| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | 20. Supplementary information Interim condensed statement of financial position June 30, 2021 December 31, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalAssets Cash and cash equivalents 92,792,010 102,644,428 195,436,438 67,852,194 111,655,835 179,508,029 Short-term deposits - 40,054,223 40,054,223 86,516,962 40,053,779 126,570,741 Premiums and reinsurers’ receivable - net 177,724,670 - 177,724,670 206,568,729 - 206,568,729Premiums receivable - related parties - net 8,969,428 - 8,969,428 8,311,277 - 8,311,277 Reinsurers’ share of unearned premiums 47,243,347 - 47,243,347 36,474,798 - 36,474,798 Reinsurers’ share of outstanding claims 50,212,495 - 50,212,495 48,489,107 - 48,489,107 Reinsurers’ share of claims incurred but not reported 23,252,841 - 23,252,841 20,062,991 - 20,062,991 Deferred policy acquisition costs 24,821,636 - 24,821,636 29,474,599 - 29,474,599 Deferred excess of loss premiums 3,707,632 - 3,707,632 - - -Investments 130,031,972 151,500,975 281,532,947 114,189,967 142,869,247 257,059,214 Prepaid expenses and other assets 35,005,338 3,952,593 38,957,931 26,355,272 4,466,093 30,821,365Property and equipment 9,749,913 - 9,749,913 10,770,393 - 10,770,393 Right-of-use assets 8,288,926 - 8,288,926 9,278,773 - 9,278,773 Intangible assets 13,106,511 - 13,106,511 12,106,745 - 12,106,745 Goodwill - 103,786,750 103,786,750 - 103,786,750 103,786,750Statutory deposit - 34,421,196 34,421,196 - 52,871,196 52,871,196 Accrued income on statutory deposit - 7,675,662 7,675,662 - 7,562,956 7,562,956 Due from shareholders’ operations 250,144,002 - 250,144,002 166,304,034 - 166,304,034Total assets 875,050,721 444,035,827 1,319,086,548 842,755,841 463,265,856 1,306,021,697Less: inter-operations elimination (250,144,002) - (250,144,002) (166,304,034) - (166,304,034)Total assets 624,906,719 444,035,827 1,068,942,546 676,451,807 463,265,856 1,139,717,663 (Continued) 20. Supplementary information (continued)Interim condensed statement of financial position (continued) June 30, 2021 December 31, 2020 Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalLiabilities Accounts payable 94,495,625 - 94,495,625 72,108,216 - 72,108,216 Accrued and other liabilities 41,628,357 699,268 42,327,625 27,125,666 779,764 27,905,430Reinsurers' balances payable 22,552,321 - 22,552,321 15,379,852 - 15,379,852 Unearned premiums 309,407,474 - 309,407,474 375,588,801 - 375,588,801 Unearned reinsurance commission 10,927,560 - 10,927,560 8,825,885 - 8,825,885 Outstanding claims 114,931,204 - 114,931,204 104,742,560 - 104,742,560 Claims incurred but not reported 194,395,211 - 194,395,211 170,897,914 - 170,897,914 Additional premium reserves 28,877,326 - 28,877,326 11,295,391 - 11,295,391 Other technical reserves 13,062,285 - 13,062,285 11,211,593 - 11,211,593 Lease liabilities 7,454,695 - 7,454,695 7,500,772 - 7,500,772 Employee benefit obligations 19,583,688 - 19,583,688 20,659,103 - 20,659,103 Zakat and income tax - 20,072,948 20,072,948 - 19,958,958 19,958,958Surplus distribution payable 13,748,722 - 13,748,722 13,748,722 - 13,748,722 Accrued income payable to SAMA - 7,675,662 7,675,662 - 7,562,956 7,562,956 Due to insurance operations - 250,144,002 250,144,002 - 166,304,034 166,304,034Total liabilities 871,064,468 278,591,880 1,149,656,348 839,084,475 194,605,712 1,033,690,187Less: inter-operations elimination - (250,144,002) (250,144,002) - (166,304,034) (166,304,034)Total liabilities 871,064,468 28,447,878 899,512,346 839,084,475 28,301,678 867,386,153 (Continued) 20. Supplementary information (continued)Interim condensed statement of financial position (continued) June 30, 2021 December 31, 2020Equity Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Share capital - 229,474,640 229,474,640 - 229,474,640 229,474,640Share premium - - - - 89,488,445 89,488,445Statutory reserve - 4,885,691 4,885,691 - 4,885,691 4,885,691Accumulated losses - (75,651,475) (75,651,475) - (59,541,995) (59,541,995)Remeasurement reserve of employee benefit obligations (2,203,061) - (2,203,061) (2,203,061) - (2,203,061)Fair value reserve on investments 6,189,314 6,735,091 12,924,405 5,874,427 4,353,363 10,227,790Total equity 3,986,253 165,443,947 169,430,200 3,671,366 268,660,144 272,331,510Total liabilities and equity 875,050,721 193,891,825 1,068,942,546 842,755,841 296,961,822 1,139,717,663 20. Supplementary information (continued)Interim condensed statement of income for the six-month period ended June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalRevenues Gross premiums written 305,293,178 - 305,293,178 226,111,769 - 226,111,769 Reinsurance premiums ceded: - Foreign (53,340,342) - (53,340,342) (44,526,663) - (44,526,663)- Local (7,200,600) - (7,200,600) (7,151,920) - (7,151,920)Excess of loss premiums: - Foreign (12,359,731) - (12,359,731) (2,192,805) - (2,192,805)- Local (1,072,559) - (1,072,559) (243,088) - (243,088)Net premiums written 231,319,946 - 231,319,946 171,997,293 - 171,997,293 Changes in unearned premiums 66,181,327 - 66,181,327 33,090,584 - 33,090,584Changes in reinsurers’ share of unearned premiums 10,768,549 - 10,768,549 1,321,811 - 1,321,811Net premiums earned 308,269,822 - 308,269,822 206,409,688 - 206,409,688 Reinsurance commissions 11,627,257 - 11,627,257 11,374,785 - 11,374,785 Fee income from insurance 199,418 - 199,418 110,911 - 110,911 Total revenues 320,096,497 - 320,096,497 217,895,384 - 217,895,384 (Continued) 20. Supplementary information (continued)Interim condensed statement of income for the six-month period ended (continued) June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalUNDERWRITING COSTS AND EXPENSES Gross claims paid (314,849,763) - (314,849,763) (162,152,968) - (162,152,968)Reinsurers’ share of gross claims paid 36,041,548 - 36,041,548 28,851,172 - 28,851,172 Expenses incurred related to claims (7,793,908) - (7,793,908) (2,290,618) - (2,290,618) Net claims and other benefits paid (286,602,123) - (286,602,123) (135,592,414) - (135,592,414) - Changes in outstanding claims (10,188,644) - (10,188,644) (4,243,905) - (4,243,905)Changes in reinsurers’ share of outstanding claims 1,723,388 - 1,723,388 498,531 - 498,531 Changes in claims incurred but not reported (23,497,297) - (23,497,297) 5,172,076 - 5,172,076 Changes in reinsurers’ share of claims incurred but not reported 3,189,850 - 3,189,850 (4,500,138) - (4,500,138)Net claims and other benefits incurred (315,374,826) - (315,374,826) (138,665,850) - (138,665,850) Policy acquisition costs (28,139,176) - (28,139,176) (19,135,776) - (19,135,776)Changes in additional premium reserves (17,581,935) - (17,581,935) (4,646,561) - (4,646,561)Changes in other technical reserves (1,850,692) - (1,850,692) 134,119 - 134,119 Other underwriting expenses (3,799,695) - (3,799,695) (1,570,405) - (1,570,405)Total underwriting costs and expenses, net (366,746,324) - (366,746,324) (163,884,473) - (163,884,473)NET UNDERWRITING (LOSS) INCOME (46,649,827) - (46,649,827) 54,010,911 - 54,010,911 (Continued) 20. Supplementary information (continued)Interim condensed statement of income for the six-month period ended, (continued) June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalOTHER OPERATING (EXPENSES) INCOME Allowance for doubtful debts (6,757,435) - (6,757,435) (15,424,878) - (15,424,878)General and administrative expenses (60,020,270) (1,369,907) (61,390,177) (43,506,833) (1,238,632) (44,745,465)Investment and commission income - net 2,814,296 5,908,048 8,722,344 3,665,730 1,934,444 5,600,174Finance costs on leases (146,981) - (146,981) (133,567) - (133,567)Other income 2,624,151 - 2,624,151 5,192,301 - 5,192,301 Total other operating (expenses) income, net (61,486,239) 4,538,141 (56,948,098) (50,207,247) 695,812 (49,511,435)Total (loss) income for the period before surplus attribution, zakat and income tax (108,136,066) 4,538,141 (103,597,925) 3,803,664 695,812 4,499,476Zakat expense - (2,000,000) (2,000,000) - (1,315,640) (1,315,640)Income tax expense - - - - - -Total (loss) income for the period attributable to the shareholders (108,136,066) 2,538,141 (105,597,925) 3,803,664 (619,828) 3,183,836Deficit / surplus transferred to the shareholders’ operations 108,136,066 (108,136,066) - (3,423,298) 3,423,298 -Total (loss) income for the period after transfer of deficit - (105,597,925) (105,597,925) 380,366 2,803,470 3,183,836Weighted average number of outstanding shares - - 22,947,464 - 15,000,000 -(Losses) earnings per share (expressed in Saudi Riyals per share) Basic (losses) earnings per share - - (4.60) - 0.19 -Diluted (losses) earnings per share - - (4.60) - 0.19 - 20. Supplementary information (continued)Interim condensed statement of comprehensive income for the six-month period ended June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Total (loss) income for the period after transfer of (deficit) surplus - (105,597,925) (105,597,925) 380,366 2,803,470 3,183,836 Other comprehensive income: Items that will be reclassified to the interim condensed statement of income in subsequent periods Net change in fair value of available-for-sale investments 314,887 2,381,728 2,696,615 1,457,797 906,930 2,364,727Realized gain reclassified to interim condensed statement of income - - - - (39,457) (39,457) 314,887 2,381,728 2,696,615 1,457,797 867,473 2,325,270Total comprehensive income (loss) for the period 314,887 (103,216,197) (102,901,310) 1,838,163 3,670,943 5,509,106 20. Supplementary information (continued)Interim condensed statement of income for the three-month period ended June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalRevenues Gross premiums written 128,214,067 - 128,214,067 92,459,018 - 92,459,018 Reinsurance premiums ceded - Foreign (19,238,197) - (19,238,197) (14,272,802) - (14,272,802)- Local (3,564,041) - (3,564,041) (3,133,183) - (3,133,183)Excess of loss premiums: - Foreign (9,395,350) - (9,395,350) (1,096,403) - (1,096,403)- Local (505,099) - (505,099) (121,544) - (121,544)Net premiums written 95,511,380 - 95,511,380 73,835,086 - 73,835,086 Changes in unearned premiums 60,527,772 - 60,527,772 30,443,271 - 30,443,271 Changes in reinsurers’ share of unearned premiums (3,423,451) - (3,423,451) (5,304,127) - (5,304,127)Net premiums earned 152,615,701 - 152,615,701 98,974,230 - 98,974,230 Reinsurance commissions 5,950,855 - 5,950,855 5,188,791 - 5,188,791 Fee income from insurance 85,440 - 85,440 42,640 - 42,640 Total revenues 158,651,996 - 158,651,996 104,205,661 - 104,205,661 UNDERWRITING COSTS AND EXPENSES Gross claims paid (142,737,342) - (142,737,342) (80,921,575) - (80,921,575)Reinsurers’ share of gross claims paid 22,390,586 - 22,390,586 9,515,879 - 9,515,879 Expenses incurred related to claims (4,156,154) - (4,156,154) (1,173,149) - (1,173,149)Net claims and other benefits paid (124,502,910) - (124,502,910) (72,578,845) - (72,578,845)Changes in outstanding claims 7,407,059 - 7,407,059 31,915,868 - 31,915,868 Changes in reinsurers’ share of outstanding claims (1,469,880) - (1,469,880) (107,499) - (107,499)Changes in claims incurred but not reported (33,649,273) - (33,649,273) (6,922,644) - (6,922,644)Changes in reinsurers’ share of claims incurred but not reported 3,901,785 - 3,901,785 (505,707) - (505,707)Net claims and other benefits incurred (148,313,219) - (148,313,219) (48,198,827) - (48,198,827) (Continued) 20. Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued) June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Policy acquisition costs (14,328,020) - (14,328,020) (9,343,843) - (9,343,843)Change in additional premium reserves (7,171,265) - (7,171,265) (8,593,626) - (8,593,626)Change in other technical reserves (1,920,264) - (1,920,264) 435,101 - 435,101 Other underwriting expenses (3,526,700) - (3,526,700) (1,137,597) - (1,137,597)Total underwriting costs and expenses, net (175,259,468) - (175,259,468) (66,838,792) - (66,838,792)NET UNDERWRITING (LOSS) INCOME (16,607,472) - (16,607,472) 37,366,869 - 37,366,869 OTHER OPERATING (EXPENSES) INCOME Allowance for doubtful debts (3,044,068) - (3,044,068) (12,402,809) - (12,402,809)General and administrative expenses (31,937,987) (450,709) (32,388,696) (20,701,305) (564,778) (21,266,083)Investment and commission income - net 1,604,099 2,911,526 4,515,625 1,636,153 896,086 2,532,239Finance costs on leases (72,908) - (72,908) (66,644) - (66,644)Other income 796,299 - 796,299 4,435,923 - 4,435,923Total other operating (expenses) income, net (32,654,565) 2,460,817 (30,193,748) (27,098,682) 331,308 (26,767,374)Total (loss) income for the period before surplus attribution, zakat and income tax (49,262,037) 2,460,817 (46,801,220) 10,268,187 331,308 10,599,495Zakat expense - (1,000,000) (1,000,000) - (623,198) (623,198)Income tax expense - - - - - -Total (loss) income for the period (49,262,037) 1,460,817 (47,801,220) 10,268,187 (291,890) 9,976,297 Surplus (Deficit) attributed to the shareholders’ operations 49,262,037 (49,262,037) - (9,241,368) 9,241,368 -Total (loss) income for the period after transfer of (deficit) surplus - (47,801,220) (47,801,220) 1,026,819 8,949,478 9,976,297Weighted average number of outstanding shares - - 22,947,464 - 15,000,000 -(Losses) earnings per share (expressed in Saudi Riyals per share) Basic (losses) earnings per share - - (2.08) - 0.60 -Diluted (losses) earnings per share - - (2.08) - 0.60 - 20. Supplementary information (continued)Interim condensed statement of comprehensive income for the three-month period ended June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Total (loss) income for the period after transfer of (deficit) surplus - (47,801,220) (47,801,220) 1,026,819 8,949,478 9,976,297 Other comprehensive (loss) income: Items that will be reclassified to the interim condensed statement of income in subsequent periods Net change in fair value of available-for-sale investments (421,078) 1,479,589 1,058,511 3,357,693 5,803,997 9,161,690Realized gain reclassified to interim condensed statement of income - - - - (39,457) (39,457) (421,078) 1,479,589 1,058,511 3,357,693 5,764,540 9,122,233Total comprehensive (loss) income for the period (421,078) (46,321,631) (46,742,709) 4,384,512 14,714,018 19,098,530 20. Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM OPERATING ACTIVITIES Total (loss) income for the period before surplus attribution, zakat and income tax - (103,597,925) (103,597,925) 380,366 4,119,110 4,499,476Adjustments for non-cash items: Depreciation of property and equipment 1,148,898 - 1,148,898 690,726 - 690,726 Amortization of intangible assets 1,213,764 - 1,213,764 982,243 - 982,243 Depreciation of right-of-use assets 973,077 - 973,077 521,454 - 521,454 Finance costs on leases 146,981 - 146,981 133,567 - 133,567 Allowance for doubtful debts 6,757,435 - 6,757,435 15,424,878 - 15,424,878 Investment and commission income (2,814,296) (5,908,048) (8,722,344) (3,665,730) (1,987,825) (5,653,555) Provision for employee benefit obligations 606,928 - 606,928 1,168,308 - 1,168,308 Realized losses on disposals of available-for-sale investments - - - - 53,381 53,381(Gain) loss on termination of lease liabilities (112,288) - (112,288) 772 - 772 7,920,499 (109,505,973) (101,585,474) 15,636,584 2,184,666 17,821,250 Changes in operating assets and liabilities: Premiums and reinsurers’ receivable 22,086,624 - 22,086,624 21,476,220 - 21,476,220 Premium receivables - related parties (658,151) - (658,151) 1,695,183 - 1,695,183 Reinsurers’ share of unearned premiums (10,768,549) - (10,768,549) (1,321,811) - (1,321,811)Reinsurers’ share of outstanding claims (1,723,388) - (1,723,388) (498,531) - (498,531)Reinsurers’ share of claims incurred but not reported (3,189,850) - (3,189,850) 4,500,138 - 4,500,138 (Continued) 20. Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended (continued) June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations Total Deferred policy acquisition costs 4,652,963 - 4,652,963 2,500,801 - 2,500,801 Deferred excess of loss premiums (3,707,632) - (3,707,632) (2,435,893) - (2,435,893)Prepaid expenses and other assets (8,021,117) 5,205,009 (2,816,108) 4,342,595 (43,515) 4,299,080Accounts payable 22,387,409 - 22,387,409 (5,809,368) - (5,809,368)Accrued and other liabilities 8,952,691 (80,496) 8,872,195 10,135,083 - 10,135,083Reinsurers' balances payable 7,172,469 - 7,172,469 10,339,646 - 10,339,646 Unearned premiums (66,181,327) - (66,181,327) (33,090,584) - (33,090,584)Unearned reinsurance commission 2,101,675 - 2,101,675 (282,760) - (282,760)Outstanding claims 10,188,644 - 10,188,644 4,243,905 - 4,243,905 Claims incurred but not reported 23,497,297 - 23,497,297 (5,172,076) - (5,172,076)Additional premium reserves 17,581,935 - 17,581,935 4,646,561 - 4,646,561 Other technical reserves 1,850,692 - 1,850,692 (134,119) - (134,119)Employee benefit obligations paid (1,682,343) - (1,682,343) (978,038) - (978,038)Zakat and income tax paid - (1,886,010) (1,886,010) - - -Net cash generated from (used in) operating activities 32,460,541 (106,267,470) (73,806,929) 29,793,536 2,141,151 31,934,687 (Continued) 20 Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended (continued) June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’operations Total Insurance operations Shareholders’ operations TotalCASH FLOWS FROM INVESTING ACTIVITIES Placement of short-term deposits (30,584,375) (100,492,708) (131,077,083) (73,250,000) - (73,250,000)Liquidation of short-term deposits 116,793,212 100,855,417 217,648,629 74,896,368 1,072,209 75,968,577Purchases of available-for- sale investments (15,527,118) (10,000,000) (25,527,118) - (800,000) (800,000)Purchases of held-to-maturity investments - - - (5,000,000) - (5,000,000)Proceeds from disposal of available-for-sale investments - - - - 7,312,500 7,312,500 Proceeds from redemption of held-to-maturity investment - 3,750,000 3,750,000 3,541,665 4,000,000 7,541,665 Investment and commission income received 2,493,472 6,403,386 8,896,858 1,145,251 1,814,294 2,959,545Payments for purchases property and equipment (349,440) - (349,440) (1,487,329) - (1,487,329)Additions to intangible assets (2,460,772) - (2,460,772) (2,182,091) - (2,182,091)Proceeds from disposal of property and equipment 468,264 - 468,264 - - -Liquidation of statutory deposit - 18,450,000 18,450,000 - - -Net cash generated from (used in) investing activities 70,833,243 18,966,095 89,799,338 (2,336,136) 13,399,003 11,062,867CASH FLOWS FROM FINANCING ACTIVITIES Principal elements of lease payments (60,982) - (60,982) (1,146,182) - (1,146,182)Finance cost paid (3,018) - (3,018) (128,818) - (128,818)Due from / to shareholders’ operations (78,289,968) 78,289,968 - 7,329,852 (7,329,852) -Net cash (used in) generated from financing activities (78,353,968) 78,289,968 (64,000) 6,054,852 (7,329,852) (1,275,000) (Continued) 20 Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended (continued) June 30, 2021 (Unaudited) June 30, 2020 (Unaudited) Insurance operations Shareholders’ operations Total Insurance operations Shareholders’ operations TotalNet increase (decrease) cash and cash equivalents 24,939,816 (9,011,407) 15,928,409 33,512,252 8,210,302 41,722,554Cash and cash equivalents, beginning of the period 67,852,194 111,655,835 179,508,029 64,394,378 2,468,375 66,862,753 Cash and cash equivalents at end of the period 92,792,010 102,644,428 195,436,438 97,906,630 10,678,677 108,585,307 Supplemental non-cash information: Net change in fair value reserve for available-for-sale investments 314,887 2,381,728 2,696,615 1,457,797 867,473 2,325,270Right-of-use assets and lease liabilities - - - 86,794 - 86,794 | 20 |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1. General information - legal status and principal activities Gulf Union Alahlia Cooperative Insurance Company (the “Company”) is a Saudi joint stock company registered on 13 Sha’aban 1428H (corresponding to August 26, 2007) under Commercial Registration (“CR”) number 2050056228. The Company’s principal place of business is in Dammam, Kingdom of Saudi Arabia.The purpose of the Company is to transact cooperative insurance operations and all related activities. Its principal lines of business include medical, motor, marine, fire and engineering insurance.On 2 Jumada II 1424H, (corresponding to July 31, 2003), the Law on the Supervision of Cooperative Insurance Companies (“Insurance Law”) was promulgated by Royal Decree Number (M/32). On 29 Shaban 1428 H, (corresponding to September 11, 2007), the Saudi Central Bank (“SAMA”), as the principal authority responsible for the application and administration of the Insurance Law and its Implementing Regulations, granted the Company a license to transact insurance activities in the Kingdom of Saudi Arabia. On 27 Jumada II 1435H, (corresponding to April 27, 2014), the Company received SAMA’s approval of its request to change its license of transacting insurance and reinsurance business to insurance business.As at March 31, 2021, the Company had accumulated losses of Saudi Riyals 117.3 million which exceeded one half of its share capital. During the three-month period ended June 30, 2021, in order to reduce the accumulated losses to less than one half of the share capital, the shareholders of the Company, in their meeting held on June 29, 2021, have resolved to absorb the accumulated losses amounting to Saudi Riyals 89.5 million against the share premium.The loss for the six-month period ended June 30, 2021 is mainly attributable to the net underwriting loss of Saudi Riyals 80.6 million in the medical segment during the three-month and six-month periods ended June 30, 2021 (Note 13). Management has formulated and implemented measures, as approved by the Company’s Board of Directors, which include better pricing strategies for both corporate and small and medium enterprises medical policies, diversification of insurance portfolio and improvement in claims management processes, among others. Management expects that this will reflect positively in the operational results and cash flows for the remaining quarters of 2021 and such positive trend as a result of corrective measures are expected to continue, provided that the underlying projections of the business and economic conditions continue to be realized.The Company operates through six main branches and various point-of-sale stores located in the Kingdom of Saudi Arabia. Following are the CR numbers of the six branches:Branch type Location CR numberRegional branch Dammam 2050118944Regional branch Riyadh 1010247518Regional branch Jeddah 4030177933Regional branch Riyadh 1010238441Regional branch Al Khobar 2051048012Regional branch Jeddah 4030224075Shareholding percentageThe shareholding percentage of the Company at June 30, 2021 and December 31, 2020 was as follows: June 30, 2021 December 31, 2020Shareholding percentage subject to zakat 95% 95%Shareholding percentage subject to income tax 5% 5% 100% 100% | 1 |
