| 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] | Arabian Shield Cooperative Insurance Company (“Company”) is a Saudi Joint Stock Company incorporated in Riyadh, Saudi Arabia through Ministerial Resolution issued on 19 May 2007 with Commercial Registration No. 1010234323 issued on 13 June 2007 following on from Royal Decree No. M60 dated 18 Ramadan 1427 corresponding to 11 October 2006. The Commercial Registration Certificate was amended with effect from 24 July 2018 to reflect the increase in share capital following the bonus share issue. The Company was listed on the Saudi Stock Exchange (Tadawul) on 26 June 2007. The registered address of the head office is as follows: 5th Floor, Cercon Building No. 15, Olaya Street, PO Box 61352, Riyadh 11565, Saudi Arabia. | 1 |
| Disclosure of basis of preparation of financial statements [text block] | The accounting policies, estimates and assumptions used in the preparation of the unaudited interim condensed financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2018 and no new or amended accounting policies or accounting standards were adopted by the Company during 2019. | 4a |
| Disclosure of accounting framework used in preparation of financial statements [text block] | Financial Statements are prepared under the going concern convention using the accrual basis of accounting. | 4a |
| Disclosure of statement of compliance [text block] | The unaudited interim condensed financial statements are 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 IFRS 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”), effective 01 January 2017, zakat and income tax are to be accrued on a quarterly basis through shareholders equity under retained earnings. | 2 |
| Description of initial application of standards or interpretations [text block] | The Company has adopted IFRS 16 with effect from 01 January 2019. The adoption of IFRS 16 does not have material impact on the reported income and accordingly no adjustment has been made in the unaudited interim condensed financial statements for the three month period ended 31 March 2019. | 3 |
| Disclosure of new standards and amendments in standards [text block] | In November 2018 IASB proposed a one year deferral of the effective date for IFRS 17 to 01 January 2022 along with a temporary exemption for insurers to apply IFRS 9 so that both IFRS 9 and IFRS 17 will be applied at the same time. The proposed deferral is subject to public consultation which is expected in 2019. | 3 |
| Disclosure of issued IFRS not yet adopted [text block] | 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 to IFRS 4 allow two options for insurers regarding adoption of IFRS 9: deferral approach or 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 contracts standard or 01 January 2022. 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 to and has applied the deferral approach. The impact of the adoption of IFRS 9 on the Company’s Financial Statements will, to a large extent, have to take into account the interaction with the forthcoming accounting standard for insurance contracts and as such it is not possible to fully assess the effect of the adoption of IFRS 9. | 3 |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The preparation of unaudited interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets and liabilities, contingent assets and liabilities, resultant provisions, changes in fair value and the reported amounts of income and expense. These judgements and estimates are based on the Company’s best knowledge of current events and actions and are continually evaluated and updated, however future events could result in outcomes requiring material adjustments to the reported amounts. In preparing the unaudited interim condensed financial statements significant judgments made by management in applying the Group’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 audited financial statements for the year ended 31 December 2018. The following judgments and estimates have the most significant effect on the amounts recognised. Impairment losses on receivables. The Company assesses impairment for receivables that are individually significant and receivables included in a group of financial assets with similar credit risk characteristics. Receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment. This assessment of impairment requires judgment. In making this judgment, the Company establishes if there is objective evidence that all amounts due may not be collectible in accordance with the original terms of the contract and evaluates credit risk characteristics that consider past-due status being indicative of the ability to pay all amounts due as per contractual terms. Insurance contract liabilities. For insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported at the reporting date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the reporting date. It can take a significant period of time before the ultimate claims cost can be established with certainty and for some type of policies IBNR claims form a significant part of the liability. The primary technique adopted by the Company in estimating the cost of reported and IBNR claims is that of using past claims settlement trends to predict future claims settlement trends. Historical claims development is analyzed by underwriting year, accident year and further analyzed by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjustor estimates or separately projected to reflect their future expected development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historic claims development data on which the projections are based. Additional qualitative judgment is used to assess the extent to which past trends may not apply in future, (for example to reflect one-off occurrences, changes in external or other factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy conditions and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking into account all the uncertainties involved. In addition a range of technical methods are used by the Company’s actuaries to independently assess and critically review the estimates made by the Company. Prior claims estimates are continually reviewed and adjusted as claims develop. Insurance contract liabilities are not discounted for the time value of money as substantially all claims are expected to be paid within one year of the reporting date. The liabilities are derecognised when the obligation to pay a claim expires, is discharged or is cancelled. Impairment of financial instruments. Financial instruments are considered impaired when it is determined there has been a significant or prolonged decline in fair value relative to cost. This determination requires judgement. In making this judgement factors are considered such as normal share price volatility, financial status of the investee including cash flow and sector and technology status and development. Fair value of financial instruments. The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined is calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. | 4b |
