| 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. | |
| Disclosure of basis of preparation of financial statements [text block] | The accounting policies, estimates and assumptions used in the preparation of the financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2019 and no new or amended accounting policies or accounting standards were adopted by the Company during 2020 to date. | |
| 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. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 4(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies.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. | |
| Disclosure of statement of compliance [text block] | The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and other standards and pronouncements endorsed by the Saudi Organization for Certified Public Accountants (“SOCPA”) (collectively referred to as “IFRS as endorsed in KSA”). | |
| Disclosure of new standards and amendments in standards [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; 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 issued IFRS not yet adopted [text block] | The International Accounting Standards Board (“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. | |
| Disclosure of critical accounting judgements, estimates and assumptions, general [text block] | The preparation of 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 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 for the year ended 31 December 2019. However, the Company has reviewed the key sources of estimation uncertainties disclosed in the last annual financial statements against the backdrop of the COVID-19 pandemic. For further details, please see Note 34 to these financial statements. Management will continue to assess the situation, and reflect any required changes in future reporting periods. | |
| Disclosure of basis of measurement [text block] | The accounting policies, estimates and assumptions used in the preparation of the financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2019 and no new or amended accounting policies or accounting standards were adopted by the Company during 2020 to date. | |
| 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 summary of significant accounting policies [abstract] | | |
| Description of changes in accounting policy [text block] | The accounting policies, estimates and assumptions used in the preparation of the financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2019 and no new or amended accounting policies or accounting standards were adopted by the Company during 2020 to date. Financial statements are prepared under the going concern convention using the accrual basis of accounting. The historical cost convention is followed except for the measurement at fair value of available for sale investments - see Note 4(r). Financial assets and financial liabilities are offset and the net amount reported only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously. Income and expense are not offset unless required or permitted by an accounting standard or interpretation as specifically disclosed in the accounting policies.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. | |
| 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 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. | |
| 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 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. | |
| 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. | |
| 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. | |
| Description of accounting policy for intangible assets and goodwill [text block] | 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 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. | |
| 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 reserves [text block] | Based on the management’s assessment, the management believes that the Government’s decision to assume the medical treatment costs for both Saudi citizens and expatriates has helped in reducing any unfavourable impact. During the lockdown, the Company saw a decline in medical reported claims (majorly elective and non-chronic treatment claims) which resulted in a drop in claims experience. However, subsequent to the lifting of lockdown since 21 June 2020, the Company is experiencing a surge in claims which is in line with the expectations of the Company’s management. The Company’s management has duly considered the impact of surge in claims in the current estimate of future contractual cashflows of the insurance contracts in force as at 31 December 2020 for its liability adequacy test. In response to the Covid-19 pandemic, SAMA issued a circular 189 (the “circular”) dated 08 May 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the circular instructed insurance companies to extend the period of validity of all existing retail motor insurance policies by further two months as well as providing a two-month additional coverage for all new retail motor policies written within one month of this circular. | |
| Description of accounting policy for statutory reserve [text block] | In compliance with the Cooperative Insurance Law, the Implementing Regulations and the By-Laws, 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. 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. | |
| Description of accounting policy for employees end of service benefits [text block] | Benefits payable to Company employees 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. | |
| Description of accounting policy for zakat [text block] | 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 reinsurance premium/ retakaful contributions [text block] | Reinsurance contracts, by which the Company cedes insurance risks to reinsurers, are entered into by the Company in the normal course of business.Under such contracts the Company agrees to cede part of the underlying premium to the reinsurer and the reinsurer agrees to pay commission on the ceded premium to the Company and to compensate the Company for losses arising on the underlying insurance contract.Amounts recoverable from or due to reinsurers are recognised in the statement of financial position and the statement of income consistently with the treatment of amounts associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract.At each reporting date, the Company assesses whether there is any indication that a reinsurance asset may be impaired. Where an indicator of impairment exists, the Company makes a formal estimate of recoverable amount. Where the carrying amount of a reinsurance asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.Reinsurance assets and liabilities are derecognised when the contractual rights expire or when the contract is transferred to another party.Reinsurance contracts do not relieve the Company from its obligations to policyholders. | |
| 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. | |
| Description of accounting policy for transaction costs [text block] | 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%; and Any deficit arising on insurance operations is transferred to shareholders’ operations in full. | |
| 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. | |
| 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. Short-term leases are leases with a lease term of 12 months or less. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the statement of income. | |
| Description of accounting policy for derivative financial instruments and hedges [text block] | The derecognition of a financial instrument takes place when the Company no longer controls the contractual rights that comprise the financial instrument, which is normally the case when the instrument is sold or all the cash flows attributable to the instrument are passed through to an independent third party and the Company has also transferred substantially all risks and rewards of ownership. | |