| Disclosure of basis of preparation of financial statements [text block] | Basis of preparation(a) Statement of ComplianceThe interim condensed financial information of the Company has been prepared in accordance with ‘International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).As required by the Saudi Arabian Insurance Regulations, the Company maintains separate books of accounts for insurance operations and shareholders’ operations and presents the financial information accordingly. Assets, liabilities, revenues and expenses clearly attributable to either activity is recorded in the respective accounts. The basis of allocation of expenses from joint operations is determined and approved by management of the Company and the Board of Directors.In accordance with the requirements of Implementing Regulation for Co-operative Insurance Companies (the “Regulations”) issued by SAMA and as per by-laws of the Company, shareholders of the Company are to receive 90% of the annual surplus from insurance operations and the policyholders are to receive the remaining 10%. Any deficit arising from insurance operations is transferred to the shareholders’ operations in full.The interim condensed statements of financial position, income, comprehensive income and cash flows of the insurance operations and shareholders’ operations are presented in Note 20 of the interim condensed financial information as supplementary financial information and to comply with the requirements of the guidelines issued by SAMA implementing regulations. SAMA implementing regulations requires the clear segregation of the assets, liabilities, income and expenses of the insurance operations and the shareholders’ operations. Accordingly, the interim condensed statements of financial position, income, comprehensive income and cash flows prepared for the insurance operations and shareholders’ operations as referred to above, reflect only the assets, liabilities, income, expenses and comprehensive gains or losses of the respective operations.In preparing the Company’s financial information in compliance with IAS 34 as endorsed in the Kingdom of Saudi Arabia, the balances and transactions of the insurance operations are amalgamated and combined with those of the shareholders’ operations. Interoperation balances, transactions and unrealized gains or losses, if any, are eliminated in full during amalgamation. The accounting policies adopted for the insurance operations and shareholders’ operations are uniform for like transactions and events in similar circumstances.(b) Basis of measurement The interim condensed financial information is prepared under the historical cost convention, except as explained in the relevant accounting policies in the annual financial statements for the year ended December 31, 2020. The Company’s interim condensed statement of financial position is not presented using a current/non-current classification. However, the following balances would generally be classified as current: cash and cash equivalents, short-term deposits, premiums and reinsurers’ receivable - net, premiums receivable - related parties - net, deferred excess of loss premiums, prepaid expenses and other assets, accrued income on statutory deposit, accounts payable, accrued and other liabilities, reinsurers' balances payable, zakat and income tax, surplus distribution payable, accrued commission income payable to SAMA, reinsurers’ share of outstanding claims, outstanding claims, claims incurred but not reported, additional premium reserves, other technical reserves and reinsurers’ share of claims incurred but not reported. The following balances would generally be classified as non-current: investments, property and equipment, right-of-use assets, intangible assets, statutory deposit, and employee benefit obligations. The balances which are of mixed in nature i.e. include both current and non-current portions include reinsurers’ share of unearned premiums, deferred policy acquisition, unearned premiums, unearned reinsurance commission and lease liabilities. 2. Basis of preparation (continued)(c) Basis of presentationThe interim condensed financial information does not include all of the information required for full annual financial statements and should be read in conjunction with the annual financial statements for the year ended December 31, 2020.(d) Functional and presentation currencyThis interim condensed financial information is expressed in Saudi Arabian Riyals (“Saudi Riyals”) which is the functional and presentation currency of the Company.(e) Critical accounting judgments, estimates and assumptionsThe preparation of interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.In preparing this interim condensed financial information, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty including the risk management policies were the same as those that applied to the annual financial statements as at and for the year ended December 31, 2020.On March 11, 2020, the World Health Organization (“WHO”) declared the Coronavirus (“Covid-19”) outbreak as a pandemic in recognition of its rapid spread globally. This outbreak has also affected the GCC region including the Kingdom of Saudi Arabia. Governments all over the world have taken steps to contain the spread of Covid-19. The Kingdom of Saudi Arabia has implemented closure of borders, released social distancing guidelines and enforced country-wide lockdowns and curfews.In response to the spread of Covid-19 in the Kingdom of Saudi Arabia and its consequential disruption to social and economic activities, the Company’s management has assessed its impact on the Company’s operations and has taken a series of proactive and preventive measures to ensure:- the health and safety of its employees and the wider community where it is operating; and- the continuity of its business throughout the Kingdom of Saudi Arabia is protected and remains intact.Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information:(i) Impact of Covid-19Medical technical reservesThe Company’s management believes that the Saudi Arabian government initiative of providing free healthcare to infected and suspected patients has helped in reducing any unfavourable impact. During the period of lockdowns and curfews as implemented by the Saudi Arabian government, the Company experienced a decline in medical reported claims (mainly elective and non-chronic treatment claims) which resulted in a decrease in claims experience which could have resulted from the deferral of certain medical treatments. Accordingly, the Company’s management has duly considered the impact of such deferral of medical claims in the current estimate of future contractual cashflows of the insurance contracts in force as at June 30, 2021 for its liability adequacy test. Based on the results, no additional reserves were recognised by the Company as of June 30, 2021 (December 31, 2020: Nil) for the issued medical policies to account for the above explained deferral. 2. Basis of preparation (continued)(e) Critical accounting judgments, estimates and assumptions (continued)Motor technical reservesIn response to the Covid-19 pandemic, SAMA issued a circular 189 (the “Circular”) dated May 8, 2020 to all insurance companies in the Kingdom of Saudi Arabia. Amongst other things, the Circular instructed the insurance companies to extend the period of validity of all existing retail motor insurance policies by two months as well as providing two months of additional coverage for all new retail motor insurance policies written within one month of the date of the Circular.Management, in conjunction with its appointed actuary, deliberated on a variety of internal factors and the Company prospectively assessed the sufficiency of its unexpired risk reserves in relation to those existing retail Motor policies impacted by the Circular. For new retail motor policies issued as per above circular, the premium is earned over the period of twelve months. The Company’s management has duly considered the impact of such existing and new retail motor policies impacted by the Circular in claims in the current estimate of future contractual cashflows of the insurance contracts in force as at June 30, 2021 for its liability adequacy test. Based on the assessment of the in-force policies as at June 30, 2021, management, in conjunction with its appointed actuary, recognized additional premium deficiency reserves amounting to Saudi Riyals 0.2 million were recognised as at June 30, 2021 (December 31, 2020: 4.5 million).Financial assets - investments and loans and receivablesFor held-to-maturity investments and financial assets designated as loans and receivables, the Company has performed an assessment in accordance with its accounting policy due to the Covid-19 pandemic to determine whether there is objective evidence that a financial asset or group of financial assets is impaired. These include factors such as significant financial difficulties of issuers or debtors, default or delinquency in payments, probability that the issuer or debtor will enter bankruptcy or other financial reorganization etc. For available-for-sale investments, the Company has performed an assessment to determine whether there is a significant decline in the fair value of available-for-sale investments to below cost along with other qualitative factors such as prolonged decline in the value of investments for equity instruments and / or occurrence of a credit default event in case of debt instruments. Based on these assessments, the Company believes that the Covid-19 pandemic has had no material effect on the Company’s reported results for the six-month period ended June 30, 2021. The Company continues to monitor the situation closely.(ii) Liability arising from claims under insurance contractsConsiderable judgement by management is required in the estimation of amounts due to policyholders arising from claims made under insurance policies. Such estimates are necessarily based on significant assumptions about several factors involving varying, and possible significant, degrees of judgement and uncertainty and actual results may differ from management’s estimates resulting in future changes in estimated liabilities.In particular, 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 reported (“IBNR”) claims at the reporting date. The primary technique adopted by management in estimating the cost of notified and IBNR claims, is that of using past claim settlement trends to predict future claims settlement trends.Claims requiring court or arbitration decisions, if any, are estimated individually. Independent loss adjusters normally estimate property claims. Management reviews its provisions for claims incurred and claims incurred but not reported, on a quarterly basis. The Company is exposed to disputes with, and possibility of defaults by, its reinsurers. The Company monitors on a quarterly basis the evolution of disputes with and the strength of its reinsurers.2. Basis of preparation (continued)(e) Critical accounting judgments, estimates and assumptions (continued)(iii) Impairment of premiums and reinsurers’ receivableAn estimate of the uncollectible amount of premiums receivable, if any, is made when collection of the full amount of the receivables as per the original terms of the insurance policy is no longer probable. For individually significant amounts, this estimation is performed on an individual basis. Amounts which are not individually significant, but which are past due, are assessed collectively and an allowance applied according to the length of time past due and Company’s past experience.(iv) Impairment of available-for-sale investmentsThe Company treats investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is “significant” or “prolonged” requires considerable judgment. In addition, the Company evaluates other factors, including normal volatility in share price for quoted investments and the future cash flows and the discount factors for unquoted investments. (v) Right-of-use assets and lease liabilitiesThe lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.(vi) Impairment testing of goodwillThe Company’s management tests, at each reporting date, whether goodwill arising on merger has suffered any impairment. This requires an estimation of the recoverable amount of the cash generating unit (“CGU”) to which goodwill has been allocated. The key assumptions used in determining the recoverable amounts are set out in Note 5.(e) Seasonality of operationsThere are no seasonal changes that may affect insurance operations of the Company. The interim results may not represent a proportionate share of the annual results due to cyclical variability in premiums and uncertainty of claims occurrences.The accounting policies, estimates and assumptions used in the preparation of this interim condensed financial information are consistent with those used in the preparation of the annual financial statements for the year ended December 31, 2020, except as explained below. | 2 |
