| Notes forming part of accounts [line items] | | |
| Disclosure of notes and other explanatory information [text block] | | |
| Disclosure of general information about reporting entity [abstract] | | |
| Disclosure of general information about reporting entity [text block] | 1.General information - legal status and principal activities (a)General informationGulf 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.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 typeLocationCR numberRegional branchDammam2050118944Regional branchRiyadh1010247518Regional branchJeddah4030177933Regional branchRiyadh1010238441Regional branchAl Khobar2051048012Regional branchJeddah4030224075(b)Accumulated lossesThe Company had accumulated losses of Saudi Riyals 132.1 million as of March 31, 2022, which exceeded one half of its share capital as of that date. This condition requires the Company’s Board of Directors, as per the requirements of the Regulations for Companies, to invite an extraordinary general assembly meeting (“EOGM”) within 15 days of becoming aware of the situation to reduce the accumulated losses to less than one half of the share capital or to dissolve the Company before its term set in its By-laws. In accordance with the Regulations for Companies, the Company shall be deemed terminated in the following cases: i.Extraordinary general assembly fails to meet within the period specified in the Regulations for Companies; ii.Extraordinary general assembly meets and fails to issue a resolution in this regard; and iii.Subscriptions raised, in pursuance of the resolution passed in the EOGM within the period specified by the Regulations for Companies, are insufficient to reduce the losses to less than one half of the share capital. The Company is in the process of meeting the aforementioned requirements of the Regulations for Companies. Also refer to Note 1 (c). 1.General information - legal status and principal activities (continued)(b)Accumulated losses (continued)The total loss attributable to the shareholders of Saudi Riyals 20.9 million and net operating cash outflows of Saudi Riyals 17.9 million for the three-month period ended March 31, 2022 are mainly attributable to the underwriting loss amounting to Saudi Riyals 22.8 million in the motor segment (Note 13). Management has formulated and implemented measures since the end of 2021, as approved by the Company’s Board of Directors, which include better pricing strategies for motor 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 remainder of 2022 provided that the underlying projections of the business and economic conditions continue to be realized.(c)SolvencyThe Company has not met the solvency margin requirements as required by the Implementing Regulations of the Cooperative Insurance Companies Control Law (the “Regulations”) since March 31, 2021 which has further deteriorated as of March 31, 2022.The Company 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. In response to SAMA’s letter, the Company submitted its planned rectification measures and mentioned that the solvency margin was expected to be in line with the Regulations by the fourth quarter of 2021. The planned rectification measures proposed by the Company also include, amongst other things, the optimization of asset admissibility profile, improvement of premium payment warranty schemes, improvement in underwriting policies and processes, expansion of digital sales platforms, reduction in general and administrative expenses due to the synergies from the merger and improvement in claims management processes.On September 13, 2021, SAMA issued another letter to the Company to comply with the solvency margin requirement within the stipulated time period as specified in Article 68 of the Regulations and intimated that failure to do so will result in regulatory action in line with clause 2(d) of Article 68 of the Regulations. In response to such a letter, the Company stated that it has prepared a business plan that reflects the planned rectification measures and includes a proposed increase in the share capital of the Company by way of a rights issue amounting to Saudi Riyals 229.5 million. On December 2, 2021, and March 8, 2022, SAMA and the Capital Market Authority (“CMA”), respectively, approved the Company’s plan to pursue the proposed increase in the share capital by way of a rights issue. On April 20, 2022, the Company’s shareholders, in an EOGM, approved the Company’s plan to pursue the proposed increase in the share capital by way of a rights issue. The success of the Company’s expectation to meet the solvency margin requirements is dependent on the favorable outcome of the planned rectification measures and subscription of the proposed rights issue which is currently underway as of the date of approval of the interim condensed financial information.(d)Going concern and shareholding percentageManagement has performed an assessment of its going concern assumption and prepared this interim condensed financial information on a going concern basis. Based on the approved business plan of the Company, management believes that the Company will be able to continue its operations and meet its obligations as they fall due within the next 12 months. 1.General information - legal status and principal activities (continued)Shareholding percentageThe shareholding percentage of the Company at March 31, 2022 and December 31, 2021 was as follows:March 31, 2022December 31, 2021Shareholding percentage subject to zakat95%95%Shareholding percentage subject to income tax5%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.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, 2021. 2.Basis of preparation (continued)(b)Basis of measurement (continued)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, zakat and income tax, surplus distribution payable, accrued 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, goodwill property and equipment, right-of-use assets, intangible assets, statutory deposit, long term 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 reinsurers' balances payable and lease liabilities.(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, 2021.(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, 2021.