| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1. GeneralAllianz Saudi Fransi Cooperative Insurance Company (a Joint Stock Company incorporated in the Kingdom of Saudi Arabia), the “Company”, was formed pursuant to Royal Decree number 60/M dated 18 Ramadan 1427H (corresponding to October 11, 2006). The Company operates under Commercial Registration number 1010235601 dated 26 Jumada Thani 1428H corresponding to 12 July 2007. The Company operates through its six branches in the Kingdom of Saudi Arabia. The registered address of the Company's head office is as follows:Allianz Saudi Fransi Cooperative Insurance CompanyAl Safwa Commercial Building, Khurais RoadP.O. Box 3540Riyadh 11481, Kingdom of Saudi Arabia.The Company’s ultimate parent is Allianz SE, a European financial services company headquartered in Munich, Germany.The purpose of the Company is to transact cooperative insurance operations and all related activities. Its principal lines of business include Medical, Protection and saving, Motor, Engineering, Property and Other general insurance.On July 31, 2003, corresponding to 2 Jumada II 1424H, the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). During March 2008, the Saudi Central Bank (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia.On January 1, 2016 the Company’s management approved the distribution of the surplus from insurance operations in accordance with the Implementing Regulations issued by SAMA, whereby the shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising on insurance operations is transferred to the shareholders’ operations in full.Seasonality of operationsThe Company operates in an industry where significant seasonal or cyclical variations in operating income are experienced during the financial year. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | 2. Basis of preparation(a) Basis of presentationThe interim condensed financial statements of the Company as at and for the period ended 31 March 2022 has been prepared in accordance with the International Accounting Standard 34 – “Interim Financial Reporting” (“IAS 34”), that is endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).The interim condensed financial statements are prepared under the going concern basis and the historical cost convention, except for the measurement at fair value of available-for-sale investments, financial assets at fair value through statement of income (unit linked investments) and recording of end of service benefits at present value under actuarial method. The Company’s interim statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as non-current: available for sale investments, property and equipment, statutory deposit, accrued income on statutory deposit, end-of-service obligations, deffered tax assets, right of use assets and long term portion of lease liabilities. All other financial statement line items would generally be classified as current. 2. Basis of preparation (continued)(a) Basis of presentation (continued)The Company’s management has made an assessment of its ability to continue as a going concern and is satisfied that it will be able to continue as a going concern in the foreseeable future. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for Insurance Operations and Shareholders’ Operations and prepares the financial statements accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.The interim statement of financial position, statements of income, comprehensive income and cash flows of the insurance operations and shareholders operations which are presented in Note 18 of the interim condensed financial statements have been provided as supplementary financial information to comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders operations. Accordingly, the interim statements of financial position, statements of income, comprehensive income and cash flows prepared for the insurance operations and shareholders operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive income or losses of the respective operations. In preparing the Company’s financial statements in compliance with International Financial Reporting Standards (IFRS) as endorsed in Kingdom of Saudi arabia , the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders operations are uniform for similar transactions and events in similar circumstances.The inclusion of separate information of the insurance operations with the financial statements of the Company in the interim statement of financial position, the statements of income, comprehensive income and cash flows as well as certain relevant notes to the financial statements represents additional supplementary information as required by the implementing regulations (Note 18).The interim condensed financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements as at and for the year ended December 31, 2021. These interim condensed financial statements are expressed in Saudi Arabian Riyals (SR).(b) Critical accounting judgments, estimates and assumptionsThe preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.In preparing this interim condensed financial information, the significant judgments made by the management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended December 31, 2021. The Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic. Management will continue to assess the situation, and reflect any required changes in future reporting periods.On 11 March 2020, the World Health Organisation (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread across the globe. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world took steps to contain the spread of the virus. Saudi Arabia in particular has implemented closure of borders, released social distancing guidelines and enforced country wide lockdowns and curfews. 2. Basis of preparation (continued)(b) Critical accounting judgments, estimates and assumptions (continued)In response to the spread of the Covid-19 virus in the Country where the Company operates and its consequential disruption to the social and economic activities in those markets, the Company’s management has proactively assessed its impacts on its operations and has taken a series of proactive and preventative measures and processes to ensure: the health and safety of its employees and the wider community where it is operating the continuity of its business throughout the Kingdom is protected and kept intact.The Coronavirus pandemic continues to disrupt global markets as many geographies are beginning to experience a second / third wave of infections despite having previously controlled the outbreak through aggressive precautionary measures such as imposing restrictions on travel, lockdowns and strict social distancing rules. The Government of Kingdom of Saudi Arabia "The Government" however has managed to successfully control the outbreak to date, owing primarily to the effective measures taken by the Government. The Government has approved number of vaccines for mass immunizations. The major impact of Covid-19 pandemic were seen in medical and motor line of business as explained below. As with any estimate, the projections and likelihoods of occurrence are underpinned by significant judgment and rapidly evolving situation and uncertainties surrounding the duration and severity of the pandemic, and therefore, the actual outcomes may be different to those projected. The impact of such uncertain economic environment is judgmental, and the Company will continue to reassess its position and the related impact on a regular basis.Medical technical reservesBased on the management’s assessment, the management believes that the Government’s decision to assume the medical treatment costs for both Saudi citizens and