 404,388,790 Reinsurers’ balance receivable, net - 74,029,044 - - 74,029,044 Reinsurers' share of outstanding claims - 501,314,767 - - 501,314,767 Reinsurers’ share of claims incurred but not reported - 57,566,257 - - 57,566,257 Financial assets at fair value through statement of income (unit linked investments) 524,059,821 - - - 524,059,821 Available for sale investments - 13,920,600 309,897,004 80,670,162 404,487,766Statutory deposit - - - 60,000,000 60,000,000 Accrued income on statutory deposit - - - 1,572,445 1,572,445 849,106,046 1,195,310,234 309,897,004 142,242,607 2,496,555,891 Liabilities Accrued and other liabilities - 165,432,785 - - 165,432,785 Surplus distribution payable 15,092,678 - - - 15,092,678 Reinsurers' balances payable - 202,216,042 - - 202,216,042 Outstanding claims - 574,233,568 - - 574,233,568Claims incurred but not reported - 123,799,018 - - 123,799,018Lease liabilities - 3,362,331 - - 3,362,331 Unit linked liabilities 518,114,351 - - - 518,114,351 Accrued income payable to SAMA - - - 1,572,445 1,572,445 533,207,029 1,069,043,744 - 1,572,445 1,603,823,218 Total liquidity gap 315,899,017 126,266,490 309,897,004 140,670,162 892,732,673 To manage the liquidity risk arising from financial liabilities mentioned above, the Company holds liquid assets comprising cash and cash equivalents and investment securities. These assets can be readily sold to meet liquidity requirements.The assets with maturity less than one year are expected to realize as follows: Available for sale investments include investments in mutual funds and sukuks and are held for cash management purposes and expected to be matured/settled within twelve months from the reporting date. Cash and bank balances are available on demand. Reinsurers’ share of outstanding claims majorly pertain to property segment and are generally realized within three to six months based on settlement of balances with reinsurers.The liabilities with maturity less than one year are expected to settle as follows: Reinsurers’ balances payable are settled as per terms of reinsurance agreements. Majority of gross outstanding claims are expected to be settled within two months in accordance with statutory timelines for payment. Accrued and other liabilities are expected to settle within a period of twelve months from the period end date. | 27 ( e) |
| Disclosure of claims/ benefits management risk [text block] | c) Claims management riskClaims management risk may arise within the Company in the event of inaccurate or incomplete case reserves and claims settlements, poor service quality or excessive claims handling costs. These risks may damage the Company and undermine its ability to win and retain business, or incur punitive damages. These risks can occur at any stage of the claims life cycle. The Company’s claims teams are focused on delivering quality, reliability and speed of service the policyholders. Their aim is to adjust and process claims in a fair, efficient and timely manner, in accordance with the policy’s terms and conditions, the regulatory environment, and the business’ broader interests. Prompt and accurate case reserves are set for all known claims liabilities, including provisions for expenses, as soon as a reliable estimate can be made of the claims liability.Sources of uncertainty in estimation of future claim paymentsThe key source of estimation uncertainty at the statement of financial position date relates to valuation of outstanding claims, whether reported or not, and includes expected claims settlement costs. The principal assumption underlying the liability estimates is that the Company’s future claims development will follow a similar pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim handling costs, claim inflation factors and claim numbers for each accident year. Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example: one–off occurrence; changes in market factors such as public attitude to claiming: economic conditions: as well as internal factors such as portfolio mix, policy conditions and claims handling procedures. Judgement is further used to assess the extent to which external factors such as judicial decisions and government legislation affect the estimates. Considerable judgment by management is required in the estimation of amounts due to policyholders arising from claims made under insurance contracts. Such estimates are necessarily based on assumptions about several factors involving varying and possibly significant degrees of judgment and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities. Judgment is further used to assess the extent to which external factors such as judicial decisions and government legislation affect the estimates. In particular, estimates have to be made both for the expected ultimate cost of claims reported at the statement of financial position date and for the expected ultimate cost of claims incurred but not reported (IBNR) at the statement of financial position date. Process used to decide on assumptionsThe process used to determine the assumptions for calculating the outstanding claim reserve is intended to result in neutral reasonable estimates of the most likely or expected outcome. The nature of the business makes it very difficult to predict with certainty the likely outcome of any particular claim and the ultimate cost of notified claims. Each notified claim is assessed on a separate, case by case basis with due regard to claim circumstances, information available from surveyors and historical evidence of the size of similar claims. Case estimates are reviewed regularly and are updated as and when new information is available.The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Company, in which case information about the claim event is available. The estimation process takes into account the past claims reporting pattern and details of reinsurance programs. The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques such as Chain ladder method, Bornhuetter - Ferguson method and Expected Loss Ratio Method.The main assumption underlying these techniques is that a Company’s past claims development experience can be used to project future claims development and hence ultimate claims costs. As such, these methods extrapolate the development of paid and incurred losses, average costs per claim and claim numbers based on the observed development of earlier years and expected loss ratios. Historical claims development is mainly analysed by accident years, but can also be further analysed by geographical area, as well as by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjuster estimates or separately projected in order to reflect their future development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historical claims development data on which the projections are based. Additional qualitative judgement is used to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking account of all the uncertainties involved.The premium liabilities have been determined such that the total premium liability provisions (unearned premium reserve and premium deficiency reserve in result of liability adequacy test) would be sufficient to service the future expected claims and expenses likely to occur on the unexpired policies as at the statement of financial position date. The expected future liability is determined using estimates and assumptions based on the experience during the expired period of the contracts and expectations of future events that are believed to be reasonable. | 27 ( c ) |
| Disclosure of reserving and ultimate reserves risk [text block] | d) Reserving and ultimate reserves riskReserving and ultimate reserves risk occurs within the Company where established insurance liabilities are insufficient through inaccurate forecasting, or where there is inadequate allowance for expenses and reinsurance bad debts in provisions. To manage reserving and ultimate reserves risk, our actuarial team uses a range of recognized techniques to project gross premiums written, monitor claims development patterns and stress-test ultimate insurance liability balances.The objective of the Company’s reserving policy is to produce accurate and reliable estimates that are consistent over time and across classes of business. | 27 (d) |