| Disclosure of basis of measurement [text block] | The historical cost convention is followed except for the measurement at fair value of available for sale investments. | 4a |
| Disclosure of functional and presentation currency [text block] | Presentation is in Saudi Riyals, the functional currency of the Company. All amounts are derived from Arabic and English computerised accounting records and except where otherwise indicated are rounded to thousands using the standard rounding convention. | 4a |
| Disclosure of going concern [text block] | Financial Statements are prepared under the going concern convention using the accrual basis of accounting. | 4a |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Description of accounting policy for cash and cash equivalents [text block] | Cash and cash equivalents comprise cash on hand, bank current accounts and deposits (including short term highly liquid investments) with original maturities of three months or less. | 4p |
| Description of accounting policy for investment properties [text block] | The Company does not invest in derivatives. At initial recognition the Company classifies it’s non derivative investments into three categories depending on the purpose for which the investments were acquired or originated - held to maturity, fair value through income statement and available for sale.At the current reporting date all investments are classified by the Company as available for sale.Distributions of income for all three classifications are recognised when the right to receive the income is established. The income is reported in the statements of income. Investments are derecognised when the right to receive cash flows and/or substantially all risks and rewards of ownership have expired or been transferred. | 4r |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | Gross Premiums and Gross Commission Income are recognised as revenue when the insurance policy is issued. Ceded Premiums are deducted from Gross Premiums to arrive at Net Premiums. Gross and Ceded Premiums and Gross Commission Income which relate to cover periods beyond the end of a financial period are calculated by the Company and reported as Unearned using the following methods: Marine cargo risks: Last three months actual period of cover preceding the reporting date. Engineering construction risks with period of cover greater than one year: Linearly increasing sums at risk applied to actual period of cover. All other risks: Pro-rata to actual period of cover. | 4k |
| Description of accounting policy for receivables [text block] | Premiums receivables are stated at gross written premiums receivable from insurance contracts less an allowance for any uncollectible amounts. Premiums and reinsurer receivables are initially recognised at inception of the related insurance contract measured at the fair value of the consideration receivable. The carrying value of receivables is reviewed for impairment and whenever events or circumstances indicate that the carrying amount may not be recoverable the impairment loss is recognised in the statement of income. Receivable balances are derecognised when the Company no longer controls the contractual rights that comprise the receivable balance which is normally the case when the receivable balance is sold or all cash flows attributable to the balance are passed through an independent third party. Receivables disclosed in Note 8 fall under the scope of IFRS 4 - Insurance Contracts. The Implementing Regulations define the basis for the provision for doubtful receivables based on ageing of receivables from date of inception of insurance contracts regardless of any credit terms granted to the insured or reinsurer. | 4s |
| Description of accounting policy for deferred policy acquisition costs [text block] | Certain costs are deferred on initial recognition and subsequently expensed in direct proportion to income recognition of the underlying premiums to which they relate. The costs subject to this policy are: Policy acquisition costs payable to insurance companies, brokers, agents and employees arising from the writing or renewing of insurance contracts. Withholding taxes levied on foreign payments. Regulators' levies. Excess of loss expenses. Third party administrator expenses arising from processing of medical claims. Impairment reviews are conducted regularly and any impairment loss is reflected in the statement of income. | 4l |
| Description of accounting policy for intangible assets and goodwill [text block] | Goodwill is initially recognised at cost and is not amortised but subsequent to initial recognition is tested for impairment annually and carried at cost less accumulated impairment losses. Impairment is determined by assessing the recoverable amount of each cash-generating unit or group of cash-generating units to which the goodwill relates. Where the recoverable amount is less than their carrying amount, an impairment loss is recognised.Impairment losses are not reversed in subsequent periods. | 4v |
| Description of accounting policy for property and equipment [text block] | Property, equipment and intangible assets are stated at cost, excluding the costs of day to day servicing, less accumulated depreciation and accumulated impairment in value. Replacement or major refurbishment costs are capitalised when incurred if it is probable that future economic benefits resulting from incurring the cost will arise and the cost can be measured reliably. All other repair and maintenance costs are charged to the statement of income as they are incurred.Depreciation is provided on a straight line basis over the useful lives of the assets at the following rates:Fixed assets Useful life in yearsLeasehold fixtures 10Office furniture 10Office equipment 10Motor vehicles 4IT equipment 4Intangible Assets Useful life in yearsIT systems 4The assets’ residual values and remaining useful lives are continually reviewed and adjusted if appropriate.Impairment losses are recognised as an expense.An item of property, equipment or an intangible asset is derecognised upon disposal or when no further future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset is recognised as income or expenseCapital work-in-progress includes tangible and intangible assets being developed for future use and are not depreciated. When the assets are commissioned the work-in-progress amount is transferred to the respective asset categories and thereafter depreciated as set out above with effect from the commissioning date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are reported in the statement of income. | 4t |