| Disclosure of other general disclosures about reporting entity [text block] | 4. Business combination On 12 Shawwal 1441H (corresponding to June 4, 2020), the Company signed a binding merger agreement (the “Agreement”) with Al Ahlia Cooperative Insurance Company (“Al Ahlia”), operating as a Saudi joint stock company (licensed to transact cooperative insurance business across the Kingdom of Saudi Arabia). On 20 Dhul Hijja 1441H (August 10, 2020), the Company received SAMA’s approval for the merger with Al Ahlia. On 22 Muharram 1442H (September 10, 2020), the Company obtained the approval from the Capital Market Authority. Further, the Company’s and Al Ahlia’s shareholders approved the merger on 18 Safar 1442H (October 5, 2020) and 16 Rabi’ I 1442H (November 2, 2020), respectively. As per the Agreement, the effective date of the merger was 21 Rabi’ I 1442H (December 6, 2020) (the “Effective Date”). As at the Effective Date, the Company acquired all the issued shares of Al Ahlia by virtue of a share exchange offer by issuing one share in the Company for every 1.54766350624551 shares in Al Ahlia. This resulted in issuance of 7,947,464 new ordinary shares with a par value of Saudi Riyals 10 per share. The Company issued new shares by increasing its share capital from Saudi Riyals 150,000,000 to Saudi Riyals 229,474,640. The Company has accounted for the merger using the acquisition method under IFRS 3- Business Combination (“IFRS 3”) with the Company being the acquirer and Al Ahlia being the acquiree, based on the provisional fair values of the acquired net assets as at the Effective Date. The adjustments to the provisional values will be finalized within twelve months from the Effective Date as permitted by IFRS 3, as the Company will get a reasonable time to obtain the information necessary to identify and measure the net assets acquired. Subsequent to the Effective Date, Al Ahlia has been delisted from Tadawul, Saudi Stock Exchange and other legal formalities are currently in progress. This interim condensed financial information includes the results of Al Ahlia from the Effective Date. Purchase consideration The Company acquired all the issued shares of Al Ahlia by issuing one share in the Company for every 1.54766350624551 shares in Al Ahlia on the Effective Date. This resulted in issuance of 7,947,464 new shares of the Company to the shareholders of Al Ahlia at fair value (Saudi Riyal 21.26 per share), amounting to Saudi Riyals 168,963,085, as the purchase consideration.Share capital and share premiumThe issuance of new shares, as mentioned in the preceding paragraph, resulted in an increase in the share capital of the Company by Saudi Riyals 79,474,640 (7,947,464 shares at par value of Saudi Riyals 10 per share) and recognition of share premium of Saudi Riyals 89,488,445, as at the Effective Date. Also see Note 1. 4. Business combination (continued)The provisional fair values of net assets acquired as at the Effective Date are as follows: TotalASSETS Cash and cash equivalents 147,359,189Short-term deposits 40,368,219Premiums and reinsurers’ receivable - net 45,906,604Reinsurers’ share of unearned premiums 4,338,001Reinsurers’ share of outstanding claims 15,980,527Reinsurers’ share of claims incurred but not reported 1,528,473Deferred policy acquisition costs 7,540,381Investments 14,413,873Due from related parties 2,394,461Prepaid expenses and other assets 13,369,069Property and equipment 3,673,191Right-of-use assets 2,791,322Intangible assets 7,052,576Statutory deposit 24,000,000Accrued income on statutory deposit 3,515,288TOTAL ASSETS 334,231,174LIABILITIES Accounts payable 18,701,160Accrued and other liabilities 14,851,401Reinsurers’ balances payable 3,919,445Unearned premiums 107,975,551Unearned reinsurance commission 1,083,764Outstanding claims 36,792,956Claims incurred but not reported 40,751,611Additional premium reserves 14,247,658Other technical reserves 2,216,738Lease liabilities 1,321,462Employee benefit obligations 6,585,890Zakat and income tax 15,621,219Surplus distribution payable 1,470,696Accrued commission income payable to SAMA 3,515,288TOTAL LIABILITIES 269,054,839 Net identifiable assets 65,176,335 4. Business combination (continued)4.1 Goodwill recognised as at the Effective Date Purchase consideration 168,963,085Less: net identifiable assets acquired (65,176,335)Goodwill 103,786,750 | 4 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | Significant accounting policies3.1 New standards, amendments and interpretations not yet applied by the Company- IFRS 9, ‘Financial Instruments’ (including amendments to IFRS 4, Insurance Contracts)In July 2014, the IASB published IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement. The standard incorporates new classification and measurements requirements for financial assets, the introduction of an expected credit loss impairment model which will replace the incurred loss model of IAS 39, and new hedge accounting requirements. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss. A financial asset is measured at amortized or at fair value through other comprehensive income, if certain conditions are met. Assets not meeting either of the above categories are measured at fair value through profit or loss. Additionally, at initial recognition, an entity can use the option to designate a financial asset at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch. For equity instruments that are not held for trading, an entity can also make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of the instruments (including realized gains and losses), dividends being recognized in profit or loss. Additionally, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that is recognized in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. The 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. The hedge accounting requirements are more closely aligned with risk management practices and follow a more principle-based approach.In September 2016, the IASB published amendments to IFRS 4 Insurance Contracts that address the accounting consequences of the application of IFRS 9 to insurers prior to the publication of the forthcoming accounting standard for insurance contracts. The amendments introduce two options for insurers: the deferral approach and the overlay approach. The deferral approach provides an entity, if eligible, with a temporary exemption from applying IFRS 9 until the earlier of the effective date of a new insurance contract standard or 2023. The overlay approach allows an entity to remove from profit or loss the effects of some of the accounting mismatches that may occur before the new insurance contracts standard is applied.The Company is eligible and have chosen to apply the deferral approach under the amendments to IFRS 4. The impact of the adoption of IFRS 9 on the Company’s financial information will, to a large extent, have to take into account the interaction with the forthcoming insurance contracts standard. As such, it is not possible to fully assess the effect of the adoption of IFRS 9.For detailed impact assessment of IFRS 9 adoption, reference to the annual financial statements for the year ended December 31, 2020 should be made.- IFRS 17, ‘Insurance Contracts’Applicable for the period beginning on or after January 1, 2023 and will supersede IFRS 4. Earlier adoption is permitted if IFRS 9 has also been applied. The Company expects a material impact on measurement and disclosure of insurance and reinsurance contracts that will affect the interim condensed statements of financial position, income and comprehensive income. The Company has decided not to early adopt this new standard.3. Significant accounting policies (continued)3.1 New standards, amendments and interpretations not yet applied by the Company (continued)For detailed impact assessment of IFRS 17 adoption, reference to the annual financial statements for the year ended December 31, 2020 should be made.3.2 Risk managementThe Company’s activities expose it to variety of financial risks: market risk (including commission rate risk, currency risk and price risk), credit risk and liquidity risk.The interim condensed financial information does not include all financial risk management information and disclosures required in the annual financial statements and therefore should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2020. There have been no changes in the risk management department or in any risk management policies since the year end except that the Company has strengthened its credit risk management policies to address the fast changing and evolving risks posed by the current circumstances. These include review of credit concentrations at granular economic sector, region, counterparty level and take appropriate action where required. | 3 |
| Description of accounting policy for intangible assets and goodwill [text block] | 5. Goodwill The goodwill arising from the merger is attributable to the expected synergies from combining the operations of the Company and Al Ahlia and cannot be assigned to any other determinable and separate provisional intangible asset. Goodwill is allocated to the Company as a single CGU, being the combined operations of the Company and Al Ahlia. Management’s judgment to allocate goodwill to the Company considered the broader reason for which acquisition was made, i.e. synergies from combining the operations. The Company tests the goodwill for impairment at each reporting date. For the impairment testing, management determines the recoverable amount of the CGU based on value-in-use calculations. These calculations require the use of estimates in relation to the future cash flows, based on the most recent five years’ approved business plan, and use of an appropriate discount rate applicable to the circumstances of the Company. Cash flows beyond the five-years period are extrapolated using the estimated growth rate stated below. This growth rate is consistent with the forecasts included in industry reports specific to the industry in which the CGU operates. The calculation of value in use is most sensitive to the assumptions of gross premiums written growth and average claims ratio. Key assumptions underlying the projections are:Key assumptions %Gross premiums written growth 7.94Average claims ratio 71.4Discount rate 13.5Terminal growth rate 2.0Sensitivity to the changes in assumptionsGross premiums written growth The gross premiums written growth in the forecast period has been estimated to be compound annual growth rate of 7.94%. If all other assumptions kept the same, a reduction of this growth rate from 7.94% to 5.73% would give a value in use equal to the current carrying amount.Average claims ratioThe average claims ratio in the forecast period has been estimated to be 71.4%. If all other assumptions kept the same, an increase of this ratio from 71.4% to 72.3% would give a value in use equal to the current carrying amount.With regard to the assessment of the value in use, management believes that no reasonably possible change in any of the other key assumptions above would cause the carrying value of CGU including goodwill to materially exceed its recoverable amount. | 5 |
