	English [member]
Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Filing information [line items]
Disclosure of entity information [abstract]
Name of reporting entity	Salama Cooperative Insurance Co.
Company symbol code\| ISIN code	8050 \| SA000A0MLUE6
Sector\| Industry group	Financials \| Insurance
Disclosure of document information [abstract]
Whether entity wants to report opening statement of financial position	No
Period covered by financial statements	Quarter 1
Reporting period start date	2018-01-01	2017-01-01
Reporting period end date	2018-03-31	2017-03-31
Description of nature of financial statements	Standalone
Status of financial statements	Reviewed
Description of presentation currency	Saudi Arabia, Riyals
Level of rounding used in financial statements	Thousands

	Primary auditor [member]	Primary auditor [member]	Second primary auditor [member]	Second primary auditor [member]
	English [member]		English [member]
Start Date	2018-01-01	2018-01-01	2018-01-01	2018-01-01
End Date	2018-03-31	2018-03-31	2018-03-31	2018-03-31
Auditors information [line items]
Details of auditors signing report [abstract]
Name of auditor signing report	Ibrahim A. Al Bassam		Mohamed El Ayouty
Registration number of auditor	337		211
Details of audit firm [abstract]
Name of audit firm	PKF Al‐Bassam & Co. Allied Accountants		Moore Stephens El Sayed El Ayouty & Co.
Registration number of audit firm	520		35
Contact number of audit firm	011-2065333		012-6693478
Address of audit firm	P.O. Box 15651, Jeddah, 21454, Kingdom of Saudi Arabia		P.O. Box 780, Jeddah, 21421, Kingdom of Saudi Arabia

	English [member]
Start Date	2018-01-01
End Date	2018-03-31
Auditors report [line items]
Disclosures of auditors report [text block]	We have reviewed the accompanying interim statement of financial position of Salama Cooperative Insurance Company (A Saudi Joint Stock Company) (the “Company”) as at 31 March 2018 and the related interim statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the three month period then ended and the notes from 1 to 19 which form an integral part of these interim condensed financial statements.
Contents of auditors report [abstract]
Nature of auditors opinion	Unmodified opinion
Auditors opinion	Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements are not presented fairly, in all material respects, in accordance with International Accounting Standard 34 – “Interim Financial Reporting” (IAS 34) as modify by SAMA for accounting for Zakat and Income Tax.
Basis of opinion	We conducted our review in accordance with International Standard on Review Engagement 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” as endorsed in the Kingdom of Saudi Arabia. A review of these interim condensed financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing as endorsed in the Kingdom of Saudi Arabia and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Responsibilities of management and those charged with governance for financial statements	Management is responsible for the preparation and fair presentation of these interim condensed financial statements in accordance with International Accounting Standard 34 – “Interim Financial Reporting” (IAS 34) as modify by Saudi Arabian Monetary Authority (“SAMA”) guidance on accounting for Zakat and Income Tax.
Auditors responsibilities for audit of financial statements	Our responsibility is to express a conclusion on these interim condensed financial statements based on our review.
Date of signing audit report by auditor	2018-05-10

Start Date	2018-01-01	2017-01-01	2017-01-01
End Date	2018-03-31	2017-12-31	2017-03-31
Statement of financial position [abstract]
Assets [abstract]
Insurance/ takaful operations assets [abstract]
Property and equipment, net, insurance/ takaful operations assets	5,004	4,931	3,217
Investments held-to-maturity, insurance/ takaful operations assets	35,777	35,790	35,947
Deferred policy acquisition costs	16,011	14,516	14,936
Reinsurers/ retakaful share of unearned premiums/ contributions	11,295	8,889	7,927
Prepayments and other assets, insurance/ takaful operations assets	31,523	14,581	21,992
Premiums/ insurance receivables/takaful contributions receivable, net	176,692	128,299	116,378
Reinsurers/ retakaful share of outstanding claims/ benefits, net	22,322	11,444	5,522
Time (Murabaha) deposits, insurance/ takaful operations assets	15,292	15,292	14,783
Investments held at fair value through statement of income, insurance/ takaful operations assets	334,781	354,374	301,297
Cash and cash equivalents, insurance/ takaful operations assets	44,350	14,392	70,962
Total insurance/ takaful operations assets	693,047	602,508	592,961
Shareholders assets [abstract]
Investments held-to-maturity, shareholders assets	13,642	13,642	13,755
Statutory deposit	27,260	27,164	26,813
Prepayments and other assets, shareholders assets	218	123	227
Investments held at fair value through statement of income, shareholders assets	221,004	216,980	160,867
Available-for-sale investments, shareholders assets	1,923	1,923	1,923
Due from insurance/ takaful operations assets	16,047	12,878	19,624
Cash and cash equivalents, shareholders assets	11	11	11
Total shareholders assets	280,105	272,721	223,220
Total assets	973,152	875,229	816,181
Liabilities and equity [abstract]
Insurance/ takaful operations liabilities and surplus (deficit) [abstract]
Insurance/ takaful operations liabilities [abstract]
Gross unearned premiums/ contributions	385,879	322,609	355,514
Premiums/ contributions received in advance	12,329	11,512	8,732
Unearned commission income	2,927	2,244	2,158
Employees end of service benefits, insurance/ takaful operations liabilities	9,773	9,262	8,811
Technical reserve for insurance/takaful operations	140	2,304
Due to shareholders operations	16,047	12,878	19,624
Reinsurers/ retakaful balance payable	5,955	9,902	7,893
Gross outstanding claims/ benefits including IBNR payable	183,640	177,776	149,436
Other technical reserves	3,977	3,977	3,695
Other liabilities, insurance/ takaful operations	58,886	36,947	29,396
Total insurance/ takaful operations liabilities	679,553	589,411	585,259
Insurance/ takaful operations surplus (deficit) [abstract]
Surplus (deficit) from insurance/ takaful fund	13,494	13,097	7,702
Total insurance/ takaful operations surplus (deficit)	13,494	13,097	7,702
Total insurance/ takaful operations liabilities and surplus (deficit)	693,047	602,508	592,961
Shareholders liabilities and equity [abstract]
Shareholders liabilities [abstract]
Zakat payable	19,689	18,189	15,304
Other liabilities, shareholders liabilities	2,260	2,164	1,813
Total shareholders liabilities	21,949	20,353	17,117
Shareholders equity [abstract]
Equity attributable to owners of parent [abstract]
Share capital	250,000	250,000	250,000
Statutory reserve	1,734	1,734
Retained earnings (accumulated losses)	6,422	634	-43,897
Total equity attributable to equity holders of company	258,156	252,368	206,103
Total shareholders liabilities and equity	280,105	272,721	223,220
Total insurance/ takaful operations liabilities, surplus (deficit) and shareholders liabilities and equity	973,152	875,229	816,181

Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Statement of insurance/ takaful operations [abstract]
Statement of insurance/ takaful operations and accumulated surplus (deficit) [abstract]
Income from insurance/ takaful operations [abstract]
Net premiums/ contributions earned [abstract]
Net premiums/ contributions written [abstract]
Gross premiums/ contributions written	246,229	227,878
Excess of loss expense	4,906	3,808
Reinsurance/ retakaful premiums ceded	6,486	6,313
Net premiums/ contributions written	234,837	217,757
Changes in unearned premiums/ contributions	63,271	74,545
Reinsurance/ retakaful share of unearned premiums/ contributions	-2,406	-3,175
Net premiums/ contributions earned	173,972	146,387
Reinsurance/ retakaful commissions	1,108	858
Investment income from insurance/ takaful operations, net	794	2,207
Fees and other income from insurance/ takaful operations	3,334	0
Other non-operating income from insurance/ takaful operations	0	379
Total income from insurance/ takaful operations	179,208	149,831
Cost and expenses [abstract]
Net claims/ benefits incurred [abstract]
Net claims/ benefits paid [abstract]
Gross claims/ benefits paid	144,839	103,286
Reinsurance/ retakaful share of gross claims/ benefits paid	3,693	1,651
Net claims/ benefits paid	141,146	101,635
Changes in outstanding claims/ benefits including IBNR	5,864	2,260
Changes in reinsurance/ retakaful share of outstanding claims/ benefits	-10,878	854
Changes in other technical reserves	-2,164
Net claims/ benefits incurred	133,968	104,749
Policy acquisition costs	8,456	5,902
General and administrative expenses, insurance/ takaful operations	25,804	16,244
Other underwriting expenses	7,010	7,626
Total cost and expenses	175,238	134,521
Surplus (deficit) for period from insurance/ takaful operations	3,970	15,310
Shareholders appropriation from insurance/ takaful operations surplus (deficit)	3,573	13,779
Net result for period from insurance/ takaful operations after shareholders appropriation	397	1,531
Policyholders share of accumulated surplus, at start of period	13,097	6,171
Policyholders share of accumulated surplus, at end of period	13,494	7,702

Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Statement of shareholders operations [abstract]
Profit (loss) [abstract]
Income (loss) from continuing operations [abstract]
Shareholders appropriation of surplus (deficit) transferred from insurance/ takaful operations	3,573	13,779
Revenue [abstract]
Investment income	4,118
Realised gain (loss) on held-to-maturity investments		95
Unrealised gain (loss) on investments held as fair value through statement of income		649
Total revenue	4,118	744
Expenses [abstract]
General and administrative expenses, shareholders operations	328	328
Board of directors' remuneration	75	18
Total expenses	403	346
Income (loss) from continuing operations before zakat and income tax	7,288	14,177
Zakat expenses on continuing operations for period	1,500	1,250
Profit (loss) from continuing operations	5,788	12,927
Profit (loss) for the period	5,788	12,927
Profit (loss), attributable to [abstract]
Profit (loss), attributable to saudi shareholders of company	5,788	12,927
Earnings per share [abstract]
Basic earnings (loss) per share [abstract]
Basic earnings (loss) per share from continuing operations	0.29	0.57
Total basic earnings (loss) per share	0.29	0.57
Weighted average number of equity shares outstanding	25000000	25000000

Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Statement of other comprehensive income, before tax [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	397	1,531
Total comprehensive income (loss) for period	397	1,531

Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Statement of other comprehensive income, before tax [abstract]
Statement of comprehensive income [abstract]
Profit (loss) for the period	5,788	12,927
Total comprehensive income (loss) for period	5,788	12,927
Total comprehensive income (loss) attributable to [abstract]
Total comprehensive income (loss), attributable to saudi shareholders of company	5,788	12,927

Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows, insurance/ takaful operations [abstract]
Cash flows from (used in) operating activities, insurance/ takaful operations [abstract]
Net result for period from insurance/ takaful operations after shareholders appropriation	397	1,531
Adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation
Adjustments for depreciation, insurance/ takaful operations cash flow	467	375
Adjustments for unrealised (gains) losses on investments held as fair value through statement of income	-406	-1,789
Adjustments for employees end of service benefits	511	429
Adjustments for allowance for doubtful receivables		641
Total adjustments to reconcile net income to net cash from insurance/ takaful operations after shareholders appropriation	572	-344
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in premium receivables, net	-48,393	-17,401
Adjustments for decrease (increase) in prepayments and other assets	-16,941	-585
Adjustments for increase (decrease) in outstanding claims including IBNR	5,864	2,260
Adjustments for increase (decrease) in reinsurers/ retakaful balance payable	-3,947	1,444
Adjustments for increase (decrease) in accrued expenses and other liabilities	21,939	3,681
Adjustments for decrease (increase) in reinsurers/ retakaful share of outstanding claims, net	-10,878	854
Adjustments for decrease (increase) in deferred policy acquisition costs	-1,495	-4,346
Adjustments for decrease (increase) in unearned commission income	683	871
Adjustments for movement in gross unearned premiums/ contributions	63,271	74,545
Adjustments for reinsurance/ retakaful share of unearned premiums/ contributions	-2,406	-3,175
Adjustment for changes in other technical reserves	-2,164
Adjustments for other changes in operating assets and liabilities, insurance/ takaful operations cash flow	817	1,160
Total changes in operating assets and liabilities	6,350	59,308
Net cash flows from (used in) insurance/ takaful operations	7,319	60,495
Net cash flows from (used in) operating activities, insurance/ takaful operations	7,319	60,495
Cash flows from (used in) investing activities, insurance/ takaful operations [abstract]
Proceeds from sales of investments held as fair value through statement of income, insurance/ takaful operations cash flow	20,000	0
Purchase of investments held as fair value through statement of income, insurance/ takaful operations cash flow		44,992
Purchase of property and equipment, insurance/ takaful operations cash flow	528	985
Net cash flows from (used in) investing activities, insurance/ takaful operations	19,472	-45,977
Cash flows from (used in) financing activities, insurance/ takaful operations [abstract]
Adjustments for increase (decrease) in due to shareholders operations	3,167	-1,575
Net cash flows from (used in) financing activities, insurance/ takaful operations	3,167	-1,575
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	29,958	12,943
Net increase (decrease) in cash and cash equivalents	29,958	12,943
Cash and cash equivalents at beginning of period	14,392	58,019
Cash and cash equivalents at end of period	44,350	70,962

