| 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 lossesOn June 8, 2022, the Company completed its rights issue amounting to Saudi Riyals 229.5 million, gross of expenses of Saudi Riyals 2.9 million. On June 30, 2022, the accumulated losses of the Company amounted to Saudi Riyals 133.8 million and were 29.1% of the share capital of the Company as of that date. The total loss attributable to the shareholders of Saudi Riyals 19.6 million and net operating cash outflows of Saudi Riyals 72.2 million for the six-month period ended June 30, 2022 are mainly attributable to the underwriting loss amounting to Saudi Riyals 17.0 million in the motor segment (Note 12). 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. 1.General information - legal status and principal activities (continued)(b)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. Shareholding percentageThe shareholding percentage of the Company at June 30, 2022 and December 31, 2021 was as follows:June 30, 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 19 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. 2.Basis of preparation (continued)(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. 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.(b)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.(c)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.(d)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.Following are the accounting judgments and estimates that are critical in preparation of this interim condensed financial information: 2.Basis of preparation (continued)(d)Critical accounting judgments, estimates and assumptions (continued)(i)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.(ii)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.(iii)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.(iv)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.(v)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 4. 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 intangible assets and goodwill [text block] | 4.GoodwillThe goodwill arising from the merger is attributable to the expected synergies from combining the operations of the Gulf Union and Al Ahlia Cooperative Insurance Company (“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 growth5.2Average 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 40.9 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 4.70% 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 85.6% 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 11.3% 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 1.02% 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. | 4 |
| Description of accounting policy for fair value measurement [text block] | 11.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, 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. 11.Fair value of financial instruments (continued)(a)Carrying amounts and fair valueJune 30, 2022(Unaudited)Level 1Level 2Level 3TotalFinancial assets measured at fair valueMutual funds - available-for-sale35,289,931 --35,289,931Sukuks - available-for-sale167,980,116 --167,980,116Ordinary shares - available-for-sale -- 3,846,156 3,846,156 Financial assets not measured at fair valueHeld-to-maturity7,000,00022,441,093-29,441,093Total investments210,270,04722,441,0933,846,156236,557,296December 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 six-month ended June 30, 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 June 30, 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. | 11 |
| Disclosure of notes forming part of accounts [abstract] | | |
| Disclosure of investments [text block] | 9.Investments(a)Investments are classified as follows:Insurance operationsShareholders’ operationsJune 30, 2022December 31, 2021June 30, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Available-for-sale 121,305,287 124,878,010 85,810,916 117,403,853Held-to-maturity 9,931,031 14,933,044 19,510,062 20,551,725 131,236,318 139,811,054 105,320,978 137,955,578(b)Category wise investment analysis is as follows:Insurance operationsShareholders’ operationsJune 30, 2022December 31, 2021June 30, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Quoted 119,382,209 127,956,945 90,470,988 122,480,777Unquoted 11,854,109 11,854,109 14,849,990 15,474,801 131,236,318 139,811,054 105,320,978 137,955,578 9.Investments (continued)(c)The analysis of the composition of investments is as follows:Insurance operationsShareholders’ operationsJune 30, 2022December 31, 2021June 30, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Mutual funds22,571,40919,355,26512,718,52228,783,585Ordinary shares1,923,0781,923,0781,923,0781,923,078Sukuks106,741,831118,532,71190,679,378107,248,915131,236,318139,811,054105,320,978137,955,578Management 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 32.2 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’ operationsJune 30, 2022December 31, 2021June 30, 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 / year6,661,89719,288,09110,377,21810,000,000Additions from merger----Disposals during the period / year-- (36,381,251)(10,000,000)Unrealized (losses) gains(10,234,620)(3,598,035) (5,588,904)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 / year121,305,287124,878,010 85,810,916117,403,853 9.Investments (continued)(e)Movement in held-to-maturity investments is as follows:Insurance operationsShareholders’ operationsJune 30, 2022December 31, 2021June 30, 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(5,002,013)-(1,041,663)(7,499,994)At the end of period / year9,931,03114,933,04419,510,06220,551,725Insurance operationsSecurityIssuerMaturityLocationProfit marginAmortized costJune 30, 2022December 31, 2021(Unaudited)(Audited)SEC - SukukSECMay 2022Saudi Arabia3.15%-5,002,013`Islamic Leasing and Finance Fund 21NBK Wealth ManagementAugust 2026Saudi Arabia6.0% 9,931,031 9,931,031 9,931,031 14,933,044Shareholders’ operationsSecurityIssuerMaturityLocationProfit marginAmortized costJune 30, 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 Arabia6 months SIBOR plus 7.50% 416,762 1,458,425Sukuk AlAwwal Energy FundDecember 2028Saudi Arabia SIBOR plus 8.2% 12,093,300 12,093,300 19,510,062 20,551,725 9.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’ operationsJune 30, 2022December 31, 2021June 30, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Kingdom of Saudi Arabia127,932,680136,030,86094,994,933117,036,409United Arab Emirates---10,663,253France ---7,089,263Switzerland---3,166,653United Kingdom 3,303,6383,780,19410,326,045- 131,236,318139,811,054105,320,978137,955,578 | 9 |