| Description of accounting policy for liability adequacy test [text block] | At each reporting date the Company assesses whether there is any overall excess of expected claims over unearned premiums net of deferred acquisition costs. This calculation uses current estimates of future contractual cash flows after taking account of the return expected to arise on assets relating to the relevant insurance technical provisions. If that assessment shows that the carrying amount of the unearned premiums (less related deferred acquisition costs) is inadequate, the entire deficiency is immediately recognized and a provision created. | 4x |
| Description of accounting policy for settlement and trade date accounting [text block] | All purchases and sales of financial instruments are accounted for at trade date being the date the Company commits to purchase or sell the instruments. | 4e |
| Description of accounting policy for provisions [text block] | Provisions are recognised when the Company has an obligation (legal or constructive) arising from a past event and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provided amount to be recovered, the recovery is recognised only when it is believed to be certain. | 4f |
| Description of accounting policy for statutory reserve [text block] | In compliance with the Cooperative Insurance Law, the Implementing Regulations and the Articles, 20% of shareholders’ net profit (as defined below) is transferred to statutory reserve at the end of each financial year until the statutory reserve amounts to 100% of the paid capital. At 31 December 2018 Statutory Reserve represents 20% of shareholders' net profit (as defined below) earned from incorporation to 31 December 2018 (2017: 20% of shareholders' net profit earned from incorporation to 31 December 2017). In calculating Statutory Reserve, shareholders’ net profit is stated after deducting zakat and income tax charges and excludes unrealised investment gains. The Statutory Reserve is not available for distribution but it may be converted to share capital in funding a bonus share issue.The Statutory Reserve calculated on the above basis was reduced by SAR 20,000,000 on 22 May 2018 as a result of the issue of bonus shares on that date.Transfer to Statutory Reserve in respect of the year ending 31 December 2019 will be determined at 31 December 2019 and no transfer has been made in the three month period ended 31 March 2019 (three month period ended 31 March 2018: Nil). | 25 |
| Description of accounting policy for employees end of service benefits [text block] | Benefits payable to the employees of the Company at the end of their service are provided for in accordance with the labour laws of Saudi Arabia. The cost of this benefit for each employee is charged over their period of employment and provisions are continually re-assessed and adjusted on the basis of current salary, related benefits and completed service. On cessation of employment, the entitlement will be paid based upon the employees’ final salary, related benefits and length of service. Interim payments may be approved at the Company's discretion for employees with service in excess of 10 years. The Company has calculated end of service liability in accordance with IAS 19. No material difference arises between this amount and the liability calculated in accordance with the Labour Laws of the Kingdom of Saudi Arabia and accordingly no adjustment was required to the financial statements. | 4y |
| Description of accounting policy for zakat [text block] | Zakat and income tax have been provided for in accordance with regulations currently in force in Saudi Arabia. The differences between financial and adjusted taxable results are mainly due to provisions which are not allowed in the calculation of taxable income. Zakat is calculated on Saudi shareholders’ share of adjusted equity subject to a minimum base equal to the relevant share of adjusted net profit. Foreign shareholders are subject to income tax calculated on the relevant share of adjusted net profit. | 23 |
| Description of accounting policy for impairment and uncollectibiity of financial assets [text block] | The Company assesses at each reporting date whether there is objective evidence that a financial instrument or a group of financial instruments is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the instrument has an impact on the estimated future cash flows of the instrument or the group of instruments that can be reliably estimated. Evidence of impairment may include: Significant financial difficulty of the issuer or debtor; A breach of contract, such as a default or delinquency in payments; It becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganization; The disappearance of an active market for that financial instrument because of financial difficulties; or Observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of financial instruments since the initial recognition of those instruments, although the decrease cannot yet be identified with the individual financial instruments in the Company. This could include adverse changes in the payment status of issuers or debtors in the Company or national or local economic conditions at the country of the issuers that correlate with defaults. If there is objective evidence that an impairment loss on a financial instrument exists, the impairment is determined as follows: For instruments carried at fair value impairment arises to the extent significant or prolonged decline in fair value has occurred. For instruments carried at amortized cost impairment arises to the extent discounted estimated future cash flows are significantly less than amortized