expatriates has helped in reducing any unfavourable impact. During the lockdown, the Company saw a decline in medical reported claims (majorly elective and non-chronic treatment claims) which resulted in a drop in claims experience. However, subsequent to the lifting of lockdown since June 21, 2020, the Company is experiencing an increase in claims which is in line with the expectations of the Company’s management regarding delayed treatment.CCHI issued a Circular 895, dated December 17, 2020 regarding the procedures, protocols and prices relating to the enforcement of Article 11. Following these procedures, government facilities will be now able to bill insurance companies for the claims incurred for some elements of their insured population. As instructed by the 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 inforce policies as of January 1, 2021. Recently CCHI issued a new circular “965”, dated March 14, 2022, instructing insurance companies to bear the expenses resulting from all new suspected and confirmed infection with the coronavirus (COVID-19) for health insurance beneficiaries in line with the limits of the policy. Motor technical reservesIn response to the Covid-19 pandemic, SAMA issued a circular 189 (the “circular”) dated May 8, 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. 2. Basis of preparation (continued)(b) Critical accounting judgments, estimates and assumptions (continued)Financial assetsTo cater for any potential impacts, the Covid-19 pandemic may have had on the financial assets of the Company, the Company has performed an assessment in accordance with its accounting policy, to determine whether there is an objective evidence that a financial asset or a group of financial assets has been impaired. For debt financial assets, these include factors such as, significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization, etc. In case of equities classified under available-for-sale, the Company has performed an assessment to determine whether there is a significant or prolonged decline in the fair value of financial assets below their cost. Based on these assessments, the Company’s management believes that the Covid-19 pandemic has had no material effects on Company’s reported results for the three-month period ended 31 March 2022. The Company’s management continues to monitor the situation closely. | 2 |
| Disclosure of new standards and amendments in standards [text block] | 3. Significant accounting policiesThe accounting policies, estimates and assumptions used in the preparation of these interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2021.Standards adopted during the periodStandard, interpretation, amendments Description Effective dateA number of narrow-scope amendments to IFRS 3, IAS 16, IAS 37 and some annual improvements on IFRS 1, IFRS 9, IAS 41 and IFRS 16 Amendments to IFRS 3, ‘Business combinations’ update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Amendments to IAS 16, ‘Property, plant and equipment’ prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in statement of income.Amendments to IAS 37, ‘Provisions, contingent liabilities and contingent assets’ specify which costs a company includes when assessing whether a contract will be lossmaking.Annual improvements make minor amendments to IFRS 1, ‘First-time Adoption of IFRS’, IFRS 9, ‘Financial instruments’, IAS 41, ‘Agriculture’ and the Illustrative Examples accompanying IFRS 16, ‘Leases’ Annual periods beginning on or after 1 January 2022. 3. Significant accounting policies (continued)Standards issued but not yet effectiveThe Company has chosen not to early adopt the following new standards which have been issued but not yet effective for the Company's accounting year beginning on January 1, 2022 and is currently assessing their impact:Standard, interpretation, amendments Description Effective dateAmendments to IAS 1, Presentation of financial statements’, on classification of liabilities These narrow-scope amendments to IAS 1, ‘Presentation of financial statements’, clarify that liabilities are classified as either current or noncurrent, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (for example, the receipt of a waiver or a breach of covenant). The amendment also clarifies what IAS 1 means when it refers to the ‘settlement’ of a liability. Deferred until accounting periods starting not earlier than 1 January 2024Narrow scope amendments to IAS 1, IFRS Practice Statement 2 and IAS 8 The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. Annual periods beginning on or after 1 January 2023Amendment to IAS 12 - deferred tax related to assets and liabilities arising from a single transaction These amendments require companies to recognise deferred tax on transactions that, on initial recognition give rise to equal amounts of taxable and deductible temporary differences. Annual periods beginning on or after 1 January 2023IFRS 17 Insurance Contracts See note belowIFRS 9 Financial Instruments See note below IFRS 9, Financial Instruments (including amendments to IFRS 4, Insurance Contracts)In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. Under IFRS 9, all financial assets will be measured at either amortised cost or fair value. The basis of classification will depend on the business model and the contractual cash flow characteristics of the financial assets. The standard retains most of IAS 39’s requirements for financial liabilities except for those designated at fair value through profit or loss whereby that part of the fair value changes attributable to own credit is to be recognised in other comprehensive income instead of the income statement. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2023.The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.The Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9. 3. Significant accounting policies (continued)Standards issued but not yet effective (continued)IFRS 17 - Insurance ContractsIFRS 17 - “Insurance Contracts”, applicable for the period beginning on or after January 1, 2023 and will supersede IFRS 4 “Insurance Contracts”. Earlier adoption permitted if both IFRS 15 'Revenue from Contracts with Customers' and IFRS 9 'Financial Instruments' have also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance that will affect both the statement of income and the statement of financial position. The Company has decided not to early adopt this new standard. TransitionRetrospective application is required. However, if full retrospective application for a group of insurance contracts is impracticable, then the entity is required to choose either a modified retrospective approach or a fair value approach.Presentation and DisclosuresThe Company expects that the new standard will result in a change to the accounting policies for insurance contracts together with amendments to presentation and disclosures. ImpactThe Company is currently assessing the impact of the application and implementation of IFRS 17. As of the date of the publication of these financial statements, the financial impact of adopting the standard has yet to be fully assessed by the Company. The Company has undertaken a Gap Analysis and the key gaps and their impact are as follows: Impact Area Summary of ImpactFinancial Impact The Company will need to change the practice of revenue recognition at the level of aggregation – IFRS 17 requires to recognize losses immediately, whereas the gain (refer to contractual service margin – CSM) will be earned over the coverage period of the direct insurance contracts. This may have high financial impact.The extent and sign of the financial impact also depends on the current assumptions, methodologies and practices being followed by the