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: 2.Basis of preparation (continued)(e)Critical accounting judgments, estimates and assumptions (continued)(i)Impact of Covid-19In response to the spread of the Covid-19 in the Kingdom of Saudi Arabia where the Company operates and its resulting disruptions to the social and economic activities in those markets over the last two years, management continues to proactively assess its impacts on its operations. In particular, the Company is closely monitoring the current surge in cases due to the outbreak of a new variant - Omicron. The preventive measures taken by the Company in April 2020 are still in effect including the creation of ongoing crisis management teams and processes, to ensure the health and safety of its employees, customers and the wider community as well as to ensure the continuity of its operations. Employee health continues to be a key area of focus with programs being implemented to assist with increasing awareness, identification, support and monitoring of employee health. A majority of the employees of the Company have been fully vaccinated for at least two doses of vaccine and the management is working on a plan to encourage booster shots in line with the government initiatives related to Covid-19.The management of the Company believes that any potential lockdown measures being reintroduced will not materially affect the underlying demand for the Company’s insurance products and forecast. Based on these factors, management believes that the Covid-19 pandemic has had no material effect on the Company’s reported financial results for the year ended December 31, 2021 including the significant accounting judgements and estimates. The Company continues to monitor the surge of the new variant closely although at this time management is not aware of any factors that are expected to change the impact of the pandemic on the Company’s operations during 2022 or beyond.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 three-month period ended March 31, 2022. The Company continues to monitor the situation closely. 2.Basis of preparation (continued)(e)Critical accounting judgments, estimates and assumptions (continued)(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.(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. 2.Basis of preparation (continued)(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, 2021, except as explained below. | 2 |
| Disclosure of summary of significant accounting policies [abstract] | | |
| Disclosure of summary of significant accounting policies, general comment [text block] | Significant accounting policies3.1New 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 has 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 9.3.Significant accounting policies (continued)3.1New standards, amendments and interpretations not yet applied by the Company (continued)-IFRS 9, ‘Financial Instruments’ (including amendments to IFRS 4, Insurance Contracts) (continued)For detailed impact assessment of IFRS 9 adoption, reference to the annual financial statements for the year ended December 31, 2021 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.For detailed impact assessment of IFRS 17 adoption, reference to the annual financial statements for the year ended December 31, 2021 should be made.3.2Risk 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 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 operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Cash in hand20,19020,190--Cash at bank - current accounts34,632,80810,366,715460,3722,999,940Time deposits30,272,70830,279,79271,594,37271,315,45664,925,70640,666,69772,054,74474,315,396Cash at banks is placed with counterparties with sound credit ratings. As at March 31, 2022, 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 1.6% to 6% (December 31, 2021: 1.6% to 6%) per annum. | 6 |
| Description of accounting policy for intangible assets and goodwill [text block] | 5.GoodwillThe goodwill arising from the merger is attributable to the expected synergies from combining the operations of the Gulf Union 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 growth5.19Average claims ratio85.0Discount rate10.5Terminal growth rate2.0Sensitivity to the changes in assumptionsThe estimated recoverable amount of the CGU exceeded its carrying value by approximately Saudi Riyals 32.7 million. Management has identified that a reasonably possible change in the below given key assumptions could cause the carrying amount to exceed the recoverable amount.Gross premiums written growth The gross premiums written growth in the forecast period has been estimated to be a compound annual growth rate of 5.19%. If all other assumptions kept the same, a reduction of this growth rate from 5.19% to 3.89% 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 85.0%. If all other assumptions kept the same, an increase of this ratio from 85.0% to 86.7% would give a value in use equal to the current carrying amount.Discount rateThe discount rate used to calculate the present value of future cashflows in the forecast period has been estimated to be 10.5%. If all other assumptions kept the same, an increase of this ratio from 10.5% to approximately 11.1% would give a value in use equal to the current carrying amount.Terminal Growth rateThe terminal gross premiums written growth in the forecast period has been estimated to be 2.0%. If all other assumptions kept the same, a decrease of this ratio from 2.0% to 1.2% 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] | Long-term depositsLong-term deposit represents deposit with maturity of more than one year from the date of placement and is placed with the financial institution carrying commission income at the rate of 6% per annum and will mature by September 2024. | 7 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of business combinations [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 CMA. 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. 