| Description of accounting policy for time (murabaha) deposit [text block] | 7. Short-term and long-term deposits Short-term deposits are placed with local banks and financial institutions with an original maturity of more than three months but less than or equal to twelve months from the date of placement. These deposits earn commission income at an average rate of 1.26% to 6% (December 31, 2020: 1.10% to 6%) per annum. | 7 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments in available-for-sale investments [text block] | 10. Investmentsa) Investments are classified as follows: Insurance operations Shareholders’ operations June 30, 2021 (Unaudited) December 31, 2020(Audited) June 30, 2021 (Unaudited) December 31, 2020(Audited)Available-for-sale 125,029,959 109,187,954 127,199,256 114,817,528Held-to-maturity 5,002,013 5,002,013 24,301,719 28,051,719 130,031,972 114,189,967 151,500,975 142,869,247b) Category wise investment analysis is as follows: Insurance operations Shareholders’ operations June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (Unaudited) (Audited) (Unaudited) (Audited) Quoted 123,106,881 112,266,889 132,276,178 119,894,450Unquoted 6,925,091 1,923,078 19,224,797 22,974,797 130,031,972 114,189,967 151,500,975 142,869,247c) The analysis of the composition of investments is as follows: Insurance operations Shareholders’ operations June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (Unaudited) (Audited) (Unaudited) (Audited) Mutual funds 21,094,761 19,138,912 37,989,793 25,365,082Ordinary shares 1,923,078 1,923,078 1,923,078 1,923,078Sukuks 107,014,133 93,127,977 111,588,104 115,581,087 130,031,972 114,189,967 151,500,975 142,869,247Management has performed a review of the impairment indicators for available-for-sale investments and based on specific information, management did not identify any impairment indicators in respect of the available-for-sale investments.All investments are denominated in Saudi Riyals and United States Dollars. As at the reporting date, investments amounting to Saudi Riyals 21.5 million were denominated in United States Dollars (December 31, 2020: Saudi Riyals 21.5 million). 10. Investments (continued)d) Movement in available-for-sale investments is as follows: Insurance operations Shareholders’ operations June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (Unaudited) (Audited) (Unaudited) (Audited) At the beginning of the period / year 109,187,954 34,425,766 114,817,528 104,417,562 Acquisitions during the period / year 15,527,118 75,291,548 10,000,000 15,436,583Additions from merger - - - 2,320,573Disposals during the period / year - (5,325,983) - (7,312,500)Unrealized gains 314,887 4,796,623 2,381,728 48,148Realized gains (loss) on disposals - 1,264,888 - (53,381)Reclassified from equity to interim condensed statement of income - (1,264,888) - (39,457)At the end of period / year 125,029,959 109,187,954 127,199,256 114,817,528e) Movement in held-to-maturity investments is as follows: Insurance operations Shareholders’ operations June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (Unaudited) (Audited) (Unaudited) (Audited) At the beginning of the period / year 5,002,013 11,250,084 28,051,719 16,002,013Transfer /acquisitions during the period / year - 12,002,013 - 14,708,419Additions from merger - - - 12,093,300Redemption/disposals / transfer during the period / year - (18,250,084) (3,750,000) (14,752,013)At the end of period / year 5,002,013 5,002,013 24,301,719 28,051,719Insurance operationsSecurity Issuer Maturity Location Profit margin Amortized cost June 30, 2021 (Unaudited) December 31, 2020(Audited)SEC - Sukuk SEC May 2022 Saudi Arabia 3.15% 5,002,013 5,002,013 5,002,013 5,002,013 10. Investments (continued)Shareholders’ operationse) Movement in held-to-maturity investments is as follows:(continued)Security Issuer Maturity Location Profit margin Amortized cost June 30, 2021 (Unaudited) December 31, 2020 (Audited)STC Sukuk STC September 2024 Saudi Arabia 2.49% 2,000,000 2,000,000Maaden phosphate company - Sukuks Maaden phosphate company Sukuks February 2025 Saudi Arabia 3.44% 5,000,000 5,000,000Sukuk Saudi Kuwait Finance House December 2021 Saudi Arabia 6 months SIBOR plus 7.50% 5,208,419 8,958,419Sukuk AlAwwal Energy Fund December2028 Saudi Arabia SIBOR plus 8.2% 12,093,300 12,093,300 24,301,719 28,051,719g) Geographical concentration:The maximum exposure to credit and price risk for available-for-sale and held-to-maturity investments at the reporting date by geographic region is as follows: Insurance operations Shareholders’ operations June 30, 2021 (Unaudited) December 31, 2020(Audited) June 30, 2021 (Unaudited) December 31, 2020(Audited) Kingdom of Saudi Arabia 130,031,972 114,189,967 129,960,659 121,359,120United Arab Emirates - - 10,881,687 10,906,559France - - 7,242,203 7,184,046Switzerland - - 3,416,426 3,419,522 130,031,972 114,189,967 151,500,975 142,869,247 | 10 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 8. Premiums and reinsurers’ receivable - net June 30, 2021(Unaudited) December 31, 2020(Audited) Premiums receivable from policyholders 190,018,454 197,986,057 Premiums receivable from brokers 29,564,766 36,557,633 Receivable from reinsurance companies 12,130,041 20,987,428 231,713,261 255,531,118Allowance for doubtful debts: - Receivable from policyholders (41,898,914) (37,890,232) - Receivable from brokers (6,762,621) (5,593,981) - Receivable from reinsurance companies (5,327,056) (5,478,176) (53,988,591) (48,962,389) 177,724,670 206,568,729Movement in the allowance for doubtful debts was as follows: June 30, 2021 December 31, 2020 (Unaudited) (Audited) At beginning of the period / year 48,962,389 43,787,305Charge for the period / year 5,907,999 7,618,928Write-off during the period / year (881,797) (2,443,844)At end of the period / year 53,988,591 48,962,389 | 8 |
| Disclosure of due from related parties [text block] | 14. Related party transactions and balancesRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances:Nature of transactions Transactions for the six-month period ended Balance receivable / (payable) as at June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) (Unaudited) (Audited)Major shareholders Insurance premium written 10,467,527 13,011,588 - -Claims paid (7,058,263) (1,891,565) - -Premium receivable from related parties - - 11,545,662 10,357,101Others Rent charged 448,525 (2,140,317) - -Services - (186,437) - (372,874)Directors’ remuneration and meeting fee (338,000) (100,500) - -The compensation of key management personnel during the three-month and six-month periods ended is as follows: June 30, 2021(Unaudited) June 30, 2020(Unaudited) Salaries and benefits 3,804,896 2,658,290 Employee benefit obligations 231,843 155,938 4,036,739 2,814,228a) Premium receivable - related parties, net June 30, 2021(Unaudited) December 31, 2020(Audited) Premium receivable from related parties 11,545,662 10,038,075Less: allowance for doubtful debts (2,576,234) (1,726,798) 8,969,428 8,311,277Movement in the allowance for doubtful debts is as follows: June 30, 2021(Unaudited) December 31, 2020(Audited) At beginning of the period / year 1,726,798 393,511Charge for the period / year 849,436 1,333,287At end of the period / year 2,576,234 1,726,798 | 14 |
| Disclosure of cash and cash equivalents [text block] | 6. Cash and cash equivalentsCash and cash equivalents included in the statement of cash flows comprise the following: Insurance operations Shareholders’ operations June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 (Unaudited) (Audited) (Unaudited) (Audited) Cash in hand 20,190 20,190 - -Cash at bank - current accounts 27,790,099 36,768,829 2,151,720 5,152,503Time deposits 64,981,721 31,063,175 100,492,708 106,503,332 92,792,010 67,852,194 102,644,428 111,655,835Cash at banks is placed with counterparties with sound credit ratings. As at June 30, 2021, deposits were placed with local banks with original maturities of less than three months from the date of placement and earned commission income at an average rate of 1.26% to 6% (December 31, 2020: 1.6% to 6%) per annum. | 6 |
| Disclosure of zakat [text block] | 15. Zakat and income tax The Company has obtained zakat and income tax certificates from the Zakat, Tax and Customs Authority (“ZATCA”) for the years through 2020. In July 2020, the Company received zakat and income tax assessment for the year 2014 amounting to Saudi Riyals 7.1 million. The zakat differences as per the initial assessments were mainly due to the disallowances by ZATCA of certain balances related to outstanding claims, IBNR, accounts and reinsurance payable and amounts due to related parties from the zakat base. The Company filed an appeal against the ZATCA’s initial assessment and received an updated assessment amounting to Saudi Riyals 3.3 million. The Company has further filed an appeal to the Committee for Resolution of Tax Violations and Disputes and believes that the outcome of such appeal will be in favor of the Company. During 2020, the Company also received zakat and income tax assessment for the years 2015 through 2018 amounting to Saudi Riyals 10.25 million. The zakat differences as per the initial assessments were mainly due to the disallowances by ZATCA of certain balances related to term deposits and investments from the zakat base. The Company has recognised an additional provision amounting to Saudi Riyals 1.9 million under protest and paid such amount to ZATCA, and in parallel filed an appeal against the ZATCA’s initial assessment. During the six-month period ended June 30, 2021, the Company received revised assessments for the years 2015 through 2018 with additional zakat liability of Saudi Riyals 8.36 million. The Company has filed an appeal with the Tax Violations and Disputes Resolution Committees against ZATCA’s revised assessment and believes that the outcome of such appeal will be in favor of the Company. Accordingly, no further provision for such additional assessments has been made in the accompanying financial statements. No provision for income tax was made for the six-month period ended June 30, 2021, due to adjusted net loss for such period.The Company’s zakat and income tax assessments for the years 2019 and 2020 are currently under review by the ZATCA. The zakat and income tax liability as computed by the Company could be different from zakat and income tax liability as assessed by the ZATCA for years for which assessments have not yet been raised by the ZATCA. In 2018, Al Ahlia received zakat and income tax assessments for the years 2011 and 2012 amounting toSaudi Riyals 2.1 million. Al Ahlia filed an appeal against the ZATCA’s assessment to General Secretariatof the Tax Committees (“GSTC”) for which the outcome is pending. Further, during 2020, Al Ahlia received zakat and income tax assessments for the years 2015 through 2018 amounting to Saudi Riyals 9.5 million against which Al Ahlia filed an appeal to the GSTC and the outcome is pending. The zakat differences as per the initial assessments for the years 2011, 2012 and 2015 through 2018 were mainly due to the disallowances by ZATCA of certain balances related to investments, statutory deposit and adjusted accumulated losses from the zakat base. Management believes that ZATCA will reconsider the initial assessments and will allow certain deductions from the zakat base in the final assessments. However, Al Ahlia’s management has submitted a settlement request to the ZATCA for all pending assessments with an amount of Saudi Riyals 7.8 million and is of the view that the level of the existing provisions for zakat is presently sufficient. Al Ahlia had obtained zakat and income tax certificates from the ZATCA for the years through 2019 and its zakat and income tax assessment for the year 2019 is currently under review by the ZATCA. | 15 |