Start Date	2018-01-01	2017-01-01
End Date	2018-03-31	2017-03-31
Statement of cash flows, indirect method [abstract]
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Net profit (loss) for period [abstract]
Income (loss) from continuing operations before zakat and income tax	7,288	14,177
Net profit (loss) for period (before zakat expenses and income tax)	7,288	14,177
Adjustments to reconcile profit (loss) [abstract]
Adjustments for unrealised loss (gain) on investments held as fair value through statement of income, shareholders cash flow	-4,024	-649
Total adjustments to reconcile profit (loss)	-4,024	-649
Changes in operating assets and liabilities [abstract]
Adjustments for decrease (increase) in prepayments and other assets, shareholders assets	-97	-95
Adjustments for decrease (increase) in statutory deposits	96	168
Adjustments for increase (decrease) in other liabilities	-96	-168
Total changes in operating assets and liabilities	-97	-95
Net cash flows from (used in) operations	3,167	13,433
Net cash flows from (used in) operating activities	3,167	13,433
Cash flows from (used in) investing activities [abstract]
Purchase of investments held at fair value through statement of income	0	30,000
Proceeds from investments held at fair value through statement of income	0	14,992
Net cash flows from (used in) investing activities	0	-15,008
Cash flows from (used in) financing activities [abstract]
Due to reinsurance/ retakaful operations	3,167	-1,575
Net cash flows from (used in) financing activities	-3,167	1,575
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	11	11
Cash and cash equivalents at end of period	11	11

[400100] Notes forming part of accounts

English [member]

Note No.

Start Date

2018-01-01

End Date

2018-03-31

Notes forming part of accounts [line items]

Disclosure of notes and other explanatory information [text block]

Disclosure of general information about reporting entity [abstract]

Disclosure of general information about reporting entity [text block]

Salama Cooperative Insurance Company ("the Company") is a Saudi Joint Stock Company incorporated in the Kingdom of Saudi Arabia as per the Ministry of Commerce and Industry's Resolution number 1121K dated 29 Rabi Al-Thani 1428H (corresponding to 16 May 2007). The Company is registered in Jeddah under Commercial Registration No. 4030169661 dated 6 Jamad Al-Awwal I428H (corresponding to 23 May 2007).

The Registered Office address of the Company is:

Al Amir Muhammed bin Abdulaziz Street;

Bin Hamran Center;

P.O. Box 122392;

Jeddah 21332;

Kingdom of Saudi Arabia.

The objective of the Company is to transact cooperative insurance operations and related activities in the Kingdom of Saudi Arabia. The Company was listed on the Saudi Stock Exchange on 23 May 2007. The Company started its operations on 1 January 2008. The Company is fully owned by the general public and Saudi shareholders.

The Company received the approval letters from the Saudi Arabian Monetary Agency and Ministry of Commerce and Investment regarding the amendment of the Company’s by-laws to be in accordance with the new companies’ regulations. The Company’s general assembly was held on 6 June 2017 corresponding to 11 Ramadan 1438H and accordingly the new by-laws was approved.

Disclosure of basis of preparation of financial statements [text block]

a. Basis of presentation

The interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as modified by SAMA for the accounting of zakat and income tax’, which requires, adoption of all IFRSs as issued by the International Accounting Standards Board (“IASB”) except for the application of International Accounting Standard (IAS) 12 – “Income Taxes” and IFRIC 21 – “Levies” so far as these relate to zakat and income tax. As per the SAMA Circular no. 381000074519 dated 11 April 2017 and subsequent amendments through certain clarifications relating to the accounting for zakat and income tax (“SAMA Circular”), the zakat and income tax are to be accrued on a quarterly basis through shareholders equity under retained earnings.

The interim condensed financial information is prepared under the going concern basis and the historical cost convention, except for the measurement of investments (excluding held-to-maturity) at their fair value. The Company’s interim condensed statement of financial position is presented in order of liquidity. Except for property and equipment, statutory deposit, End-of-service indemnities, outstanding claims, claims incurred but not reported, all other assets and liabilities are of short-term nature, unless, stated otherwise.

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 information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity are recorded in the respective accounts. Similarly, in the past, the Company’s interim condensed and annual financial statements presented separately the statements of financial position, income, comprehensive income and cash flows for the insurance operations and shareholders operations. The basis of allocation of expenses from joint operations is determined and approved by the management and the Board of Directors.

The interim condensed statement of financial position, statements of income and statement of comprehensive income and cash flows of the insurance operations and shareholders operations which are presented on pages 27 to 33 of the financial statements have been provided as supplementary financial information and 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 condensed 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-level financial statements in compliance with IFRS, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and 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 like transactions and events in similar circumstances.

The inclusion of separate information of the insurance operations with the financial information of the Company in the interim condensed statements of financial position, statement of income, statement of comprehensive income, statement of cash flows as well as certain relevant notes to the financial statements represents additional supplementary information required as required by the implementing regulations.

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 of and for the year ended 31 December 2017.

The interim condensed financial statements may not be considered indicative of the expected results for the full year.

These interim condensed financial statements are expressed in Saudi Arabian Riyals (SAR) and are rounded off to the nearest thousands.

Disclosure of accounting framework used in preparation of financial statements [text block]

1. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies adopted by the Company for the preparation of these interim condensed financial statements are in accordance with International Financial Reporting Standards (IFRS) as endorsed in the Kingdom of Saudi Arabia and are consistent with those used for the preparation of the annual financial statements for the year ended 31 December 2017 and new amended IFRS and International Financial Reporting Interpretations Committee Interpretations (IFRIC) as mentioned in note 3(a) which had no impact on the financial position or financial performance of the Company. Certain comparative amounts have been reclassified / regrouped to conform with the current period’s presentation. This did not have any impact on interim condensed statement of changes in shareholders’ equity for the period.

Disclosure of new standards and amendments in standards [text block]

New IFRS, International Financial Reporting and Interpretations Committee’s interpretations (IFRIC) and amendments thereof, adopted by the Company

The Company has adopted the following new standards, amendments and revisions to existing standards, which were issued by the International Accounting Standards Board (IASB):

*Standard/* *Amendments*	*Description*
IFRS 2	Amendments to IFRS 2 Classification and Measurement of share-based Payment transactions.
IAS 40	Amendments to IAS 40 Transfers of investment property
IFRIC 22	Foreign Currency Transactions and Advance consideration
IFRS 15	Revenue from Contracts with Customers (refer below)
IFRS 1 and IAS 28	Annual Improvements 2016 to IFRS 2014- 2016 cycle.