Company in technical reserves calculation. The new components of Insurance Finance Income and Expenses will have a greater impact, in particular to the following areas:- liability for incurred claims for which discounting will be required- accretion of interest on the CSM where the general model will be applied. Solvency capital may also have an impact subject to the local regulations.Data Impact The IFRS 17 requires the Company to decide on the level of aggregation based on the following three criteria:1. Portfolio;2. Profitability; and 3. Issuance YearThis will increase the required granularity level of the data. Hence, new data fields will be required going forward and have significant impact on the data.IT Systems Impact Generally, the Company will have to modify their existing systems in order to capture the new data fields and process the new accounting entries, The Company may also have to update their existing reporting process and systems, in addition to the data storage requirements.Process Impact The financial reporting would change significantly under IFRS 17, with significant increase in the number of disclosures required by the standard. The accounting processes and chart of accounts would need to be updated as per the IFRS 17 standard. Actuarial models and assumptions need to be aligned with the IFRS 17 requirements.Impact on RI Arrangements Generally, the Company will have to review their existing reinsurance arrangements to better align with the IFRS 17 requirements with their existing processes. However, it may be possible that contracts issued by the Company may have different measurement models as compared to the contracts held by the Company.Impact on Policies & Control Frameworks The Company will need to update their existing policies and controls frameworks in all those areas which will have an impact due to the IFRS 17 adoption. 3. Significant accounting policies (continued)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 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of reinsurers/ retakaful share of unearned premium/ contributions, net [text block] | 10.2 Movement in unearned premiumsMovement in unearned premiums comprise of the following: Three month period ended March 31, 2022(Unaudited)SR Gross Reinsurance Net Balance as at the beginning of the period 327,493,566 (128,937,475) 198,556,091Premium written during the period 209,869,317 *(74,506,855) 135,362,462Premium earned during the period (200,475,552) 79,495,087 (120,980,473) Balance as at the end of the period 336,887,331 (123,949,243) 212,938,080 *This amount includes SR 70,413,401 for reinsurance premium ceded abroad, SR 137,528 for reinsurance premium ceded locally and SR 3,955,926 for excess of loss expenses. 10. Technical reserves (continued)10.2 Movement in unearned premiums (continued) Year ended December 31, 2021(Audited)SR Gross Reinsurance Net Balance as at the beginning of the year266,364,432 (103,362,771) 163,001,661Premium written during the year763,115,103 *(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 year327,493,566 (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. | 10.2 |
| Disclosure of investments in available-for-sale investments [text block] | 8. Available for sale investments8.1. Investments are classified as followsInsurance operations: Domestic International Total March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SR March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SR March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SRBonds and sukuks 123,258,791 129,672,955 4,984,444 5,151,656 128,243,235 134,824,611Equities and mutual funds 8,305,317 7,819,802 - - 8,305,317 7,819,802 131,564,108 137,492,757 4,984,444 5,151,656 136,548,552 142,644,413Shareholders’ operations: Domestic International Total March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SR March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SR March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SRBonds and sukuks 416,472,709 393,037,289 7,775,412 8,367,921 424,248,121 401,405,210Equities and mutual funds 3,223,078 3,223,078 5,206,139 5,678,630 8,429,217 8,901,708 419,695,787 396,260,367 12,981,551 14,046,551 432,677,338 410,306,918Total: Domestic International Total March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SR March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SR March 31, 2022 (Unaudited)SR December 31, 2021(Audited)SRBonds and sukuks 539,731,500 522,710,244 12,759,856 13,519,577 552,491,356 536,229,821Equities and mutual funds 11,528,395 11,042,880 5,206,139 5,678,630 16,734,534 16,721,510 551,259,895 533,753,124 17,965,995 19,198,207 569,225,890 552,951,331 8. Available for sale investments (continued)8.2. Movement in available for sale investment balance is as followsInsurance operations: Quoted securities Unquoted securities Total SRAs at January 1, 2021 146,709,437 - 146,709,437 Amortisation (254,285) - (254,285)Unrealised gain on fair value (3,810,739) - (3,810,739)As at December 31, 2021 142,644,413 - 142,644,413 As of January 1, 2022 142,644,413 - 142,644,413Purchases 7,500,000 - 7,500,000Disposals(9,937,500) - (9,937,500)Amortisation (64,196) - (64,196)Unrealised loss on fair value (3,594,165) - (3,594,165)As at March 31, 2022 136,548,552 - 136,548,552 The cumulative unrealised gain in fair value of available for sale investments net of deferred tax impact as mentioned in Notes 9 and 15 as at March 31, 2022 amounts to SR 2,187,660 (December 31, 2021: gain of SR 5,167,946 ).Shareholders’ operations: Quoted securities Unquoted securities Total SRAs at January 1, 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)Amortisation (288,887) - (288,887)Unrealised gain on fair value (7,320,229) 1,218,880 (6,101,349)As at December 31, 2021 230,283,209 180,023,709 410,306,918 As of January 1, 2022230,283,209 180,023,709 410,306,918Purchases 38,750,000 35,000,000 73,750,000 Disposals/maturity (38,750,000) - (38,750,000)Amortisation (57,368) - (57,368)Unrealised loss on fair value (8,148,153) (4,424,059) (12,572,212)As at March 31, 2022222,077,688 210,599,650 432,677,338 The cumulative unrealised loss in fair value of available for sale investments net of deferred tax impact as mentioned in Notes 9 and 15 as at March 31, 2022 amounts to SR 861,816 (December 31, 2021: gain of SR 12,381,970). | 8 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 6. Reinsurers’ balance receivable, netSR March 31, 2022 (Unaudited) December 31, 2021(Audited) Receivables from reinsurers 88,352,307 89,167,148Provision for doubtful reinsurers’ receivables (5,387,741) (5,387,741)Reinsurers’ balance receivable, net 82,964,566 83,779,407 | 6 |
| Disclosure of prepayments and other assets [text block] | 7. Right-of-use assets and Lease liabilities7.1. Right-of-use assetsThe following table presents the right-of-use assets for the Company:SR March 31, 2022(Unaudited) December 31, 2021(Audited) Balance at the beginning of the period/year 844,1933,730,142Amortization (725,307)(2,885,949)Balance at the end of the period/year 118,886844,1937.2. Lease liabilitiesThe following table represents the movement of lease liabilities for the Company:SR March 31, 2022(Unaudited) December 31, 2021(Audited) Opening balance 997,8043,362,331Finance costs 1,229,606447,261Lease rental payments (1,485,294)(2,811,788)Balance at the end of the period/year 742,116997,804 | 7 |
| Disclosure of other receivables, net [text block] | 5. Premiums receivable, netPremiums receivable comprise amounts due from the following:SR March 31, 2022 (Unaudited) December 31, 2021(Audited) Policyholders 95,242,944 73,469,967Brokers and agents 259,174,112 275,753,682Other shareholders (Note 14) 43,778,063 58,819,310 398,195,119 408,042,959Provision for doubtful receivable (61,712,179) (61,712,179)Premiums receivable, net 336,482,940 346,330,780 | 5 |