| Disclosure of premiums/ contributions and insurance/ reinsurance or takaful/ retakaful balance receivables [text block] | 7.Premiums and reinsurers’ receivable - net June 30, 2022December 31, 2021(Unaudited)(Audited)Premiums receivable from policyholders158,611,365148,699,770Premiums receivable from brokers17,079,74027,934,934Receivable from reinsurance companies26,884,54935,540,016202,575,654212,174,720Allowance for doubtful debts:- Receivable from policyholders(44,807,114)(41,393,582)- Receivable from brokers(3,941,136)(4,273,816)- Receivable from reinsurance companies(5,493,485)(5,283,982)(54,241,735)(50,951,380)148,333,919161,223,340 7.Premiums and reinsurers’ receivable - net (continued)Movement in the allowance for doubtful debts was as follows:June 30, 2022December 31, 2021(Unaudited)(Audited)At beginning of the period / year50,951,38048,962,389Charge for the period / year3,290,355 2,870,788Write-off during the period / year - (881,797)At end of the period / year54,241,73550,951,380 | 7 |
| Disclosure of cash and cash equivalents [text block] | 5.Cash and cash equivalentsCash and cash equivalents included in the statement of cash flows comprise the following:Insurance operationsShareholders’ operationsJune 30, 2022December 31, 2021June 30, 2022December 31, 2021(Unaudited)(Audited)(Unaudited)(Audited)Cash in hand - 20,190 - -Cash at bank - current accounts146,107,61210,366,715 15,981,993 2,999,940Time deposits 30,276,250 30,279,792 71,545,049 71,315,456176,383,86240,666,697 87,527,042 74,315,396Cash at banks is placed with counterparties with sound credit ratings. As at June 30, 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.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. | 5,6 |
| Disclosure of due to related parties [text block] | 13.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 endedTransactions for the six-month period endedJune 30, 2022June 30, 2021June 30, 2022June 30,2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Major shareholdersInsurance premium written2,635,2234,716,4347,902,78210,467,527Claims paid(569,713)(4,945,345)(864,045)(7,058,263)OthersRent charged---448,525Services----Directors’ remuneration and meeting fee(501,000)(338,000)(1,032,000)(338,000)The compensation of key management personnel during three-month and six-month periods then ended is as follows:Three-month period ended June 30, 2022Three-month period ended June 30, 2021Six-month period ended June 30, 2022Six-month period ended June 30, 2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Salaries and benefits1,314,4501,775,5502,567,6503,804,896Employee benefit obligations 26,978 115,92195,830231,8431,341,428 1,891,4712,663,4804,036,739Premium receivable - related parties, netJune 30, 2022December 31, 2021(Unaudited)(Audited)Premium receivable from related parties9,521,5015,936,160Less: allowance for doubtful debts(1,226,966)(1,483,538)8,294,5354,452,622Movement in the allowance for doubtful debts is as follows:June 30, 2022December 31, 2021(Unaudited)(Audited)At beginning of the period / year1,483,5381,726,798Reversal for the period / year(256,572)(243,260)At end of the period / year1,226,9661,483,538 | 13 |
| Disclosure of zakat [text block] | 14.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 June 30, 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. | 14 |
| Disclosure of classes of share capital [text block] | 15.Share capitalThe authorized, issued and paid up capital of the Company was Saudi Riyals 458.9 million at June 30, 2022 (December 31, 2021: Saudi Riyals 229.4 million) consisting of 45.8 million shares (December 31, 2021: 22.9 million shares) of Saudi Riyals 10 each. Also refer to Notes 1 and 18.Shareholding structure of the Company as of June 30, 2022, is as below: Authorized and issuedPaid upNo. of SharesSaudi RiyalsYaqeen Capital12,560,668125,606,680125,606,680Gulf Union Insurance and Projects Management Holding Company B.S.C. (c.)2,475,00024,750,00024,750,000Others30,859,260308,592,600308,592,60045,894,928458,949,280458,949,280 | 15 |
| Disclosure of statutory reserve [text block] | 16.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. | 16 |
| Disclosure of provisions [text block] | 8.Technical reserves 8.1Net outstanding claims and reservesNet outstanding claims and reserves comprise the following:Six-month period ended June 30, 2022(Unaudited)GrossReinsuranceNetJanuary 193,994,985(34,230,197)59,764,788Claims paid (261,245,598) 42,314,530 (218,931,068)Claims incurred 282,281,649 (40,717,469) 241,564,180 June 30 115,031,036 (32,633,136) 82,397,900 Salvage and subrogation (26,889,884) 2,047,669 (24,842,215)Gross outstanding claims 88,141,152 (30,585,467) 57,555,685 Claims incurred but not reported 135,657,524 (18,646,533) 117,010,991 Additional premium reserves 23,158,421 - 23,158,421 Other technical reserves 15,085,583 - 15,085,583 June 30 262,042,680 (49,232,000) 212,810,680 Year 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 8.Technical reserves (continued)8.2Movement in net unearned premiumsMovement in unearned premiums comprise the following:Six-month period ended June 30, 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(249,562,850) 39,970,452 (209,592,398)Changes in unearned premiums 6,433,323 (4,031,069) 2,402,254 Premium written during the period 257,243,530 (46,278,170) 210,965,360 Excess of loss premiums- (6,669,497) (6,669,497)Net premium earned 263,676,853 (56,978,736) 206,698,117 Year 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 | 8 |