cost. For debt instruments classified as available for sale the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised. If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to credit events occurring after the impairment loss was recognised the impairment loss is reversed. The determination of what is significant or prolonged requires judgement. In making this judgement a period of 12 months or longer is considered to be prolonged and decline of 30% from original cost is considered to be significant. The Company considers factors such as market’s assessment of creditworthiness as reflected in bond yields, rating agencies’ assessment, country’s ability to access capital markets and probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt forgiveness. The amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of income and statement of comprehensive income. For equity investments held as available for sale, a significant or prolonged decline in fair value below its carrying costs represents objective evidence of impairment. The impairment loss cannot be reversed through statement of income as long as the investment continues to be recognised i.e. any increase in fair value after impairment has been recorded can only be recognised in other comprehensive income. On derecognition, any cumulative gain or loss previously recognised in other comprehensive income is included in the statement of income under realised gain / (loss) on available for sale investments. | 4h |
| Description of accounting policy for fair value measurement [text block] | The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined is calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. | 4g |
| Description of accounting policy for cash dividend and non-cash distribution to equity holders [text block] | Dividend distribution is recognized as a liability in the period in which the dividend is approved by the shareholders. | 4z |
| Description of accounting policy for premium/ contributions earned [text block] | Gross Premiums and Gross Commission Income are recognised as revenue when the insurance policy is issued. Ceded Premiums are deducted from Gross Premiums to arrive at Net Premiums. Gross and Ceded Premiums and Gross Commission Income which relate to cover periods beyond the end of a financial period are calculated by the Company and reported as Unearned using the following methods: Marine cargo risks: Last three months actual period of cover preceding the reporting date. Engineering construction risks with period of cover greater than one year: Linearly increasing sums at risk applied to actual period of cover. All other risks: Pro-rata to actual period of cover. | 4k |
| Description of accounting policy for investment income [text block] | Investments classified as held to maturity are those with fixed or determinable income and fixed maturities which the Company has the positive intention and ability to hold until maturity. These investments are initially recognised at cost including any related transaction costs directly attributable to the acquisition. At each reporting date they are remeasured at amortised cost using the effective interest rate method. Valuation impairments are reported in the statements of income. Valuation gains are reported in the statements of income only to the extent of cumulative impairments previously recognised. Realised gains and losses arising on derecognition are reported in the statements of income. | 4r |
| Description of accounting policy for claims/ benefits [text block] | Claims comprise amounts payable to contract holders, third parties and related loss adjustment expenses, net of salvage and other recoveries. In addition to amounts already paid, claims include estimated provisions determined from loss reports for claims reported but not settled together with provisions based on the Company’s judgement and prior experience for claims incurred but not reported (IBNR). Any differences crystalizing between the provisions at the reporting date and subsequent settlements or adjustments to those provisions are recognised in the statement of income as income or expense as appropriate. The Company does not discount its liability for unpaid claims as substantially all reported claims are expected to be paid within one year from occurrence. While the Company believes that the estimated provisions are adequate, nevertheless, the ultimate liability of the outstanding claims may be in excess of or less than the provided amounts. Some insurance contracts permit the Company to subsequently sell assets acquired in settling a claim usually damaged or salvaged goods and the Company may also have rights to pursue third parties for payment of some or all claim costs. Estimates of salvage and subrogation recoveries are included in the measurement of outstanding claims. | 4w |
| Description of accounting policy for general insurance/ takaful contracts [text block] | Insurance contracts are those contracts where the Company (the insurer) has accepted significant insurance risk from another party (the policyholders) by agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects the policyholders. Once a contract has been classified as an insurance contract it remains an insurance contract for the remainder of its lifetime even if the insurance risk reduces significantly in this period. | 4m |
| Description of accounting policy for impairment of non-financial assets [text block] | Assets that have an indefinite useful life are not subject to depreciation and are tested annually for impairment. Assets that are subject to depreciation are reviewed for impairment annually or earlier if events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash-generating units and cash flows. | 4i |
| Description of accounting policy for segment reporting [text block] | A segment is a distinguishable component of the Company that is engaged either in providing products or services (a business segment) or in providing products or services within a particular economic environment (a geographic segment), which is subject to risks and rewards that are different from those of other segments. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. | 4n |