| Disclosure of cash and cash equivalents [text block] | 4. Cash and cash equivalentsCash and cash equivalents included in the interim statement of cash flows comprise the following: Insurance operationsSR March 31, 2022(Unaudited) December 31, 2021(Audited)Bank balances and cash 39,046,404 40,032,921 39,046,404 40,032,921 Shareholders’ operations March 31, 2022 (Unaudited) December 31, 2021(Audited)Bank balances and cash 29,320,182 70,946,724Deposits maturing within 3 month from the acquisition date 55,000,000 49,999,999 84,320,182 120,946,723Total cash and cash equivalents 123,366,586 160,979,644 | 4 |
| Disclosure of gross outstanding claims/ benefits [text block] | 10. Technical reserves10.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise of the following:SR March 31, 2022(Unaudited) December 31, 2021(Audited)Gross outstanding claims 526,562,570 522,926,925 Less: Realizable value of salvage and subrogation (15,716,780) (12,887,506) 510,845,790 510,039,419Claims incurred but not reported 111,497,308 108,652,961Premium deficiency reserves 9,831,000 5,960,779Additional premium reserves 7,102,737 4,411,285Unit linked liabilities 518,956,769 509,896,334 1,158,233,604 1,138,960,778Less: - Reinsurers’ share of outstanding claims (438,409,900) (441,962,088)- Reinsurers’ share of claims incurred but not reported (54,875,527) (52,137,423) (493,285,427) (494,099,511)Net outstanding claims and reserves 664,948,177 644,861,267 | 10.1 |
| Disclosure of zakat [text block] | 15. Zakat and income taxA summary of the Company’s share capital and percentages of ownership are as follows: March 31, 2022 December 31, 2021 SR % SR %Non-Saudi Shareholders 318,540,000 53.09% 318,540,000 53.09%Saudi and GCC Shareholders 281,460,000 46.91% 281,460,000 46.91% 600,000,000 100% 600,000,000 100% As at 31 March 2022, the authorized, issued and fully paid-in share capital of the Company consists of 60 million shares of SR 10 each and as at December 31, 2020 the authorized, issued and fully paid-in share capital of the Company consists of 60 million shares of SR 10 each. The Company’s zakat and income tax calculations and corresponding accruals and payments of zakat and income tax are based on the above ownership percentages in accordance with the relevant provisions of the Saudi Arabian zakat and income tax regulations.The zakat and income tax provision as at the period / year end is as follows:SR March 31, 2022(Unaudited) December 31, 2021(Audited) Provision for zakat 16,956,75714,794,202Provision for income tax 6,482,5116,326,530 23,439,26821,120,732The zakat and income tax charge for the three month period is as follows:SR March 31, 2022 (Unaudited) March 31, 2021 (Unaudited) Zakat for the three-month period2,162,5552,127,968Income tax for the three-month period - Current tax 155,98188,521- Deferred tax 76,940220,856 2,395,4762,437,345 15. Zakat and income tax (continued)Status of assessmentsThe Company has filed the zakat and income tax declarations for all the years up to December 31, 2021. The Company finalized its zakat and tax position for all the years up to December 31, 2014. The final tax and zakat assessment for the years 2015 to 2018 has been issued by the ZATCA 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 against this assessment which is still under review with the appeal committees. The Company has accounted for this additional zakat and income tax liability in the provision in the financial statements. The Company received the 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. The Company has settled this additional liability in 2022.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 partially accepted the objection and the company has filed an appeal for the remaining amount of SR 27.8 million (appearing under prepaid expenses and other assets) to the General Secretariat of the Tax Committees (“GSTC”). The case was heard in July 2021 in which the GSTC ruled in favor of the ZATCA. Following review of the final judgement / reasoning for the GSTC’s decision, the Company decided to appeal the case to GSTC Level 2, the appeal was submitted on 10 October 2021. The Company's management believes that there is strong basis that the decision of the appeal would be in the favor of the Company. | 15 |
| Disclosure of deferred tax [text block] | 9. Deferred tax assets, netSR March 31, 2022(Unaudited) December 31, 2021(Audited) Deferred tax assets, net 9,257,4927,668,495Movement in deferred tax asset balance is as follows: March 31, 2022(Unaudited) December 31, 2021(Audited)At the beginning of the period/year 7,668,4955,825,970Deferred tax (expense) / income - statement of income (note 15) (76,940)789,976Deferred tax income - statement of comprehensive income1,665,9371,052,549At the end of the period/year 9,257,4927,668,495This deferred tax arises on end of service obligations, provision against premium receivable, provision against reinsurance receivable, unabsorbed tax losses, fair value reserve on investments and property and equipment. | 9 |
| Disclosure of classes of share capital [text block] | 16. Share capital and earnings per share16.1 Share capitalThe authorised and issued share capital of the Company is SR 600 million divided into 60 million shares of SR 10 each (December 31, 2021: SR 600 million divided into 60 million shares of SR 10 each). The founding shareholders of the Company have subscribed and paid for 39 million shares with a nominal value of SR 10 each, which represents 65% of the shares of the Company's capital and the remaining 21 million shares with a nominal value of SR 10 each have been subscribed by general public.Shareholding structure of the Company is as below. The shareholders of the Company are subject to zakat and income tax. March 31, 2022 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 11.10 Million 111 MillionAllianz France International 9.75 Million 97.5 MillionAllianz Mena Holding Bermuda 9.75 Million 97.5 MillionBanque Saudi Fransi 8.40 Million 84 MillionPublic 21.00 Million 210 Million 60 Million 600 Million December 31, 2021 Number of Shares Authorized, issued and paid up capital SRAllianz Europe BV 11.10 Million 111 MillionAllianz France International 9.75 Million 97.5 MillionAllianz Mena Holding Bermuda 9.75 Million 97.5 MillionBanque Saudi Fransi 8.40 Million 84 MillionPublic 21.00 Million 210 Million 60 Million 600 Million | 16.1 |
| Disclosure of earnings per share [text block] | 16. Share capital and earnings / (loss) per share (continued)16.2 Earning per shareEarnings per share has been calculated by dividing the income for the period by the weighted average number of shares outstanding at the reported date. For the three-month period ended March 31, 2022March 31, 2021 Income for the period 799,0462,310,985Weighted average number of shares 60,000,000 60,000,000Earnings per share 0.0130.039 | 16.2 |