| Disclosure of earnings per share [text block] | 18.Basic and diluted losses per shareBasic and diluted losses per share for the three-month and six-month periods ended June 30, 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.The weighted average number of shares has been retrospectively adjusted for the prior period to reflect the element of the right issue as required by IAS 33, ‘Earnings per share’ as follows:Three-month period ended June 30, 2022Three-month period ended June 30, 2021Six-month period ended June 30, 2022Six-month period ended June 30,2021Issued ordinary shares at January 1, 202222,947,46422,947,46422,947,46422,947,464Rights issue adjustment18,659,7571,971,7208,113,7891,971,720Weighted average number of ordinary shares41,517,22124,919,18431,061,25324,919,184The weighted average number of ordinary shares for prior year is computed using an adjustment factor of 1.09 which is a ratio of the theoretical ex-rights of Saudi Riyals 10.94 and closing price per share of Saudi Riyals 11.88 on May 8, 2022, the last day on which the shares were traded before the rights issue. 18.Basic and diluted losses per share (continued)The basic and diluted loss per share is calculated as follows:Three-month period ended June 30, 2022Three-month period ended June 30, 2021Six-month period ended June 30, 2022Six-month period ended June 30,2021Total income (loss) for the period attributable to the shareholders1,214,471(47,801,220)(19,672,516)(105,597,925)Weighted average number of ordinary shares for basic and diluted income (losses) per share41,517,22124,919,18431,601,25324,919,184Basic and diluted income (losses) per share0.03(1.92)(0.63)(4.24) | 18 |
| Disclosure of related party transactions [text block] | 13.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 endedTransactions for the six-month period endedJune 30, 2022June 30, 2021June 30, 2022June 30,2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Major shareholdersInsurance premium written2,635,2234,716,4347,902,78210,467,527Claims paid(569,713)(4,945,345)(864,045)(7,058,263)OthersRent charged---448,525Services----Directors’ remuneration and meeting fee(501,000)(338,000)(1,032,000)(338,000)The compensation of key management personnel during three-month and six-month periods then ended is as follows:Three-month period ended June 30, 2022Three-month period ended June 30, 2021Six-month period ended June 30, 2022Six-month period ended June 30, 2021(Unaudited)(Unaudited)(Unaudited)(Unaudited)Salaries and benefits1,314,4501,775,5502,567,6503,804,896Employee benefit obligations 26,978 115,92195,830231,8431,341,428 1,891,4712,663,4804,036,739Premium receivable - related parties, netJune 30, 2022December 31, 2021(Unaudited)(Audited)Premium receivable from related parties9,521,5015,936,160Less: allowance for doubtful debts(1,226,966)(1,483,538)8,294,5354,452,622Movement in the allowance for doubtful debts is as follows:June 30, 2022December 31, 2021(Unaudited)(Audited)At beginning of the period / year1,483,5381,726,798Reversal for the period / year(256,572)(243,260)At end of the period / year1,226,9661,483,538 | 13 |
| Disclosure of entity's operating segments [text block] | 12.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 June 30, 2022 and December 31, 2021 and its total revenues, expenses, and net loss for the six-month ended June 30, 2022 and June 30, 2021 is as follows: 12.Segmental information (continued)Insurance operationsJune 30, 2022 (Unaudited)MedicalMotorProperty and casualtyProtection and savingsTotalShareholders’ operationsTotalAssets Reinsurers’ share of unearned Premiums- 19,595,519 20,374,933 -39,970,452-39,970,452Reinsurers’ share of outstanding Claims 175,989 10,508,354 19,901,124 -30,585,467-30,585,467Reinsurers’ share of claims incurred but not reported 5,415,155 7,264,652 5,966,726 - 18,646,533 - 18,646,533 Deferred policy acquisition costs 4,991,081 7,780,906 5,085,955 - 17,857,942 - 17,857,942 Deferred excess of loss premiums 1,652,500 1,334,416 858,628 - 3,845,544 - 3,845,544 Segment assets 12,234,725 46,483,847 52,187,366 -110,905,938-110,905,938Unallocated assets 589,468,696 349,084,560938,553,256Total assets700,374,634349,084,5601,049,459,194Total liabilitiesUnearned premiums 95,383,735 109,460,161 44,718,954 -249,562,850-249,562,850Unearned reinsurance commission- 3,811,213 6,144,707 -9,955,920-9,955,920Outstanding claims 20,131,056 25,637,170 42,372,926 - 88,141,152 - 88,141,152 Claims incurred but not reported 74,866,769 44,402,626 16,388,129 - 135,657,524 - 135,657,524 Additional premium reserves - 22,816,204 342,217 - 23,158,421 - 23,158,421 Other technical reserves 8,500,159 4,393,920 2,191,504 - 15,085,583 - 15,085,583 Segment liabilities 198,881,719 210,521,294 112,158,437 -521,561,450-521,561,450Unallocated liabilities and equity 168,943,486 358,954,258 527,897,744Total liabilities and equity690,504,936358,954,258 1,049,459,194 12.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- 44,001,521Reinsurers’ share of outstanding Claims 175,989 12,977,197 21,077,011- 34,230,197- 34,230,197Reinsurers’ share of claims incurred but not reported 7,679,230 5,852,711 7,914,475- 21,446,416- 21,446,416Deferred policy acquisition costs 6,847,593 6,478,136 3,907,143- 17,232,872- 17,232,872Segment 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- 22,019,563Other technical reserves 10,718,891 4,803,164 2,461,983- 17,984,038- 17,984,038Segment liabilities 277,629,582200,288,252 109,267,853-587,185,687-587,185,687Unallocated liabilities and equity185,490,046 158,081,296 343,571,342Total liabilities and equity772,675,733 158,081,296 930,757,029 12.Segmental information (continued)For the six-month period ended June 30, 2022 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written 91,632,145 113,506,641 52,104,744 -257,243,530-257,243,530Reinsurance premiums ceded:-Foreign- (17,225,183) (22,332,144)- (39,557,327)- (39,557,327)-Local- (76,295) (6,644,548)- (6,720,843)- (6,720,843)Excess of loss expenses:-Foreign (3,505,021) (870,589) (654,288)- (5,029,898)- (5,029,898)-Local (971,433) (463,826) (204,340)- (1,639,599)- (1,639,599)Net premiums written 87,155,691 94,870,748 22,269,424 -204,295,863-204,295,863Changes in unearned premiums 16,801,598 (1,394,403) (8,973,872)- 6,433,323 - 6,433,323 Changes in reinsurers’ share of unearned premiums- (7,315,309) 3,284,240 - (4,031,069)- (4,031,069)Net premiums earned103,957,289 86,161,036 16,579,792 - 206,698,117 - 206,698,117 Reinsurance commissions- 4,405,100 