IFRS 15 – Revenue from Contracts with Customers

IFRS 15 outlines a single comprehensive model of accounting for revenue arising from contracts with customers and supersedes current revenue guidance, which is found currently across several Standards and Interpretations within IFRSs. However, IFRS 15 does not apply to “revenue from insurance contracts”. However, entities will need to apply IFRS 15 to non-insurance contracts (or components of insurance contracts). Therefore, insurance entities will need to carefully evaluate the scope of this standard.

IFRS 15 established a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring of goods or services to a customer.

Though there are changes in accounting policy, however, management assessed and concluded that there is no material impact on the amounts reported at transition to IFRS 15 on 1 January 2018.

Further, the adoption of the amended standards and interpretations applicable to the Company did not have any significant impact on these interim condensed financial statements.

Disclosure of issued IFRS not yet adopted [text block]

a. Standards issued but not yet effective

Standards issued but not yet effective up to the date of issuance of the Company’s interim condensed 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 are effective.

*Standard/* *Interpretation*	*Description*	*Effective from periods beginning on or after the following date*
IFRS 9	Financial Instruments	Refer below
IFRS 16	Leases	1 January 2019
IFRIC 23	Uncertainty over Income Tax Treatments	1 January 2019
IFRS 17	Insurance Contracts (note below)	1 January 2021

IFRS 9 and IFRS 17

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 (ECL) 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 statement of income.

IFRS 9 requires entities to record an allowance for ECLs for all loans and other debt financial assets not held at fair value through statement of income as well we finance lease receivables, together with loan commitments and financial guarantee contracts. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination. Under IFRS 9, credit losses are recognised earlier than under IAS 39.

The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle based approach.

In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2021. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.

Under the temporary exemption as introduced by amendments to IFRS 4, the reporting entities whose activities predominantly relate to “insurance” can defer the implementation of IFRS 9. The Company having assessed the implications and has concluded to defer the implementation of IFRS 9 until a later date which will not be later than 1 January 2021.

The impact of the adoption of IFRS 9 on the Company’s interim condensed financial statements 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.

Disclosure of critical accounting judgements, estimates and assumptions, general [text block]

a. Critical accounting judgments, estimates and assumptions

The preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these interim condensed financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as at and for the year ended 31 December 2017.

b. Seasonality of operations

There are no seasonal changes that may affect insurance operations of the Company.

Disclosure of notes forming part of accounts [abstract]

Disclosure of investments [text block]

INVESTMENTS

Investment are classified as follows:

	Insurance operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

- Held as FVSI	334,781	354,374
- Held to maturity	35,777	35,790
Total	370,558	390,164

	Shareholders’ operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

- Held as FVSI	221,004	216,980
- Available for sale	1,923	1,923
- Held to maturity	13,642	13,642
Total	236,569	232,545

Movement in held as FVSI investment balance is as follows:

	Insurance operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000
Opening balance	354,374	254,516
Purchases during the period / year	-	114,667
Disposals during the period / year	(20,000)	(20,500)
	334,374	348,683
Changes in fair value of investments	407	5,691
Closing balance	334,781	354,374

	*Source of Fair Value*	*31 March 2018* *(Unaudited)* *SR’000*	31 December 2017 (Audited) SR’000
Units in local money market funds	NAV**	192,369	211,656
Units in local equity funds	NAV**	3,609	3,664
Local DPM money market securities	NAV**	138,803	139,054
		334,781	354,374

* Managed at the discretion of a local regulated financial institution (“DPM”).

** NAV: Net Asset Value as announced by asset manager.

Movement in held as FVSI investment balance is as follows:

	Shareholders’ operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Opening balance	216,980	145,210
Purchases during the period / year	-	82,500
Disposals during the period / year	-	(14,992)
	216,980	212,718
Changes in fair value of investments	4,024	4,262
Closing balance	221,004	216,980

	*Source of Fair Value*	*31 March 2018* *(Unaudited)* *SR’000*	31 December 2017 (Audited) SR’000

Units in local money market funds	NAV**	85,090	84,756
Units in local equity funds	NAV**	7,090	6,588
Units in local real estate funds	NAV**	10,149	10,149
Local “DPM” money market securities	NAV**	60,870	59,401
Local “DPM” equity securities	Quoted	18,912	17,125
Foreign “DPM” equity securities	Quoted	16,609	16,623
Foreign bonds and sukuk	Quoted	22,284	22,338
		221,004	216,980

Movement in available-for-sale investment balance is as follows:

	Shareholders’ operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Opening balance	1,923	1,923
Closing balance	1,923	1,923

(i) Unquoted available for sale investment, having a carrying value of SR 1,923 thousand (2017: SR 1,923 thousand) are measured at cost as its fair value cannot be reliably measured due to the absence of active market and unavailability of observable market prices for similar instruments.

Movement in held to maturity investment balance is as follows:

	Insurance operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Opening balance	35,790	35,947
Amortization of held to maturity investments	(13)	(157)
Closing balance	35,777	35,790

Movement in held to maturity investment balance is as follows:

	Shareholders’ operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Opening balance	13,642	13,755
Amortization of held to maturity investments	-	(113)
Closing balance	13,642	13,642

Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block]

PREMIUMS AND REINSURERS’ RECEIVABLE – NET

Receivables comprise amounts due from the following:

	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Policyholders	181,985	134,429
Related parties (note 11)	29,413	25,775
Receivables from reinsurers	2,112	2,329
	213,510	162,533
Provision for doubtful receivables	(36,818)	(34,234)
Premiums and reinsurers’ receivable – net	176,692	128,299

Disclosure of cash and cash equivalents [text block]

CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the statement of cash flows comprise the following:

	Insurance operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Bank balances and cash	44,350	14,392
	44,350	14,392

	Shareholders’ operations
	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Bank balances and cash	11	11
	11	11

Disclosure of gross unearned premiums/ contributions [text block]

7.2 Movement in unearned premiums

Movement in unearned premiums comprise of the following:

	Three-month ended 31 March 2018 (Unaudited)
	Gross	Reinsurance	Net
	SR’000

Balance as at the beginning of the period	322,609	(8,889)	313,720
Premium written during the period	246,229	(6,486)	239,743
Premium earned during the period	(182,959)	4,080	(178,879)
Balance as at the end of the period	385,879	(11,295)	374,584