| Disclosure of operational/ process risk [text block] | a) Operational riskOperational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the processes, technology and infrastructure supporting the Company’s operations either internally within the Company or externally at the Company’s service providers, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of investment management behaviour. Operational risks arise from all of the Company’s activities.The Company’s objective is to manage operational risk so as to balance limiting of financial losses and damage to its reputation with achieving its investment objective of generating returns for investors. The primary responsibility for the development and implementation of controls over operational risk rests with the Board of Directors. This responsibility encompasses the controls in the following areas:- Requirements for appropriate segregation of duties between various functions, roles and responsibilities;- Requirements for the reconciliation and monitoring of transactions;- Compliance with regulatory and other legal requirements;- Documentation of controls and procedures;- Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified;- Ethical and business standards; and- Risk mitigation policies and procedures. | 27 (a) |
| Disclosure of fund price risk [text block] | i) Fund price riskFund price risk is the risk that the fair value of future cash flows of a fund will fluctuate because of changes in the net asset value (NAV) being determined by fund managers. The Company has foreign currency transactions in respect of its mutual funds investments.The Company is not exposed to fund price risk for unit linked investments since any change in the NAV of the funds will affect the change in unit linked liabilities and the change in the fair value of the funds by the same amount hence, there is no impact on the performance of the Company. The direct market risk is borne by the policyholders. | 27 (i) |
| Disclosure of fair value of financial assets and liabilities [text block] | 25 FAIR VALUE OF FINANCIAL INSTRUMENTS Fair 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 management assessed that cash and cash equivalents, accruals and other liabilities and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.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 value.i. Insurance operations Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2021 Unit linked investments 515,227,924- 515,227,924-515,227,924Available for sale investments measured at fair value Bonds and Sukuks 134,824,611 134,824,611 - - 134,824,611Mutual Funds 4,644,235 - 4,644,235 - 4,644,235Equities 3,175,567 3,175,567 - - 3,175,567Unit linked liabilities (509,896,334)- (509,896,334)- (509,896,334) 147,976,003138,000,1789,975,825-147,976,003 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2020 Unit linked investments 524,059,821 - 524,059,821 -524,059,821 Available for sale investments measured at fair value Bonds and Sukuks 138,767,896 138,767,896 - - 138,767,896 Mutual Funds 4,836,936 - 4,836,936 - 4,836,936 Equities 3,104,605 3,104,605 - - 3,104,605 Unit linked liabilities (518,114,351) - (518,114,351) - (518,114,351) 152,654,907141,872,50110,782,406- 152,654,907 25 FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)ii. Shareholders’ operations Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2021 Available for sale investments measured at fair value Bonds and Sukuk 401,405,210 224,604,579 176,800,631-401,405,210Mutual Funds 5,678,630 - 5,678,630 - 5,678,630Equities 3,223,078 - - 3,223,078 3,223,078 410,306,918 224,604,579 182,479,2613,223,078410,306,918 Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 December 2020 Available for sale investments measured at fair value Bonds and Sukuks 248,762,998 196,181,247 52,581,751 248,762,998 Mutual Funds 5,786,078 - 5,786,078 - 5,786,078 Equities 3,223,078 - - 3,223,078 3,223,078 257,772,154 196,181,247 58,367,8293,223,078 257,772,154 There were no transfers between Level 1, 2 and Level 3 fair value measurements during the year ended 31 December 2021. During the year ended 31 December 2020 there was a transfer between level 3 to level 1 related to bonds and sukuks that were quoted during the year (please refer note 10). b) Measurement of fair values Valuation technique for quoted debt and equity securitiesThe valuation of equities and debts securities classified under Level 1 are measured based on closing market price on Tadawul and Bloomberg. The valuation of mutual funds classified under Level 2 is measured based on closing NAV disclosed on Tadawul which is based on the fair value of the underlying items at the year end. The valuation of mutual finds classified under Level 3 is measured based on a valuation technique which is primarily derived by net assets value of the fund at the year end.Valuation technique for unquoted debt and equity securitiesThe Discounted Cash Flow Model (DCF) has been used to determine the fair value of debt securities and sukuks of both insurance operations and 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. Description Fair value as at UnobservableInputs Range of inputs Relationships of unobservable inputs to fair value Dec 31, 2021 (SR) 2021 Unquoted Bonds and Sukuks 175,221,550 Risk adjusted discount rate 1.56% - 3.30% Increase risk premium of 10 bps will have a change in fair value of these debt securities of SR 0.28 million. 