6,657,194 - 11,062,294 - 11,062,294 Fee income from insurance 7,305 29,666 234,040 - 271,011 - 271,011 TOTAL REVENUES103,964,594 90,595,802 23,471,026 - 218,031,422 - 218,031,422 UNDERWRITING COSTS AND EXPENSESGross claims paid(130,260,121)(120,000,688) (7,074,134)-(257,334,943)-(257,334,943)Reinsurers’ share of claims paid 8,565,365 30,741,567 3,007,598-42,314,530-42,314,530Expenses incurred related to claims (3,710,655) (200,000)--(3,910,655)-(3,910,655)Net claims and other benefits paid(125,405,411) (89,459,121) (4,066,536)-(218,931,068)-(218,931,068)(continued) 12.Segmental information (continued)For the six-month period ended June 30, 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims 1,235,679 559,537 4,058,617 - 5,853,833 - 5,853,833 Changes in reinsurers’ share of outstanding claims- (2,457,968) (1,186,762)- (3,644,730)- (3,644,730)Changes in claims incurred but not reported 51,153,151 (2,591,786) 2,629,080 - 51,190,445 - 51,190,445 Changes in reinsurers’ share of claims incurred but not reported (2,264,076) 1,411,940 (1,947,747)- (2,799,883)- (2,799,883)Net claims and other benefits incurred(75,280,657)(92,537,398) (513,348)-(168,331,403)-(168,331,403)Policy acquisition costs (6,910,368)(6,800,524) (3,811,344)- (17,522,236)- (17,522,236)Changes in additional premium reserves 7,338,707 (8,701,452) 223,887 - (1,138,858)- (1,138,858)Changes in other technical reserves 2,218,733 409,243 270,479 - 2,898,455 - 2,898,455 Other underwriting expenses - - (5,865,212)- (5,865,212)- (5,865,212)TOTAL UNDERWRITING COSTS AND EXPENSES, NET(72,633,585)(107,630,131) (9,695,538)- (189,959,254)- (189,959,254)NET UNDERWRITING INCOME (LOSS) 31,331,009(17,034,329)13,775,488-28,072,168-28,072,168(continued) 12.Segmental information (continued)For the six-month period ended June 30, 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,033,785) - (3,033,785)General and administrative expenses (54,356,986) (1,741,026) (56,098,012)Investment and commission income2,928,4736,319,9309,248,403Finance costs on leases (120,655) - (120,655)Other income 3,259,365 - 3,259,365 Total other 0perating (expenses) income, net(51,323,588) 4,578,904 (46,744,684)Total (loss) income for the period before surplus attribution, zakat and income tax(23,251,420) 4,578,904 (18,672,516)Surplus attributed to the shareholders’ operations---Total (loss) income for the period before zakat and income tax(23,251,420) 4,578,904 (18,672,516)Zakat expense - (1,000,000) (1,000,000)Income tax expense ---Total (loss) income for the period attributable to the shareholders(23,251,420) 3,578,904 (19,672,516) 12.Segmental information (continued)For the six-month period ended June 30, 2021 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written136,243,779119,398,15049,651,249-305,293,178-305,293,178Reinsurance 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 expenses:-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 written126,047,41487,958,99917,313,533-231,319,946-231,319,946Changes in unearned premiums73,692,715(8,069,288)557,900-66,181,327-66,181,327Changes in reinsurers’ share of unearned premiums-9,441,3211,327,228-10,768,549-10,768,549Net premiums earned199,740,12989,331,03219,198,661-308,269,822-308,269,822Reinsurance commissions-3,941,2837,685,974-11,627,257-11,627,257Fee income from insurance11,30029,130158,988-199,418-199,418TOTAL REVENUES199,751,42993,301,44527,043,623-320,096,497-320,096,497UNDERWRITING COSTS AND EXPENSESGross claims paid(215,061,049)(92,838,117)(6,950,597)-(314,849,763)-(314,849,763)Reinsurers’ share of claims paid12,972,40919,914,8353,154,304-36,041,548-36,041,548Expenses 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) 12.Segmental information (continued)For the six-month period ended June 30, 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges 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 reported1,137,092800,3411,252,417-3,189,850-3,189,850Net 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)20,151,58913,796,388-(46,649,827)-(46,649,827)(continued) 12.Segmental information (continued)For the six-month period ended June 30, 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance 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 income2,814,2965,908,0488,722,344Finance costs on leases(146,981)-(146,981)Other income2,624,151-2,624,151Total other 0perating (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 shareholders’ 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) 12.Segmental information (continued)Gross premiums written for the six-month period ended June 30, 2022 can be categorised in the following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates 19,914,733 40,996,846 28,624,015 - 89,535,594 Medium corporates 10,038,039 54,319,107 9,522,312 - 73,879,458 Small enterprises 16,937,707 10,477,458 3,288,326 - 30,703,491 Micro enterprises 21,756,260 2,199,742 758,116 - 24,714,118 Retail 22,985,406 5,513,488 9,911,975 - 38,410,869 91,632,145 113,506,641 52,104,744 - 257,243,530 Gross premiums written for the three-month period ended June 30, 2022 can be categorized in following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates 12,142,444 24,001,909 9,515,034 - 45,659,387 Medium corporates 6,555,965 18,599,713 3,728,932 - 28,884,610 Small enterprises 8,523,357 3,553,054 1,281,339 - 13,357,750 Micro enterprises 11,422,097 632,539 613,323 - 12,667,959 Retail 13,800,599 3,305,206 4,518,003 - 21,623,808 52,444,462 50,092,421 19,656,631 - 122,193,514 12.Segmental information (continued)Gross premiums written for the six-month period ended June 30, 2021 can be categorised in the following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates20,428,68752,553,76528,797,632-101,780,084Medium corporates8,599,28453,328,05111,642,191-73,569,526Small enterprises6,514,8868,847,8683,963,207-19,325,961Micro enterprises15,214,7053,622,546375,075-19,212,326Retail85,486,2171,045,9204,873,144-91,405,281136,243,779119,398,15049,651,249-305,293,178Gross premiums written for the three-month period ended June 30, 2021 can be categorized in following client categories:MedicalMotorProperty and casualtyProtection and savingsTotalLarge corporates15,057,38025,473,5049,212,203-49,743,087Medium