	Year ended 31 December 2017 (Audited)
	Gross	Reinsurance	Net
	SR’000

Balance as at the beginning of the year	280,969	(4,752)	276,217
Premium written during the year	750,691	(19,641)	731,050
Premium earned during the year	(709,051)	15,504	(693,547)
Balance as at the end of the year	322,609	(8,889)	313,720

Disclosure of gross outstanding claims/ benefits [text block]

7.1 Net outstanding claims and reserves

Net outstanding claims and reserves comprise of the following:

	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000

Outstanding claims	49,361	45,489
Claims incurred but not reported	134,279	132,287
	183,640	177,776
Less:
- Reinsurers’ share of outstanding claims	(19,411)	(9,951)
- Reinsurers’ share of claims Incurred but not reported	(2,911)	(1,493)
	(22,322)	(11,444)
Net outstanding claims and reserves	161,318	166,332

Disclosure of zakat [text block]

12. ZAKAT

a. Charge for the period / year

The differences between the financial and the Zakatable results are mainly due to certain adjustments in accordance with the relevant fiscal regulations.

Movements in provision during the period / year	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000
Balance at the beginning of the period / year	18,189	14,054
Charge for the period / year	1,500	6,300
Paid during the period / year	-	(2,165)
Balance at the end of the period / year	19,689	18,189

b. Status of zakat assessments

The Company has filed its zakat declarations for the period from 16 May 2007 to 31 December 2008 and for the years ended 31 December 2009 through 2016 which are still under review by the GAZT and no assessments has been finalized.

During 2016, the Company received zakat assessments for the years ended 31 December 2008 through 2012 where GAZT demanded an additional zakat and withholding tax liability of SR 13.7 million in respect of those years. The Company has filed an objection against those assessments and the management is confident of a favorable outcome. In this regard, the Company have issued a letter of guarantee amounting to SR 9.5 million in favour of GAZT. Further, the Company has booked an additional liability of SR 4.4 million for withholding tax in the statement of income and SR 4 million for zakat for prior years in 2016.

Disclosure of classes of share capital [text block]

13. SHARE CAPITAL

The authorized and issued share capital of the Company is SR 250 million divided into 25 million ordinary shares of SR 10 each.

Disclosure of earnings per share [text block]

15. EARNINGS PER SHARE

Earnings per share for the period has been calculated by dividing the net income for the period by the weighted average number of issued and outstanding shares for the period.

Disclosure of related party transactions [text block]

11. RELATED PARTY TRANSACTIONS AND BALANCES

Related 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:

	Nature of transactions	Transactions for the period ended		Balance receivable/(payable) as at
		31 March	31 March	31 March	31 December
		2018	2017	2018	2017
		(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
		SR’000	SR’000	SR’000	SR’000
Entities controlled, jointly controlled or significantly influenced by related parties
Tajeer Co. (affiliate)	Premium written	28,218	23,642	46,124	73,069
	Payments and claims paid	-	-	-	(79,081)
Chairman of the Board	Premium written	-	-	81	341
	Payments and claims paid	-	-	-	(414)
Rusd Global Company	Premium written	-	-	-	150
	Payments and claims paid	-	-	-	(341)
Al Firdous Group Co.	Premium written	1,383	1,427	1,483	1,742
	Payments and claims paid	-	-	-	(1,741)
Jabal Edsas Est.	Rent paid	3,025	-	-	-
	Commission paid	111	-	-	-
Kwader Pro	Services received	91	71	-	-
Alawwal Capital Co.	Investments in DPM and mutual funds	-	-	326,319	344,528
Rusd Capital	Investments in mutual funds	-	-	7,516	7,465

The compensation of key management personnel during the period is as follows:

	31 March 2018 (Unaudited) SR’000	31 March 2017 (Unaudited) SR’000
Salaries and other allowances	2,079	951
End of service indemnities	55	73
	2,134	1,024

Remuneration to those charged with governance – Board of Directors	75	18
Remuneration to those charged with governance – Board Committees	-	28
	75	46

Disclosure of entity's operating segments [text block]

10. 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 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 2017.

Segment assets do not include cash and cash equivalents, short term deposits, net premiums and reinsurers’ receivable, net, prepayments and other receivables, amount due from a related party, investments, furniture, fittings and office equipment. Accordingly, they are included in unallocated assets. Segment liabilities do not include policyholders’ claims, reinsurance payables, accruals and other payables and employees’ end of service indemnities. Accordingly, they are included in unallocated liabilities.

These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.

The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities at 31 March 2018 and 31 December 2017, its total revenues, expenses, and net income for the three-month period then ended, are as follows:

As at 31 March 2018

(Unaudited)

Insurance operations

Medical

Motor

Property & casualty

Total - Insurance operations

Shareholders’ operations

Total

SR’000

Assets

Reinsurers’ share of unearned premiums

11,295

Reinsurers’ share of outstanding claims

19,411

Reinsurers’ share of claims Incurred but not reported

2,911

Deferred policy acquisition costs

1,769

12,461

1,781

16,011

Unallocated assets

643,419

264,058

907,477

Total assets

693,047

264,058

957,105

Liabilities

Unearned premiums

28,717

341,824

15,338

385,879

Unearned reinsurance commission

2,927

Outstanding claims

11,288

14,531

23,542

49,361

Claims incurred but not reported

6,162

124,477

3,640

134,279

Premium deficiency reserve

140

Other technical reserves

1,729

2,248

3,977

Unallocated liabilities

100,437

21,949

122,386

Total liabilities

677,000

21,949

698,949

	As at 31 December 2017
	(Audited)
	Insurance operations
	Medical	Motor	Property & casualty	Total - Insurance operations	Shareholders’ operations	Total
	SR’000
Assets
Reinsurers’ share of unearned premiums	-	-	8,889	8,889	-	8,889
Reinsurers’ share of outstanding claims	-	-	9,951	9,951	-	9,951
Reinsurers’ share of claims Incurred but not reported	-	-	1,493	1,493	-	1,493
Deferred policy acquisition costs	1,926	11,281	1,309	14,516	-	14,516
Unallocated assets	-	-	-	567,659	259,843	827,502
Total assets				602,508	259,843	862,351

Liabilities
Unearned premiums	29,529	281,214	11,866	322,609	-	322,609
Unearned reinsurance commission	-	-	2,244	2,244	-	2,244
Outstanding claims	6,985	24,738	13,766	45,489	-	45,489
Claims incurred but not reported	6,162	123,954	2,171	132,287	-	132,287
Premium deficiency reserve	-	2,304	-	2,304	-	2,304
Other technical reserves	1,729	2,248	-	3,977	-	3,977
Unallocated liabilities	-	-	-	80,720	20,353	101,073
Total liabilities				589,630	20,353	609,983