25 FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)Reconciliation of Level 3 fair valuesThe following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values: Insurance operations 2021SR 2020SR Balance at the beginning of the year - -Disposals/maturity - -Amortization - -Unrealized gain / (loss) on fair value - -Transfer from level 3 to level 1 - -Balance at the end of the year - - Shareholders’ operations 2021SR 2020SR Balance at the beginning of the year 3,223,078 3,223,078Purchases - -Disposals/maturity - -Amortization - -Unrealized gain on fair value - -Balance at the end of the year 3,223,078 3,223,078Sensitivity analysis of Level 2 and 3 investments is as follows:31 December 2021 Sensitivity factor Impact on fair value due to increase in sensitivity factor Impact on fair value due to decrease in sensitivity factor SRInsurance operations Bonds and sukuks +/- 1% change in risk adjusted discount rate - -Shareholder’s operations Bonds and sukuks +/- 1% change in risk adjusted discount rate (1,069,351) 1,069,351 Equities +/- 1% change in the breakup value of shares (161,154) 161,154 31 December 2020 Insurance operations Bonds and sukuks +/- 1% change in risk adjusted discount rate - -Shareholder’s operations Bonds and sukuks +/- 1% change in risk adjusted discount rate (54,878) 54,878 Equities +/- 1% change in the breakup value of shares (161,154) 161,154 | 25 |
| Disclosure of board of director's approval of the financial statements [text block] | 31 APPROVAL OF THE FINANCIAL STATEMENTSThese financial statements have been approved by the Board of Directors on 17 March 2022 (corresponding to 14 Shaban 1443H). | 31 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 27 RISK MANAGEMENTRisk management strategyThe Company’s activities expose it to a variety of financial risks. The Company has a comprehensive risk management strategy to understand and manage the types of risk arising from the Company’s core business operations.The strategy considers the impact of market conditions and available expertise on inherent risks to which the Company is exposed. Consideration is not limited to the risks associated with one class of business but is extended to risks from all other classes.The Board of Directors and the senior management periodically reviews and updates the risk management strategy by taking into account developments that are internal and external to the Company.Risk management structure A cohesive organisational structure is established within the Company in order to identify, assess, monitor and control risks. Board of directors The apex of risk governance is the centralized oversight of the Board of Directors providing direction and the necessary approvals of strategies and policies in order to achieve defined corporate goals. Senior management Senior management is responsible for the day to day operations towards achieving the strategic goals within the Company’s pre-defined risk appetite.30 SUPPLEMENTARY INFORMATION a) Statement of financial position SR 31 December 2021 31 December 2020 Insurance operations Share-holders’ operations Total Insurance operations Share-holders’ operations TotalASSETS Cash and cash equivalents 40,032,921 120,946,723 160,979,644 187,639,558 137,406,667 325,046,225 Prepaid expenses and other assets 198,692,991 3,516,223 202,209,214 132,882,715 11,208,061 144,090,776 Premiums receivable, net 346,330,780 - 346,330,780 404,388,790 - 404,388,790 Reinsurers’ balance receivable, net 83,779,407 - 83,779,407 74,029,044 - 74,029,044 Reinsurers’ share of outstanding claims 441,962,088 - 441,962,088 501,314,767 - 501,314,767 Reinsurers’ share of claims incurred but not Reported 52,137,423 - 52,137,423 57,566,257 - 57,566,257 Reinsurers’ share of unearned premiums 128,937,475 - 128,937,475 103,362,771 - 103,362,771 Deferred policy acquisition costs 20,749,602 - 20,749,602 12,903,209 - 12,903,209 Right-of-use assets 844,193 - 844,193 3,730,142 - 3,730,142 Financial assets at fair value through statement 515,227,924506,367,423 515,227,924506,367,423 of income (unit linked investments) - - - 524,059,821 - 524,059,821Available