| Description of accounting policy for accounting of leases [text block] | The Company recognises right-of-use assets representing the right to use the underlying leased asset and a lease liability representing the obligation to make lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis using the incremental borrowing rate, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. There are optional exemptions for short-term leases and leases of low-value items. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the unaudited interim condensed statement of income. Short-term leases are leases with a lease term of 12 months or less. | 4u |
| Description of accounting policy for foreign currencies [text block] | Exchange rates prevailing at the date of transactions are used to translate transactions denominated in foreign currencies to Saudi Riyals. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Resulting gains or losses, both realised and unrealised, are recognised as income or expense. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the date of the initial transaction and are not subsequently restated. | 4d |
| Description of accounting policy for derivative financial instruments and hedges [text block] | The Company does not invest in derivatives. | 4r |
| Description of accounting policy for estimation uncertainty [text block] | In preparing the unaudited interim condensed financial statements significant judgments made by management in applying the Group’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 audited financial statements for the year ended 31 December 2018. | 4b |
| Description of accounting policy for time (murabaha) deposit [text block] | Short term fixed income deposits are deposits maturing after 3 and before 12 months from the deposit placement date. Long term fixed income deposits are deposits maturing more than 12 months from the deposit placement date. | 4q |
| Description of accounting policy for statutory deposit [text block] | The Company maintains a deposit of SAR 30,000,000 (31 December 2018: SAR 30,000,000) in a deposit account at The Saudi British Bank. This deposit was increased during 2018 by SAR 10,000,000 following the bonus share issue detailed in Note 24. This deposit cannot be withdrawn without SAMA's consent and the Company does not earn commission from the deposit. | 7 |
| Description of accounting policy for seasonality of operations [text block] | There are no seasonal changes that may affect insurance operations of the Company. | 4c |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of transfer of portfolio [text block] | The insurance portfolio and related business of Arabian Shield Insurance Company EC was acquired by the Company effective 01 January 2009 at a purchase consideration approved by SAMA resulting in a Goodwill amount of SAR 49,100,000. The related assets and liabilities of Arabian Shield Insurance Company EC were also acquired at book value amounting to SAR 20,825,600 as per the audited Financial Statements of Arabian Shield Insurance Company EC at 31 December 2008. The combined sum due to Arabian Shield Insurance Company EC in consideration for goodwill and net assets acquired amounted to SAR 69,925,600. Based on criteria related to the Company’s earnings up to 31 December 2015 the Goodwill amount was subsequently reduced by SAR 2,306,137 to SAR 46,793,863. This in turn resulted in a reduction in the combined sum due to Arabian Shield Insurance Company EC from SAR 69,925,600 to SAR 67,619,463 which has been fully paid with no further amounts owing. | 14 |
| Disclosure of investments in available-for-sale investments [text block] | Investments classified as available for sale are those which are not classified as held to maturity or as fair value through income statement and are acquired with the primary intention of holding for an indefinite period of time but which may require to be traded sooner in response to a need for liquidity or as a result of market changes. These investments are initially recognised at cost including any related transaction costs directly attributable to the acquisition. At each reporting date they are remeasured at fair value unless they do not have a quoted market price or there is no other appropriate method from which to derive reliable fair value in which case they remain stated at cost less any impairment. Unrealised gains and losses arising from a remeasurement at fair value are reported in other comprehensive income and cumulatively held in a separate equity reserve unless the investment is impaired. On derecognition of unimpaired investments the cumulative unrealised gains or losses previously reported in other comprehensive income and held in the separate equity reserve are transferred to and reported in the statements of income. Realised gains and losses arising on derecognition are reported in the statements of income. On impairment of investments the impairment charges are reported in the statements of income and the cumulative unrealised gains or losses previously reported in other comprehensive income and held in the separate equity reserve are transferred to and reported in the statements of income. Realised gains and losses arising on derecognition are reported in the statements of income. | 4r |
| Disclosure of investments at fair value through statement of income [text block] | Investments classified as fair value through income statement are those acquired with the intention of trading in the near term. These investments are initially recognised at fair value with any related transaction costs directly attributable to the acquisition charged to the statements of income on acquisition. At each reporting date they are remeasured at fair value with the resulting unrealised gains or losses and any impairment charges reported in the statements of income. Realised gains and losses arising on derecognition are reported in the statements of income. | 4r |
| Disclosure of statutory deposit [text block] | The Company maintains a deposit of SAR 30,000,000 (31 December 2018: SAR 30,000,000) in a deposit account at The Saudi British Bank. This deposit was increased during 2018 by SAR 10,000,000 following the bonus share issue detailed in Note 24. This deposit cannot be withdrawn without SAMA's consent and the Company does not earn commission from the deposit. | 7 |
| Disclosure of zakat [text block] | Zakat and income tax have been provided for in accordance with regulations currently in force in Saudi Arabia. The differences between financial and adjusted taxable results are mainly due to provisions which are not allowed in the calculation of taxable income. Zakat is calculated on Saudi shareholders’ share of adjusted equity subject to a minimum base equal to the relevant share of adjusted net profit. Foreign shareholders are subject to income tax calculated on the relevant share of adjusted net profit. | 23 |