	For the three-month period ended 31 March 2018 (Unaudited)
	*Medical*	*Motor*	*Property & casualty*	*Total*
	*SR'000*	*SR'000*	*SR'000*	*SR'000*
REVENUES
Gross premiums written	19,219	217,886	9,124	246,229
Reinsurance premiums ceded
- Local	-	-	(405)	(405)
- Foreign	-	-	(6,081)	(6,081)
	-	-	(6,486)	(6,486)
Excess of loss expenses
- Local	-	(61)	(58)	(119)
- Foreign	(500)	(4,061)	(226)	(4,787)
	(500)	(4,122)	(284)	(4,906)
Net premiums written	18,719	213,764	2,354	234,837
Changes in unearned premiums, net	811	(60,610)	(1,066)	(60,865)
Net premiums earned	19,530	153,154	1,288	173,972
Reinsurance commissions	-	-	1,108	1,108
Other underwriting income	-	3,334	-	3,334
TOTAL REVENUES	19,530	156,488	2,396	178,414

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	10,687	133,610	542	144,839
Reinsurers’ share of claims paid	-	(3,422)	(271)	(3,693)
Net claims paid	10,687	130,188	271	141,146
Changes in outstanding claims, net	4,303	(10,207)	316	(5,588)
Changes in claims incurred but not reported, net	-	522	52	574
Net claims incurred	14,990	120,503	639	136,132
Premium deficiency reserves	-	(2,164)	-	(2,164)
Policy acquisition costs	1,235	6,649	572	8,456
Other underwriting expenses	4,130	2,783	97	7,010
TOTAL UNDERWRITING COSTS AND EXPENSES	20,355	127,771	1,308	149,434

NET UNDERWRITING (LOSS) / INCOME	(825)	28,717	1,088	28,980

OTHER OPERATING (EXPENSES) / INCOME
General and administrative expenses				(23,626)
Allowance for doubtful debts				(2,581)
Commission income on deposits				3,126
Unrealized gain on investments				1,786
TOTAL OTHER OPERATING EXPENSES				(21,295)

NET INCOME FOR THE PERIOD				7,685
Net income for the period attributable to insurance operations				(397)
Net income for the period attributable to the shareholders’				7,288

	For the three-month period ended 31 March 2017 (Unaudited)
	Medical	Motor	Property & casualty		Total
	SR'000	SR'000	SR'000	SR'000
REVENUES
Gross premiums written	26,246	193,061	8,571	227,878
Reinsurance premiums ceded
- Local	-	-	(366)	(366)
- Foreign	-	-	(5,947)	(5,947)
	-	-	(6,313)	(6,313)
Excess of loss expenses
- Local	-	(38)	-	(38)
- Foreign	(450)	(3,099)	(221)	(3,770)
	(450)	(3,137)	(221)	(3,808)
Net premiums written	25,796	189,924	2,037	217,757
Changes in unearned premiums, net	(16,856)	(53,375)	(1,139)	(71,370)
Net premiums earned	8,940	136,549	898	146,387
Reinsurance commissions	-	-	858	858
TOTAL REVENUES	8,940	136,549	1,756	147,245

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	4,152	97,506	1,628	103,286
Reinsurers’ share of claims paid	(550)	-	(1,101)	(1,651)
Net claims paid	3,602	97,506	527	101,635
Changes in outstanding claims, net	512	3,151	(477)	3,186
Changes in claims incurred but not reported, net	-	-	(72)	(72)
Net claims incurred	4,114	100,657	(22)	104,749
Policy acquisition costs	476	5,090	336	5,902
Other underwriting expenses	2,060	5,492	74	7,626
TOTAL UNDERWRITING COSTS AND EXPENSES	6,650	111,239	388	118,277

NET UNDERWRITING INCOME	2,290	25,310	1,368	28,968

OTHER OPERATING (EXPENSES) / INCOME
General and administrative expenses				(15,949)
Allowance for doubtful debts				(641)
Commission income on deposits				2,302
Unrealized gain on investments				649
Other income				379
TOTAL OTHER OPERATING EXPENSES				(13,260)

NET INCOME FOR THE PERIOD				15,708
Net income for the period attributable to insurance operations				(1,531)
Net income for the period attributable to the shareholders’				14,177

Disclosure of capital management [text block]

14. CAPITAL MANAGEMENT

Objectives are set by the Company to maintain healthy capital ratios in order to support its business objectives and maximize 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.

In the opinion of the Board of Directors, the Company has fully complied with the externally imposed capital requirements during the reported financial period.

Disclosure of commitments and contingencies, general [text block]

COMMITMENTS AND CONTINGENCIES

a. The Company’s commitments and contingencies are as follows:

	31 March 2018 (Unaudited) SR’000	31 December 2017 (Audited) SR’000
Letters of guarantee in favour of non-government customers	700	700
Letters of guarantee in favour of GAZT	9,500	9,500
	10,200	10,200

b. The Company is subject to legal proceedings in the ordinary course of business. There was no change in the status of legal proceedings as disclosed at 31 December 2017.

Disclosure of fair value of financial assets and liabilities [text block]

FAIR VALUES 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 liability

The fair values of on-balance sheet financial instruments are not significantly different from their carrying amounts included in the interim condensed (consolidated) financial information.

Determination of fair value and fair value hierarchy

The 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; and

Level 3: valuation techniques for which any significant input is not based on observable market data.

a. Carrying amounts and fair value

The 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.

Insurance Operations	Fair value
	Level 1	Level 2	Level 3	Total
	SR’000

31 March 2018 (Unaudited)

Financial assets measured at fair value
- Investments held as FVSI	-	344,781	-	344,781
	-	344,781	-	344,781

Financial assets not measured at fair value
- Held to maturity investments	-	35,777	-	35,777
	-	35,777	-	35,777

Insurance Operations	Fair value
	Level 1	Level 2	Level 3	Total
	SR’000

31 December 2017 (Audited)

Financial assets measured at fair value
- Investments held as FVSI	-	354,373	-	354,373
	-	354,373	-	354,373

Financial assets not measured at fair value
- Held to maturity investments	-	35,790	-	35,790

	-	35,790	-	35,790

Shareholders’ Operations	Fair value
	Level 1	Level 2	Level 3	Total
	SR’000

31 March 2018 (Unaudited)

Financial assets measured at fair value
- Investments held as FVSI	-	221,004	-	221,004
	-	221,004	-	221,004

Financial assets not measured at fair value
- Held to maturity investments	-	13,642	-	13,642
	-	13,642	-	13,642

Shareholders’ Operations	Fair value
	Level 1	Level 2	Level 3	Total
	SR’000

31 December 2017 (Audited)

Financial assets measured at fair value
- Investments held as FVSI	-	216,980	-	216,980
	-	216,980	-	216,980

Financial assets not measured at fair value
- Held to maturity investments	-	13,642	-	13,642
	-	13,642	-	13,642

Disclosure of comparative figures [text block]

18. COMPARATIVE FIGURES

Certain of the prior period figures have been reclassified to conform to current period presentation.