4.Business combination (continued)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. The Company has allocated and completed the purchase price allocation (“PPA”) of the identified assets acquired and the liabilities and contingent liabilities assumed. The fair values of net assets acquired as at the Effective Date are as follows:Carrying values on acquisition at December 5, 2020Adjustments from purchase price allocationFair values on December 5, 2020ASSETSCash and cash equivalents147,359,189-147,359,189Short-term deposits40,368,219-40,368,219Premiums and reinsurers’ receivable - net45,906,604-45,906,604Reinsurers’ share of unearned premiums4,338,001-4,338,001Reinsurers’ share of outstanding claims15,980,527-15,980,527Reinsurers’ share of claims incurred but not reported1,528,473-1,528,473Deferred policy acquisition costs7,540,381-7,540,381Investments14,413,873-14,413,873Due from related parties 2,394,461-2,394,461Prepaid expenses and other assets13,369,069-13,369,069Property and equipment3,673,191-3,673,191Right-of-use assets2,791,322-2,791,322Intangible assets - (Note 16)7,052,57636,089,00043,141,576Statutory deposit24,000,000-24,000,000Accrued income on statutory deposit3,515,288-3,515,288TOTAL ASSETS334,231,17436,089,000370,320,174LIABILITIESAccounts payable18,701,160-18,701,160Accrued and other liabilities14,851,401-14,851,401Reinsurers’ balances payable3,919,445-3,919,445Unearned premiums107,975,551-107,975,551Unearned reinsurance commission1,083,764-1,083,764Outstanding claims36,792,956-36,792,956Claims incurred but not reported40,751,611-40,751,611Additional premium reserves14,247,658-14,247,658Other technical reserves2,216,738-2,216,738Lease liabilities1,321,462-1,321,462Employee benefit obligations6,585,890-6,585,890Zakat15,621,219-15,621,219Surplus distribution payable1,470,696-1,470,696Accrued commission income payable to SAMA3,515,288-3,515,288TOTAL LIABILITIES269,054,839-269,054,839Net identifiable assets 65,176,33536,089,000101,265,335 4.Business combination (continued)The Company has not revised the comparative information in the statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2020, as the impact of the completion of purchase price allocation exercise on the comparative statements was not material.Purchase consideration 168,963,085Less: net identifiable assets acquired(101,265,335)Goodwill 67,697,750The Company has completed the PPA during 2021 and has identified the following intangible assets. Intangible assets acquired Motor pricing model23,428,000Customer relationships12,661,00036,089,000Valuation approach and methodologies - Intangible assets acquiredMotor pricing modelAs a result of the merger, the Company has acquired a motor pricing model which is identified as an intangible asset. The model has embedded risk parameters that provide meaningful insights for the underwriting practices. Management has used the “Comparative Income Differential Method” for valuing the motor pricing model with an estimated useful life of 7 years. The key assumption used in the model is the expected improvement in the loss ratio of 5%. If the expected improvement in the loss ratio is increased or decreased by 1%, the total value of the motor pricing model increases or decreases by Saudi Riyals 6.6 million. Customer relationshipsIAS 38 - Intangible assets’ specifies that if an entity can evidence that it can control economic benefits from non-contractual relationships, those customer relationships are identified as separable and can be recognized as an intangible asset. Management has used the “Multi-Period Excess Earning Method” for the valuation of non-contractual customer relationships and has considered a useful life of 7 years. Management believes that the customer portfolio acquired from Al Ahlia will provide economic benefit to the Company and will contribute in the overall business growth. The key assumption used by the management is the average expected loss ratio of 73%. An increase or decrease in the average expected loss ratio of 2% results in change in the valuation of customer relationships by Saudi Riyals 6.0 million. | 4 |
| Disclosure of investments in available-for-sale investments [text block] | 10.Investments(a)Investments are classified as follows:Insurance operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Available-for-sale122,511,549124,878,01080,424,429117,403,853Held-to-maturity14,933,04414,933,04419,926,72620,551,725137,444,593139,811,054100,351,155137,955,578(b)Category wise investment analysis is as follows:Insurance operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Quoted125,590,484127,956,94585,501,349122,480,777Unquoted11,854,10911,854,10914,849,80615,474,801137,444,593139,811,054100,351,155137,955,578 10.Investments (continued)(c)The analysis of the composition of investments is as follows:Insurance operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Mutual funds18,826,55619,355,26514,394,37328,783,585Ordinary shares1,923,0781,923,0781,923,0781,923,078Sukuks116,694,959118,532,71184,033,704107,248,915137,444,593139,811,054100,351,155137,955,578Management 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 23.1 million were denominated in United States Dollars (December 31, 2021: Saudi Riyals 24.7 million).(d)Movement in available-for-sale investments is as follows:Insurance operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)At the beginning of the period / year124,878,010109,187,954117,403,853114,817,528Acquisitions during the period / year-19,288,091-10,000,000Additions from merger----Disposals during the period / year--(36,381,251)(10,000,000)Unrealized (losses) gains(2,366,461)(3,598,035)(598,173)2,586,325Realized gains on disposals--(1,600,001)140,129Reclassified from equity to interim condensed statement of income--1,600,001(140,129)At the end of period / year122,511,549124,878,01080,424,429117,403,853 10.Investments (continued)(e)Movement in held-to-maturity investments is as follows:Insurance operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)At the beginning of the period / year14,933,0445,002,01320,551,72528,051,719Transfer /acquisitions during the period / year-9,931,031--Redemption/disposals / transfer during the period / year--(624,999)(7,499,994)At the end of period / year14,933,04414,933,04419,926,72620,551,725Insurance operationsSecurityIssuerMaturityLocationProfit marginAmortized costMarch 31, 2022December 31, 2021(Unaudited)(Audited)SEC - SukukSECMay 2022Saudi Arabia3.15%5,002,0135,002,013`Islamic Leasing and Finance Fund 21NBK Wealth ManagementAugust 2026Saudi Arabia6.0%9,931,0319,931,03114,933,04414,933,044Shareholders’ operationsSecurityIssuerMaturityLocationProfit marginAmortized costMarch 31, 2022December 31, 2021(Unaudited)(Audited)STC SukukSTCSeptember 2024Saudi Arabia2.49%2,000,0002,000,000Maaden phosphate company - SukuksMaaden phosphate company SukuksFebruary 2025Saudi Arabia3.44%5,000,0005,000,000SukukSaudi Kuwait Finance HouseJune2021Saudi Arabia 6 months SIBOR plus 7.50%833,4261,458,425Sukuk AlAwwal Energy FundDecember 2028Saudi Arabia SIBOR plus 8.2%12,093,30012,093,30019,926,72620,551,725 10.Investments (continued)(f)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 operationsShareholders’ operationsMarch 31, 2022December 31, 2021March 31, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Kingdom of Saudi