corporates5,333,12423,496,7942,800,959-31,630,877Small enterprises2,587,6412,741,3401,317,330-6,646,311Micro enterprises5,089,8981,385,883176,871-6,652,652Retail30,904,631564,3712,072,138-33,541,14058,972,67453,661,89215,579,501-128,214,067 12.Segmental information (continued)For the three-month period ended June 30, 2022 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written 52,444,462 50,092,421 19,656,631 -122,193,514-122,193,514Reinsurance premiums ceded:-Foreign-(7,582,421)(7,992,636)-(15,575,057)-(15,575,057)-Local-(26,324)(2,290,362)-(2,316,686)-(2,316,686)Excess of loss expenses:-Foreign(2,802,708) (449,061) (429,314)- (3,681,083)- (3,681,083)-Local (847,496) (218,147) - - (1,065,643)- (1,065,643)Net premiums written 48,794,258 41,816,468 8,944,319 -99,555,045-99,555,045Changes in unearned premiums (310,043) 5,810,451 2,833,013 - 8,333,421 - 8,333,421 Changes in reinsurers’ share of unearned premiums - (4,189,664) (3,249,396)- (7,439,060)- (7,439,060)Net premiums earned 48,484,215 43,437,255 8,527,936 - 100,449,406 - 100,449,406 Reinsurance commissions - 2,123,893 3,797,581 - 5,921,474 - 5,921,474 Fee income from insurance 5,455 13,330 100,195 - 118,980 - 118,980 TOTAL REVENUES 48,489,670 45,574,478 12,425,712 - 106,489,860 - 106,489,860 UNDERWRITING COSTS AND EXPENSESGross claims paid (50,731,851)(60,445,176) (3,688,565)-(114,865,592)-(114,865,592)Reinsurers’ share of claims paid 4,642,346 17,359,226 2,025,804 -24,027,376-24,027,376Expenses incurred related to claims(1,672,060)---(1,672,060)-(1,672,060)Net claims and other benefits paid(47,761,565)(43,085,950) (1,662,761)-(92,510,276)-(92,510,276)(continued) 12.Segmental information (continued)For the three-month period ended June 30, 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims 1,833,032 2,086,835 2,959,568 - 6,879,435 - 6,879,435 Changes in reinsurers’ share of outstanding claims - (4,563,018) (297,074)- (4,860,092)- (4,860,092)Changes in claims incurred but not reported 8,950,060 6,049,301 2,550,343 - 17,549,704 - 17,549,704 Changes in reinsurers’ share of claims incurred but not reported (724,728) (2,515,697) (412,361)- (3,652,786)- (3,652,786)Net claims and other benefits incurred(37,703,201)(42,028,529) 3,137,715 -(76,594,015)-(76,594,015)Policy acquisition costs(3,047,088) (3,414,878) (2,013,665)- (8,475,631)- (8,475,631)Changes in additional premium reserves - (567,501) (162,015)- (729,516)- (729,516)Changes in other technical reserves 480,623 965,730 235,054 - 1,681,407 - 1,681,407 Other underwriting expenses - - 477,389 - 477,389 - 477,389 TOTAL UNDERWRITING COSTS AND EXPENSES, NET(40,269,666) (45,045,178) 1,674,478 - (83,640,366)-(83,640,366)NET UNDERWRITING INCOME 8,220,004529,30014,100,190-22,849,494-22,849,494(continued) 12.Segmental information (continued)For the three-month period ended June 30, 2022 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts411,529 - 411,529General and administrative expenses (27,353,520)(910,573)(28,264,093)Investment and commission income1,578,3752,195,2443,773,619Finance costs on leases(54,821) - (54,821)Other income 2,998,743 - 2,998,743 Total other 0perating (expenses) income, net(22,419,694)1,284,671(21,135,023)Total income for the period before surplus attribution, zakat and income tax429,8001,284,6711,714,471Surplus attributed to the shareholders’ operations---Total income for the period before zakat and income tax429,8001,284,6711,714,471Zakat expense - (500,000) (500,000)Income tax expense - - - Total income for the period attributable to the shareholders429,800784,6711,214,471 12.Segmental information (continued)For the three-month period ended June 30, 2021 (Unaudited)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalREVENUESGross premiums written58,972,67453,661,89215,579,501-128,214,067-128,214,067Reinsurance 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 expenses:-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 written50,336,69339,482,7075,691,980-95,511,380-95,511,380Changes in unearned premiums47,007,3943,482,89610,037,482-60,527,772-60,527,772Changes in reinsurers’ share of unearned premiums-2,422,815(5,846,266)-(3,423,451)-(3,423,451)Net premiums earned97,344,08745,388,4189,883,196-152,615,701-152,615,701Reinsurance commissions-1,908,5104,042,345-5,950,855-5,950,855Fee income from insurance7,25011,27566,915-85,440-85,440TOTAL REVENUES97,351,33747,308,20313,992,456-158,651,996-158,651,996UNDERWRITING COSTS AND EXPENSESGross claims paid(89,141,789)(50,902,068)(2,693,485)-(142,737,342)-(142,737,342)Reinsurers’ share of claims paid8,806,18412,380,5161,203,886-22,390,586-22,390,586Expenses 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) 12.Segmental information (continued)For the three-month period ended June 30, 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalChanges in outstanding claims(5,621,962)11,798,0661,230,955-7,407,059-7,407,059Changes 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 reported1,891,635509,4421,500,708-3,901,785-3,901,785Net 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 INCOME (LOSS) (40,594,706)9,841,01814,146,216-(16,607,472)-(16,607,472)(continued) 12.Segmental information (continued)For the three-month period ended June 30, 2021 (Unaudited) (continued)Insurance operationsMedicalMotorProperty and casualtyProtection and savings TotalShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,044,068)-(3,044,068)General and administrative expenses(31,937,987)(450,709)(32,388,696)Investment and commission income1,604,0992,911,5264,515,625Finance costs on leases(72,908)-(72,908)Other income796,299-796,299Total other 0perating (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 shareholders’ 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) | 12 |
| Disclosure of capital management [text block] | 17.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.As stated in Note 1, the Company completed its rights issue on June 8, 2022 amounting to Saudi Riyals 229.5 million. As a result and at June 30, 2022, the Company is in compliance with the solvency margin requirements as stipulated by the Law. | 17 |