Disclosure of board of director's approval of the financial statements [text block]

19. APPROVAL OF THE INTERIM CONDENSED FINANCIAL STATEMENTS

The interim condensed financial statements have been approved by the Board of Directors on 24 Sha’baan 1439H, corresponding to 10 May 2018.

Disclosure of other notes relevant to understanding of financial statements [text block]

16. SUPPLEMENTARY INFORMATION

a) Interim statement of financial position

	31 March 2018 (Unaudited)			31 December 2017 (Audited)
	Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
ASSETS
Cash and cash equivalents	44,350	11	44,361	14,392	11	14,403
Short term deposits	15,292	-	15,292	15,292	-	15,292
Premiums and reinsurers’ receivable – net	176,692	-	176,692	128,299	-	128,299
Reinsurers’ share of unearned premiums	11,295	-	11,295	8,889	-	8,889
Reinsurers’ share of outstanding claims	19,411	-	19,411	9,951	-	9,951
Reinsurers’ share of claims Incurred but not reported	2,911	-	2,911	1,493	-	1,493
Deferred policy acquisition costs	16,011	-	16,011	14,516	-	14,516
Investments	370,558	236,569	607,127	390,164	232,545	622,709
Due from insurance operations	-	16,047	16,047	-	12,878	12,878
Prepaid expenses and other assets	31,523	218	31,741	14,581	123	14,704
Property and equipment	5,004	-	5,004	4,931	-	4,931
Statutory deposit	-	25,000	25,000	-	25,000	25,000
Accrued income on statutory deposit	-	2,260	2,260	-	2,164	2,164
	693,047	280,105	973,152	602,508	272,721	875,229
Less: Inter-operations eliminations	-	(16,047)	(16,047)	-	(12,878)	(12,878)
TOTAL ASSETS	693,047	264,058	957,105	602,508	259,843	862,351

	31 March 2018 (Unaudited)			31 December 2017 (Audited)
	Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
LIABILITIES
Policyholders claims payable	12,329	-	12,329	11,512	-	11,512
Accrued and other liabilities	58,886	-	58,886	36,947	-	36,947
Reinsurers' balances payable	5,955	-	5,955	9,902	-	9,902
Unearned premiums	385,879	-	385,879	322,609	-	322,609
Unearned reinsurance commission	2,927	-	2,927	2,244	-	2,244
Outstanding claims	49,361	-	49,361	45,489	-	45,489
Claims incurred but not reported	134,279	-	134,279	132,287	-	132,287
Premium deficiency reserves	140	-	140	2,304	-	2,304
Other technical reserves	3,977	-	3,977	3,977	-	3,977
Due to shareholders’ operations	16,047		16,047	12,878	-	12,878
Due to related parties	-	-	-	-	-	-
End-of-service indemnities	9,773	-	9,773	9,262	-	9,262
Insurance operations’ surplus	13,494	-	13,494	13,097	-	13,097
Zakat	-	19,689	19,689	-	18,189	18,189
Accrued commission income payable to SAMA	-	2,260	2,260	-	2,164	2,164
	693,047	21,949	714,996	602,508	20,353	622,861
Less: Inter-operations eliminations	(16,047)	-	(16,047)	(12,878)	-	(12,878)
TOTAL LIABILITIES	677,000	21,949	698,949	589,630	20,353	609,983

SHAREHOLDERS’ EQUITY
Share capital	-	250,000	250,000	-	250,000	250,000
Statutory reserve	-	1,734	1,734	-	1,734	1,734
Retained earnings / Accumulated losses	-	6,422	6,422	-	634	634
TOTAL EQUITY	-	258,156	258,156	-	252,368	252,368
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	693,047	264,058	957,105	602,508	259,843	862,351

COMMITMENTS AND CONTINGENCIES	10,200	-	10,200	10,200	-	10,200

b) Interim statement of income


	31 March 2018 (Unaudited)			31 March 2017 (Unaudited)
	Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
REVENUES
Gross premiums written	246,229	-	246,229	227,878	-	227,878
	246,229	-	246,229	227,878	-	227,878
Reinsurance premiums ceded
- Local	(405)	-	(405)	(366)	-	(366)
- Foreign	(6,081)	-	(6,081)	(5,947)	-	(5,947)
	(6,486)	-	(6,486)	(6,313)	-	(6,313)
Excess of loss expenses
- Local	(119)	-	(119)	(38)	-	(38)
- Foreign	(4,787)	-	(4,787)	(3,770)	-	(3,770)
	(4,906)	-	(4,906)	(3,808)	-	(3,808)
Net premiums written	234,837	-	234,837	217,757	-	217,757
Changes in unearned premiums, net	(60,865)	-	(60,865)	(71,370)	-	(71,370)
Net premiums earned	173,972	-	173,972	146,387	-	146,387
Reinsurance commissions	1,108	-	1,108	858	-	858
Other underwriting income	3,334	-	3,334	-	-	-
TOTAL REVENUES	178,414	-	178,414	147,245	-	147,245

UNDERWRITING COSTS AND EXPENSES
Gross claims paid	144,839	-	144,839	103,286	-	103,286
Reinsurers’ share of claims paid	(3,693)	-	(3,693)	(1,651)	-	(1,651)
Net claims and other benefits paid	141,146	-	141,146	101,635	-	101,635
Changes in outstanding claims, net	(5,588)	-	(5,588)	3,186	-	3,186
Changes in claims incurred but not reported, net	574	-	574	(72)	-	(72)
Net claims and other benefits incurred	136,132	-	136,132	104,749	-	104,749
Premium deficiency reserves	(2,164)	-	(2,164)	-	-	-
Policy acquisition costs	8,456	-	8,456	5,902	-	5,902
Other underwriting expenses	7,010	-	7,010	7,626	-	7,626
TOTAL UNDERWRITING COSTS AND EXPENSES	149,434	-	149,434	118,277	-	118,277