| Disclosure of related party transactions [text block] | 14. Transactions and balances with related parties and other shareholdersRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances: Transactions for the three months period ended Balance as at March 31,2022 March 31,2021 March 31, 2022 December 31, 2021 SR SR SR SR Entities controlled, jointly controlled or significantly influenced by related parties Major shareholders - Insurance premium ceded 44,476,961 171,715,823 - -- Reinsurers’ share of claims paid 19,462,398 208,084,548 - -- Commission income 402,092 3,934,473 - -- Third party administrator expenses 2,212,340 4,912,243 - -- Reinsurers’ share of outstanding claims (Treaty) - - 10,540,79516,433,467- Accrued third party administrator - - 3,830,356 4,220,282- Reinsurance balance payable, net - - 66,019,533 40,305,654- Investments in equity of Saudi NextCare - - 800,000 800,000 - Other Shareholders (other than related party) - Insurance premium written 14,934,016 75,781,561 - -- Claims paid 15,149,556 51,330,237 - -- Commission expense 305,670 3,136,249 - -- Premium receivable - - 43,778,063 58,819,310- Outstanding claims - - 39,044,909 22,051,895- Cash and cash equivalents - - 112,705,255154,408,140- Unit linked investments managed by shareholders (including receivable for unit linked investments) - - 524,294,444 515,227,924Related parties include Allianz SNA, Allianz Mena Holding Bermuda, Allianz Risk Transfer A.G. Dubai, Allianz France, Allianz Global Corporate and Specialty AG, Allianz World Wide Care, Allianz Global risks U.S Insurance, Allianz Belgium, Euler Hermes, Allianz SE Zurich, Allianz Insurance Hong Kong, Allianz Global Risks Netherland, Allianz Insurance Singapore, Allianz Insurance New Zealand and Saudi NextCare. The majority of Company’s reinsurance arrangements are with its related parties. In Property and Casualty the majority of reinsurance arrangments are with Allianz Re and in Medical Allianz Partners.Other shareholders include Banque Saudi Fransi and its Group Companies which are not the related parties.Key management personnel are persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly and comprise top management executives including the Chief Executive Officer, and the Chief Financial Officer of the Company. The compensation of key management personnel during the period is as follows:March 31, 2022 BOD members Top executives SR SRSalaries and compensation - 926,097Allowances 110,250 4,500Annual remuneration 275,000 25,000End of service obligations - 83,026 385,250 1,038,62314. Transactions and balances with related parties and other shareholders (continued)March 31, 2021 BOD members Top executives SR SRSalaries and compensation - 1,786,092Allowances 87,000 13,500Annual remuneration 255,000 30,000End of service obligations - 61,026 342,000 1,890,618 | 14 |
| Disclosure of entity's operating segments [text block] | 13. Operating Segments Operating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess their performance. Transactions between the operating segments are on normal commercial terms and conditions. The revenue from external parties reported to the Board is measured in a manner consistent with that in the interim statement of income. Segment assets and liabilities comprise operating assets and liabilities.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2021.Segment assets do not include cash and cash equivalents, prepaid expenses , right of use assets and other assets, available for sale investments, reinsurance balances, property and equipment, statutory deposit and accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include accrued and other liabilities, surplus distribution payable, reinsurers’ balances payable, premium deficiency reserve, additional premium reserve, end-of-service obligations, zakat and income tax and accrued income payable to SAMA. Accordingly, they are included in unallocated liabilities.The unallocated assets and unallocated liabilities are reported to chief operating decision maker on the cumulative basis and not reported under the related segments.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities as at March 31, 2022 and December 31, 2021, its total revenues, expenses, and net income for the three months period then ended, are as follows:Motor : Motor Medical : MedicalProperty and casualty : Fire, burglary, money, construction, liability and marineProtection and saving : Group retirement and individual protection and saving 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at March 31, 2022 (Unaudited) Assets Premiums receivable, gross 127,197,416 166,284,185 93,161,534 11,551,984 398,195,119 - 398,195,119Provision for doubtful debts - - - - (61,712,179) - (61,712,179)Reinsurers’ share of outstanding claims 2,009,361 25,143,434 394,316,634 16,940,471 438,409,900 - 438,409,900 Reinsurers’ share of claims incurred but not reported 59,916 9,466,136 25,192,767 20,156,708 54,875,527 - 54,875,527 Reinsurers’ share of unearned premiums - 42,488,078 70,230,385 11,230,780 123,949,243 - 123,949,243 Deferred policy acquisition costs 11,950,662 4,104,967 8,199,131 (1,320,474) 22,934,286 - 22,934,286 Financial assets at fair value through statement of income (unit linked investments) - - - 524,294,444 524,294,444 - 524,294,444 Unallocated assets Other assets - - - - 405,357,207 719,371,964 1,124,729,171Total assets 2,625,675,511 Liabilities and Equity Outstanding claims 32,300,891 43,688,240 411,750,366 23,106,293 510,845,790 - 510,845,790 Claims incurred but not reported 30,342,880 19,845,831 34,551,959 26,756,638 111,497,308 - 111,497,308 Premium deficiency reserve 1,454,466 7,563,643 - 812,891 9,831,000 - 9,831,000 Additional premium reserves - 4,035,236 2,546,807 520,694 7,102,737 - 7,102,737 Unearned premium 120,207,963 89,035,061 110,972,242 16,672,065 336,887,331 - 336,887,331 Unearned reinsurance commission - - 2,874,925 11,370 2,886,295 - 2,886,295 Unit linked liabilities - - - 518,956,769 518,956,769 - 518,956,769 Unallocated liabilities 402,715,953 27,360,698 430,076,651 Equity 5,580,364 692,011,266 697,591,630Total liabilities and equity 2,625,675,511 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the three-month period ended 31 March 2022 (Unaudited) Gross written premiums – retail 21,138,268 - 2,066,620 12,020,784 35,225,672 - 35,225,672Gross written premiums – corporate 18,856,150 45,023,439 41,017,816 17,530,422 122,427,827 - 122,427,827Gross written premiums – very small entities 1,373,188 - (386,092) 76,357 1,063,453 - 1,063,453Gross written premiums – small entities 10,839,828 - 11,606,167 144,695 22,590,690 - 22,590,690Gross written premiums – medium entities 12,769,828 - 15,196,926 594,921 28,561,675 - 28,561,675Gross written premiums 64,977,262 45,023,439 69,501,437 30,367,179 209,869,317 - 209,869,317Reinsurance premiums ceded - (22,249,949) (40,988,979) (7,312,001) (70,550,929) - (70,550,929)Excess of loss expenses (436,384) - (3,519,542) - (3,955,926) - (3,955,926)Fee income from unit linked investments - - - 360,571 360,571 - 360,571 Net written premiums 64,540,878 22,773,490 24,992,916 23,415,749 135,723,033 - 135,723,033 Changes in unearned premiums, net (15,390,404) 2,473,344 (4,241,078) 2,776,141 (14,381,997) - (14,381,997)Net premiums earned 49,150,474 25,246,834 20,751,838 26,191,890 121,341,036 - 121,341,036 Reinsurance commissions - - 3,112,743 3,360 3,116,103 - 3,116,103 Net revenues 49,150,474 25,246,834 23,864,581 26,195,250 124,457,139 - 124,457,139Net claims and other benefits paid (41,542,092) (15,351,776) (3,063,866) (25,263,615) (85,221,349) - (85,221,349)Changes in outstanding claims, net (2,923,865) (1,944,068) 901,403 (392,029) (4,358,559) - (4,358,559)Changes in premium deficiency reserve (1,296,234) (3,819,137) - 1,245,150 (3,870,221) - (3,870,221)Changes in additional premium reserve - (2,092,046) (398,395) (201,011) (2,691,452) - (2,691,452)Changes in claims incurred but not reported, net 2,365,371 450,472 (998,352) (1,923,734) (106,243) - (106,243)Change in unit linked liabilities - - - (9,060,435) (9,060,435) - (9,060,435)Unrealised gain on unit linked investments - - - 13,225,539 13,225,539 - 13,225,539 Policy acquisition costs (5,079,670) (2,230,411) (3,994,064) (843,226) (12,147,371) - (12,147,371)Total underwriting costs and expneses before allocation of inspection and other fee (48,476,490) (24,986,966) (7,553,274) (23,213,361) (104,230,091) - (104,230,091)Inspection and supervision fees- unallocated - - - - 1,075,207 - 1,075,207 Net underwriting income 673,984 