Arabia133,885,468136,030,860100,351,155117,036,409United Arab Emirates---10,663,253France ---7,089,263Switzerland---3,166,653United Kingdom3,559,1253,780,194--137,444,593139,811,054100,351,155137,955,578 | 10 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 8.Premiums and reinsurers’ receivable - netMarch 31, 2022December 31, 2021(Unaudited)(Audited)Premiums receivable from policyholders136,663,551148,699,770Premiums receivable from brokers19,168,88327,934,934Receivable from reinsurance companies28,398,13235,540,016184,230,566212,174,720Allowance for doubtful debts:- Receivable from policyholders(44,719,401)(41,393,582)- Receivable from brokers(4,355,721)(4,273,816)- Receivable from reinsurance companies(5,455,507)(5,283,982)(54,530,629)(50,951,380)129,699,937161,223,340 8.Premiums and reinsurers’ receivable - net (continued)Movement in the allowance for doubtful debts was as follows:March 31, 2022December 31, 2021(Unaudited)(Audited)At beginning of the period / year50,951,38048,962,389Charge for the period / year3,579,249 2,870,788Write-off during the period / year -(881,797)At end of the period / year54,530,62950,951,380 | 8 |
| 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 2021. 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 three-month period ended March 31, 2022, 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 three-month period ended March 31, 2022, 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 March 31, 2022 (December 31, 2021: Saudi Riyals 229.4 million) consisting of 22.9 million shares (December 31, 2021: 22.9 million shares) of Saudi Riyals 10 each.Shareholding structure of the Company as of March 31, 2022 and December 31, 2021 is as below: Authorized and issuedPaid upNo. of SharesSaudi RiyalsGulf Union Insurance and Projects Management Holding Company B.S.C. (c.)2,475,00024,750,00024,750,000Others20,472,464204,724,640204,724,64022,947,464229,474,640229,474,640 | 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 provisions [text block] | 9.Technical reserves 9.1Net outstanding claims and reservesNet outstanding claims and reserves comprise the following:Three-month period ended March 31, 2022(Unaudited)GrossReinsuranceNetJanuary 193,994,985(34,230,197)59,764,788Claims paid(144,707,946)18,287,154(126,420,792)Claims incurred177,618,816(21,952,225)155,666,591March 31126,905,855(37,895,268)89,010,587Salvage and subrogation(31,880,268)2,449,709(29,430,559)Gross outstanding claims95,025,587(35,445,559)59,580,028Claims incurred but not reported153,207,228(22,299,319)130,907,909Additional premium reserves22,428,905-22,428,905Other technical reserves16,766,990-16,766,990March 31287,428,710(57,744,878)229,683,832Year ended December 31, 2021(Audited)GrossReinsuranceNetJanuary 1104,742,560(48,489,107)56,253,453Claims paid(635,933,259)89,703,315(546,229,944)Claims incurred658,128,475(77,779,426)580,349,049December 31126,937,776(36,565,218)90,372,558Salvage and subrogation(32,942,791)2,335,021(30,607,770)Gross outstanding claims93,994,985(34,230,197)59,764,788Claims incurred but not reported186,847,969(21,446,416)165,401,553Additional premium reserves22,019,563-22,019,563Other technical reserves17,984,038-17,984,038December 31320,846,555(55,676,613)265,169,942 9.Technical reserves (continued)9.2Movement in net unearned premiumsMovement in unearned premiums comprise the following:Three-month period ended March 31, 2022(Unaudited)GrossReinsuranceNetBalance as at the beginning of the period255,996,173(44,001,521)211,994,652Balance as at the end of the period(257,896,271)47,409,512(210,486,759)Changes in unearned premiums(1,900,098)3,407,9911,507,893Premium written during the period135,050,016(28,386,427)106,663,589Excess of loss premiums-(1,922,771)(1,922,771)Net premium earned133,149,918(26,901,207)106,248,711Year ended December 31, 2021(Audited)GrossReinsuranceNetBalance as at the beginning of the year375,588,801(36,474,798)339,114,003Balance as at the end of the year(255,996,173)44,001,521(211,994,652)Changes in unearned premiums119,592,6287,526,723127,119,351Premium written during the year572,523,050(107,358,473)465,164,577Excess of loss premiums-(22,451,425)(22,451,425)Net premium earned692,115,678(122,283,175)569,832,503 | 9 |
| Disclosure of earnings per share [text block] | 19.Basic and diluted losses per shareBasic and diluted losses per share for the three-month periods ended March 31, 2022 and 2021 is calculated by dividing total loss for the period attributable to the shareholders by the weighted average number of outstanding shares during the period.For the three-month period ended March 31,20222021Total losses for the period attributable to the shareholders(20,886,987)(57,796,705)Weighted average number of ordinary shares for basic and diluted losses per share22,947,46422,947,464Basic and diluted losses per share(0.91)(2.52) | 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 transactionsTransactions for the three-month period endedBalance receivable / (payable) as atMarch 31, 2022March 31, 2021March 31, 2022March 31,2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Major shareholdersInsurance premium written5,267,5595,751,093--Claims paid294,332(2,112,918)--Premium receivable from related parties--12,463,02218,058,095Others-Rent charged----Services----Directors’ remuneration and meeting fee531,000(332,000)--The compensation of key management personnel during the three-month period ended is as follows:March 31, 2022March 31, 2021(Unaudited)(Unaudited)Salaries and benefits1,253,2002,029,346Employee benefit obligations 68,852115,9221,322,0522,145,268Premium receivable - related parties, netMarch 31, 2022December 31, 2021(Unaudited)(Audited)Premium receivable from related parties12,463,0225,936,160Less: allowance for doubtful debts(1,349,603)(1,483,538)11,113,4194,452,622Movement in the allowance for doubtful debts is as follows:March 31, 2022December 31, 2021(Unaudited)(Audited)At beginning of the period / year1,483,5381,726,798Reversal for the period / year(133,935)(243,260)At end of the period / year1,349,6031,483,538 | 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, 2021.