| Disclosure of income tax [text block] | Zakat and income tax have been provided for in accordance with regulations currently in force in Saudi Arabia. The differences between financial and adjusted taxable results are mainly due to provisions which are not allowed in the calculation of taxable income. Zakat is calculated on Saudi shareholders’ share of adjusted equity subject to a minimum base equal to the relevant share of adjusted net profit. Foreign shareholders are subject to income tax calculated on the relevant share of adjusted net profit. | 23 |
| Disclosure of classes of share capital [text block] | The authorised, issued and fully paid share capital of the Company is SAR 300,000,000 (31 December 2018: SAR 300,000,000) consisting of 30,000,000 (31 December 2018: 30,000,000) shares each with a nominal value of 10 Saudi Riyals. The Board of Directors resolved in their meeting held on 15 February 2018 to increase the share capital subject to receiving the required approvals of the relevant authorities and thereafter the approval of shareholders. The resolution provided for a share capital increase from SAR 200,000,000 to SAR 300,000,000 by issuing one bonus share for every two shares held thereby increasing the number of shares in issue from 20,000,000 shares to 30,000,000 shares with the additional SAR 100,000,000 share capital generated by capitalising SAR 80,000,000 from retained earnings and SAR 20,000,000 from statutory reserve. Approval was received from the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) on 01 March 2018 and 15 March 2018 respectively. Approval from shareholders was obtained in the extraordinary general assembly meeting held on 21 May 2018 and the bonus shares were issued on 22 May 2018. The total transaction costs relating to the bonus share issue amounted to SAR 76,991. The Commercial Registration Certificate was amended with effect from 24 July 2018 to reflect the increase in share capital following the bonus share issue. | 24 |
| Disclosure of statutory reserve [text block] | In compliance with the Cooperative Insurance Law, the Implementing Regulations and the Articles, 20% of shareholders’ net profit (as defined below) is transferred to statutory reserve at the end of each financial year until the statutory reserve amounts to 100% of the paid capital. At 31 December 2018 Statutory Reserve represents 20% of shareholders' net profit (as defined below) earned from incorporation to 31 December 2018 (2017: 20% of shareholders' net profit earned from incorporation to 31 December 2017). In calculating Statutory Reserve, shareholders’ net profit is stated after deducting zakat and income tax charges and excludes unrealised investment gains. The Statutory Reserve is not available for distribution but it may be converted to share capital in funding a bonus share issue. The Statutory Reserve calculated on the above basis was reduced by SAR 20,000,000 on 22 May 2018 as a result of the issue of bonus shares on that date. Transfer to Statutory Reserve in respect of the year ending 31 December 2019 will be determined at 31 December 2019 and no transfer has been made in the three month period ended 31 March 2019 (three month period ended 31 March 2018: Nil). | 25 |
| Disclosure of earnings per share [text block] | Earnings per share is calculated by dividing shareholders’ net profit (as defined below) by the weighted average number of issued shares during the year. In calculating earnings per share, shareholders’ net profit is stated before deducting zakat and income tax charges and excludes unrealised investment gains. As there are no dilutive effects, basic and diluted earnings per share are the same. Earnings per share is calculated based on the revised number of shares in issue following the bonus share issue on 22 May 2018 and prior comparatives have been restated accordingly. | 26 |
| Disclosure of related party transactions [text block] | Related parties represent shareholders, both individual and corporate, directors, members of the audit, executive, investment, risk and nomination and remuneration committees, the board secretary, key executives and entities controlled (including jointly controlled) or significantly influenced by such parties. The immediate families of the above are related parties.Key Executives, in the context of defining Related Parties, for the three month period ended 31 March 2019 means the following five people (three month period ended 31 March 2018: five people) – the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the three other executives (three month period ended 31 March 2018: three other executives) who earned the highest remuneration. All transactions with related parties are made on an arm’s length basis and no conflicts or potential conflicts of interest were identified during the three month period ended 31 March 2019 (three month period ended 31 March 2018: None). Amounts due to related parties do not include amounts provided for outstanding claims under processing or IBNR. Balances due to or from related parties are unsecured, interest free and are settled in cash and no guarantees have been made or received in relation to any related party transaction or balance. An impairment assessment is undertaken examining the financial position of and the market in which each related party operates. For the three month period ended 31 March 2019, the Company has not recorded any impairment of receivables relating to amounts due from related parties (three month period ended 31 March 2018: Nil).Transactions with related parties are in respect of purchase of insurance portfolio and related business, investments, remuneration and annual insurance contracts. | 29 |
| Disclosure of commitments and contingencies, general [text block] | The Company is subject to legal proceedings in the ordinary course of business. At 31 March 2019 there were no other commitments, contingencies or outstanding legal proceedings or disputes of a material nature. | 33 |
| Disclosure of risk management [abstract] | | |