| Disclosure of classes of share capital [text block] | 16. Share capitalThe authorized, issued and paid up capital of the Company was Saudi Riyals 229.4 million at June 30, 2021 (December 31, 2020: Saudi Riyals 229.4 million) consisting of 22.9 million shares (December 31, 2020: 22.9 million shares) of Saudi Riyals 10 each.Shareholding structure of the Company as of June 30, 2021 and December 31, 2020 is as below. Authorized and issued Paid up No. of Shares Saudi RiyalsGulf Union Insurance and Projects Management Holding Company B.S.C. (c.) 2,475,000 24,750,000 24,750,000Others 20,472,464 204,724,640 204,724,640 22,947,464 229,474,640 229,474,640 | 16 |
| Disclosure of statutory reserve [text block] | 17. Statutory reserveIn accordance with By-laws of the Company and Article 70(2)(g) of the Insurance Implementing Regulations issued by SAMA, the Company is required to transfer not less than 20% of its annual profits, after adjusting accumulated losses, to a statutory reserve until such reserve amounts to 100% of the paid-up share capital of the Company. This reserve is not available for distribution to the shareholders until the liquidation of the Company. | 17 |
| Disclosure of fair value reserve on investments [text block] | 12. Fair value of financial instrumentsThe Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:- Level 1 - quoted (unadjusted) market prices in active markets for identical assets or liabilities;- Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and- Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.The following table shows the carrying amount and fair values of financial assets, including their levels in the fair value hierarchy for financial instruments measured at fair value. As at June 30, 2021 and December 31, 2020, the face values less any estimated credit adjustments for financial assets and liabilities with a maturity of less than one year are assumed to approximate to their fair values. The fair values of the non-current financial liabilities are considered to approximate to their carrying amounts as these carry interest rates which are based on market interest rates.a. Carrying amounts and fair value June 30, 2021 (Unaudited) Level 1 Level 2 Level 3 TotalFinancial assets measured at fair value Mutual funds - available-for-sale 59,084,554 - - 59,084,554Sukuks - available-for-sale 189,298,505 - - 189,298,505Ordinary shares - available-for-sale - - 3,846,156 3,846,156Total investments 248,383,059 - 3,846,156 252,229,215 December 31, 2020(Audited) Level 1 Level 2 Level 3 TotalFinancial assets measured at fair value Mutual funds - available-for-sale 44,503,994 - - 44,503,994Sukuks - available-for-sale 175,655,332 - - 175,655,332Ordinary shares-available-for-sale - - 3,846,156 3,846,156Total investments 220,159,326 - 3,846,156 224,005,482During the three-month and six-month periods ended June 30, 2021, there have been no transfers between level 1, level 2 and level 3. 12. Fair value of financial instruments (continued)a. Carrying amounts and fair value (continued)Level 3 available-for-sale investment comprises equity investment of 384,616 shares of Najm for Insurance Services (Najm) (December 31, 2020: 384,616 shares). As at June 30, 2021 and December 31, 2020, the investment is carried at cost as management considers that the recent available information is insufficient to determine fair value and the cost represents the best estimate of fair value in the current circumstances.Cash and cash equivalents, deposits, premiums and reinsurers’ balances receivable - net, premium receivable - related parties - net, reinsurers’ share of outstanding claims, statutory deposit, accrued income on statutory deposits and the financial labilities except employee benefit obligations are measured at amortized cost. | 12 |
| Disclosure of provisions [text block] | 9. Technical reserves 9.1 Net outstanding claims and reservesNet outstanding claims and reserves comprise the following: June 30, 2021 (Unaudited) December 31, 2020(Audited) Gross outstanding claims 138,284,900 126,139,520Less: realizable value of salvage and subrogation (23,353,696) (21,396,960) 114,931,204 104,742,560Gross claims incurred but not reported 194,395,211 170,897,914 Less: Reinsurers’ share of outstanding claims (50,212,495) (48,489,107)Reinsurers’ share of claims incurred but not reported (23,252,841) (20,062,991)Net outstanding claims 235,861,079 207,088,376 Additional premium reserves - premium deficiency reserve 28,877,326 11,295,391Other technical reserves 13,062,285 11,211,593 41,939,611 22,506,984Net outstanding claims and reserves 277,800,690 229,595,3609.2 Movement in net unearned premiumsMovement in unearned premiums comprise the following: Six-month period ended June 30, 2021(Unaudited) Gross Reinsurance Net Balance as at the beginning of the period 375,588,801 (36,474,798) 339,114,003Balance as at the end of the period (309,407,474) 47,243,347 (262,164,127)Changes in unearned premiums 66,181,327 10,768,549 76,949,876 Premium written during the period 305,293,178 (60,540,942) 244,752,236Excess of loss premiums - (13,432,290) (13,432,290)Net premium earned 371,474,505 (63,204,683) 308,269,822Movement in unearned premiums comprise the following: Year ended December 31, 2020(Audited) Gross Reinsurance Net Balance as at the beginning of the year 257,512,800 (39,619,088) 217,893,712 Additions from merger 107,975,551 (4,338,001) 103,637,550 Balance as at the end of the year (375,588,801) 36,474,798 (339,114,003)Changes in unearned premiums (10,100,450) (7,482,291) (17,582,741) Premium written during the year 557,123,448 (85,791,281) 471,332,167Excess of loss premiums - (18,865,289) (18,865,289)Net premium earned 547,022,998 (112,138,861) 434,884,137 | 9 |
| Disclosure of earnings per share [text block] | 19. Basic and diluted (losses) earnings per shareBasic and diluted (losses) earnings per share for the three-month and six-month periods ended June 30, 2021 and 2020 is calculated by dividing total (loss) income for the period attributable to the shareholders by the weighted average number of outstanding shares during the period. For the three-month period ended June 30, 2021 2020Total (losses) income for the period attributable to the shareholders (47,801,220) 8,949,478Weighted average number of ordinary shares for basic and diluted losses per share 22,947,464 15,000,000Basic and diluted (losses) earnings per share (2.08) 0.60 For the six-month period ended June 30, 2021 2020Total (losses) income for the period attributable to the shareholders (105,597,925) 2,803,470 Weighted average number of ordinary shares for basic and diluted losses per share 22,947,464 15,000,000Basic and diluted (losses) earnings per share (4.60) 0.19 | 19 |
| Disclosure of related party transactions [text block] | 14. Related party transactions and balancesRelated parties represent major shareholders, directors and key management personnel of the Company, and companies of which they are principal owners and any other entities controlled, jointly controlled or significantly influenced by them. Pricing policies and terms of these transactions are approved by the Company’s management and Board of Directors. The following are the details of the major related party transactions during the period and the related balances:Nature of transactions Transactions for the six-month period ended Balance receivable / (payable) as at June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (Unaudited) (Unaudited) (Unaudited) (Audited)Major shareholders Insurance premium written 10,467,527 13,011,588 - -Claims paid (7,058,263) (1,891,565) - -Premium receivable from related parties - - 11,545,662 10,357,101Others Rent charged 448,525 (2,140,317) - -Services - (186,437) - (372,874)Directors’ remuneration and meeting fee (338,000) (100,500) - -The compensation of key management personnel during the three-month and six-month periods ended is as follows: June 30, 2021(Unaudited) June 30, 2020(Unaudited) Salaries and benefits 3,804,896 2,658,290 Employee benefit obligations 231,843 155,938 4,036,739 2,814,228a) Premium receivable - related parties, net June 30, 2021(Unaudited) December 31, 2020(Audited) Premium receivable from related parties 11,545,662 10,038,075Less: allowance for doubtful debts (2,576,234) (1,726,798) 8,969,428 8,311,277Movement in the allowance for doubtful debts is as follows: June 30, 2021(Unaudited) December 31, 2020(Audited) At beginning of the period / year 1,726,798 393,511Charge for the period / year 849,436 1,333,287At end of the period / year 2,576,234 1,726,798 | 14 |
| Disclosure of entity's operating segments [text block] | 13. Segmental informationOperating segments are identified on the basis of internal reports about components of the Company that are regularly reviewed by the Company’s Board of Directors in their function as chief operating decision maker in order to allocate resources to the segments and to assess its performance.There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2020.Segment results do not include other underwriting expenses, general and administration expenses, allowances for doubtful debts, investment and commission income, realized gain (loss) on investments and other income.Segment assets do not include cash and cash equivalents, short term deposits, premiums and reinsurers’ receivable - net, premiums receivable - related parties, net, investments, prepaid expenses and other assets, long term deposits, property and equipment, right-of-use assets, intangible assets, goodwill, statutory deposit, accrued income on statutory deposit. Accordingly, they are included in unallocated assets. Segment liabilities do not include accounts payable, accrued and other liabilities, reinsurer’s balances payable, lease liabilities, employee benefit obligations, zakat and income tax, surplus distribution payable, accrued commission income payable to SAMA. Accordingly, they are included in unallocated liabilities.These unallocated assets and liabilities are not reported to chief operating decision maker under related segments and are monitored on a centralized basis.For management purposes, the Company is organized into business units based on their products and services and has the following reportable segments:- Medical;- Motor;- Property and casualty; and- Protection and savings.The segment information provided to the Company’s Board of Directors for the reportable segments for the Company’s total assets and liabilities as at June 