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, 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 March 31, 2022 and December 31, 2021 and its total revenues, expenses, and net loss for the three-month ended March 31, 2022 and March 31, 2021 is as follows: 13.Segmental information (continued)Insurance operationsMarch 31, 2022 (Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalShareholders’ operationsTotalAssetsReinsurers’ share of unearned Premiums-23,785,18223,624,330-47,409,512-47,409,512Reinsurers’ share of outstanding claims175,98915,071,37320,198,197-35,445,559-35,445,559Reinsurers’ share of claims incurred but not reported6,139,8839,780,3496,379,087-22,299,319-22,299,319Deferred policy acquisition costs5,402,5037,330,3404,826,583-17,559,426-17,559,426Deferred excess of loss premiums2,478,7502,001,6241,287,942-5,768,316-5,768,316Segment assets14,197,12557,968,86856,316,139-128,482,132-128,482,132Unallocated assets438,858,746325,893,667764,752,413Total assets567,340,878325,893,667893,234,545Total liabilitiesUnearned premiums 95,073,690115,270,61247,551,969-257,896,271-257,896,271Unearned reinsurance commission-4,664,4417,234,887-11,899,328-11,899,328Outstanding claims21,964,08827,724,00545,332,494-95,020,587-95,020,587Claims incurred but not reported83,816,83050,451,92718,938,471-153,207,228-153,207,228Additional premium reserves-22,248,703180,202-22,428,905-22,428,905Other technical reserves8,980,7825,359,6522,426,556-16,766,990-16,766,990Segment liabilities209,835,390225,719,340121,664,579-557,219,309-557,219,309Unallocated liabilities and equity200,519,101135,496,135336,015,236Total liabilities and equity757,738,410135,496,135893,234,545 13.Segmental information (continued)Insurance operationsDecember 31, 2021 (Audited)MedicalMotorProperty and casualtyProtection and savingsTotalShareholders’ operationsTotalAssetsReinsurers’ share of unearned premiums- 26,910,825 17,090,696 - 44,001,521 - 44,001,521 Reinsurers’ share of outstanding claims 175,989 12,977,197 21,077,011 - 34,230,197 - 34,230,197 Reinsurers’ share of claims incurred but not reported 7,679,230 5,852,711 7,914,475 - 21,446,416 - 21,446,416 Deferred policy acquisition costs 6,847,593 6,478,136 3,907,143 - 17,232,872 - 17,232,872 Segment assets 14,702,812 52,218,869 49,989,325 -116,911,006-116,911,006Unallocated assets 447,939,427365,906,596813,846,023Total assets564,850,433365,906,596 930,757,029Total liabilitiesUnearned premiums 112,185,331 108,065,758 35,745,084 -255,996,173-255,996,173Unearned reinsurance commission- 5,255,283 5,087,676 -10,342,959-10,342,959Outstanding claims 21,366,735 26,238,457 46,389,793 -93,994,985-93,994,985Claims incurred but not reported 126,019,918 41,810,839 19,017,212 -186,847,969-186,847,969Additional premium reserves 7,338,707 14,114,751 566,105 - 22,019,563 - 22,019,563 Other technical reserves 10,718,891 4,803,164 2,461,983 - 17,984,038 - 17,984,038 Segment liabilities 277,629,582 200,288,252 109,267,853 -587,185,687-587,185,687Unallocated liabilities and equity185,490,046 158,081,296 343,571,342Total liabilities and equity772,675,733 158,081,296 930,757,029 13.Segmental information (continued)For the three-month period ended March 31, 2022 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written39,187,68363,414,22032,448,113-135,050,016-135,050,016Reinsurance premiums ceded:-Foreign-(9,642,762)(14,339,508)-(23,982,270)-(23,982,270)-Local-(49,971)(4,354,186)-(4,404,157)-(4,404,157)Excess of loss expenses:-Foreign(702,313)(421,528)(224,974)-(1,348,815)-(1,348,815)-Local(123,937)(245,679)(204,340)-(573,956)-(573,956)Net premiums written38,361,43353,054,28013,325,105-104,740,818-104,740,818Changes in unearned premiums17,111,641(7,204,854)(11,806,885)-(1,900,098)-(1,900,098)Changes in reinsurers’ share of unearned premiums-(3,125,645)6,533,636-3,407,991-3,407,991Net premiums earned55,473,07442,723,7818,051,856-106,248,711-106,248,711Reinsurance commissions-2,281,2072,859,613-5,140,820-5,140,820Fee income from insurance1,85016,336133,845-152,031-152,031TOTAL REVENUES55,474,92445,021,32411,045,314-111,541,562-111,541,562UNDERWRITING COSTS AND EXPENSESGross claims paid(79,528,270)(59,555,512)(3,385,569)-(142,469,351)-(142,469,351)Reinsurers’ share of claims paid3,923,01913,382,341981,794-18,287,154-18,287,154Expenses incurred related to claims(2,038,595)(200,000)--(2,238,595)-(2,238,595)Net claims and other benefits paid(77,643,846)(46,373,171)(2,403,775)-(126,420,792)-(126,420,792)(continued)13.Segmental information (continued)For the three-month period ended March 31, 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims(597,353)(1,527,298)1,099,049-(1,025,602)-(1,025,602)Changes in reinsurers’ share of outstanding claims-2,105,050(889,688)-1,215,362-1,215,362Changes in claims incurred but not reported42,203,091(8,641,087)78,737-33,640,741-33,640,741Changes in reinsurers’ share of claims incurred but not reported(1,539,348)3,927,637(1,535,386)-852,903-852,903Net claims and other benefits incurred(37,577,456)(50,508,869)(3,651,063)-(91,737,388)-(91,737,388)Policy acquisition costs(3,863,280)(3,385,646)(1,797,679)-(9,046,605)-(9,046,605)Changes in additional premium reserves7,338,707(8,133,951)385,902-(409,342)-(409,342)Changes in other technical reserves1,738,110(556,487)35,425-1,217,048-1,217,048Other underwriting expenses-(5,229,569)(1,113,032)-(6,342,601)-(6,342,601)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(32,363,919)(67,814,522)(6,140,447)-(106,318,888)-(106,318,888)NET UNDERWRITING INCOME (LOSS) 23,111,005(22,793,198)4,904,867-5,222,674-5,222,674(continued) 13.Segmental information (continued)For the three-month period ended March 31, 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,445,314)-(3,445,314)General and administrative expenses(27,003,466)(830,453)(27,833,919)Investment and commission income1,350,0984,124,6865,474,784Finance costs on leases(65,834)-(65,834)Other income260,622-260,622Total other 0perating (expenses) income, net(28,903,894)3,294,233(25,609,661)Total (loss) income for the period before surplus attribution, zakat and income tax(23,681,220)3,294,233(20,386,987)Surplus attributed to the shareholders’ operations---Total (loss) income for the period before zakat and income tax(23,681,220)3,294,233(20,386,987)Zakat expense -(500,000)(500,000)Income tax expense ---Total (loss) income for the period attributable to the shareholders(23,681,220)2,794,233(20,886,987) 13.Segmental information (continued)For the three-month period ended March 31, 2021 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written77,271,10565,736,25834,071,748-177,079,111-177,079,111Reinsurance premiums ceded:-Foreign-(14,421,766)(19,680,379)-(34,102,145)-(34,102,145)-Local-(1,794,097)(1,842,462)-(3,636,559)-(3,636,559)Excess of loss expenses:-Foreign(1,210,384)(941,864)(812,133)-(2,964,381)-(2,964,381)-Local(350,000)(102,239)(115,221)-(567,460)-(567,460)Net premiums written75,710,72148,476,29211,621,553-135,808,566-135,808,566Changes