for sale investments 142,644,413 410,306,918 552,951,331 146,709,437 257,772,154 404,481,591 Deferred tax assets, net - 7,668,4957,117,025 7,668,4957,117,025 - 5,825,970 5,825,970Property and equipment 7,968,658 - 7,968,658 9,527,586 - 9,527,586 Statutory deposit - 60,000,000 60,000,000 - 60,000,000 60,000,000 Accrued income on statutory deposit - 1,579,858 1,579,858 - 1,572,445 1,572,445 Due to/from insurance operation/shareholders operation* (122,125,487) 122,125,487 - (246,382,029) 246,382,029 -TOTAL ASSETS 1,857,182,3881,848,321,887 726,143,704725,592,234 2,583,326,0922,573,914,121 1,911,732,068 720,167,326 2,631,899,394 LIABILITIES Accrued and other liabilities 102,294,609107,335,116 1,324,619 103,619,228108,659,735 163,085,292 2,347,493 165,432,785 Surplus distribution payable 11,816,069 - 11,816,069 15,092,678 - 15,092,678 Reinsurers' balances payable 246,066,437 - 246,066,437 202,216,042 - 202,216,042 Unearned premiums 327,493,566 - 327,493,566 266,364,432 - 266,364,432 Unearned reinsurance commission 1,347,774 - 1,347,774 2,829,659 - 2,829,659 Outstanding claims 510,039,419 - 510,039,419 574,233,568 - 574,233,568 Claims incurred but not reported 108,652,961 - 108,652,961 123,799,018 - 123,799,018 Lease liabilities 997,804 - 997,804 3,362,331 - 3,362,331 Premium deficiency reserve 5,960,779 - 5,960,779 9,039,013 - 9,039,013 Additional premium reserves 4,411,285 - 4,411,285 1,385,708 - 1,385,708 Unit linked liabilities 509,896,334501,035,833 - 509,896,334501,035,833 518,114,351 - 518,114,351 Employees’ end-of-service obligations 19,030,82213,836,798 - 19,030,82213,836,798 19,019,582 - 19,019,582 Zakat and income tax - 21,120,73220,389,110 21,120,73220,389,110 - 14,699,522 14,699,522Accrued income payable to SAMA - 1,579,858 1,579,858 - 1,572,445 1,572,445 TOTAL LIABILITIES 1,848,007,8591,838,993,841 24,025,20923,293,587 1,872,033,0681,862,287,428 1,898,541,674 18,619,460 1,917,161,134 EQUITY Share capital - 600,000,000 600,000,000 - 600,000,000 600,000,000 Share premium - 16,310,624 16,310,624 - 16,310,624 16,310,624 Statutory reserve - 21,867,49321,989,723 21,867,49321,989,723 - 20,743,607 20,743,607 Retained earnings - 52,172,28752,661,207 52,172,28752,661,207 - 47,676,744 47,676,744Actuarial reserve for end-of-service obligations 3,392,7043,546,221 - 3,392,7043,546,221 3,597,830 - 3,597,830Fair value reserve on investments 5,781,825 11,768,09111,343,839 17,549,91617,118,918 9,592,564 16,816,891 26,409,455TOTAL EQUITY 9,174,5299,328,046 702,118,495702,298,647 711,293,024711,626,693 13,190,394 701,547,866 714,738,260 TOTAL LIABILITIES AND EQUITY 1,857,182,3881,848,321,887 726,143,704725,592,234 2,583,326,0922,573,914,121 1,911,732,068 720,167,326 2,631,899,394 * This item is not included in the statement of financial position. 30 SUPPLEMENTARY INFORMATION (continued) b) Statement of income SR 31 December 2021 31 December 2020 Insurance operations Share-holders’ operations Total Insurance operations Share-holders’ operations Total REVENUES Gross premiums written 763,115,103 - 763,115,103 674,731,117 - 674,731,117 Reinsurance premiums ceded abroad (293,165,763) - (293,165,763) (233,697,568) - (233,697,568) Reinsurance premiums ceded locally (1,169,813) - (1,169,813) (1,844,048) - (1,844,048)Excess of loss expenses (16,799,071) - (16,799,071) (14,484,569) - (14,484,569)Fee income from unit linked investments 1,374,634 - 1,374,634 1,242,769 - 1,242,769 Net premiums written 453,355,090 - 453,355,090 425,947,701 - 425,947,701 Changes in unearned premiums (61,129,134)(61,129,133) - (61,129,134)(61,129,133) 142,333,898 - 142,333,898 Changes in reinsurers’ share of unearned premiums 25,574,70425,574,703 - 25,574,70425,574,703 (49,014,814) - (49,014,814)Net premiums earned 417,800,660 - 417,800,660 519,266,785 - 519,266,785 Reinsurance commissions 4,868,942 - 4,868,942 9,812,624 - 9,812,624 NET REVENUES 422,669,602 - 422,669,602 529,079,409 - 529,079,409 UNDERWRITING COSTS AND EXPENSES Gross claims paid (469,821,699)(469,821,701) - (469,821,699)(469,821,701) (441,541,109) - (441,541,109) Surrenders and maturities (117,405,672) - (117,405,672) (96,326,838) - (96,326,838) Expenses incurred related to claims (21,675,126) - (21,675,126) (23,615,412) - (23,615,412)Reinsurers’ share of claims paid 277,496,216 - 277,496,216 157,837,415 - 157,837,415 Net claims and other benefits paid (331,406,281)(331,406,283) - (331,406,281)(331,406,283) (403,645,944) - (403,645,944) Changes in outstanding claims 