| 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] | The insurance industry in Saudi Arabia is regulated by the Law on Supervision of Cooperative Insurance Companies (“Cooperative Insurance Law”) together with the Implementing Regulations (“Implementing Regulations”) promulgated by Royal Decree No. M32 dated 22 Jumad Thani 1424 corresponding to 21 August 2003. Supervision is under the auspices of the Saudi Arabian Monetary Authority ("SAMA" or "Regulator"). 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.The principal activities for which the Company was licensed were the conducting of insurance and reinsurance business in general and medical classes in Saudi Arabia in accordance with License No. TMN/6/20079 issued on 11 September 2007 by SAMA and the License was renewed for three year periods on 10 August 2010, 07 July 2013, 03 June 2016 and 28 January 2020. SAMA gave approval to the Company to conduct business in the protection and savings class on 26 April 2018. At the Company’s request, SAMA approved an amendment to the License to exclude reinsurance business with effect from 30 September 2013.As per the Articles of Association ("Articles"), the Company may undertake all activities required to transact cooperative insurance operations and related activities and to invest its funds. Its principal lines of business include motor, medical, marine, property, engineering, casualty and protection and savings.In accordance with the Implementing Regulations, within six months from the date of publication of the annual financial statements each year, the Board of Directors approve the distribution of the surplus from insurance operations as follows: The shareholders of the Company receive 90% of the surplus from insurance operations including any surplus from investment activities of the policyholders’ invested funds and the policyholders retain the remaining 10%. Any deficit arising on insurance operations is transferred to shareholders’ operations in full. The Company and its shareholders own and retain custody of all net assets related to both insurance operations and shareholders’ operations and funds are allocated to insurance operations as required. The fiscal year of the Company runs from 1 January to 31 December.Cooperative insurance operations commenced with effect from 1 January 2009 following acquisition of the insurance portfolio and related business, assets and liabilities from Arabian Shield Insurance Company EC.The Ministry of Commerce and Investment implemented the new companies’ regulations with effect from 25 Rajab 1437H corresponding to 02 May 2016 (“Effective Date”) promulgated by Royal Decree No. M3 dated 28 Muharram 1437H corresponding to 10 November 2015 (“Companies’ Regulations”). The Companies’ Regulations replace the companies’ regulations promulgated by Royal Decree No. M6 dated 22 Rabi Al Awwal 1385H corresponding to 20 July 1965 and supersede all provisions that are inconsistent therewith.Companies existing at the Effective Date shall make all necessary amendments to their Articles to ensure compliance with the Companies’ Regulations within a period of one year from the Effective Date. As of the date of approval of these financial statements the Company has completed all necessary amendments and is in full compliance with the Companies’ Regulations. | |
| Disclosure of statement of compliance [text block] | These condensed interim financial statements for the three-month period ended 31 March 2020 have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IASB”), as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements that are issued by Saudi Organization for Certified Public Accountants (“SOCPA”).These condensed interim financial statements do not include all the information and disclosures required in the annual financial statements, therefore, these should be read in conjunction with the Company’s annual audited financial statements as at and for the year ended 31 December 2019. | |
| Disclosure of issued IFRS not yet adopted [text block] | This standard was published in May 2017. It establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 – Insurance Contracts.The new standard applies to insurance contracts issued and to all reinsurance contracts and to investment contracts with discretionary participating features provided the entity also issues insurance contracts.It requires separating the following components from insurance contracts:Embedded derivatives if they meet certain specified criteria; and Distinct investment components; and Any promise to transfer distinct goods or non-insurance services. These components should be accounted for separately in accordance with the related standards (IFRS 9 and IFRS 15). | |
| 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 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 2019.The following judgments and estimates have the most significant effect on the amounts recognised. | |
| Disclosure of basis of measurement [text block] | In contrast to the requirements in IFRS 4, which permitted insurers to continue to use the accounting policies for measurement purposes that existed prior to January 2015, IFRS 17 provides the following three different measurement models:1. The General Measurement Model (GMM) is based on the following “building blocks”: a) The Fulfillment Cash Flows (FCF) which comprise: A probability-weighted estimate of future cash flows; and An adjustment to reflect the time value of money (i.e. discounting) and the financial risks associated with the future cash flows; and A risk adjustment for non-financial risk. b) The Contractual Service Margin (CSM) represents the unearned profit for a group of insurance contracts and will be recognized as the entity provides services in the future. The CSM cannot be negative at inception and any net negative amount of the fulfilment cash flows at inception will be recorded in profit or loss immediately. At the end of each subsequent reporting period, the carrying amount of a group of insurance contracts is re-measured to be the sum of: The liability for remaining coverage, which comprises the FCF related to future services and the CSM of the group at that date; and Liability for incurred claims, which is measured as the FCF related to past services allocated to the group at that date. The CSM is adjusted subsequently for changes in cash flows related to future services. Since the CSM cannot be negative, changes in future cash flows that are greater than the remaining CSM are recognized in profit or loss. The effect of changes in discount rates will be reported in either profit or loss or other comprehensive income, determined by an accounting policy choice.2. The Variable Fee Approach (VFA) is a mandatory model for measuring contracts with direct participation features (also referred to as ‘direct participating contracts’). This assessment of whether the contract meets these criteria is made at inception of the contract and not reassessed subsequently. For these contracts, in addition to the adjustment under GMM, the CSM is also adjusted for: The entity’s share of the changes in the fair value of underlying items; and The effect of changes in the time value of money and in financial risks not relating to the underlying items.3. The Premium Allocation Approach (PAA), a simplified approach, is permitted for the measurement of the liability for remaining coverage if it provides a measurement that is not materially different from the General Measurement Model for the group of contracts or if the coverage period for each contract in the group is one year or less. The liability for remaining coverage corresponds to premiums received at initial recognition less insurance acquisition cash flows. The General Measurement Model remains applicable for the measurement of the liability for incurred claims. However, the entity is not required to adjust future cash flows for the time value of money and the effect of financial risk if those cash flows are expected to be paid / received in one year or less from the date the claims are incurred. | |