in unearned premiums26,685,321(11,552,184)(9,479,582)-5,653,555-5,653,555Changes in reinsurers’ share of unearned premiums-7,018,5067,173,494-14,192,000-14,192,000Net premiums earned102,396,04243,942,6149,315,465-155,654,121-155,654,121Reinsurance commissions-2,032,7733,643,629-5,676,402-5,676,402Fee income from insurance4,05017,85592,073-113,978-113,978TOTAL REVENUES102,400,09245,993,24213,051,167-161,444,501-161,444,501UNDERWRITING COSTS AND EXPENSESGross claims paid(125,919,260)(41,936,049)(4,257,112)-(172,112,421)-(172,112,421)Reinsurers’ share of claims paid4,166,2257,534,3191,950,418-13,650,962-13,650,962Expenses incurred related to claims(1,521,528)(2,116,226)--(3,637,754)-(3,637,754)Net claims and other benefits paid(123,274,563)(36,517,956)(2,306,694)-(162,099,213)-(162,099,213)(continued)13.Segmental information (continued)For the three-month period ended March 31, 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims(7,761,798)(2,209,025)(7,624,880)-(17,595,703)-(17,595,703)Changes in reinsurers’ share of outstanding claims(278,038)716,7842,754,522-3,193,268-3,193,268Changes in claims incurred but not reported13,345,417655,953(3,849,394)-10,151,976-10,151,976Changes in reinsurers’ share of claims incurred but not reported(754,543)290,899(248,291)-(711,935)-(711,935)Net claims and other benefits incurred(118,723,525)(37,063,345)(11,274,737)-(167,061,607)-(167,061,607)Policy acquisition costs(8,268,871)(3,645,882)(1,896,403)-(13,811,156)(13,811,156)Changes in additional premium reserves(15,452,356)5,041,686-(10,410,670)-(10,410,670)Changes in other technical reserves314,557(15,130)(229,855)-69,572-69,572Other underwriting expenses (272,995)---(272,995)-(272,995)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(142,403,190)(35,682,671)(13,400,995)-(191,486,856)-(191,486,856)NET UNDERWRITING (LOSS) INCOME(40,003,098)10,310,571(349,828)-(30,042,355)-(30,042,355)(continued) 13.Segmental information (continued)For the three-month period ended March 31, 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,713,367)-(3,713,367)General and administrative expenses(28,082,283)(919,198)(29,001,481)Investment and commission income1,210,1972,996,5224,206,719Finance costs on leases(74,073)-(74,073)Other income1,827,852-1,827,852Total other 0perating (expenses) income, net(28,831,674)2,077,324(26,754,350)Total (loss) income for the period before surplus attribution, zakat and income tax(58,874,029)2,077,324(56,796,705)Surplus attributed to the shareholders’ operations---Total (loss) income for the period before zakat and income tax(58,874,029)2,077,324(56,796,705)Zakat expense -(1,000,000)(1,000,000)Income tax expense ---Total (loss) income for the period attributable to the shareholders(58,874,029)1,077,324(57,796,705) 13.Segmental information (continued)Gross premiums written for the three-month period ended March 31, 2022 can be categorised in the following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates7,772,28916,994,93719,108,981-43,876,207Medium corporates3,482,07435,719,3945,793,380-44,994,848Small enterprises8,414,3506,924,4042,006,987-17,345,741Micro enterprises10,334,1631,567,203144,793-12,046,159Retail9,184,8072,208,2825,393,972-16,787,06139,187,68363,414,22032,448,113-135,050,016Gross premiums written for the three-month period ended March 31, 2021 can be categorised in the following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates5,371,306 27,080,261 19,585,429 -52,036,996Medium corporates3,266,160 29,831,257 8,841,232 -41,938,649Small enterprises3,927,245 6,106,528 2,645,877 -12,679,650Micro enterprises10,124,807 2,236,663 198,204 -12,559,674Retail54,581,587 481,549 2,801,006 -57,864,14277,271,10565,736,25834,071,748-177,079,111 | 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; andTo 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 RequirementPremium solvency margin; orClaims solvency margin.Also see Note 1. | 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 March 31, 2022 the Company has capital commitments amounting to Saudi Riyals 1.7 million pertaining to implementation of a new software (December 31, 2021: Saudi Riyals 1.8 million).iii)See Note 15 for contingencies pertaining to zakat and income tax assessments. iv)At at March 31, 2022, the Company was contingently liable for financial guarantees issued against litigation in the normal course of business amounting to Saudi Riyals 1 million (December 31, 2021: Saudi Riyals 1 million). | 11 |
| Disclosure of fair value of financial assets and liabilities [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 March 31, 2022 and December 31, 2021, 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. 12.Fair value of financial instruments (continued)(a)Carrying amounts and fair valueMarch 31, 2022(Unaudited)Level 1Level 2Level 3TotalFinancial assets measured at fair valueMutual funds - available-for-sale33,220,929--33,220,929Sukuks - available-for-sale165,868,893--165,868,893Ordinary shares - available-for-sale --3,846,1563,846,156Financial assets not measured at fair valueHeld-to-maturity12,002,01322,024,331833,42634,859,770Total investments211,091,83522,024,3314,679,582237,795,748December 31, 2021(Audited)Level 1Level 2Level 3TotalFinancial assets measured at fair valueMutual funds - available-for-sale48,138,850--48,138,850Sukuks - available-for-sale190,296,857-- 190,296,857Ordinary shares - available-for-sale --3,846,1563,846,156Financial assets not measured at fair valueHeld-to-maturity12,002,01323,482,756-35,484,769Total investments250,437,72023,482,7563,846,156277,766,632During the three-month ended March 31, 2022, there have been no transfers between level 1, level 2 and level 3. Available-for-sale investment comprises equity investment of 384,616 shares of Najm for Insurance Services (Najm) (December 31, 2021: 384,616 shares). As at March 31, 2022 and December 31, 2021, 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 comparative figures [text block] | 20.Supplementary information Interim condensed statement of financial positionMarch 31, 2022 (Unaudited)December 31, 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalASSETSCash and cash equivalents64,925,70672,054,744136,980,450 40,666,697 74,315,396 114,982,093 Premiums and reinsurers’ receivable - net129,699,937-129,699,937 161,223,340- 161,223,340Premiums receivable - related parties - net11,113,419-11,113,419 4,452,622 - 4,452,622 Reinsurers’ share of unearned premiums47,409,512-47,409,512 44,001,521 - 44,001,521 Reinsurers’ share of outstanding claims35,445,559-35,445,559 