| Disclosure of insurance/ takaful risk [text block] | Insurance risk is the risk that actual claims payable to contract holders in respect of insured events exceed the carrying amount of insurance liabilities. This could occur if the frequency, severity or absolute amounts of claims are more than expected.Insurance risk is monitored regularly by the Company to establish if the levels are within the projected frequency bands. The insurance risks arising from insurance contracts are concentrated in Saudi Arabia. Insurance risk is influenced by the frequency, severity and absolute amounts of claims. Careful evaluation of risks through implementation of underwriting strategy, together with the use of reinsurance, reduce risk. The Company underwrites mainly property, accident, motor, medical, marine and group protection and savings risks. These are regarded as short-term insurance contracts as claims are normally advised and settled within one year of the insured event taking place. This diversification and short term nature mitigates risk. Property and Accident. For property contracts the main risks are fire and business interruption. These contracts are underwritten by reference to the replacement value of the properties, contents insured and profits of the underlying businesses. The cost of rebuilding properties, replacing contents and the time taken to restart operations following business interruptions are the main factors that influence the level of claims. Motor.For motor contracts the main risks are claims for death and bodily injury and the replacement or repair of vehicles. The level of court awards for deaths and to injured parties and the replacement costs of motor vehicles are the key factors that influence the level of claims. Medical. For medical contracts the main risks are medical expenses incurred for treatment and illness. Marine. For marine contracts the main risks are loss or damage to craft and accidents resulting in total or partial loss of cargo. Group Protection and Savings. The Company writes Group Life including Group Credit Life and PHI policies categorised as Group Protection and Savings notwithstanding the absence of savings elements. In group policies the main risks are mortality and morbidity of the insured compounded due to the concentration of lives. The Company engages in various levels of underwriting including declaration of health, medical questionnaire, reports from specialists and medical tests when required. Group size, the nature of activity carried out by the group, geographic mix and cultural background are all analysed. The business is protected by extensive reinsurance cover with low retention which affords protection from adverse experience, single large losses, multiple claims and concentrations of risk. Sources of uncertainty in estimation of future claim payments. The key source of estimation uncertainty at the statement of financial position date relates to valuation of outstanding claims, whether reported or not, and includes expected claims settlement costs. The principal assumption underlying the liability estimates is that the Company’s future claims development will follow a similar pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim handling costs, claim inflation factors and claim numbers for each accident year. Qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example: one-off occurrence, changes in market factors such as public attitude to claiming, economic conditions: as well as internal factors such as portfolio mix, policy conditions and claims handling procedures. Judgement is further used to assess the extent to which external factors such as judicial decisions and government legislation affect the estimates. Considerable judgment by management is required in the estimation of amounts due to policyholders arising from claims made under insurance contracts. Such estimates are necessarily based on assumptions about several factors involving varying and possibly significant degrees of judgment and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities. Process used to decide on assumptions. The process used to determine the assumptions for calculating the outstanding claim reserve is intended to result in neutral reasonable estimates of the most likely or expected outcome. The nature of the business makes it very difficult to predict with certainty the likely outcome of any particular claim and the ultimate cost of notified claims. Each notified claim is assessed on a separate, case by case basis with due regard to claim circumstances, information available from surveyors and historical evidence of the size of similar claims. Case estimates are reviewed regularly and are updated as and when new information is available. The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Company, in which case information about the claim event is available. The estimation process takes into account the past claims reporting pattern and details of reinsurance programs. The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques, such as Chain Ladder and Bornheutter-Ferguson methods. The main assumption underlying these techniques is that a Company’s past claims development experience can be used to project future claims development and hence ultimate claims costs. As such, these methods extrapolate the development of paid and incurred losses, average costs per claim and claim numbers based on the observed development of earlier years and expected loss ratios. Historical claims development is mainly analyzed by accident years, but can also be further analyzed by geographical area, as well as by significant business lines and claim types. Large claims are usually separately addressed, either by being reserved at the face value of loss adjuster estimates or separately projected in order to reflect their future development. In most cases, no explicit assumptions are made regarding future rates of claims inflation or loss ratios. Instead, the assumptions used are those implicit in the historical claims development data on which the projections are based. Additional qualitative judgement is used to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off occurrences, changes in external or market factors such as public attitudes to claiming, economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix, policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of claims that present the likely outcome from the range of possible outcomes, taking account of all the uncertainties involved. The premium liabilities have been determined such that the total premium liability provisions (unearned premium reserve and premium deficiency reserve) would be sufficient to service the future expected claims and expenses likely to occur on the unexpired policies as at the statement of financial position date. The expected future liability is determined using estimates and assumptions based on the experience during the expired period of the contracts and expectations of future events that are believed to be reasonable. Sensitivity AnalysisThe amount of the provision for outstanding claims, net including IBNR is sensitive to the basis for making judgements and estimates as outlined in Note 4(b). The net underwriting result set out in the statement of insurance operations will be directly impacted by the amount that the provision for outstanding claims, net including IBNR is understated or overstated as a result of this process. | 31a |