30, 2021 and December 31, 2020 and its total revenues, expenses, and net loss for the three-month and six-month periods ended June 30, 2021 and June 30, 2020, is as follows: 13. Segmental information (continued) Insurance operations June 30, 2021 (Unaudited) Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalAssets Reinsurers’ share of unearned premiums - 26,296,773 20,946,574 - 47,243,347 - 47,243,347Reinsurers’ share of outstanding claims 53,684 12,574,536 37,584,275 - 50,212,495 - 50,212,495Reinsurers’ share of claims incurred but not reported 7,637,901 5,834,876 9,780,064 - 23,252,841 - 23,252,841Deferred policy acquisition costs 12,480,359 8,157,215 4,184,062 - 24,821,636 - 24,821,636Deferred excess of loss premiums 1,750,000 1,362,589 595,043 - 3,707,632 - 3,707,632Segment assets 21,921,944 54,225,989 73,090,018 - 149,237,951 - 149,237,951Unallocated assets - 475,668,768 444,035,827 919,704,595Total assets 624,906,719 444,035,827 1,068,942,546 Total liabilities Unearned premiums 151,869,525 115,198,579 42,339,370 - 309,407,474 - 309,407,474Unearned reinsurance commission - 5,178,350 5,749,210 - 10,927,560 - 10,927,560Outstanding claims 27,872,587 24,304,350 62,754,267 - 114,931,204 - 114,931,204Claims incurred but not reported 132,009,512 42,090,056 20,295,643 - 194,395,211 - 194,395,211Additional premium reserves 27,832,696 1,044,630 - 28,877,326 - 28,877,326Other technical reserves 8,511,427 3,000,677 1,550,181 - 13,062,285 - 13,062,285Segment liabilities 348,095,747 190,816,642 132,688,671 - 671,601,060 - 671,601,060Unallocated liabilities and equity 203,449,661 193,891,825 397,341,486Total liabilities and equity 875,050,721 193,891,825 1,068,942,546 13. Segmental information (continued) Insurance operations December 31, 2020 (Audited) Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalAssets Reinsurers’ share of unearned premiums - 16,855,455 19,619,343 - 36,474,798 - 36,474,798Reinsurers’ share of outstanding claims 557,911 14,849,485 33,081,711 - 48,489,107 - 48,489,107Reinsurers’ share of claims incurred but not reported 6,500,809 5,034,535 8,527,647 - 20,062,991 - 20,062,991Deferred policy acquisition costs 17,797,650 7,239,163 4,437,786 - 29,474,599 - 29,474,599Segment assets 24,856,370 43,978,638 65,666,487 - 134,501,495 - 134,501,495Unallocated assets 541,950,312 463,265,856 1,005,216,168Total assets 676,451,807 463,265,856 1,139,717,663 Total liabilities Unearned premiums 225,562,240 107,129,290 42,897,271 - 375,588,801 - 375,588,801Unearned reinsurance commission - 3,082,613 5,743,272 - 8,825,885 - 8,825,885Outstanding claims 14,488,827 33,803,393 56,450,340 - 104,742,560 - 104,742,560Claims incurred but not reported 115,591,905 39,869,734 15,436,275 - 170,897,914 - 170,897,914Additional premium reserves 796,813 10,498,578 - - 11,295,391 - 11,295,391Other technical reserves 6,761,159 3,140,591 1,309,843 - 11,211,593 - 11,211,593Segment liabilities 363,200,944 197,524,199 121,837,001 682,562,144- 682,562,144Unallocated liabilities and equity 160,193,697 296,961,822 457,155,519Total liabilities and equity 842,755,841 296,961,822 1,139,717,663 13. Segmental information (continued)For the six-month period ended June 30, 2021 (Unaudited) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalRevenues Gross premiums written 136,243,779 119,398,150 49,651,249 - 305,293,178 - 305,293,178Reinsurance premiums ceded: - Foreign - (26,253,238) (27,087,104) - (53,340,342) - (53,340,342)- Local - (3,255,596) (3,945,004) - (7,200,600) - (7,200,600)Excess of loss premiums: - Foreign (9,496,365) (1,753,371) (1,109,995) - (12,359,731) - (12,359,731)- Local (700,000) (176,946) (195,613) - (1,072,559) - (1,072,559)Net premiums written 126,047,414 87,958,999 17,313,533 - 231,319,946 - 231,319,946 Changes in unearned premiums 73,692,715 (8,069,288) 557,900 - 66,181,327 - 66,181,327Changes in reinsurers’ share of unearned premiums - 9,441,321 1,327,228 - 10,768,549 - 10,768,549Net premiums earned 199,740,129 89,331,032 19,198,661 - 308,269,822 - 308,269,822 Reinsurance commissions - 3,941,283 7,685,974 - 11,627,257 - 11,627,257Fee income from insurance 11,300 29,130 158,988 - 199,418 - 199,418 Total revenues 199,751,429 93,301,445 27,043,623 - 320,096,497 - 320,096,497 UNDERWRITING COSTS AND EXPENSES Gross claims paid (215,061,049) (92,838,117) (6,950,597) - (314,849,763) - (314,849,763)Reinsurers’ share of gross claims paid 12,972,409 19,914,835 3,154,304 - 36,041,548 - 36,041,548Expenses incurred related to claims (2,990,704) (4,803,204) - - (7,793,908) - (7,793,908)Net claims and other benefits paid (205,079,344) (77,726,486) (3,796,293) - (286,602,123) - (286,602,123) (Continued)13. Segmental information (continued)For the six-month period ended June 30, 2021 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations Total Changes in outstanding claims (13,383,760) 9,589,041 (6,393,925) - (10,188,644) - (10,188,644)Changes in reinsurers’ share of outstanding claims (504,227) (2,319,951) 4,547,566 - 1,723,388 - 1,723,388Changes in claims incurred but not reported (16,417,607) (2,220,322) (4,859,368) - (23,497,297) - (23,497,297)Changes in reinsurers’ share of claims incurred but not reported 1,137,092 800,341 1,252,417 - 3,189,850 - 3,189,850Net claims and other benefits incurred (234,247,846) (71,877,377) (9,249,603) - (315,374,826) - (315,374,826) Policy acquisition costs (16,860,905) (7,520,978) (3,757,293) - (28,139,176) - (28,139,176)Changes in additional premium reserves (27,035,884) 9,453,949 - (17,581,935) - (17,581,935)Changes in other technical reserves (1,750,268) 139,915 (240,339) - (1,850,692) - (1,850,692)Other underwriting expenses (454,330) (3,345,365) - - (3,799,695) - (3,799,695) Total underwriting costs and expenses, net (280,349,233) (73,149,856) (13,247,235) - (366,746,324) - (366,746,324)NET UNDERWRITING (LOSS) INCOME (80,597,804) 20,151,589 13,796,388 - (46,649,827) - (46,649,827) (Continued) 13. Segmental information (continued) For the six-month period ended June 30, 2021 (Unaudited) (continued) Insurance operations Medical Motor Property andcasualty Protection and savings Total Shareholders’ operations TotalOTHER OPERATING (EXPENSES) INCOME Allowance for doubtful debts (6,757,435) - (6,757,435)General and administrative expenses (60,020,270) (1,369,907) (61,390,177)Investment and commission income - net 2,814,296 5,908,048 8,722,344Finance costs - lease liabilities (146,981) - (146,981)Other income 2,624,151 - 2,624,151Total other operating (expenses) income, net (61,486,239) 4,538,141 (56,948,098) Total (loss) income for the period before surplus attribution, zakat and income tax (108,136,066) 4,538,141 (103,597,925)Surplus attributed to the insurance operations - - -Total (loss) income for the period before zakat and income tax (108,136,066) 4,538,141 (103,597,925) Zakat expense - (2,000,000) (2,000,000)Income tax expense - - - Total (loss) income for the period attributable to the shareholders (108,136,066) 2,538,141 (105,597,925) (Continued) 13. Segmental information (continued)For the six-month period ended June 30, 2020 (Unaudited) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalREVENUES Gross premiums written 128,881,325 57,802,733 39,427,711 - 226,111,769 - 226,111,769Reinsurance premiums ceded: - - Foreign - (19,026,762) (25,499,901) - (44,526,663) - (44,526,663)- Local - (3,292,912) (3,859,008) - (7,151,920) - (7,151,920)Excess of loss expenses: - Foreign (1,050,000) (681,526) (461,279) - (2,192,805) - (2,192,805)- Local - (139,180) (103,908) - (243,088) - (243,088)Net premiums written 127,831,325 34,662,353 9,503,615 - 171,997,293 - 171,997,293 Changes in unearned premiums 32,206,787 2,041,077 (1,157,280) - 33,090,584 - 33,090,584Changes in reinsurers’ share of unearned premiums - (814,187) 2,135,998 - 1,321,811 - 1,321,811Net premiums earned 160,038,112 35,889,243 10,482,333 - 206,409,688 - 206,409,688Reinsurance commissions - 4,481,819 6,892,966 - 11,374,785 - 11,374,785Fee income from insurance 16,200 27,641 67,070 - 110,911 - 110,911 TOTAL REVENUES 160,054,312 40,398,703 17,442,369 - 217,895,384 - 217,895,384 UNDERWRITING COSTS AND EXPENSES Gross claims paid (107,146,367) (52,177,248) (2,829,353) - (162,152,968) - (162,152,968)Reinsurers’ share of claims paid 6,194,025 20,861,097 1,796,050 - 28,851,172 - 28,851,172Expenses incurred related to claims (2,290,618) - - - (2,290,618) - (2,290,618)Net claims and other benefits paid (103,242,960) (31,316,151) (1,033,303) - (135,592,414) - (135,592,414) (Continued) 13. Segmental information (continued)For the six-month period ended June 30, 2020 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations Total Changes in outstanding claims (1,438,497) (636,526) (2,168,882) - (4,243,905) - (4,243,905)Changes in reinsurers’ share of outstanding claims (1,401,077) 254,708 1,644,900 - 498,531 - 498,531Changes in claims incurred but not reported (2,743,120) 9,281,565 (1,366,369) - 5,172,076 - 5,172,076Changes in reinsurers’ share of claims incurred but not reported (2,009,150) (3,756,153) 1,265,165 - (4,500,138) - (4,500,138)Net claims and other benefits incurred (110,834,804) (26,172,557) (1,658,489) - (138,665,850) - (138,665,850)Policy acquisition costs (11,870,096) (5,041,810) (2,223,870) - (19,135,776) - (19,135,776)Changes in additional premium reserves (4,875,792) 229,231 - - (4,646,561) - (4,646,561)Changes in other technical reserves (157,564) 318,495 (26,812) - 134,119 - 134,119 Other underwriting expenses (895,132) (401,445) (273,828) - (1,570,405) - (1,570,405) TOTAL UNDERWRITING COSTS AND EXPENSES, NET (128,633,388) (31,068,086) (4,182,999) - (163,884,473) - (163,884,473)NET UNDERWRITING INCOME 31,420,924 9,330,617 13,259,370 - 54,010,911 - 54,010,911 (Continued) 13. Segmental information (continued)For the six-month period ended June 30, 2020 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalOTHER OPERATING (EXPENSES) INCOME Allowance for doubtful debts (15,424,878) - (15,424,878)General and administrative expenses (43,506,833) (1,238,632) (44,745,465)Investment and commission income 3,665,730 1,934,444 5,600,174 Finance costs on leases (133,567) - (133,567)Other income 5,192,301 - 5,192,301Total other 0perating (expenses) income,net (50,207,247) 695,812 (49,511,435) Total income for the period before surplus attribution, zakat and income tax 3,803,664 695,812 4,499,476Surplus attributed to the insurance operations (380,366) - (380,366)Total income for the period before zakat and income tax 3,423,298 695,812 4,119,110 Zakat expense - (1,315,640) (1,315,640)Income tax expense - - - Total income (loss) for the period attributable to the shareholders 3,423,298 (619,828) 2,803,470 13. Segmental information (continued)Gross premiums written for the six-month period ended June 30, 2021 can be categorised in the following client categories: Medical Motor Property and casualty Protection and savings Total Large corporates 20,428,687 52,553,765 28,797,632 - 101,780,084Medium corporates 8,599,284 53,328,051 11,642,191 - 73,569,526Small enterprises 6,514,886 8,847,868 3,963,207 - 19,325,961Micro enterprises 15,214,705 3,622,546 375,075 - 19,212,326Retail 85,486,217 1,045,920 4,873,144 - 91,405,281 136,243,779 119,398,150 49,651,249 - 305,293,178Gross premiums written for the three-month period ended June 30, 2021 can be categorized in following client categories: Medical Motor Property and casualty Protection and savings Total Large corporates 15,057,380 25,473,504 9,212,203 - 49,743,087Medium corporates 5,333,124 23,496,794 2,800,959 - 31,630,877Small enterprises 2,587,641 2,741,340 1,317,330 - 