259,868 16,311,307 2,981,888 21,302,254 - 21,302,254Unallocated Provision for doubtful debts - - - General and administrative expenses (27,100,609) (47,000) (27,147,609)Investment income 1,296,029 3,917,181 5,213,210 Other income 3,826,667 - 3,826,667 Net loss for the period before attribution and zakat and income tax 3,194,522 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRAs at 31 December 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) 515,227,924 515,227,924 - 515,227,924Unallocated assets 351,837,096 726,143,704 1,077,980,800Total 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 509,896,334 509,896,334 - 509,896,334Unallocated liabilities 390,577,805 24,025,209 414,603,014Equity 9,174,529 702,118,495 711,293,024Total liabilities and equity 2,583,326,092 13. Operating Segments (continued) Motor Medical Property and Casualty Protection and Saving Insurance Operations Shareholders’ Operations Total SR SR SR SR SR SR SRFor the three-month period ended 31 March 2021 (Unaudited) Gross written premiums – retail 9,389,276 - 340,608 13,170,681 22,900,565 - 22,900,565Gross written premiums – corporate 16,481,324 48,972,407 89,731,451 15,083,920 170,269,102 - 170,269,102Gross written premiums – very small entities 1,003,378 5,752 2,208,699 179,152 3,396,981 - 3,396,981Gross written premiums – small entities 9,603,119 2,624 2,969,099 169,507 12,744,349 - 12,744,349Gross written premiums – medium entities 11,696,800 1,885 6,706,159 957,161 19,362,005 - 19,362,005Gross written premiums 48,173,897 48,982,668 101,956,016 29,560,421 228,673,002 - 228,673,002Reinsurance premiums ceded - (25,283,316) (77,797,847) (6,411,021) (109,492,184) - (109,492,184)Excess of loss expenses (975,530) - (7,366,912) - (8,342,442) - (8,342,442)Fee income from unit linked investments - - - 325,113 325,113 - 325,113Net written premiums 47,198,367 23,699,352 16,791,257 23,474,513 111,163,489 - 111,163,489Changes in unearned premiums, net (2,284,992) (3,021,667) (4,953,613) 1,266,968 (8,993,304) - (8,993,304)Net premiums earned 44,913,375 20,677,685 11,837,644 24,741,481 102,170,185 - 102,170,185Reinsurance commissions - - 1,331,604 241,702 1,573,306 - 1,573,306Net revenues 44,913,375 20,677,685 13,169,248 24,983,183 103,743,491 - 103,743,491Net claims and other benefits paid (37,056,384) (15,463,723) (1,552,384) (38,407,066) (92,479,557) - (92,479,557)Changes in outstanding claims, net 5,792,721 (3,574,675) 1,000,097 (774,007) 2,444,136 - 2,444,136Changes in premium deficiency reserve (57,020) (1,664,914) - 252,613 (1,469,321) - (1,469,321)Changes in additional premium reserve - - (1,046,719) - (1,046,719) - (1,046,719)Changes in claims incurred but not reported, net (2,104,244) 2,937,985 503,254 (1,358,603) (21,608) - (21,608)Change in unit linked liabilities - - - 9,908,712 9,908,712 - 9,908,712Unrealised gain on unit linked investments - - - 10,138,363 10,138,363 - 10,138,363Policy acquisition costs 1,167,429 (2,130,281) (3,750,129) (641,547) (5,354,528) - (5,354,528)Total underwriting costs and expneses before allocation of inspection and other fee (32,257,498) (19,895,608) (4,845,881) (20,881,535) (77,880,522) - (77,880,522)Inspection and supervision fees - unallocated - - - - (1,633,228) - (1,633,228)Net underwriting income 12,655,877 782,077 8,323,367 4,101,648 24,229,741 - 24,229,741Unallocated Provision for doubtful debts (900,959) - (900,959)General and administrative expenses (24,966,244) (200,009) (25,166,253)Investment income 966,996 2,177,419 3,144,415Other income 3,749,266 - 3,749,266Net income for the period before attribution and zakat and income tax 5,056,210 | 13 |
| Disclosure of capital management [text block] | 17. Risk ManagementCapital 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 operations of the Company are subject to local regulatory requirements within the jurisdiction where it is incorporated. Such regulations not only prescribe approval and monitoring of activities but also impose certain restrictive provisions e.g. capital adequacy to minimize the risk of default and insolvency on the part of the insurance companies and to enable them to meet unforeseen liabilities as these arise. The Company maintains its capital as per guidelines laid out by SAMA in Article 66 table 3 and 4 of the Implementing Insurance Regulations detailing the solvency margin required to be maintained. According to the said Article, the Company shall maintain solvency margin equivalent to the highest of the following three methods as per SAMA Implementing Regulations: - Minimum Capital Requirement of SR 200 million - Premium Solvency Margin - Claims Solvency Margin The Company has fully complied with the externally imposed capital requirements during the reported financial period.Credit risk managementThe Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by the current circumstances. These include review of credit concentrations at granular economic sector, region, counterparty level and take appropriate action where required. Liquidity risk managementThe Company is aware of the need to keep a close focus on liquidity management during this period and has enhanced its monitoring of current liquidity needs as well as the pandemic in its entirety. The Company regularly reviews and updates the liquidity forecast based on the individual liquidity balance as well as the continued development of external economic factors. | 17 |
| Disclosure of commitments and contingencies, general [text block] | 11. Contingencies and commitments a) The Company’s commitments and contingencies are as follows:SR March 31, 2022(Unaudited) December 31, 2021(Audited)Letters of guarantee 16,047,500 15,982,500b) The Company operates in the insurance industry and is subject to legal proceedings in the normal course of business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, management does not believe that such proceedings (including litigations) will have a material effect on its interim financial position and results as at and for the period ended March 31, 2022. There was no significant change in the status of legal proceedings as disclosed at December 31, 2021. | 11 |
| Disclosure of fair value of financial assets and liabilities [text block] | 12. Fair values of financial instrumentsFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction takes place either:- in the accessible principal market for the asset or liability, or- in the absence of a principal market, in the most advantages accessible market for the asset or liabilityThe fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed financial statements.Determination of fair value and fair value hierarchyThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: quoted prices in active markets for the same or identical instrument that an entity can access at the measurement date;Level 2: quoted prices in active markets for similar assets and liabilities or other valuation techniques for which all significant inputs are based on observable market data; andLevel 3: valuation techniques for which any significant input is not based on observable market data. 12. Fair values of financial instruments (continued)a. Carrying amounts and fair value 12.1 Insurance operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total 31 March 2022 Unit linked investments 524,294,444 - 524,294,444 - 524,294,444Available for sale investments measured at fair value Bonds and Sukuks 128,243,235 128,243,235 - - 128,243,235 Mutual Funds 4,482,218 - 4,482,218 - 4,482,218 Equities 3,823,099 3,823,099 - - 3,823,099 Unit linked liabilities (518,956,769) - (518,956,769) - (518,956,769) 141,886,227 132,066,334 9,819,893 - 141,886,227 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) 147,976,003 138,000,178 9,975,825 - 147,976,00312.2 Shareholders’ operations: Fair valueSR Carrying value Level 1 Level 2 Level 3 Total March 31, 2022 Available for sale investments measured at fair value Bonds and sukuks 424,248,121 218,450,630 205,797,491 - 424,248,121 Mutual funds 5,206,139 -5,206,139 - 5,206,139 Equities 3,223,078 - - 3,223,078 3,223,078 432,677,338 218,450,630 211,003,6303,223,078 432,677,338 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 5,678,360 - 5,678,360 - 5,678,360Equities 3,223,078 - - 3,223,078 3,223,078 410,306,918 224,604,579 182,479,261 3,223,078 410,306,918 12. Fair values of financial instruments (continued)b. Measurement of fair values i. Valuation technique and significant unobservable inputsThe Discounted Cash Flow Model (DCF) has been used to determine the fair value of debt securities and sukuks of shareholders’ operations under level 2. This model considers the present value of net cash flows to be generated from the debt securities and sukuks discounted at the market yield of treasury bills having similar terms and adjusted for the effect of non-marketability of the debt securities and sukuks which includes Saudi sovereign curve yield and risk premium prevailing in the Saudi market. Equities amount to SR 3,223,078 represent investment in unquoted securities which are carried at cost. The fair value are not evidenced by a quoted price in an active market for an identical asset or based on a valuation technique that uses only data from observable markets. The 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 period end.The following table shows a reconciliation from the beginning balances to the ending balances for the fair value measurement in level 3 of the fair value hierarchy: Insurance operationsSR March 31, 2022(Unaudited) December 31, 2021(Audited) Balance at the beginning of the period/year - -Amortisation - -Unrealised (loss) / gain on fair value of available for sale investments - -Balance at the end of the period/year - -b. Measurement of fair values (continued) Shareholder operationsSR March 31, 2022(Unaudited) December 31, 2021(Audited) Balance at the beginning of the period/year 3,223,078 3,223,078Purchases - -Disposals/maturity - -Amortisation - -Unrealised gain on fair value of available for sale investments - -Balance at the end of the period/year 3,223,078 3,223,078 Sensitivity AnalysisThe sensitivity to a 1% increase in the risk adjusted discount rate with all other variables constant on the fair value of the level 3 available for sale investments is SR 30,481 and sensitivity to 1% decrease in the risk adjusted discount rate with all other variables constant on the fair value of the level 3 available for sale investments is SR 30,481. | 12 |
| Disclosure of board of director's approval of the financial statements [text block] | 19. Approval of the interim condensed financial statementsThe interim condensed financial statements have been approved by the Company’s Board of Directors on May 17, 2022 (corresponding to 16 Shawwal 1443H). | 19 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 18. Supplementary informationa) Interim statements of financial position SR March 31, 2022 December 31, 2021 Insurance operations Share-holders’ operations Total Insurance operations Share-holders’ operations TotalASSETS Cash and cash equivalents 39,046,40484,320,182 123,366,586 40,032,921 120,946,723 160,979,644Prepaid expenses and other assets 266,633,3003,516,223 270,149,523 198,692,991 3,516,223 202,209,214Premiums receivable, net 336,482,940- 336,482,940 346,330,780 - 346,330,780Reinsurers’ balance receivable, net 82,964,566- 82,964,566 83,779,407 - 83,779,407Reinsurers’ share of outstanding claims 438,409,900- 438,409,900 441,962,088 - 441,962,088Reinsurers’ share of claims incurred but not reported 54,875,527- 54,875,527 52,137,423 - 52,137,423Reinsurers’ share of unearned premiums 123,949,243- 123,949,243 128,937,475 - 128,937,475Deferred policy acquisition costs 22,934,286- 22,934,286 20,749,602 - 20,749,602Right-of-use assets 118,886- 118,886 844,193 - 844,193Financial assets at fair value through statement of income (unit linked investments) 524,294,444- 524,294,444 515,227,924 515,227,924Available for sale investments 136,548,552432,677,338 569,225,890 142,644,413 410,306,918 552,951,331Deferred tax assets, net - 9,257,492 9,257,492 - 7,668,495 7,668,495Property and equipment 8,066,370 8,066,370 7,968,658 - 7,968,658Statutory deposit -60,000,000 60,000,000 - 60,000,000 60,000,000Accrued income on statutory deposit -1,579,858 1,579,858 - 1,579,858 1,579,858Due to/from insurance operation/shareholders operation* (128,020,871)128,020,871 - (122,125,487) 122,125,487 -TOTAL ASSETS 1,906,303,547719,371,9642,625,675,5111,857,182,388 726,143,704 2,583,326,092 LIABILITIES Accrued and other liabilities 102,350,0992,341,572104,691,671 102,294,609 1,324,619 103,619,228Surplus distribution payable 9,467,465- 9,467,465 11,816,069 - 11,816,069Reinsurers' balances payable 271,752,404- 271,752,404 246,066,437 - 246,066,437Outstanding claims 510,845,790- 510,845,790 510,039,419 - 510,039,419Claims incurred but not reported 111,497,308- 111,497,308 108,652,961 - 108,652,961Lease liabilities 742,116- 742,116 997,804 - 997,804Unit linked liabilities 518,956,769- 518,956,769 509,896,334 - 509,896,334Premium deficiency reserve 9,831,000- 9,831,000 5,960,779 - 5,960,779Additional premium reserves 7,102,737- 7,102,737 4,411,285 - 4,411,285Unearned premiums 336,887,331- 336,887,331 327,493,566 - 327,493,566Unearned reinsurance commission 2,886,295- 2,886,295 1,347,774 - 1,347,774End-of-service indemnities 18,403,869- 18,403,869 19,030,822 - 19,030,822Accrued income payable to SAMA - 1,579,858 1,579,858 - 1,579,858 1,579,858Zakat and income tax - 23,439,26823,439,268 - 21,120,732 21,120,732TOTAL LIABILITIES 1,900,723,18327,360,6981,928,083,8811,848,007,859 24,025,209 1,872,033,068 EQUITY Share capital - 600,000,000 600,000,000 - 600,000,000 600,000,000Share premium - 16,310,624 16,310,624 - 16,310,624 16,310,624Statutory reserve - 21,867,493 21,867,493 - 21,867,493 21,867,493Retained earnings- 52,971,33352,971,333- 52,172,287 52,172,287Actuarial reserve for employees’ end-of-service obligations 3,392,704 - 3,392,704 3,392,704 - 3,392,704Fair value reserve on investments2,187,660861,8163,049,4765,781,825 11,768,091 17,549,916TOTAL EQUITY 5,580,364692,011,266697,591,6309,174,529 702,118,495 711,293,024 TOTAL LIABILITIES AND EQUITY 1,906,303,547719,371,9642,625,675,511 1,857,182,388 726,143,704 2,583,326,092 * This item is not included in the interim statement of financial position. 