64,194,149 - 64,194,149 (41,166,815) - (41,166,815) Changes in reinsurers’ share of outstanding claims (59,352,679) - (59,352,679) 68,986,560 - 68,986,560 Change in premium deficiency reserve 3,078,2343,078,233 - 3,078,2343,078,233 2,692,320 - 2,692,320 Changes in additional premium reserve (3,025,577) - (3,025,577) (16,388) - (16,388)Changes in claims incurred but not reported 15,146,05715,146,058 - 15,146,05715,146,058 (36,018,576) - (36,018,576)Changes in reinsurers’ share of claims incurred but not reported (5,428,834) - (5,428,834) 14,267,543 - 14,267,543 Net claims and other benefits incurred (316,794,931)(316,794,932) - (316,794,931)(316,794,932) (394,901,300) - (394,901,300) Changes in unit linked liabilities 8,218,01717,078,519 - 8,218,01717,078,519 17,300,766 - 17,300,766 Unrealized gain on unit linked investments 45,308,19336,447,692 - 45,308,19336,447,692 14,182,293 - 14,182,293 Policy acquisition costs (37,667,016) - (37,667,016) (55,071,599) - (55,071,599)Inspection and supervision fees (6,081,066) - (6,081,066) (5,136,631) - (5,136,631)TOTAL UNDERWRITING COSTS AND EXPENSES (307,016,803) - (307,016,803) (423,626,471) - (423,626,471) NET UNDERWRITING INCOME 115,652,799 - 115,652,799 105,452,938 - 105,452,938 OTHER (EXPENSES) / INCOME Provision of doubtful debts (4,251,304) - (4,251,304) (3,306,055) - (3,306,055)General and administrative expenses (114,534,196) (2,293,429) (116,827,625) (135,320,458) (1,018,898) (136,339,356) Investment income 4,055,682 10,983,327 15,039,009 3,958,402 7,483,712 11,442,114 Other income 7,738,6057,664,605 - 7,738,6057,664,605 5,117,954 - 5,117,954TOTAL OTHER EXPENSE (106,991,213) 8,689,898 (98,301,315)(98,375,315) (129,550,157) 6,464,814 (123,085,343) NET (LOSS) / INCOME FOR THE YEAR BEFORE SURPLUS, ZAKAT AND TAX 8,661,586 8,689,898 17,351,484 (24,097,219) 6,464,814 (17,632,405)Net surplus transferred to shareholders’ Operation (7,795,427) 7,795,427 866,159- 24,097,219 (24,097,219) -NET INCOME / (LOSS) FOR THE YEAR AFTER SHAREHOLDERS’ APPROPRIATIONS BEFORE ZAKAT AND TAX 866,159 16,485,325 17,351,484 - (17,632,405) (17,632,405)Zakat charge for the year - (9,309,191)(9,112,744) (9,309,191)(9,112,744) - (10,267,741) (10,267,741)Income tax (charge) / credit for the year, net - (1,556,705)(1,142,002) (1,556,705)(1,142,002) - 552,513 552,513NET INCOME / (LOSS) AFTER SHAREHOLDERS ATTRIBUTION ZAKAT AND TAX 866,159 5,619,4296,230,579 6,485,5887,096,738 - (27,347,633) (27,347,633) 30 SUPPLEMENTARY INFORMATION (continued) c) Statement of comprehensive income SR 31 December 2021 31 December 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net income / (loss) for the year after zakat and tax 866,159 5,619,4296,230,579 6,485,5887,096,738 - (27,347,633) (27,347,633)Other comprehensive income Items that will not be reclassified to statement of income in subsequent years - Re-measurement of defined benefit liability – employees’ end-of-service obligations (205,126) (51,609) - (205,126) (51,609) (230,658) - (230,658)Items that are or may be reclassified to statements of income in subsequent years Available for sale investments - Net change in fair value (3,810,739) (6,101,349) (9,912,088) 5,649,471 10,249,433 15,898,904 - Deferred tax relating to change in fair value 404,601(26,397) 647,948 1,052,549621,551 (599,827) (1,088,223) (1,688,050)Total comprehensive income / (loss) for the year (2,745,105)(3,022,586) 166,028777,178 (2,579,077)(2,245,408) 4,818,986 (18,186,423) (13,367,437)Reconciliation: Less: Net income attributable to insurance operations (866,159) -Total comprehensive income / (loss) for the year (3,445,236)(3,111,567) (13,367,437) 30 SUPPLEMENTARY INFORMATION (continued) d) Statement of cash flows SR 31 December 2021 31 December 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM OPERATING ACTIVITIES Net income / (loss) for the year before surplus, zakat and Tax 866,159 16,485,325 17,351,484 - (17,632,405) (17,632,405)Adjustments for non-cash items and other items: - - - Depreciation of property and equipment 3,864,229 - 3,864,229 3,257,176 - 3,257,176 Amortisation of right-of-use assets 2,885,949 - 2,885,949 3,046,086 - 3,046,086 Amortization of investments premium 254,285 288,887 543,172 646,813 - 646,813 Provision of doubtful reinsurance receivables 362,006 - 362,006 (1,375) - (1,375)Gain on sale of property and equipment (138,454) - (138,454) (3,950) - (3,950) Provision for doubtful receivables and write-offs 3,889,298 - 3,889,298 2,735,966 - 2,735,966 Provision for end-of-service obligations 2,497,443(2,732,303) - 2,497,443(2,732,303) 4,122,027 - 4,122,027 Unrealized gain on unit linked investments (45,308,193)(36,447,692) - (45,308,193)(36,447,692) (14,182,293) - (14,182,293)Finance cost on lease liabilities 447,260261 - 447,260261 472,439 - 472,439Surplus written back (3,803,941) - (3,803,941) - - -Shareholders’ appropriation from insurance operations’ surplus* 7,795,427 (7,795,427) - (24,097,219) 24,097,219 - (26,388,531)(18,953,836) 8,978,7858,978,785 (17,409,746)(9,975,051) (24,004,330) 6,464,814 (17,539,516)Changes in operating assets and liabilities: - Reinsurers’ balance receivable (10,112,369) - (10,112,369) (3,491,768) - (3,491,768)Premium receivable 54,168,712 - 54,168,712 13,461,521 - 13,461,521 Reinsurers’ share of unearned premiums (25,574,704) - (25,574,704) 49,014,814 - 49,014,814 Reinsurers’ share of outstanding claims 59,352,679 - 59,352,679 (68,986,560) - (68,986,560) Reinsurers’ share of claims incurred but not reported 5,428,834 - 5,428,834 (14,267,543) - (14,267,543)Deferred policy acquisition costs (7,846,393) - (7,846,393) 14,016,341 - 14,016,341 Unit linked investments 54,140,09054,140,090 - 54,140,090 28,236,330 - 28,236,330 Prepaid expenses and other assets (65,810,276) 7,691,838 (58,118,438) (63,089,175) (8,511,396) (71,600,571) Accrued expenses and other liabilities (60,790,683)(55,750,176) (1,022,874) (61,813,557)(56,773,050) 13,043,617 1,903,602 14,947,219Reinsurers' balances payable 43,850,395 - 43,850,395 6,616,919 - 6,616,919 Unearned premiums 61,129,134 - 61,129,134 (142,333,898) - (142,333,898)Unearned reinsurance commission (1,481,885) - (1,481,885) (4,518,114) - (4,518,114)Unit linked liabilities (8,218,017)(17,078,518) - (8,218,017)(17,078,518) (17,300,766) - (17,300,766)Outstanding claims (64,194,149) - (64,194,149) 41,166,815 - 41,166,815 Claims incurred but not reported (15,146,057) - (15,146,057) 36,018,576 - 36,018,576Premium deficiency reserve (3,078,234) - (3,078,234) (2,692,320) - (2,692,320)Additional premium reserves 3,025,577 - 3,025,577 16,388 - 16,388 (7,545,877)(3,931,176) 15,647,749 8,101,87211,716,573 (139,093,153) (142,980) (139,236,133)Employees’ end-of-service obligations paid (2,691,329)(2,502,090) - (2,691,329)(2,502,090) (2,181,001) - (2,181,001) Surplus paid to policyholders (338,827)(4,142,768) - (338,827)(4,142,768) (594,788) - (594,788)Zakat and income tax paid (5,234,662662) (5,234,662662) - (24,000,408) (24,000,408)Net cash (used in) / generated from operating activities (10,576,033)(10,576,034) 10,413,08710,413,087 (162,946)(162,947) (141,868,942) (24,143,388) (166,012,330) CASH FLOWS FROM INVESTING ACTIVITIES Additions in available for sale investments - (172,500,000) (172,500,000) - (30,000,000) (30,000,000)Proceed from sale of available for sale investments - 13,575,000 13,575,000 - 26,250,000 26,250,000 Proceeds from sale of property and equipment 138,454 - 138,454 3,950 - 3,950 Additions in property and equipment (2,305,301) - (2,305,301) (4,765,982) - (4,765,982)Net cash used in investing activities (2,166,847) (158,925,000) (161,091,847) (4,762,032) (3,750,000) (8,512,032) CASH FLOWS FROM FINANCING ACTIVITY Due from / to (insurance operations / shareholder operations)* (132,051,969) 132,051,969 - 250,118,445 (250,118,445) - Lease rental paid (2,811,788) - (2,811,788) (2,894,339) - (2,894,339)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 Net cash (used in) / generated from / (used in) financing activities (134,863,757) 132,051,969 (2,811,788) 247,224,106 103,480,864 350,704,970Net change in cash and cash equivalents (147,606,637)(147,606,638) (16,459,944)(16,459,944) (164,066,581)(164,066,581) 100,593,132 75,587,476 176,180,608Cash and cash equivalents, beginning of the year 187,639,558 137,406,667 325,046,225 87,046,426 61,819,191 148,865,617 Cash and cash equivalents, end of the year 40,032,92190,032,921 120,946,72370,946,723 160,979,644160,979,644 187,639,558 137,406,667 325,046,225NON-CASH INFORMATION: Change in fair value of available for sale investments 3,810,739 6,101,3496,094,603 9,912,0889,905,342 (5,649,471) (10,249,433) (15,898,904)Re-measurement of defined benefit liability – employees’ end-of-service obligations 205,12651,609 - 205,12651,609 230,658 - 230,658Deferred income tax (404,60126,397) (647,948(647,948)) (1,052,549(621,551)) 599,827 1,088,223 1,688,050* These items are not included in the statement of cash flows. | 27 & 30 |