| Disclosure of reinsurance/ retakaful risk [text block] | The Company effects reinsurance with other parties in the normal course of business in order to minimise its financial exposure to potential losses arising from large insurance claims. The reinsurance is affected under treaty, facultative and excess of loss reinsurance contracts. To minimise its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers. Reinsurers are selected using parameters such as minimum acceptable credit rating, reputation and past performance. Local companies who do not carry a formal credit rating are accepted to a limited degree provided they are registered with and approved by local Regulators. Although the Company has reinsurance arrangements it is not relieved of its direct obligations to its policyholders in the event that a reinsurer failed to meet its obligations. | 31b |
| Disclosure of currency risk [text block] | Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company primarily transacts in Saudi Riyals and at any time balances held in other currencies are of immaterial amounts only and therefore the Company believes that there is minimal risk of significant losses due to exchange rate fluctuations. | 31d |
| Disclosure of credit risk [text block] | Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The maximum exposure of the Company to credit risk if a default was made by the counter party is equal to the carrying amount of these financial instruments. The Company seeks to limit credit risk with respect to customers by constant monitoring of outstanding receivables. The Company seeks to limit credit risk with respect to agents and brokers by, on a selective basis, setting credit limits, maintenance of cash deposits with the Company and monitoring of outstanding receivables. The Company seeks to limit credit risk with respect to bank time deposits by only dealing with reputable banks and by generally placing deposits for periods of not more than twelve months. To minimise its exposure to significant losses from reinsurer insolvencies, the parties with whom reinsurance is effected are required to have a minimum acceptable security rating level affirming their financial strength. | 31c |
| Disclosure of liquidity risk [text block] | Liquidity risk is the risk that the Company will not be able to meet its commitments associated with financial liabilities when they fall due. Liquidity requirements are monitored on a monthly basis and the Company has ensured that sufficient liquid funds are available to meet any commitments as they arise. | 31f |
| Disclosure of operational/ process risk [text block] | Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the processes, technology and infrastructure supporting the Company’s operations either internally within the Company or externally at the Company’s service providers and from external factors other than credit, market and liquidity risks (already noted above) such as those arising from legal and regulatory requirements and generally accepted standards of behavior. Operational risks arise from all of the Company’s activities.The Company’s objective is to manage operational risk so as to balance limiting of financial losses and damage to its reputation with achieving its objective of generating returns for investors and security for policyholders. The primary responsibility for the development and implementation of controls over operational risk rests with the Board of Directors who encompass controls in the following areas: Requirements for appropriate segregation of duties between various functions, roles and responsibilities; Requirements for the reconciliation and monitoring of transactions; Compliance with regulatory and other legal requirements; Documentation of controls and procedures; Ethical and business standards; Risk mitigation policies and procedures; and Requirements for the periodic assessment of operational risks faced and the adequacy of controls and procedures to address the risks identified. Senior Management ensures that the Company's staff has adequate training and experience and fosters effective communication related to operational risk management. | 31j |
| Disclosure of fair value of financial assets and liabilities [text block] | Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants at the measurement date. Underlying the definition of fair value is a presumption that the enterprise is a going concern without any intention or need to liquidate, curtail materially the scale of its operations or undertake a transaction on adverse terms and 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 advantageous accessible market for the asset or liability. The fair value of financial instruments is based where possible on quoted prices for marketable securities. The fair value of commission bearing items is estimated based on discounted cash flows using commission rates for items with similar terms and risk characteristics. For financial instruments where there is no active market, fair value is determined by reference to the market value of similar financial instruments or where this cannot be determined, they are calculated using a variety of valuation techniques. The assumptions are taken from observable market data where possible and where this is not possible judgment is relied upon to establish fair values. | 11 |
| Disclosure of comparative figures [text block] | Certain prior period amounts or balances may have been reclassified to conform with the current presentation. | 34 |
| Disclosure of board of director's approval of the financial statements [text block] | The Financial Statements were approved by the Board of Directors on 22 April 2019. | 35 |