| Disclosure of functional and presentation currency [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. | |
| Disclosure of going concern [text block] | At 31 March 2020, the Company’s total financial assets and total insurance related assets amount to 1,087,451 and 269,231 respectively. Financial assets and insurance related assets are not necessarily mutually exclusive in terms of classification. The total financial assets are composed of financial assets held at amortized cost and other financial assets. Financial assets held at amortized cost amount to 859,355 and consist of cash and cash equivalents, short-term fixed deposits, premium and reinsurance receivables and other receivables. Other financial assets amount to 226,487 and consist of available for sale investments. The Company may use the FVOCI classification for these other financial assets based on the business model of the Company for debt securities and the strategic nature of equity investments. The Company is yet to perform a detailed assessment to determine whether the debt securities meet the SPPI test as required by IFRS 9. Notes 32 and 33 relate to credit risk exposure, concentration of credit risk and credit quality of financial assets. The Company’s financial assets at 31 March 2020 have low credit risk. The foregoing is based on a preliminary high-level impact assessment of IFRS 9 based on currently available information and may be subject to changes arising from further detailed analyses or additional reasonable and supportable information being available in the future. The Company expects some impacts from implementing IFRS 9, however it is not possible to provide a reasonable estimate of these impacts until the Company has performed a detailed review. | |
| Disclosure of other general disclosures about reporting entity [text block] | ImpairmentThe impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39. Under the IFRS 9 approach, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition.Hedge accountingIFRS 9 introduces new requirements for hedge accounting that align hedge accounting more closely with Risk Management. The requirements establish a more principles-based approach to the general hedge accounting model.The amendments apply to all hedge accounting with the exception of portfolio fair value hedges of interest rate risk (commonly referred to as “fair value macro hedges”). For these, an entity may continue to apply the hedge accounting requirements currently in IAS 39. This exception was granted largely because the IASB is addressing macro hedge accounting as a separate project. | |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | The accounting policies and risk management policy used in the preparation of the unaudited interim condensed financial statements for the period ended 31 March 2020 are consistent with those followed in the preparation of the financial statements for the year ended 31 December 2019, except as explained below in regard to comparatives:For the period ended 31 March 2019 and prior periods the charges for zakat and income tax were presented in the statement of changes in shareholders’ equity and not in the statement of income or statement of comprehensive income. With effect from the period ended 30 June 2019 the charges for zakat and income tax are presented in the statement of income.In the unaudited interim condensed financial statements for the period ended 31 March 2020 the comparatives for the period ended 31 March 2019 have been restated to reflect the current presentation for zakat and income tax. | |
| Description of changes in accounting policy [text block] | The IASB issued an Exposure Draft in June 2019 - Amendments to IFRS 17 proposing certain amendments to IFRS 17 and received comments from various stakeholders. The IASB is currently re-deliberating issues raised by stakeholders. For any proposed amendments to IFRS 17, the IASB will follow its normal due process for standard-setting. The effective date of IFRS 17 and the deferral of the IFRS 9 temporary exemption in IFRS 4 is currently 01 January 2021. Under this exposure draft, it is proposed to amend the IFRS 17 effective date to reporting periods beginning on or after 01 January 2022. This was a deferral of 1 year compared to the previous date of 01 January 2021. Further, on 17 March 2020, The International Accounting Standards Board (IASB) completed its discussions on the amendments to IFRS 17 and decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 01 January 2023.Earlier application is permitted if both IFRS 15 – Revenue from Contracts with Customers and IFRS 9 – Financial Instruments have also been applied. The Company intends to apply the Standard on its effective date 01 January 2023. | |
| 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. | |
| Description of accounting policy for premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance 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 9 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. | |
| 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 claimsImpairment reviews are conducted regularly and any impairment loss is reflected in the statement of income. | |
| Description of accounting policy for income and other taxes including deferred taxes [text block] | Zakat and income tax have been provided for in accordance with regulations currently in force in Saudi Arabia. The temporary and permanent differences between financial and adjusted taxable results are mainly due to adjustments to depreciation, provisions and other items in accordance with the income tax regulations. Deferred tax arising out of these differences is not significant and accordingly was not provided for.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. | |
| 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. | |
| 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 expense.Capital 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. | |
| 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. | |
| 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. | |
| 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. | |
| 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. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of accounting estimate [text block] | The existence of novel coronavirus (COVID-19) was confirmed in early 2020 and has spread across the globe, causing disruptions to businesses and economic activity. As the situation is fluid and rapidly evolving, it is not practicable to provide a quantitative estimate of the potential impact of this pandemic and the various precautionary measures implemented in the Kingdom and on the Company and its operations.Also, it is not practically possible to determine the potential impact on the Company's financial statements for the period that have been prepared based on information currently available but are subject to future uncertainty caused due to the developing situation.In response to the Covid-19 pandemic, SAMA issued a decree 189 (the “decree”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the decree instructs insurance companies to extend the period of validity of all existing retail motor insurance policies by further two months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this decree. The management believes the requirements of the decree to be a non-adjusting event. | |
| 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. | |
| 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. | |
| 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. | |
| 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.The amounts due from reinsurers are contractually due within a maximum sixty days from end of quarter in which the payment is made for claims under treaty reinsurance and treaty retention excess of loss reinsurance and ninety days for claims under facultative reinsurance. | |
| 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. | |
| 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. | |