18. Supplementary information (continued)b) Interim statement of income SR For the three-month period ended March 31, 2022 March 31, 2021 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total REVENUES Gross premiums written 209,869,317- 209,869,317228,673,002 - 228,673,002Reinsurance premiums ceded abroad (70,413,401)- (70,413,401)(108,861,605) - (108,861,605)Reinsurance premiums ceded locally (137,528)- (137,528)(630,579) - (630,579)Excess of loss expenses (3,955,926)- (3,955,926)(8,342,442) - (8,342,442)Fee income from unit linked investments 360,571- 360,571325,113 - 325,113Net premiums written 135,723,033- 135,723,033111,163,489 - 111,163,489Changes in unearned premiums (9,393,765) - (9,393,765)(51,985,989) - (51,985,989)Changes in reinsurers’ share of unearned Premiums (4,988,232)- (4,988,232)42,992,685 - 42,992,685Net premiums earned 121,341,036- 121,341,036102,170,185 - 102,170,185Reinsurance commissions 3,116,103- 3,116,1031,573,306 - 1,573,306NET REVENUES 124,457,139- 124,457,139103,743,491 - 103,743,491UNDERWRITING COSTS AND EXPENSES Gross claims paid (94,229,306)- (94,229,306)(126,381,873) - (126,381,873)Surrenders and maturities (21,790,424)- (21,790,424)(43,994,813) - (43,994,813)Expenses incurred related to claims (6,624,823)- (6,624,823)(2,569,520) - (2,569,520)Reinsurers’ share of claims paid 37,423,204- 37,423,20480,466,649 - 80,466,649Net claims and other benefits paid (85,221,349)- (85,221,349)(92,479,557) - (92,479,557)Changes in outstanding claims (806,371)- (806,371)42,933,726 - 42,933,726Changes in reinsurers’ share of outstanding claims (3,552,188)- (3,552,188)(40,489,590) - (40,489,590)Change in premium deficiency reserves (3,870,221)- (3,870,221)(1,469,321) - (1,469,321)Changes in additional premium reserves (2,691,452) - (2,691,452) (1,046,719) - (1,046,719)Changes in claims incurred but not Reported (2,844,347)- (2,844,347)(187,928) - (187,928)Changes in reinsurers’ share of claim incurred but not reported 2,738,104- 2,738,104166,320 - 166,320Net claims and other benefits incurred (96,247,824)- (96,247,824)(92,573,069) - (92,573,069)Changes in unit linked liabilities (9,060,435)- (9,060,435)9,908,712 - 9,908,712Unrealised gain on unit linked investments 13,225, 538- 13,225,53810,138,363 - 10,138,363Policy acquisition costs (12,147,371)- (12,147,371)(5,354,528) - (5,354,528)Inspection and supervision fees 1,075,207- 1,075,207(1,633,228) - (1,633,228)TOTAL UNDERWRITING COSTS AND EXPENSES (103,154,885)- (103,154,885)(79,513,750) - (79,513,750)NET UNDERWRITING INCOME 21,302,254- 21,302,25424,229,741 - 24,229,741OTHER (EXPENSES) / INCOME Provision for doubtful debts - - - (900,959) - (900,959)General and administrative expenses (27,100,609)(47,000) (27,147,609)(24,966,244) (200,009) (25,166,253)Investment income 1,296,029 3,917,181 5,213,210 966,996 2,177,419 3,144,415Other income 3,826,667 - 3,826,667 3,749,266 - 3,749,266TOTAL OTHER (EXPENSES) / INCOME (21,977,913)3,870,181 (18,107,732)(21,150,941) 1,977,410 (19,173,531)Net (loss) / income for the period before attribution and zakat and income tax (675,659) 3,870,181 3,194,522 3,078,800 1,977,410 5,056,210Net surplus / (deficit) transferred to shareholders’ operations 675,659(675,659) - (2,770,920) 2,770,920 -Net income for the period after shareholders’ appropriations - 3,194,522 3,194,522 307,880 4,748,330 5,056,210Zakat charge for the period - (2,162,555)(2,162,555) (2,127,968) (2,127,968)Income tax charge for the period, net- (232,921)(232,921)- (309,377) (309,377) Net income after zakat and income tax - 799,046799,046307,880 2,310,985 2,618,86518. Supplementary information (continued) c) Interim statement of comprehensive income SR For the three-month period ended March 31, 2022 March 31, 2021 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Net income for the period after zakat and income tax - 799,046799,046 307,880 2,310,985 2,618,865Other comprehensive (loss) / income Items that are or may be recycled to statements of income in subsequent periods Available for sale investments: - Net change in fair value (3,594,165) (12,572,212) (16,166,377) (2,064,904) (5,534,045) (7,598,949)- Deferred tax relating to change in fair value 452,391 1,213,546 1,665,937 219,239 587,572 806,811Total comprehensive loss(3,141,774)(10,559,620)(13,701,394)(1,537,785) (2,635,488) (4,173,273)Reconciliation: Add: Net loss / (income) attributable to insurance operations - (307,880)Total comprehensive loss for the period attributable to the shareholders (13,701,394) (4,481,153) 18. Supplementary information (continued)d) Interim statement of cash flows SR For the three-month period ended March 31, 2022 March 31, 2021 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before attribution and zakat and income tax - 3,194,522 3,194,522 307,880 4,748,330 5,056,210Adjustments for non-cash items and other items: Depreciation of property and equipment 941,200- 941,200941,199 - 941,199Amortisation of Right-of-use assets 725,307 - 725,307 710,028 - 710,028 Amortisation of investments premium 64,196 57,368 121,564 63,741 74,426 138,167 Provision of doubtful reinsurance receivables - -362,006 - 362,006 Gain on sale of property and equipment (1,038,912) - (1,038,912) (52,586) - (52,586) Provision for doubtful receivables and write-offs -- -538,953 - 538,953 Provision for end-of-service obligations 812,641- 812,641(5,366,413) - (5,366,413) Unrealised (gain) / loss on unit linked investments (13,225,538)- (13,225,538)(10,138,363) - (10,138,363)Finance cost on lease liabilities 1,229,606 1,229,606110,670 110,670 Shareholders’ appropriation from insurance operations’ surplus* --- 2,770,920 (2,770,920) - (10,491,500)3,251,890(7,239,610)(9,751,965) 2,051,836 (7,700,129)Changes in operating assets and liabilities: Reinsurers’ balance receivable 814,841 - 814,841 (14,469,103) - (14,469,103)Premium receivable 9,847,840- 9,847,840(62,705,292) - (62,705,292)Reinsurers’ share of unearned premiums 4,988,232 - 4,988,232 (42,992,685) - (42,992,685)Reinsurers’ share of outstanding claims 3,552,188 - 3,552,188 40,489,590 - 40,489,590Reinsurers’ share of claims incurred but not reported (2,738,104) - (2,738,104) (166,320) - (166,320)Deferred policy acquisition costs (2,184,684) - (2,184,684) (7,737,832) - (7,737,832)Unit linked investments 4,159,018 - 4,159,018 7,189,437 - 7,189,437Prepaid expenses and other assets (67,940,309) -(67,940,309) 15,997,687 (2,292,360) 13,705,327Accrued and other liabilities 55,4901,016,9531,072,443(12,831,308) (157,516) (12,988,824)Reinsurers' balances payable 25,685,967 - 25,685,967 81,811,752 - 81,811,752Unearned premiums 9,393,765 - 9,393,765 51,985,989 - 51,985,989Unearned reinsurance commission 1,538,521 - 1,538,521 (161,768) - (161,768)Unit linked liabilities 9,060,435 - 9,060,435 (9,908,712) - (9,908,712)Outstanding claims 806,371 - 806,371 (42,933,726) - (42,933,726)Claims incurred but not reported 2,844,347 - 2,844,347 187,928 - 187,928Premium deficiency reserves 3,870,221 - 3,870,221 1,469,321 - 1,469,321Additional premium reserves 2,691,452 - 2,691,452 1,046,719 - 1,046,719 (4,405,909)4,268,843222,934(3,480,288) (398,040) (3,878,328)End-of-service obligations paid (1,439,594)- (1,439,594)(70,555) - (70,555)Surplus paid to policyholders / reclassified from surplus distribution (2,348,604) - (2,348,604)(3,823,390) - (3,823,390)Zakat and income tax paid - --- (112,552) (112,552)Net cash used in operating activities (7,834,107)4,268,843(3,565,264)(7,374,233) (510,592) (7,884,825)CASH FLOWS FROM INVESTING ACTIVITIES Purchase of available for sale investments (7,500,000) (73,750,000) (81,250,000) - (107,500,000) (107,500,000)Proceed for sale of available for sale investments 9,937,50038,750,00048,687,500- -Proceeds from sale of property and equipment -- -52,585 - 52,585Payment for purchase of property and equipment -- -(404,232) - (404,232)Net cash used in investing activities 2,437,500(35,000,000)(32,562,500)(351,647) (107,500,000) (107,851,647)CASH FLOWS FROM FINANCING ACTIVITY Due from / to (insurance operations / shareholder operations)* 5,895,384 (5,895,384) - (125,646,123) 125,646,123 -Lease rental paid (1,485,294)- (1,485,294)(1,667,915) - (1,667,915)Net cash used in financing activity 4,410,090(5,895,384) (1,485,294)(127,314,038) 125,646,123 (1,667,915)Net change in cash and cash equivalents (986,517)(36,626,541)(37,613,058)(135,039,918) 17,635,531 (117,404,387)Cash and cash equivalents at the beginning of the period 40,032,921 120,946,723 160,979,644 187,639,558 137,406,667 325,046,225Cash and cash equivalents at the end of the Period 39,046,40484,320,182123,366,58652,599,640 155,042,198 207,641,838NON-CASH INFORMATION: Change in fair value of available for sale Investment 3,594,16512,572,21216,166,3772,064,904 5,534,045 7,598,949Deferred income tax (452,391)(1,213,546)(1,665,937)(219,239) (587,572) (806,811)* These items are not included in the interim statement of cash flows | 18 |