NET UNDERWRITING INCOME	28,980	-	28,980	28,968	-	28,968


	31 March 2018 (Unaudited)			31 March 2017 (Unaudited)
	Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
OTHER OPERATING (EXPENSES)/ INCOME
Allowance for doubtful debts	(2,581)	-	(2,581)	(641)	-	(641)
General and administrative expenses	(23,223)	(403)	(23,626)	(15,603)	(346)	(15,949)
Commission income on deposits	794	2,332	3,126	2,207	95	2,302
Unrealized gain on investments	-	1,786	1,786	-	649	649
Others	-	-	-	379	-	379
TOTAL OTHER OPERATING (EXPENSES)/ INCOME	(25,010)	3,715	(21,295)	(13,658)	398	(13,260)

NET SURPLUS FROM INSURANCE OPERATIONS	3,970	3,715	7,685	15,310	398	15,708
Surplus transferred to Shareholders	(3,573)	(3,715)	(7,288)	(13,779)	(398)	(14,177)
NET RESULT FROM INSURANCE OPERATIONS AFTER TRANSFER OF SURPLUS TO SHAREHOLDERS	397	-	397	1,531	-	1,531


Earnings per share (Expressed in SAR per share)
Weighted average number of shares (in thousands)	-	25,000	25,000	-	25,000	25,000
Basic and diluted earnings per share	-	0.29	0.29	-	0.57	0.57

c) Interim statement of comprehensive income


	31 March 2018 (Unaudited)			31 March 2017 (Unaudited)
	Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
Net income for the period	397	7,288	7,685	1,531	14,177	15,708

Other comprehensive income

*Items that are or may be reclassified to consolidated statement of income in subsequent periods*
- Available for sale investments:	-	-	-	-	-	-
- Net change in fair value	-	-	-	-	-	-
- Net amounts transferred to statement of income	-	-	-	-	-	-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	397	7,288	7,685	1,531	14,177	15,708

	Note	31 March 2018 (Unaudited)			31 March 2017 (Unaudited)
		Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
		SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period		397	7,288	7,685	1,531	14,177	15,708

*Adjustments for non-cash items:*
Depreciation of property and equipment		454	-	454	375	-	375
Amortization of intangible assets		13	-	13	-	-	-
Unrealized gain on investments		(406)	(4,024)	(4,430)	(1,789)	(649)	(2,438)
Provision for end-of-service indemnities		511	-	511	429	-	429
		969	3,264	4,233	1,187	13,528	14,715
*Changes in operating assets and liabilities:*
Premiums and reinsurers’ receivable		(48,393)	-	(48,393)	(17,401)	-	(17,401)
Reinsurers’ share of unearned premiums		(2,406)	-	(2,406)	(3,175)	-	(3,175)
Reinsurers’ share of outstanding claims		(9,460)	-	(9,460)	742	-	742
Reinsurers’ share of claims Incurred but not reported		(1,418)	-	(1,418)	112	-	112
Deferred policy acquisition costs		(1,495)	-	(1,495)	(4,346)	-	(4,346)
Prepaid expenses and other assets		(16,941)	(97)	(17,038)	(585)	(95)	(680)
Accrued income on statutory deposit		-	(96)	(96)	-	(168)	(168)
Policyholders and accounts payables		817	-	817	1,160	-	1,160
Accrued and other liabilities		21,939	-	21,939	3,681	-	3,681
Reinsurers' balances payable		(3,947)	-	(3,947)	1,444	-	1,444
Unearned premiums		63,271	-	63,271	74,545	-	74,545
Unearned reinsurance commission		683	-	683	871	-	871
Outstanding claims		3,872	-	3,872	2,443	-	2,443
Claims incurred but not reported		1,992	-	1,992	(183)	-	(183)
Additional premium reserves		(2,164)	-	(2,164)	-	-	-
Accrued commission income payable to SAMA		-	96	96	-	168	168
Net cash flows from operating activities		7,319	3,167	10,486	60,495	13,433	73,928

	Note	31 March 2018 (Unaudited)			31 March 2017 (Unaudited)
		Insurance operations	Share-holders’ operations	Total	Insurance operations	Share-holders’ operations	Total
		SR ’000	SR ’000	SR ’000	SR ’000	SR ’000	SR ’000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments		-	-	-	(44,992)	(30,000)	(74,992)
Proceeds from sale of investments		20,000	-	20,000	-	14,992	14,992
Purchase of property and equipment		(528)	-	(528)	(985)	-	(985)
Net cash flows from / (used in) investing activities		19,472	-	19,472	(45,977)	(15,008)	(60,985)

CASH FLOWS FROM FINANCING ACTIVITIES
Due to shareholders’ operations		3,167	(3,167)	-	(1,575)	1,575	-
Net cash flows from / (used in) from financing activities		3,167	(3,167)	-	(1,575)	1,575	-

Net change in cash and cash equivalents		29,958	-	29,958	12,943	-	12,943
Cash and cash equivalents, beginning of the period		14,392	11	14,403	58,019	11	58,030
Cash and cash equivalents, end of the period		44,350	11	44,361	70,962	11	70,973

17. AMALGAMATION OF SHAREHOLDERS AND INSURANCE OPERATIONS

Certain of the comparative figures have been reclassified and regrouped to conform to the in the current period presentation. These changes as summarized below, were mainly to conform with the SAMA requirements:

As discussed in note 2 to these interim condensed financial statements, previously interim statement of financial position, statement of income, and statement of cash flows were presented separately for insurance operations and shareholders operations which are combined together to present one Company level interim statement of financial position, statement of income and statement of cash flows.

The amounts “due to / from” shareholders and insurance operations which previously reported separately in the respective statement of financial position, are now eliminated (refer note 16 (a)).

Share of insurance operations surplus split in the ratio of 90/10 between shareholders and insurance operations and presented separately is now presented as an expense in interim statement of income (refer note 16 (b)).

[100010] Filing information	[200100] Independent auditors report	[300100] Statement of financial position, order of liquidity
[300200] Statement of insurance/ takaful operations, nature of expense	[300300] Statement of shareholders operations, nature of expense	[300400] Statement of other comprehensive income, before tax, insurance operations
[300500] Statement of other comprehensive income, before tax, shareholders operations	[300600] Statement of cash flows, indirect method, insurance operations	[300700] Statement of cash flows, indirect method, shareholders operations
[300800] Statement of changes in equity	[400100] Notes forming part of accounts

Other comprehensive income