34,230,197- 34,230,197 Reinsurers’ share of claims incurred but not reported22,299,319-22,299,319 21,446,416 - 21,446,416 Deferred policy acquisition costs17,559,426-17,559,426 17,232,872 - 17,232,872 Deferred excess of loss premiums5,768,316-5,768,316---Investments137,444,593100,351,155237,795,748139,811,054137,955,578 277,766,632 Prepaid expenses and other assets36,728,0963,597,13840,325,234 41,968,172 3,744,992 45,713,164Long term deposits-40,032,87740,032,877- 40,032,877 40,032,877 Property and equipment8,241,478-8,241,478 8,854,908 - 8,854,908 Right-of-use assets7,128,372-7,128,372 7,584,087 - 7,584,087 Intangible assets43,577,145-43,577,14543,378,547-43,378,547Goodwill-67,697,75067,697,750-67,697,75067,697,750Statutory deposit-34,421,19634,421,196-34,421,19634,421,196Accrued income on statutory deposit-7,738,8077,738,807-7,738,8077,738,807Due from shareholders’ operations190,397,532-190,397,532207,825,300-207,825,300TOTAL ASSETS 757,738,410325,893,6671,083,632,077772,675,733365,906,596 1,138,582,329Less: inter-operations elimination(190,397,532)-(190,397,532)(207,825,300)-(207,825,300)TOTAL ASSETS567,340,878325,893,667893,234,545564,850,433365,906,596930,757,029(continued) 20.Supplementary information (continued)Interim condensed statement of financial position (continued)March 31, 2022 (Unaudited)December 31, 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalLIABILITIES Accounts payable130,580,022-130,580,022117,346,288-117,346,288Accrued and other liabilities14,095,940352,46014,448,40014,148,035 352,460 14,500,495Reinsurers' balances payable19,419,882-19,419,88214,478,470 - 14,478,470 Unearned premiums257,896,271-257,896,271255,996,173 - 255,996,173 Unearned reinsurance commission11,899,328-11,899,32810,342,959 - 10,342,959 Outstanding claims95,020,587-95,020,58793,994,985 - 93,994,985 Claims incurred but not reported153,207,228-153,207,228186,847,969 - 186,847,969 Additional premium reserves22,428,905-22,428,90522,019,563 - 22,019,563 Other technical reserves16,766,990-16,766,99017,984,038 - 17,984,038 Lease liabilities6,798,644-6,798,6446,732,810 - 6,732,810 Employee benefit obligations17,171,506-17,171,50616,927,680-16,927,680Zakat and income tax-20,572,94820,572,948-20,072,94820,072,948Surplus distribution payable12,711,527-12,711,52713,748,722-13,748,722Accrued income payable to SAMA-7,738,8077,738,807-7,738,8077,738,807Due to insurance operations-190,397,532190,397,532-207,825,300207,825,300TOTAL LIABILITIES757,996,830219,061,747977,058,577770,567,692 235,989,5151,006,557,207Less: inter-operations elimination-(190,397,532)(190,397,532)-(207,825,300)(207,825,300)TOTAL LIABILITIES757,996,83028,664,215786,661,045770,567,69228,164,215798,731,907EQUITYShare capital-229,474,640229,474,640-229,474,640229,474,640Statutory reserve-4,885,6914,885,691-4,885,6914,885,691Accumulated losses-(132,129,796)(132,129,796)-(111,242,809)(111,242,809)Remeasurement reserve of employee benefit obligations(168,351)-(168,351)(168,351)-(168,351)Fair value reserve on investments(90,069)4,601,3854,511,3162,276,3926,799,5599,075,951TOTAL EQUITY(258,420)106,831,920106,573,500 2,108,041 129,917,081 132,025,122TOTAL LIABILITIES AND EQUITY757,738,410135,496,135893,234,545772,675,733158,081,296930,757,02920.Supplementary information (continued)Interim condensed statement of income for the three-month period endedMarch 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’operationsTotalREVENUESGross premiums written135,050,016-135,050,016177,079,111-177,079,111Reinsurance premiums ceded:-Foreign(23,982,270)-(23,982,270)(34,102,145)-(34,102,145)-Local(4,404,157)-(4,404,157)(3,636,559)-(3,636,559)Excess of loss premiums:-Foreign(1,348,815)-(1,348,815)(2,964,381)-(2,964,381)-Local(573,956)-(573,956)(567,460)-(567,460)Net premiums written104,740,818-104,740,818135,808,566-135,808,566Changes in unearned premiums(1,900,098)-(1,900,098)5,653,555-5,653,555Changes in reinsurers’ share of unearned premiums3,407,991-3,407,99114,192,000-14,192,000Net premiums earned106,248,711-106,248,711155,654,121-155,654,121Reinsurance commissions5,140,820-5,140,8205,676,402-5,676,402Fee income from insurance152,031-152,031113,978-113,978Total revenues111,541,562-111,541,562161,444,501-161,444,501(continued) 20.Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued)March 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalUNDERWRITING COSTS AND EXPENSESGross claims paid(142,469,351)-(142,469,351)(172,112,421)-(172,112,421)Reinsurers’ share of gross claims paid18,287,154-18,287,15413,650,962-13,650,962Expenses incurred related to claims(2,238,595)-(2,238,595)(3,637,754)-(3,637,754)Net claims and other benefits paid(126,420,792)-(126,420,792)(162,099,213)-(162,099,213)Changes in outstanding claims(1,025,602)-(1,025,602)(17,595,703)-(17,595,703)Changes in reinsurers’ share of outstanding claims1,215,362-1,215,3623,193,268-3,193,268Changes in claims incurred but not reported33,640,741-33,640,74110,151,976-10,151,976Changes in reinsurers’ share of claims incurred but not reported852,903-852,903(711,935)-(711,935)Net claims and other benefits incurred(91,737,388)-(91,737,388)(167,061,607)-(167,061,607)Policy acquisition costs(9,046,605)-(9,046,605)(13,811,156)-(13,811,156)Changes in additional premium reserves(409,342)-(409,342)(10,410,670)-(10,410,670)Changes in other technical reserves1,217,048-1,217,04869,572-69,572Other underwriting expenses(6,342,601)-(6,342,601)(272,995)-(272,995)Total underwriting costs and expenses, net(106,318,888)-(106,318,888)(191,486,856)-(191,486,856)NET UNDERWRITING INCOME (LOSS) 5,222,674-5,222,674(30,042,355)-(30,042,355)(continued) 20.Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued)March 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,445,314)-(3,445,314)(3,713,367)-(3,713,367)General and administrative expenses(27,003,466)(830,453)(27,833,919)(28,082,283)(919,198) (29,001,481)Investment and commission income - net1,350,0984,124,6865,474,7841,210,1972,996,5224,206,719Finance costs on leases(65,834)-(65,834)(74,073)-(74,073)Other income260,622-260,6221,827,852-1,827,852Total other operating (expenses) income, net(28,903,894)3,294,233(25,609,661)(28,831,674)2,077,324 (26,754,350)Total (loss) income for the period before (deficit) surplus attribution, zakat and income tax(23,681,220)3,294,233(20,386,987)(58,874,029) 2,077,324(56,796,705)Zakat expense -(500,000)(500,000)-(1,000,000)(1,000,000)Income tax expense------Total (loss) income for the period attributable to the shareholders(23,681,220)2,794,233(20,886,987)(58,874,029)1,077,324(57,796,705)Deficit transferred to the shareholders’ operations23,681,220(23,681,220)-58,874,029(58,874,029)-Total loss for the period after transfer of deficit-(20,886,987)(20,886,987)-(57,796,705)(57,796,705)Weighted average number of outstanding shares--22,947,464--22,947,464Losses per share (expressed in Saudi Riyals per share)-----Basic losses per share--(0.91)--(2.52)Diluted losses per share(0.91)(2.52) 20.Supplementary information (continued)Interim condensed statement of comprehensive income for the three-month period endedMarch 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalTotal loss for the period after transfer of deficit -(20,886,987)(20,886,987)-(57,796,705) (57,796,705)Other comprehensive (loss) income:Items that will be reclassified to the interim condensed statement of income in subsequent periodsNet change in fair value of available-for-sale investments(2,366,461)(598,173)(2,964,634)735,965902,1391,638,104Realized gain reclassified to interim condensed statement of income-(1,600,001)(1,600,001)---Total other comprehensive (loss) income(2,366,461)(2,198,174)(4,564,635)735,965902,1391,638,104Total comprehensive (loss) income for the period(2,366,461)(23,085,161)(25,451,622)735,965(56,894,566)(56,158,601) 20.Supplementary information (continued)Interim condensed statement of cash flows for the three-month period endedMarch 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM OPERATING ACTIVITIESTotal loss for the period before surplus attribution, zakat and income tax-(20,386,987)(20,386,987)-(56,796,705)(56,796,705)Adjustments for non-cash items:Depreciation of property and equipment643,960-643,960712,170-712,170Amortization of intangible assets1,978,573-1,978,573647,268-647,268Depreciation of right-of-use assets 455,715-455,715506,746-506,746Finance costs on leases65,834-65,83474,073-74,073Allowance for doubtful debts3,445,314-3,445,3143,713,367-3,713,367Investment and commission income(1,350,098)(2,524,685)(3,874,783)(1,210,197)(2,996,522)(4,206,719)Provision for employee benefit obligations243,826-243,826352,884-352,884Realized gains on disposals of available-for-sale investments -(1,600,001)(1,600,001)---5,483,124(24,511,673)(19,028,549)4,796,311(59,793,227)(54,996,916)Changes in operating assets and liabilities:Premiums and reinsurers’ receivable28,078,089-28,078,08913,896,051-13,896,051Premium receivables - related parties(6,660,797)-(6,660,797)(8,190,299)-(8,190,299)Reinsurers’ share of unearned premiums(3,407,991)-(3,407,991)(14,192,000)-(14,192,000)Reinsurers’ share of outstanding claims(1,215,362)-(1,215,362)(3,193,268)-(3,193,268)Reinsurers’ share of claims incurred but not reported(852,903)-(852,903)711,935-711,935(continued) 20.Supplementary information (continued)Interim condensed statement of cash flows for the three-month period ended (continued)March 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalDeferred policy acquisition costs(326,554)-(326,554)(97,369)-(97,369)Deferred excess of loss premiums(5,768,316)-(5,768,316)(5,422,133)-(5,422,133)Prepaid expenses and other assets37,031,035(540,065)36,490,970(960,298)5,567,7184,607,420Accounts payable13,233,734-13,233,73423,769,853-23,769,853Accrued and other liabilities(33,400,221)-(33,400,221)(5,454,513)299,175(5,155,338)Reinsurers' balances payable4,941,412-4,941,4128,319,801-8,319,801Unearned premiums1,900,098-1,900,098(5,653,555)-(5,653,555)Unearned reinsurance commission1,556,369-1,556,3693,331,539-3,331,539Outstanding claims1,025,602-1,025,60217,595,703-17,595,703Claims incurred but not reported(33,640,741)-(33,640,741)(10,151,976)-(10,151,976)Additional premium reserves409,342-409,34210,410,670-10,410,670Other technical reserves(1,217,048)-(1,217,048)(69,572)-(69,572)Employee benefit obligations paid---(1,321,363)-(1,321,363)Zakat and income tax paid----(1,886,010)(1,886,010)Net cash generated from (used in) operating activities7,168,872(25,051,738)(17,882,866)28,125,517(55,812,344)(27,686,827)(continued) 20.Supplementary information (continued)Interim condensed statement of cash flows for the three-month period ended (continued)March 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM INVESTING ACTIVITIES Liquidations of short-term deposits---50,169,055-50,169,055Purchases of available-for-sale investments---(15,527,118)-(15,527,118)Proceeds from disposal of available-for-sale investments-36,381,25136,381,251---Proceeds from redemption of held-to-maturity investments-624,999624,999-1,875,0001,875,000Investment and commission income received1,870,0703,212,6045,082,6741,685,3063,514,4165,199,722Payments for purchases of property and equipment(30,530)-(30,530)(93,428)-(93,428)Additions to intangible assets (2,177,171)-(2,177,171)(571,016)-(571,016)Liquidation of statutory deposit----18,450,00018,450,000Net cash (used in) generated from investing activities(337,631)40,218,85439,881,22335,518,67023,839,41659,358,086(continued) 20.Supplementary information (continued)Interim condensed statement of cash flows for the three-month period ended (continued)March 31, 2022 (Unaudited)March 31, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM FINANCING ACTIVITIESPrincipal elements of lease payments---(41,925)-(41,925)Finance cost paid---(2,075)-(2,075)Due from / to shareholders’ operations17,427,768(17,427,768)-(23,056,974)23,056,974-Net cash generated from (used in) financing activities17,427,768(17,427,768)-(23,100,974)23,056,974(44,000)Net change in cash and cash equivalents24,259,009(2,260,652)21,998,35740,543,213(8,915,954)31,627,259Cash and cash equivalents at the beginning of the period 40,666,697 74,315,396 114,982,093 67,852,194111,655,835179,508,029Cash and cash equivalents at end of the period64,925,70672,054,744136,980,450108,395,407102,739,881211,135,288Supplemental non-cash information:Net change in fair value reserve for available-for-sale investments(2,366,461)(2,279,117)(4,645,578)735,965902,1391,638,104Surplus distribution payable against Premiums and reinsurers’ receivable(1,037,195)-(1,037,195)--- | 20 |
| 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 17 May 2022. | 22 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 21.Subsequent eventSubsequent to the reporting date, the Company received the shareholders’ approval to increase the share capital through rights issue (see Note 1). No other events have arisen subsequent to March 31, 2022, and before the date of signing the independent auditors’ review report, that could have a significant effect on the financial statements as at March 31, 2022. | 21 |