6,646,311Micro enterprises 5,089,898 1,385,883 176,871 - 6,652,652Retail 30,904,631 564,371 2,072,138 - 33,541,140 58,972,674 53,661,892 15,579,501 - 128,214,067 13. Segmental information (continued)Gross premiums written for the six-month period ended June 30, 2020 can be categorised in the following client categories: Medical Motor Property and casualty Protection and savings Total Large corporates 15,681,085 25,210,401 25,798,548 - 66,690,034Medium corporates 17,754,397 13,380,700 10,219,336 - 41,354,433Small enterprises 3,794,516 6,292,353 3,020,868 - 13,107,737Micro enterprises 16,141,979 6,303,782 372,930 - 22,818,691Retail 75,509,348 6,615,497 16,029 - 82,140,874 128,881,32557,802,73339,427,711- 226,111,769Gross written premium for the three-month period ended June 30, 2020 can be categorized in following client categories: Medical Motor Property and casualty Protection and savings Total Large corporates 16,394,296 7,173,482 8,537,362 - 32,105,140Medium corporates 13,011,711 5,215,485 2,415,855 - 20,643,051Small enterprises 1,488,514 1,006,012 907,862 - 3,402,388Micro enterprises 4,830,925 1,453,338 148,603 - 6,432,866Retail 23,364,166 6,507,941 3,466 - 29,875,573 59,089,612 21,356,258 12,013,148 - 92,459,018 13. Segmental information (continued)For the three-month period ended June 30, 2021 (Unaudited) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalRevenues Gross premiums written 58,972,674 53,661,892 15,579,501 - 128,214,067 - 128,214,067Reinsurance premiums ceded: - Foreign - (11,831,472) (7,406,725) - (19,238,197) - (19,238,197)- Local - (1,461,499) (2,102,542) - (3,564,041) - (3,564,041)Excess of loss premiums: - Foreign (8,285,981) (811,507) (297,862) - (9,395,350) - (9,395,350)- Local (350,000) (74,707) (80,392) - (505,099) - (505,099)Net premiums written 50,336,693 39,482,707 5,691,980 - 95,511,380 - 95,511,380 Changes in unearned premiums 47,007,394 3,482,896 10,037,482 - 60,527,772 - 60,527,772Changes in reinsurers’ share of unearned premiums - 2,422,815 (5,846,266) - (3,423,451) - (3,423,451)Net premiums earned 97,344,087 45,388,418 9,883,196 - 152,615,701 - 152,615,701Reinsurance commissions - 1,908,510 4,042,345 - 5,950,855 - 5,950,855Fee income from insurance 7,250 11,275 66,915 - 85,440 - 85,440Total revenues 97,351,337 47,308,203 13,992,456 - 158,651,996 - 158,651,996 UNDERWRITING COSTS AND EXPENSES Gross claims paid (89,141,789) (50,902,068) (2,693,485) - (142,737,342) - (142,737,342)Reinsurers’ share of gross claims paid 8,806,184 12,380,516 1,203,886 - 22,390,586 - 22,390,586Expenses incurred related to claims (1,469,176) (2,686,978) - - (4,156,154) - (4,156,154)Net claims and other benefits Paid (81,804,781) (41,208,530) (1,489,599) - (124,502,910) - (124,502,910) (Continued) 13. Segmental information (continued)For the three-month period ended June 30,2021 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations Total Changes in outstanding claims (5,621,962) 11,798,066 1,230,955 - 7,407,059 - 7,407,059Changes in reinsurers’ share of outstanding claims (226,189) (3,036,735) 1,793,044 - (1,469,880) - (1,469,880)Changes in claims incurred but not reported (29,763,024) (2,876,275) (1,009,974) - (33,649,273) - (33,649,273)Changes in reinsurers’ share of claims incurred but not reported 1,891,635 509,442 1,500,708 - 3,901,785 - 3,901,785Net claims and other benefits incurred (115,524,321) (34,814,032) 2,025,134 - (148,313,219) - (148,313,219) Policy acquisition costs (8,592,034) (3,875,096) (1,860,890) - (14,328,020) - (14,328,020)Changes in additional premium reserves (11,583,528) 4,412,263 - - (7,171,265) - (7,171,265)Changes in other technical reserves (2,064,825) 155,045 (10,484) - (1,920,264) - (1,920,264)Other underwriting expenses (181,335) (3,345,365) - - (3,526,700) - (3,526,700)Total underwriting costs and expenses, net (137,946,043) (37,467,185) 153,760 - (175,259,468) - (175,259,468)NET UNDERWRITING (LOSS) INCOME (40,594,706) 9,841,018 14,146,216 - (16,607,472) - (16,607,472) (Continued) 13. Segmental information (continued)For the three-month period ended June 30,2021 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalOTHER OPERATING (EXPENSES) INCOME Allowance for doubtful debts (3,044,068) - (3,044,068)General and administrative expenses (31,937,987) (450,709) (32,388,696)Investment and commission income - net 1,604,099 2,911,526 4,515,625Finance costs on leases (72,908) - (72,908)Other income 796,299 - 796,299Total other operating (expenses) income, net (32,654,565) 2,460,817 (30,193,748)Total (loss) income for the period before surplus attribution, zakat and income tax (49,262,037) 2,460,817 (46,801,220)Surplus attributed to the insurance operations - - -Total (loss) income for the period before zakat and income tax (49,262,037) 2,460,817 (46,801,220) Zakat expense - (1,000,000) (1,000,000)Income tax expense - - -Total (loss) income for the period attributable to the shareholders (49,262,037) 1,460,817 (47,801,220) 13. Segmental information (continued)For the three-month period ended June 30, 2020 (Unaudited) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalRevenues Gross premiums written 59,089,612 21,356,258 12,013,148 - 92,459,018 - 92,459,018Reinsurance premiums ceded: - Foreign - (7,257,537) (7,015,265) - (14,272,802) - (14,272,802)- Local - (1,278,255) (1,854,928) - (3,133,183) - (3,133,183)Excess of loss premiums: - Foreign (525,000) (340,763) (230,640) - (1,096,403) - (1,096,403)- Local - (69,590) (51,954) - (121,544) - (121,544)Net premiums written 58,564,612 12,410,113 2,860,361 - 73,835,086 - 73,835,086 Changes in unearned premiums 20,277,744 5,053,976 5,111,551 - 30,443,271 - 30,443,271Changes in reinsurers’ share of unearned premiums - (2,080,383) (3,223,744) - (5,304,127) - (5,304,127)Net premiums earned 78,842,356 15,383,706 4,748,168 - 98,974,230 - 98,974,230Reinsurance commissions - 2,052,569 3,136,222 - 5,188,791 - 5,188,791Fee income from insurance 7,500 8,505 26,635 - 42,640 - 42,640Total revenues 78,849,856 17,444,780 7,911,025 - 104,205,661 - 104,205,661 UNDERWRITING COSTS AND EXPENSES Gross claims paid (64,128,625) (15,543,671) (1,249,279) - (80,921,575) - (80,921,575)Reinsurers’ share of gross claims paid 2,638,584 6,208,044 669,251 - 9,515,879 - 9,515,879Expenses incurred related to claims (1,173,149) - - - (1,173,149) - (1,173,149)Net claims and other benefits paid (62,663,190) (9,335,627) (580,028) - (72,578,845) - (72,578,845) (Continued)13. Segmental information (continued)For the three-month period ended June 30,2020 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations Total Changes in outstanding claims 32,689,632 924,879 (1,698,643) - 31,915,868 - 31,915,868Changes in reinsurers’ share of outstanding claims (1,270,655) (371,765) 1,534,921 - (107,499) - (107,499)Changes in claims incurred but not reported (7,331,113) 370,184 38,285 - (6,922,644) - (6,922,644)Changes in reinsurers’ share of claims incurred but not reported (669,970) 47,477 116,786 - (505,707) - (505,707)Net claims and other benefits incurred (39,245,296) (8,364,852) (588,679) - (48,198,827) - (48,198,827) - Policy acquisition costs (6,026,817) (2,362,128) (954,898) - (9,343,843) - (9,343,843)Changes in additional premium reserves (6,282,685) (2,310,941) - - (8,593,626) - (8,593,626) Changes in other technical reserves 410,190 29,586 (4,675) - 435,101 - 435,101 Other underwriting expenses (895,132) (401,445) 158,980 - (1,137,597) - (1,137,597)Total underwriting costs and expenses, net (52,039,740) (13,409,780) (1,389,272) - (66,838,792) - (66,838,792) NET UNDERWRITING INCOME 27,705,248 4,436,445 5,225,176 - 37,366,869 - 37,366,869 (Continued) 13. Segmental information (continued)For the three-month period ended June 30,2020 (Unaudited) (continued) Insurance operations Medical Motor Property and casualty Protection and savings Total Shareholders’ operations TotalOTHER OPERATING (EXPENSES) INCOME Allowance for doubtful debts (12,402,809) - (12,402,809)General and administrative Expenses (20,701,305) (564,778) (21,266,083)Investment and commission Income - net 1,636,153 896,086 2,532,239Finance costs on leases (66,644) - (66,644)Other income 4,435,923 - 4,435,923Total other operating (expenses) income, net (27,098,682) 331,308 (26,767,374) Total income for the period before surplus attribution, zakat and income tax 10,268,187 331,308 10,599,495Surplus attributed to the insurance operations (1,026,819) - (1,026,819)Total income for the period before zakat and income tax 9,241,368 331,308 9,572,676 Zakat expense - (623,198) (623,198)Income tax expense - - -Total income (loss) for the period attributable to the shareholders 9,241,368 (291,890) 8,949,478 | 13 |
| Disclosure of capital management [text block] | 18. Capital risk management The Company’s objectives when managing capital are: To comply with the insurance capital requirements as set out in the Law. The Company’s current paid-up share capital is in accordance with Article 3 of the Law; To safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and To provide an adequate return to shareholders by pricing insurance contracts commensurately with the level of risk. As per Article 66 of the Regulations, the Company shall maintain a solvency margin equivalent to the highest of the following three methods: Minimum capital requirement of Saudi Riyals 200 million; Premium solvency margin; or Claims solvency margin.As at June 30, 2021, the Company’s solvency margin is less than the minimum solvency margin required by the Implementing Regulations of the Cooperative Insurance Companies Control Law (the “Regulations”). The Company has received a letter from SAMA dated June 25, 2021 stating the Company’s deteriorating solvency margin and requiring the Company to submit its rectification measures according to Article 68 of the Regulations. The Company has submitted its planned rectification measures to SAMA and has mentioned in its response that the solvency margin is expected to be in line with the Regulations by the end of the fourth quarter of 2021. The planned rectification measures include, amongst other things, the optimization of asset admissibility profile, improvement of premium payment warranty schemes, improvement in underwriting policies and processes, expanding online selling channels, reduction in general and administration expenses due to the synergies from the merger and improvement in claim management processes. | 18 |
| Disclosure of commitments and contingencies, general [text block] | 11. Commitments and contingenciesi) The Company, in common with significant majority of insurers, is subject to litigation in the normal course of its business. The Company, based on independent legal advice, does not believe that the outcome of these cases will have a material impact on the Company’s financial performance.ii) As at June 30, 2021 the Company does not have any capital commitments (December 31, 2020: Nil).iii) See Note 15 for contingencies pertaining to zakat and income tax assessments. | 11 |
| Disclosure of board of director's approval of the financial statements [text block] | 22. Approval of the interim condensed financial informationThis interim condensed financial information has been approved by the Board of Directors on 7 Muharram 1443 H; corresponding to August 15, 2021. | 22 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 21. Subsequent eventNo events have arisen subsequent to June 30, 2021 and before the date of signing the independent auditor’s review report, that could have a significant impact on the interim condensed financial information as at June 30, 2021. | 21 |