| Description of accounting policy for statutory deposit [text block] | In compliance with the Insurance Implementation Regulation of SAMA, the Company maintains a deposit of 30,000 (31 December 2019: 30,000) in a deposit account at The Saudi British Bank. This deposit cannot be withdrawn without SAMA's consent and the Company does not earn commission from the deposit. The accrued income on the deposit as at 31 December 2020 is 3,002 (31 December 2019: 2,727) and has been disclosed as “Accrued income on statutory deposit” and the corresponding commission is shown in liabilities as “Accrued commission income payable to SAMA”. | |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of prior years adjustments [text block] | Adjustments are made to reflect the impact of events occurring between the reporting and publishing dates provided they give evidence of conditions that existed at the reporting date. Events that are indicative of conditions that arose after the reporting date are disclosed but no adjustment is made for their impact. | |
| Disclosure of investments held-to-maturity [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. | |
| 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. | |
| 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. | |
| Disclosure of investments reclassified [text block] | The Company evaluates whether the ability and intention to sell available for sale investments in the near future is still appropriate. If due to inactive markets the Company is unable to trade such investments it may elect to reclassify if it has the ability and intention to hold the investments for the foreseeable future or until maturity. Reclassification to loans and receivables is permitted when the investments meet the definition of loans and receivables and the Company has the intention and ability to hold the investments for the foreseeable future or until maturity. Reclassification to held to maturity is permitted only when the Company has the ability and intention to hold the investment until maturity. For an investment reclassified out of available for sale category, the fair value at the date of reclassification becomes its new amortised cost and any previous gain or loss on that investment that has been recognised in equity is amortised to the statement of income over the remaining life of the investment using the effective interest rate method. Any difference between the new amortised cost and the maturity amount is also amortised over the remaining life of the investment using the effective interest rate method. If the investment is subsequently determined to be impaired the amount recorded in equity is reclassified to the statement of income. | |
| Disclosure of due from related parties [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 year ended 31 December 2020 means the following six people (year ended 31 December 2019: six people) – the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the four other executives (year ended 31 December 2019: four 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 year ended 31 December 2020 and 2019. 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 by examining the financial position of and the market in which each related party operates. For the year ended 31 December 2020, the Company has not recorded any impairment of receivables relating to amounts due from related parties (year ended 31 December 2019: Nil). Transactions with related parties are in respect of purchase of insurance portfolio and related business, investments, remuneration and annual insurance contracts. | |
| Disclosure of due to related parties [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 year ended 31 December 2020 means the following six people (year ended 31 December 2019: six people) – the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the four other executives (year ended 31 December 2019: four 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 year ended 31 December 2020 and 2019. 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 by examining the financial position of and the market in which each related party operates. For the year ended 31 December 2020, the Company has not recorded any impairment of receivables relating to amounts due from related parties (year ended 31 December 2019: Nil). Transactions with related parties are in respect of purchase of insurance portfolio and related business, investments, remuneration and annual insurance contracts. | |
| Disclosure of zakat [text block] | 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. | |
| 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 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. | |
| Disclosure of statutory reserve [text block] | In compliance with the Cooperative Insurance Law, the Implementing Regulations and the By-Laws, 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. 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. | |
| Disclosure of gross premiums/ contributions written [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. | |
| 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 period. In calculating earnings per share, shareholders’ net profit is stated after deducting zakat and income tax charges and excludes unrealised investment gains. As there are no dilutive effects, basic and diluted SAR earnings per share are the same. | |
| Disclosure of capital management [text block] | Objectives are set by the Company to optimise the structure and sources of capital and maintain healthy capital ratios to support its business objectives and consistently maximise returns to shareholders and policyholders.The Company’s approach to managing capital involves managing assets, liabilities and risks in a coordinated way, assessing shortfalls between reported and required capital levels on a regular basis and taking appropriate actions to influence the capital position of the Company in the light of changes in economic conditions and risk characteristics. The primary source of capital used by the Company is equity shareholders’ funds. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares. | |
| Disclosure of insurance/ takaful operations surplus and dividends [text block] | Dividend distribution is recognized as a liability in the period in which the dividend is approved by the shareholders. | |
| 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 commission/ special commission rate risk [text block] | Interest rate risk arises from the possibility that changes in interest rates will affect future profitability or the fair values of financial instruments. Deposits are generally placed for periods not exceeding twelve months.An annualized increase or decrease of 1% in interest yields would have an impact on annual profits of 4,384 (year ended 31 December 2019: impact on annual profits of 3,820). | |
| Disclosure of market risk [text block] | Investment market price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices (other than those arising from commission rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or factors affecting all similar financial instruments traded in the market.The Company's investments amounting to 246,555 (31 December 2019: 234,134) are susceptible to market price risk arising from uncertainty about the future value of invested securities. The Company limits this nature of market risk by diversifying its invested portfolio and by actively monitoring the developments in markets. | |
| 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. | |
| Disclosure of board of director's approval of the financial statements [text block] | The Financial Statements were approved by the Board of Directors on 16 February 2021. | |