| Disclosure of commitments and contingencies, general [text block] | 10.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)See Note 14 for contingencies pertaining to zakat and income tax assessments. iii)At at June 30, 2022, the Company was contingently liable for financial guarantees issued against litigation in the normal course of business amounting to Saudi Riyals 1.0 million (December 31, 2021: Saudi Riyals 1.0 million). | 10 |
| Disclosure of board of director's approval of the financial statements [text block] | This interim condensed financial information has been approved by the Board of Directors on 16 August 2022. | 21 |
| Disclosure of other notes relevant to understanding of financial statements [text block] | 19.Supplementary information Interim condensed statement of financial positionJune 30, 2022 (Unaudited)December 31, 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalASSETSCash and cash equivalents176,383,862 87,527,042 263,910,904 40,666,697 74,315,396114,982,093Premiums and reinsurers’ receivable - net148,333,919-148,333,919 161,223,340- 161,223,340Premiums receivable - related parties - net 8,294,535 - 8,294,535 4,452,622- 4,452,622Reinsurers’ share of unearned premiums 39,970,452 - 39,970,452 44,001,521- 44,001,521Reinsurers’ share of outstanding claims 30,585,467 - 30,585,467 34,230,197- 34,230,197Reinsurers’ share of claims incurred but not reported 18,646,533 - 18,646,533 21,446,416- 21,446,416Deferred policy acquisition costs 17,857,942 - 17,857,942 17,232,872- 17,232,872Deferred excess of loss premiums3,845,544-3,845,544---Investments 131,236,318 105,320,978 236,557,296 139,811,054137,955,578 277,766,632Prepaid expenses and other assets33,223,428 6,153,667 39,377,095 41,968,172 3,744,992 45,713,164Long term deposits 34,531,501 40,032,877 74,564,378 - 40,032,877 40,032,877Property and equipment7,666,827-7,666,827 8,854,908- 8,854,908Right-of-use assets6,659,093-6,659,093 7,584,087- 7,584,087Intangible assets43,139,213-43,139,21343,378,547-43,378,547Goodwill-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-7,931,0507,931,050-7,738,8077,738,807Due from shareholders’ operations-9,869,6989,869,698207,825,300-207,825,300TOTAL ASSETS 700,374,634358,954,2581,059,328,892772,675,733365,906,5961,138,582,329Less: inter-operations elimination-(9,869,698)(9,869,698)(207,825,300)-(207,825,300)TOTAL ASSETS700,374,634349,084,5601,049,459,194564,850,433365,906,596930,757,029(continued) 19.Supplementary information (continued)Interim condensed statement of financial position (continued)June 30, 2022 (Unaudited)December 31, 2021 (Audited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalLIABILITIES Accounts payable103,485,124-103,485,124117,346,288-117,346,288Accrued and other liabilities 23,463,345 352,460.00 23,815,805 14,148,035 352,460 14,500,495Reinsurers' balances payable 13,132,436 - 13,132,436 14,478,470- 14,478,470Unearned premiums 249,562,850 -249,562,850 255,996,173- 255,996,173Unearned reinsurance commission 9,955,920 - 9,955,920 10,342,959- 10,342,959Outstanding claims 88,141,152 - 88,141,152 93,994,985- 93,994,985Claims incurred but not reported 135,657,524 - 135,657,524 186,847,969- 186,847,969Additional premium reserves 23,158,421 - 23,158,421 22,019,563- 22,019,563Other technical reserves 15,085,583 - 15,085,583 17,984,038- 17,984,038Lease liabilities 6,853,465 - 6,853,465 6,732,810- 6,732,810Employee benefit obligations 17,424,168 - 17,424,168 16,927,680-16,927,680Zakat and income tax-21,072,94821,072,948-20,072,94820,072,948Surplus distribution payable12,711,527-12,711,52713,748,722-13,748,722Accrued income payable to SAMA - 7,931,0507,931,050-7,738,8077,738,807Due to insurance operations9,869,698 - 9,869,698-207,825,300207,825,300TOTAL LIABILITIES708,501,21329,356,458737,857,671770,567,692 235,989,5151,006,557,207Less: inter-operations elimination(9,869,698)-(9,869,698)-(207,825,300)(207,825,300)TOTAL LIABILITIES698,631,51529,356,458 727,987,973770,567,69228,164,215798,731,907EQUITYShare capital- 458,949,280 458,949,280 -229,474,640229,474,640Statutory reserve- 4,885,691 4,885,691 -4,885,6914,885,691Accumulated losses-(133,847,825)(133,847,825)-(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(7,958,228)(389,346)(8,347,574)2,276,3926,799,5599,075,951TOTAL EQUITY (8,126,579)329,597,800321,471,221 2,108,041129,917,081 132,025,122TOTAL LIABILITIES AND EQUITY690,504,936358,954,2581,049,459,194772,675,733158,081,296930,757,029 19.Supplementary information (continued)Interim condensed statement of income for the six-month period endedJune 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalREVENUESGross premiums written257,243,530-257,243,530305,293,178-305,293,178Reinsurance premiums ceded:-Foreign (39,557,327)- (39,557,327)(53,340,342)-(53,340,342)-Local (6,720,843)- (6,720,843)(7,200,600)-(7,200,600)Excess of loss premiums:-Foreign (5,029,898)- (5,029,898)(12,359,731)-(12,359,731)-Local (1,639,599)- (1,639,599)(1,072,559)-(1,072,559)Net premiums written 204,295,863 - 204,295,863 231,319,946-231,319,946Changes in unearned premiums 6,433,323 - 6,433,323 66,181,327-66,181,327Changes in reinsurers’ share of unearned premiums (4,031,069)- (4,031,069)10,768,549-10,768,549Net premiums earned 206,698,117 - 206,698,117 308,269,822-308,269,822Reinsurance commissions 11,062,294 - 11,062,294 11,627,257-11,627,257Fee income from insurance 271,011 - 271,011 199,418-199,418Total revenues 218,031,422 - 218,031,422 320,096,497-320,096,497(continued) 19.Supplementary information (continued)Interim condensed statement of income for the six-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalUNDERWRITING COSTS AND EXPENSESGross claims paid(257,334,943)-(257,334,943)(314,849,763)-(314,849,763)Reinsurers’ share of gross claims paid42,314,530-42,314,53036,041,548-36,041,548Expenses incurred related to claims(3,910,655)-(3,910,655)(7,793,908)-(7,793,908)Net claims and other benefits paid(218,931,068)-(218,931,068)(286,602,123)-(286,602,123)Changes in outstanding claims 5,853,833 - 5,853,833 (10,188,644)-(10,188,644)Changes in reinsurers’ share of outstanding claims (3,644,730)- (3,644,730)1,723,388-1,723,388Changes in claims incurred but not reported 51,190,445 - 51,190,445 (23,497,297)-(23,497,297)Changes in reinsurers’ share of claims incurred but not reported (2,799,883)- (2,799,883)3,189,850-3,189,850Net claims and other benefits incurred (168,331,403)- (168,331,403)(315,374,826)-(315,374,826)Policy acquisition costs (17,522,236)- (17,522,236)(28,139,176)-(28,139,176)Changes in additional premium reserves (1,138,858)- (1,138,858)(17,581,935)-(17,581,935)Changes in other technical reserves 2,898,455 - 2,898,455 (1,850,692)-(1,850,692)Other underwriting expenses (5,865,212)- (5,865,212)(3,799,695)-(3,799,695)Total underwriting costs and expenses, net (189,959,254)- (189,959,254)(366,746,324)-(366,746,324)NET UNDERWRITING INCOME (LOSS) 28,072,168 - 28,072,168 (46,649,827)-(46,649,827)(continued) 19.Supplementary information (continued)Interim condensed statement of income for the six-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts(3,033,783) - (3,033,783)(6,757,435)-(6,757,435)General and administrative expenses (54,356,988) (1,741,026) (56,098,014)(60,020,270)(1,369,907)(61,390,177)Investment and commission income - net2,928,4736,319,9309,248,4032,814,2965,908,0488,722,344Finance costs on leases (120,655) - (120,655)(146,981)-(146,981)Other income 3,259,365 - 3,259,365 2,624,151-2,624,151Total other operating (expenses) income, net(51,323,588) 4,578,904 (46,744,684)(61,486,239)4,538,141(56,948,098)Total (loss) income for the period before surplus attribution, zakat and income tax(23,251,420) 4,578,904 (18,672,516)(108,136,066)4,538,141(103,597,925)Zakat expense - (1,000,000) (1,000,000)-(2,000,000)(2,000,000)Income tax expense------Total (loss) income for the period attributable to the shareholders(23,251,420) 3,578,904 (19,672,516)(108,136,066)2,538,141(105,597,925)Deficit transferred to the shareholders’ operations23,251,420(23,251,420)-108,136,066(108,136,066)-Total loss for the period after transfer of deficit-(19,672,516)(19,672,516)-(105,597,925)(105,597,925)Weighted average number of outstanding shares--31,061,253--22,919,184Losses per share (expressed in Saudi Riyals per share)Basic losses per share--(0.63)--(4.24)Diluted losses per share--(0.63)--(4.24) 19.Supplementary information (continued)Interim condensed statement of comprehensive income for the six-month period endedJune 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalTotal loss for the period after transfer of deficit -(19,672,516)(19,672,516)-(105,597,925)(105,597,925)Other comprehensive 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 (10,234,620) (5,588,904) (15,823,524)314,8872,381,7282,696,615Realized gain reclassified to interim condensed statement of income-(1,600,001)(1,600,001)---Total other comprehensive (loss) income (10,234,620) (7,188,905) (17,423,525)314,8872,381,7282,696,615Total comprehensive income (loss) for the period (10,234,620)(26,861,421)(37,096,041)314,887(103,216,197)(102,901,310) 19.Supplementary information (continued)Interim condensed statement of income for the three-month period endedJune 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalREVENUESGross premiums written122,193,514-122,193,514128,214,067-128,214,067Reinsurance premiums ceded:-Foreign (15,575,057)- (15,575,057)(19,238,197)-(19,238,197)-Local (2,316,686)- (2,316,686)(3,564,041)-(3,564,041)Excess of loss premiums:-Foreign (3,681,083)- (3,681,083)(9,395,350)-(9,395,350)-Local (1,065,643)- (1,065,643)(505,099)-(505,099)Net premiums written 99,555,045 - 99,555,045 95,511,380-95,511,380Changes in unearned premiums 8,333,421 - 8,333,421 60,527,772-60,527,772Changes in reinsurers’ share of unearned premiums (7,439,060)- (7,439,060)(3,423,451)-(3,423,451)Net premiums earned 100,449,406 - 100,449,406 152,615,701-152,615,701Reinsurance commissions 5,921,474 - 5,921,474 5,950,855-5,950,855Fee income from insurance 118,980 - 118,980 85,440-85,440Total revenues 106,489,860 - 106,489,860 158,651,996-158,651,996(continued) 19.Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalUNDERWRITING COSTS AND EXPENSESGross claims paid(114,865,592)-(114,865,592)(142,737,342)-(142,737,342)Reinsurers’ share of gross claims paid24,027,376-24,027,37622,390,586-22,390,586Expenses incurred related to claims(1,672,060)-(1,672,060)(4,156,154)-(4,156,154)Net claims and other benefits paid(92,510,276)-(92,510,276)(124,502,910)-(124,502,910)Changes in outstanding claims 6,879,435 - 6,879,435 7,407,059-7,407,059Changes in reinsurers’ share of outstanding claims (4,860,092)- (4,860,092)(1,469,880)-(1,469,880)Changes in claims incurred but not reported 17,549,704 - 17,549,704 (33,649,273)-(33,649,273)Changes in reinsurers’ share of claims incurred but not reported (3,652,786)- (3,652,786)3,901,785-3,901,785Net claims and other benefits incurred (76,594,015)- (76,594,015)(148,313,219)-(148,313,219)Policy acquisition costs (8,475,631)- (8,475,631)(14,328,020)-(14,328,020)Changes in additional premium reserves (729,516)- (729,516)(7,171,265)-(7,171,265)Changes in other technical reserves 1,681,407 - 1,681,407 (1,920,264)-(1,920,264)Other underwriting expenses 477,389 - 477,389 (3,526,700)-(3,526,700)Total underwriting costs and expenses, net (83,640,366)- (83,640,366)(175,259,468)-(175,259,468)NET UNDERWRITING (LOSS) INCOME 22,849,494 - 22,849,494 (16,607,472)-(16,607,472)(continued) 19.Supplementary information (continued)Interim condensed statement of income for the three-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalOTHER OPERATING (EXPENSES) INCOMEAllowance for doubtful debts411,529 - 411,529(3,044,068)-(3,044,068)General and administrative expenses (27,353,520) (910,573) (28,264,093)(31,937,987)(450,709)(32,388,696)Investment and commission income – net1,578,3752,195,2443,773,6191,604,0992,911,5264,515,625Finance costs on leases (54,821) - (54,821)(72,908)-(72,908)Other income 2,998,743 - 2,998,743 796,299-796,299Total other operating (expenses) income, net(22,419,694) 1,284,671 (21,135,023)(32,654,565)2,460,817(30,193,748)Total income (loss) for the period before surplus attribution, zakat and income tax429,800 1,284,671 1,714,471(49,262,037)2,460,817(46,801,220)Zakat expense -(500,000)(500,000)-(1,000,000)(1,000,000)Income tax expense------Total income (loss) for the period 429,800 784,671 1,214,471(49,262,037)1,460,817(47,801,220)Surplus attributed to the shareholders’ operations (429,800) 429,800-49,262,037(49,262,037)-Total income (loss) for the period after transfer of deficit-1,214,4711,214,471-(47,801,220)(47,801,220)Weighted average number of outstanding shares--41,517,221--22,919,184Income (losses) per share (expressed in Saudi Riyals per share)Basic income (losses) per share--0.03--(1.92)Diluted income (losses) per share--0.03--(1.92) 19.Supplementary information (continued)Interim condensed statement of comprehensive income for the three-month period endedJune 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalTotal income (loss) for the period after transfer of deficit -1,214,4711,214,471-(47,801,220)(47,801,220)Other comprehensive loss:Items that will be reclassified to the interim condensed statement of income in subsequent periodsNet change in fair value of available-for-sale investments (7,868,159) (4,990,731) (12,858,890)(421,078)1,479,5891,058,511Realized gain reclassified to interim condensed statement of income------ (7,868,159) (4,990,731) (12,858,890)(421,078)1,479,5891,058,511Total comprehensive loss for the period (7,868,159)(3,776,260)(11,644,419)(421,078)(46,321,631)(46,742,709) 19.Supplementary information (continued)Interim condensed statement of cash flows for the six-month period endedJune 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM OPERATING ACTIVITIESTotal loss for the period before surplus attribution, zakat and income tax - (18,672,516)(18,672,516)-(103,597,925)(103,597,925)Adjustments for non-cash items:Depreciation of property and equipment 1,266,990 - 1,266,990 1,148,898-1,148,898Amortization of intangible assets 4,102,128 - 4,102,128 1,213,764-1,213,764Depreciation of right-of-use assets 924,994 - 924,994 973,077-973,077Finance costs on leases 120,655 - 120,655 146,981-146,981Allowance for doubtful debts3,033,785-3,033,7836,757,435-6,757,435Investment and commission income (2,928,473) (6,319,930) (9,248,403)(2,814,296)(5,908,048)(8,722,344)Provision for employee benefit obligations496,488-496,490606,928-606,928Realized losses on disposals of available-for-sale investments ------Gain on termination of lease liabilities---(112,288)-(112,288)7,016,567(24,992,446)(17,975,879)7,920,499(109,505,973)(101,585,474)Changes in operating assets and liabilities:Premiums and reinsurers’ receivable9,855,636-9,855,63622,086,624-22,086,624Premium receivables - related parties (3,841,913)- (3,841,913)(658,151)-(658,151)Reinsurers’ share of unearned premiums 4,031,069 - 4,031,069 (10,768,549)-(10,768,549)Reinsurers’ share of outstanding claims 3,644,730 - 3,644,730 (1,723,388)-(1,723,388)Reinsurers’ share of claims incurred but not reported 2,799,883 - 2,799,883 (3,189,850)-(3,189,850)(continued) 19.Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalDeferred policy acquisition costs (625,070)- (625,070)4,652,963-4,652,963Deferred excess of loss premiums (3,845,544)- (3,845,544)(3,707,632)-(3,707,632)Prepaid expenses and other assets41,441,719(2,845,107)38,596,612(8,021,117)5,205,009(2,816,108)Accounts payable(13,861,164)-(13,861,164)22,387,409-22,387,409Accrued and other liabilities (22,995,621)-(22,995,621)8,952,691(80,496)8,872,195Reinsurers' balances payable (1,346,034)- (1,346,034)7,172,469-7,172,469Unearned premiums (6,433,323)- (6,433,323)(66,181,327)-(66,181,327)Unearned reinsurance commission (387,039)- (387,039)2,101,675-2,101,675Outstanding claims (5,853,833)- (5,853,833)10,188,644-10,188,644Claims incurred but not reported (51,190,445)-(51,190,445)23,497,297-23,497,297Additional premium reserves 1,138,858 - 1,138,858 17,581,935-17,581,935Other technical reserves (2,898,455)- (2,898,455)1,850,692-1,850,692Employee benefit obligations paid---(1,682,343)-(1,682,343)Zakat and income tax paid----(1,886,010)(1,886,010)Surplus paid to the policy holders (1,037,195) - (1,037,195)---Net cash (used in) generated from operating activities(44,387,174)(27,837,553)(72,224,727)32,460,541(106,267,470)(73,806,929)(continued) 19.Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalCASH FLOWS FROM INVESTING ACTIVITIES Placement of short-term deposits---(30,584,375)(100,492,708)(131,077,083)Liquidation of short-term deposits(34,531,501)-(34,531,501)116,793,212100,855,417217,648,629Purchases of available-for- sale investments (6,661,897)(10,377,218)(17,039,115)(15,527,118)(10,000,000)(25,527,118)Purchases of held-to-maturity investments-1,041,6631,041,663---Proceeds from sales of available-for-sale investments-36,381,25136,381,251---Proceeds from disposal of available-for-sale investments------Proceeds from redemption of held-to-maturity investment5,002,013-5,002,013-3,750,0003,750,000Investment and commission income received 2,542,429 5,156,3617,698,7902,493,4726,403,3868,896,858Payments for purchases property and equipment (78,909) - (78,909)(349,440)-(349,440)Additions to intangible assets(3,862,794)-(3,862,794)(2,460,772)-(2,460,772)Proceeds from disposal of property and equipment---468,264-468,264Liquidation of statutory deposit----18,450,00018,450,000Net cash (used in) generated from investing activities (37,590,659) 32,202,057 (5,388,602)70,833,24318,966,09589,799,338CASH FLOWS FROM FINANCING ACTIVITIESPrincipal elements of lease payments---(60,982)-(60,982)Finance cost paid---(3,018)-(3,018)Issue of share capital, net of expenses-226,542,140226,542,140---Due to shareholders’ operations217,780,926(217,780,926)-(78,289,968)78,289,968-Net cash generated from (used in) financing activities217,780,9268,761,214226,542,140(78,353,968)78,289,968(64,000)(continued)19.Supplementary information (continued)Interim condensed statement of cash flows for the six-month period ended (continued)June 30, 2022 (Unaudited)June 30, 2021 (Unaudited)Insurance operationsShareholders’ operationsTotalInsurance operationsShareholders’ operationsTotalNet increase cash and cash equivalents135,717,165 13,211,646148,928,81124,939,816(9,011,407)15,928,409Cash and cash equivalents, 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 period176,383,862 87,527,042263,910,90492,792,010102,644,428195,436,438Supplemental non-cash information:Net change in fair value reserve for available-for- sale investments(10,234,620) (7,219,182)(17,453,802)314,8872,381,7282,696,615 | 19 |
